Chinese politician puts down CSR marker

Further signs that the Chinese authorities are beginning to get to grips with the CSR agenda have come from a leading lawmaker in the Beijing government, who has attacked companies that blindly pursue profit and neglect their social responsibilities.

Cheng Siwei, vice-chairman of the standing committee of the National People’s Congress, condemned reckless practices in which private coal mine bosses are pushing farmers to work in hazardous conditions, food company managers are using cheap industrial materials in products for human consumption, and factories are discharging torrents of pollution.

He said: ‘The practice is serious and widespread among Chinese firms. Like other countries, China can no longer tolerate it.’

Cheng said domestic and foreign enterprises operating in China were equally as guilty and warned: ‘Even in developing countries, foreign companies that turn a blind eye to their social responsibilities will be kicked out of the market.’

One reason, he said, was that such practices prevented Chinese companies from expanding their business overseas.

Cheng, who made his attack in an article in China Economy Weekly, called for severe penalties for companies that shirk their social responsibilities. Their conduct, he said, was unfair to responsible businesses.