Some multinationals evade social responsibility in China

Some multinational companies have evaded social responsibility in China, according to a recent report by the Transnational Corporation Research Center under the Ministry of Commerce.

The report said media criticized 12 multinational companies for their weakened responsibility incidents in the past year, which include the "dirty kitchen" of Haagen-Dazs and Kraft biscuits with genetically engineered ingredients. It shows that multinationals are facing the challenges of their social responsibility on China's market.

The report said that many such firms had brought to China the ideas of capital, technology, modern corporate management, corporate social and environmental responsibility, but some of them had neglected their social responsibility, or even did something in violation of social responsibility and moral code.

Handful multinational employees gave bribes in China and evaded taxes illegally, a few were wrapped up in monopoly, and some practiced lower labor standards while other foreign-funded enterprises produced sub-standard products in the country.

With their corporate social responsibility focusing on enterprises' supply chain, their responsibility had great impact on foreign processing & trading enterprises as well as export ones, involving six sectors of electronics, textiles, clothes, shows, toys and handicraft. As these industries were labor-intensive, there existed problems of production conditions and safety as well as the protection of staff's professional health, rights and interests.

In addition, there were incidents that some multinationals' products did not meet security requirements. For example, departments concerned found that Shenzhen firm's kitchen of Haagen-Dazs was without hygiene permit. A few multinationals were accused of adopting double standards when selecting raw materials.

The report said the lowered standards in product security by multinationals directly damaged the interests of clients.

The reason for their weakened social responsibility is the "readjustment made in line with China's market characteristics." Experts from the Ministry of Commerce believe that China's market has not been standardized indeed yet. But it does not amount to say that multinationals can give up corporate social and environmental responsibility and basic moral code while participating in the country's market competition.

By People's Daily Online