Many multinationals have failed to properly fulfill their social
responsibilities in China, with some overtly violating local laws
and regulations, according to a survey by Southern
Weekly.
Tracking 126 multinationals over a 12-month period, the
newspaper observed four kinds of typical malpractice: refusing to
set-up internal labor unions, poor environmental practice, failing
to deliver quality services and providing substandard products.
A few were guilty of bribing government officials or the
management of other companies, said the weekly, without identifying
their names.
In a breakdown, it said that 58 companies, or 46 percent of the
companies surveyed, had refused to comply with the law requiring
the establishment of labor unions while another 20, or 15.9
percent, had seriously damaged the local environment.
Thirty-seven companies, or 29.4 percent of the polled, provided
substandard services or commodities to Chinese consumers with 19 of
them the objects of repeated complaints.
The newspaper said that all the 126 companies surveyed are
"Fortune 500" companies who have posted "outstanding" financial
results in sales revenue, export volume and pre-tax profits.
The newspaper said that the survey was based on public
information provided by government authorities, consumer
associations, labor unions and media reports.
The newspaper said it had verified the information with the
companies.
Official data showed that about 450 of the top 500
multinationals have invested in China and established more than 700
research centers. Forty of them have set up regional headquarters
in China.
(Xinhua News Agency November 25, 2006)