Farmers as the basic working group of the supply chain should be
given more care and support and enterprises need to fulfill their
social obligations by taking on supply chain responsibility,
according to Ms. Yang Tuan, Deputy Director of the Social Policy
Studies under the Chinese Academy of Social Sciences and Director
of the Chinese Social Policy Special Interest Committee, at the
Seventh China Corporate Social Responsibility (CSR) Forum on
December 13.
Speaking at the conference, Professor Yang Tuan told
China.org.cn that the growth of the economy, along with
improvements in industrial capacity and cultural integration, has
wrought vast changes in terms of traditional corporate values. This
change has made Chinese enterprises more aware of their social
responsibilities.
"On the one hand, enterprises around the world are going global
in terms of production and resource allocations, while on the other
hand, global cooperation among enterprises is taking on a more
complex outlook, thus creating a huge value chain," she said.
She added: "Corporate social responsibility also forms part of
the cultural sphere and stands as a crucial part of modern
entrepreneurship and it has integrated into corporate values.
Caring about natural resources, the global environment, labor
rights and interests, business ethics and instilling the concept of
responsibility into stakeholders have now become commonplace among
enterprises."
"For China, issuing a clarion call to its corporate citizens to
bear the load of their social responsibilities will not only help
the national economy blossom but it will also help our integration
into the global family," she explained.
Responsibility is seen as being tied into the company's profits,
making those enterprises with a higher sense of responsibility
better equipped to sustain their profits and develop their
brands.
Though China must still improve such areas as enterprise
governance, information publicity and public investment, it is
encouraging that investment in the fulfilling of social
responsibilities is already taking place.
Professor Yang set up a supply chain model, the
farmers-enterprises-consumers line, for enterprises to undertake
their social responsibilities. Rural residents are seated at the
bottom level and consumers on the top provide the money.
Enterprises are like ladders connecting these two elements.
When purchasing products, consumers also can take into
consideration other, higher requirements - environmental concerns.
Whether the manufacturing process is good for the whole
environment, whether the working conditions are fair, whether the
materials are biodegradable – all these issues and more can
factored into choosing whether to buy a product or not. Companies
then could try their best to meet these demands. While doing this
they would also be fulfilling their social responsibilities, to
some extent.
However, Ms. Yang pointed out that besides all these direct
common responsibilities, companies should know their other indirect
obligations regarding social development. They should give more
care and support to the real producer – farmers.
"Most of materials are made or grown by rural residents. But
actually, they are at the lowest economic level. And enterprises in
the middle earn lots of money. So companies have the obligation to
promote the development of rural areas and this is also advocated
by their consumers," she said.
According to her, the main problems for rural areas lie in these
fields: high marker information cost, limited organizing ability,
backward technologies and capital shortage.
Addressing methods in which enterprises could fulfill these
responsibilities, Professor Yang stressed that enterprises should
unite small and independent farmers together to improve the
environment of all local communities.
She also urged that the government at all levels should
implement some special policies or regulations to provide better
and more convenient services for those enterprises which make
contributions toward the development of rural areas.
Operating under the theme of "Stakeholder and corporate social
responsibility", the meeting held by the China Philanthropy
Times aims to boost communications between academic circles
and public organizations, and to bolster the spirit of corporate
social responsibility under the aegis of economic globalization
while also fitting into China's economic and social aims.
?(China.org.cn by staff reporter Wang Ke December 14, 2007)
