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In 2006, the State Grid was the first Chinese firm to release a CSR report to detail its social responsibility efforts. In 2011, Chinese companies issued 817 reports, soaring from only 32 in 2006.
China's largest mobile network equipment maker Huawei Technologies, for instance, regularly releases CSR and financial reports, though it has yet to go public. As the Shenzhen-based company makes inroads abroad, Europe has become a niche battlefield—it now supplies all of Europe's major operators including Vodafone and France Telecom.
"Our massive investments have delivered a boost to a string of relevant industries in Europe," said Hu Houkun, Deputy Chairman of Huawei. "In addition, we tied up with many European universities and research institutions to jointly propel technological advances."
"Those inputs have put pressure on our balance sheet, but it is well worth the effort given its far-reaching implications," he added. "It reduced public misunderstandings about Huawei, and created a fairer and more friendly market environment for the company to compete."
Ma Chuanfu, Vice President of CITIC Construction Co. Ltd., said what matters most is integrating into the local society and helping improve the livelihood of local residents.
In Angola, the Chinese construction company successfully won a government contract to build a huge social housing project. What set it apart from competitors were localized operations thoroughly integrated with the surrounding community.
To address local food shortages, the company helped build vegetable gardens and brought in quality seeds and agricultural experts from China to teach Angolans new techniques. It also built schools and hospitals around the construction site and offered medical consultations to local residents.
CITIC's approach promoted social stability and economic prosperity in the community. Not surprisingly, it led to tangible benefits for the company, as well. The government of Angola invited the company to participate in further construction projects involving infrastructure and agricultural development.
While Chinese businesses have made progress in corporate citizenship, there is certainly room for improvement. Among the central SOEs and the listed companies on the Shanghai and Shenzhen stock exchanges, around three fourths have yet to publish a single CSR report.
"Another major challenge is a reluctance to communicate, such as discussing a company's plan and thoughts with external stakeholders and trusting local partners," said the report.
Critics in Western countries have raised suspicions about the image problem of many Chinese firms going global. The report cited the following case: A Chinese company submitted a bid for an infrastructure project in Southeast Asia financed by the World Bank. An investigation of the World Bank found that the company had colluded with several others on their bids. It admitted to taking inappropriate actions and was eventually blacklisted from participating in any future projects of the World Bank.
In 2006, six local workers were shot in a riot at the Chambishi Copper Mine in Zambia, owned by the China Nonferrous Metals Co. Ltd. The riot was triggered by a prolonged dispute over delayed wages which the mine's labor unions said were the lowest in the industry.
"Those negative incidents have tainted the image of corporate China, and cast an ominous shadow over the prospect of firms investing abroad," said Wei Jianguo, Secretary General of China Center for International Economic Exchanges.
"With little experience in cross-border operations, many Chinese firms lack public relations expertise, cultural sensitivity, and human rights and environmental awareness needed to build a global footprint," he added.
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