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Business / Companies

Asian firms score well on responsibility index

By Yang Wanli (China Daily) Updated: 2014-11-14 14:23

Asian enterprises performed well in terms of corporate social responsibility development within a new report covering the top 100 overseas-invested companies in China this year.

Asian firms score well on responsibility index

Companies with investment from the United States and Europe, however, scored low on the 2014 CSR Development Report of Chinese Corporations.

The report was released by the Research Center for CSR under the Chinese Academy of Social Sciences, the top government think tank.

The evaluation had four parts: management, marketing, social responsibility and environmental responsibility. It covered nearly 100 specific items such as anti-corruption rules, after-sale service, employees' social insurance and investment in environmental protection.

South Korean companies (five in total) had the best performance with index scores of 60 on average.

South Korean tech giant Samsung Electronics Co Ltd, the biggest smartphone seller in China, had a score of 80.2, the highest among the top 100.

Companies based in Taiwan, Hong Kong and Japan also performed well, with average scores of 35 to 51.

About half of the top 100 overseas-invested companies are from the US, the United Kingdom and France. However, they only got an average score of 19.

And the US sports brand's unit Nike China only gained a score of one.

The information used in the evaluation system came from companies' CSR reports, their annual reports and official websites, according to Zhong Hongwu, director of the research center.

"Many foreign-invested companies are reluctant to disclose their financial information and most had low scores for shareholders' rights," Zhong said.

"But they are much more likely to reveal their efforts in charity and environmental protection."

The study also ranked the top 300 Chinese companies. Of these, electric power and the telecom industries ranked the highest, with an average score of 65.

Household products and pharmaceuticals came in last with an average score of 19.

The 300 companies were in 38 industries from service to construction. China Southern Power Grid, China Mobile Communications Corp and State Grid Corp of China took the top three places with an average score of 87.

"Food and drugs are two things that are closely connected with people's health and daily lives. The report indicates that more improvement in these two industries is needed, as well as better regulation and management, not only for quality control but also for corporate social responsibility," said Yan Wenjun, an official of the China Food and Drug Administration.

"Strengthening legislation and law enforcement related to CSR has been emphasized by the top leaders in China in recent years," said Guo Xiuming, an official of the Department of Policy and Regulation at the Ministry of Industry and Information Technology.

"Companies are cells that belong to a body called 'society'. They are part of society, bringing vitality to it and also gaining benefits from it.

An increasing number of Chinese companies have had a better CSR performance in recent years, but a long road is still ahead," he said.

Asian firms score well on responsibility index Asian firms score well on responsibility index
More Chinese firms focusing on charity work  Chinese businesses send message with professional reports 

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