Transcript GTZ Partnet for the future

CSR and Regional Responsible Competitiveness
jobs & revenue
Mr. Rolf Dietmar
Project Director
Sino-German CSR Project
CSR Training for SMEs
China Institute of Industrial Relations
24-25 July, 2008
livelihoods
2015/7/21
Seite 1
Introduction to GTZ
GTZ – Partner in 126 countries
 Europe, Caucasus
 Central Asia
 Asia and Pacific
 South America
 Caribbean
 Africa
 Middle East
Economic
Performance
Social Justice
Ecological
Sustainability
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GTZ Focus Areas
Economic and Social Reform
Legal Advisory Services
Financial Sector Development
Environmental Policy
Energy Management
Natural Resources Management
Sustainable Urban Development
Sino-German CSR Project
Corporate Social Responsibility
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Sino-German CSR Project Concept
Objective
To have key political institutions and enterprises incorporate CSR into their policies, strategies and
practices.
Duration
April 2007 – March 2011
Implementing partners
Department of WTO Affairs, Ministry of Commerce of PRC
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
Intermediaries
Employees and management of partner organisations, research institutions, media, and civil society.
Intervention Areas
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National-level policy development and stakeholder dialogue (Macro)
Provincial-level policy development and stakeholder dialogue (Meso)
Enterprise-level PPP (Micro)
International exchange
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Cooperation Partners
jobs & revenue
“…The Sino-German Corporate Social Responsibility Project emphasizes
collaboration and cooperation with a variety of organizations to maximize the
impact of its activities…”
Cooperation principles
 Provide assistance on the basis of needs
 Support existing efforts
 Work with organizations which are highly interested in CSR and
self-motivated to cooperate.
 Focus on outcomes and impact
 Apply a cooperation model where partners make contributions
demonstrating active ownership.
 Incorporate all relevant stakeholders into project activities
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Corporate Social Responsibility

Strategically incorporating social and environmental considerations into daily
business practices to achieve sustainability and competitive advantages
 Moving from compliance to a comprehensive CSR strategy
Stage 3: Competitive
advantage
Stage 2: Compliance and
efficiency
CSR stages: Maximising
opportunities and
managing risks
Stage :1 Rejection, nonresponsiveness
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Responsible Competitiveness and Value
Responsible Competitiveness is about making sustainable development count in
global and regional markets.
 Markets reward business practices that improve social, environmental and
economic outcomes
 Economic success for nations that encourage such business practice
through public policies, societal norms and citizen action
 Regional success for provinces and cities that encourage the same business
practices
Responsibility can and does reinforce competitiveness at all levels of development
“Responsible competitiveness…blends forward-looking corporate strategies,
innovative public policies and engaged and vibrant civil societies. It is about
creating a new generation of profitable products and business processes
underpinned by rules that support societies’ broader social, environmental and
economic aims”
Pascal Lamy, Director-General, World Trade Organization
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Accountability
AccountAbility is an international non-profit, membership organisation (est. 1995) to
promote accountability innovations that advance responsible practices of business,
government, civil society and other institutions
 200 members include businesses, non-governmental organizations and research
bodies
 Representatives from all five continents
 Developed AA1000 Framework Series on Sustainability Assurance and Stakeholder
Engagement Standards
 Cutting edge research on governance and accountability of partnerships and links
between responsible business practices and the competitiveness of nations.
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Accountability 2007 Responsible Competitiveness Report
108 countries included in the study
95 percent of the global economy covered
Covers key developments combating climate
change, enhancing labour standards, closing the
gender gap and reducing corruption
pinpoints exciting market opportunities, and also
risks that politicians, businesses and investors
need to manage
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Core Principles of Responsible Competitiveness
Policy Drivers
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2.
3.
4.
5.
6.
7.
Signing and ratification of environmental treaties
Ratification of basic workers conventions
Rigidity of employment index
Stringency of environmental protection
Carbon dioxide emissions per US$ billion Gross National Income
Private sector employment of women
Responsible tax environment
Business Agenda
1.
2.
3.
4.
5.
6.
7.
Efficacy of corporate boards
Ethical behavior of firms
Wage equality for similar work
Strength of auditing and accounting standards
Extent of staff training
Ratio of ISO 14001 to ISO 9001 certification
Occupational fatalities
Social Enablers
1.
2.
3.
4.
5.
6.
7.
Corruption Perception Index
The degree of customer orientation
Freedom of the press
Transparency of transactions
NGO membership
Civil liberties
Impact of clean air and water on business operations
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The State of Responsible Competitiveness 2007
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BRICS and Responsible Competitiveness
Brazil, Russia, India, China and South Africa will be, together, stronger than the old G6 economies
of France, Germany, Italy Japan, the UK and US (Goldman Sachs Group’s forecast for 2050)
However, each country must confront enormous challenges, and the present Responsible
Competitiveness Index (RCI) ratings reflect this.
BRICS performance in RCI in 2007
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China and challenges to Responsible Competitiveness
Remarkable economic development but social and environmental challenges exist.
Environmental Challenges
 Dramatic increase in
the demand for natural
resources
Social challenges
 Work safety
 Public health problems
 Mass migration
 Forced resettlement
 Social unrest
China
 Poorly regulated
industrial and
household emissions
and waste
 Environmental
degradation and pollution
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A Central Framework for Responsible Competitiveness
Harmonious Society
 shifts the focus of development from centralized control to increased participation and
multi-stakeholder involvement and from a premium on economic growth to overall
societal balance, including environmental sustainability
Hu Jintao’s 8 Dos and Don’ts
1. Love the motherland, do not harm it.
2. Serve, don't disserve the people.
3. Uphold science, don't be ignorant and unenlightened.
4. Work diligently, don't indulge in ease and comfort
5. Be united and help each other, don't benefit at the expense of others.
6. Be honest, not profit-mongering.
7. Be disciplined and law-abiding, not chaotic and lawless.
8. Know plain living and hard struggle, do not wallow in luxuries
4 March 2006
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Responsible Competitiveness and Harmonious Society
“[The] Idea of Responsible Competitiveness embodies many of the principles that accord with
China’s process of implementing sustainable development strategies and the direction of
constructing a harmonious society.”
Cheng Siwei
Climate change
 Haier Group Company, and the China Ocean Shipping Group
(COSCO) have embraced the UN Global Compact’s “Caring for
Climate” initiative with the UNEP and the WBCSD
Forestry
 Chinese Forestry Ministry now "positively guides and standardises
Chinese companies' sustainable forestry activities overseas, promotes
the sustainable development of forestry in those countries (and)
protects the international image of our government being responsible”
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Towards Responsible Competitiveness
China-based regional CSR initiatives
2004
Changzhou City, Jiangsu Province
Established a “CSR City Committee for the Administration of
Standardization” in 2004.
In June 2004, the Committee
announced the Changzhou CSR Standard (CSA8000)
2005
Hebei Government
Hebei Training Center of Business and Trade established the
programme “Corporate Social Responsibility Pilot and Promotion
Programme in Export Enterprises of Hebei Province ”
2006
Shenzhen Government
2007
Xiangfan City, Hubei Province
First city to initiate activities of selecting excellent corporate
citizen in China
April
2007
The Shanghai Division of the China
Banking Regulatory Commission
Issued the “Guidelines on Corporate Social Responsibility for
Shanghai Banking and Financial Corporations” to promote social
responsibility in financial institutions and the banking industry
July
2008
Shanxi Province
Issued the Industrial Enterprise CSR Guide
Released a guiding document for improving the implementation
of CSR and creating a CSR evaluation standard. Also revising
existing procurement regulations to include CSR requirements.
On 25 September 2006, the Shenzhen stock exchange put into
effect “Social Responsibility Guidelines for Listed Companies”.
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Commercial Centre Competitiveness
The MasterCard Worldwide Centers of Commerce Index is an innovative research
Program designed to identify and rank the world’s leading cities and explore their role
in driving global commerce.
The index utilizes seven dimensions
1. Legal and political framework
2. Economic stability
3. Ease of doing business
4. Financial flow
5. Business centre
6. Knowledge creation and information flow
7. Livability
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Headline Results
Top Ten Centers of Commerce in the world
1.
London
79.17
2.
New York
72.77
3.
Tokyo
66.60
4.
Singapore
66.16
5.
Chicago
65.24
6.
Hong Kong
63.94
24.
Shanghai
52.89
7.
Paris
63.87
57.
Beijing
42.52
8.
Frankfurt
62.34
60.
Shenzhen
40.04
9.
Seoul
61.83
72.
Chengdu
33.84
10.
Amsterdam
60.06
73.
Chongqing
33.13
Five Chinese Cities
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The Pudong New District’s New Development Model
Background information
 National-level development zone
 Total output value growing from six billion RMB in 1990 to 2.75 trillion RMB in 2007
 Investors from 98 countries and regions had invested in nearly 15,000 projects in the district,
totalling US$35.643 billion
 Development in the district has been focused on four key areas: Lujiazui Financial and Trade Zone,
Waigaoqiao Free Trade Zone, Jinqiao Export Processing Zone and Zhangjiang High-Tech Park
Still, accepted that Shanghai needs to quickly transform its mode of economic development, push
industrial restructuring and optimisation, and spur sustainable development.
Four-in-One (a system that advances CSR through)
Government
Corporations
Intermediary groups
Society
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Highlights of Pudong New Development Model
A. Government guidance and principles for CSR work system
1.
2.
3.
‘Pudong New District’s Corporate Social Responsibility Leading Principles’
‘Suggestions on Pudong New District’s Push to Implement CSR’
‘The Pudong New District’s three year CSR System Action Programme’
*Also, created a CSR ‘connection conference’.
B. Corporations
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Joint declaration on implementing CSR in Pudong to construct harmonious companies,
voluntary CSR implementation, and collaborative construction of a harmonious society
C. Social Participation
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CSR tool system is a multiple stakeholder engagement mechanism
‘Pudong New District’s CSR Model Case Studies’.
‘The Pudong New District CSR Leading Principle’
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