Foreign firms under fire in report

A man's silhouettestands beside a billiboard carrying the logo of Adidas in a store in Shanghai. [CFP]

About 70 percent of the top companies in China lack social responsibility, according to the 2011 Chinese Corporate Social Responsibility (CSR) Report released Tuesday by the Chinese Academy of Social Sciences (CASS).

The research institute surveyed a total of 300 top state-owned, private and foreign firms in China, 100 in each category, and measured them on the basis of the following criteria: anti-commercial bribery systems, product qualification rate, social security coverage, occupational health and safety training, energy conservation and emission reduction.

The results of the survey show that businesses in all three categories performed poorly in terms of social responsibility, with an average score of only 19.7 out of 100. About 205 enterprises, or 68.3 percent of those surveyed, rarely disclose information regarding their social responsibility.

Notably, of the 26 enterprises which scored either zero or negatively on the survey, 19, or about 70 percent, were foreign corporations. Sportswear giant Adidas finished bottom of the list, with a score of -4. The international auto manufacturer Daimler-Chrysler and beverage maker Coca-Cola were also among the survey's worst performers.

The top 100 foreign companies received an average score of only 12.5, lower than that of state-owned and private firms. Furthermore, 78 of the top 100 foreign firms failed to carry out, any concrete responsibility management measures or disclose relevant information regarding social responsibility.

China Ocean Shipping (Group) Company (COSCO) topped the list for the third consecutive year.

The results of the survey have turned public opinion against foreign firms, which had previously been seen as leading the way in taking social responsibility. Yin Fuqiang, c! hief att orney with China's lawov.com, commented that some renowned foreign firms are frequently involved in damaging scandals because China's legal system lacks the means to adequately punish such firms. Paltry fines are hardly an effective deterrent for big companies.

Negative information about companies' practices also damaged their standings. The leading environmental group Greenpeace's latest report in August indicated that garments from some famous global brands, including Adidas, contained traces of toxic chemicals which are harmful to both the environment and human health.


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