News

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15 Sep 2010

New central government charity laws in 2011 will impact business strategy in China

Shanghai Expo Forum on CSR fosters discussion from government, business and media representatives

News

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DLA Piper and Standard Chartered Bank co hosted a timely symposium addressing the development of Corporate Social Responsibility (CSR) in China. The conference, held on 14 September during Professional Services Week at the Shanghai Expo, investigated the role of Government, media and business in creating a harmonious and stable society, and opened important discussions about China's new Charity Law.

Under the new Charity Law companies will be expected to play a role in cultivating civil society in China. The political and legal developments in promoting CSR in China were discussed at the conference by speakers who included Chinese Government representatives, leading academics, politicians, major media commentators, non-government organisations (NGOs) and prominent company representatives.

"CSR is moving from the backroom to the boardroom in China. As we are on the cusp of the new China Charity Law being released, we believe both foreign and local corporations in China need to prioritise this discussion as part of their business strategy and operations in this vitally important world market," said Lord Tim Clement-Jones, partner in International Business Relations at DLA Piper. He continued: "This is an era where comprehensive development will replace individual enrichment for entrepreneurs; and sustainable strategy will replace conspicuous consumption in companies. This is a timely conference to clarify the role that companies will play."

There was an impressive line up of 20 speakers at the conference including Carma Elliot OBE, British Consul in Shanghai, Alastair Da Costa, Asia Managing Director, DLA Piper and Joanna Fielding, Chief Financial Officer, Standard Chartered Bank (China).

Three discussion panels were held by Government, business, and media representatives. Each group expressed their views on issues ranging from the role that businesses and NGOs will be expected to play in developing a civil society in China under the new China Charity Law to the future development and impact of CSR in China.

The panel discussions were moderated by Roy Chan, Managing Partner of DLA Piper's Shanghai office, and attracted over 100 high-level, senior representatives from industry including representatives from Pilkingtons, Unilever, Goldman Sachs, Tesco, Standard Chartered, Barclays Capital, to state-owned enterprises, as well as over 30 government approved NGOs. Media representatives included Africa Business Council magazine, China Daily, China Radio International, The Daily Telegraph, The Economist, Financial Times, Forbes, The Guardian, Hurun Report, South China Morning Post and UN China.

Asia CSR Manager at DLA Piper, Clare Pearson, said: "It is very rare to organise a gathering in China for such a large number of NGOs and we have been permitted to do so because of the Government speakers who headlined this event. We are thrilled to see the new Charity Laws addressing the wider interests of the community and pleased to see CSR emerging 'centre stage' for business strategy in China."

Background on the Shanghai Expo

On 20 August 2010, Premier Wen Jiabao gave a landmark speech in Shenzhen to mark 30 years of the Special Economic Zones (SEZs). Noting that China had just passed Japan to rank second in terms of global GDP, he acknowledged that the economic infrastructure was in place to ensure a secure future for China, but now the more difficult task of developing an equal society had to be addressed.

Wen Jiabao summarised the Government's commitment to the development of Civil Society in China as follows:

1. Protect People's Democratic Rights
2. Enable criticism of Government policy
3. Promote transparency and rule of law
4. Ensure the safety of citizens
5. Protect vulnerable groups

Standing in the same spot where Deng Xiaoping made his radical "Economic Reform" speech in 1992, Wen Jiabao ushered in a new era of social reform, where environmental concerns sit alongside economic growth when formulating the Government's 12th five year plan.