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Why central enterprises always under fire for lack of socialresponsibility by ferujkll sdff
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Why central enterprises always under fire for lack of socialresponsibility by FERUJKLL SDFF
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| Article Posted: 03/02/2013 |
| Article Views: 49 |
| Articles Written: 2023 - MORE ARTICLES FROM THIS AUTHOR |
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Why central enterprises always under fire for lack of socialresponsibility |
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Business,Business News,Business Opportunities
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Why central enterprises always under fire for lack of socialresponsibility Updated: 2012-06-05 16:44:56 China's centrally-administered enterprises have played aleading role in promoting social and economic development, resourceconservation, and environmental protection as well as in combatingmajor natural disasters in recent years. However, the public is far from being satisfied with them.Centrally-administered enterprises have been constantly under firefor their lack of social responsibility, which has often puzzledthe enterprises and placed them in a passive position. Best of a mediocre bunch A study by the Chinese Academy of Social Sciences showed thatof all companies in China, state-owned enterprises have performedfar better than private and foreign-funded companies in fulfillingcorporate social responsibilities. Of all state-owned enterprises, centrally-administeredenterprises have performed the best in this regard.
State GridCorporation, Sinopec Group, and other centrally-administeredenterprises have not only fulfilled their social responsibilitiesthrough specific projects, but also made great efforts to promoteinstitutional innovation. Sinopec recently set up a social responsibility managementcommittee entirely consisting of members of the board of directors,with Chairman Fu Chengyu as the head of the committee. "The move is intended to facilitate the overall planning of oursocial responsibility management work, and promote theestablishment of a company-wide social responsibility managementsystem," said Zhou Quansheng, a senior executive at Sinopec. Wang Yong, head of the State-owned Assets Supervision andAdministration Commission, has praised centrally-administeredenterprises for actively fulfilling social responsibilities. At ameeting attended by the heads of centrally-administeredenterprises, he said that centrally-administered enterprises havedone well in at least five areas.
They have made great contributionto state revenue, implemented national macro-control policies,spared no effort to ensure stable market supplies, fully supportedthe development of livelihood projects, actively participated inpoverty alleviation projects and assisting Tibet and Xinjiang, andplayed a key role in accomplishing urgent, difficult, and dangeroustasks. Nevertheless, the central enterprises' performance of theirsocial responsibilities is not optimistic at present. According to the study made by Chinese Academy of SocialSciences, the overall CSR performance level of the top 100state-owned enterprises is still in infancy, with the CSRdevelopment index averaged at 32.8 points. Among these 100enterprises, only one is in an excellence stage, 20 in leadingstage, 21 in catch-up stage, and 10 in infancy; while the remaining47 percent is still on the sidelines, including some centralenterprises.
What's more, there are even some central enterpriseshave not released any corporate report up to now. An expert said that "the reason why central enterprisesdominate in an advanced position is the very poor performance ofother enterprises rather than their good job. It is just like aproverb saying that in the country of the blind, the one-eyed manis the king.'" What is missing? The State-owned Assets Supervision and AdministrationCommission of the State Council (SASAC) once launched a thematicstudy on the CSR advancing mechanism for central enterprises.According to the research group, it is the weak governance basisthat causes the mid-way stagnation in the administration of centralenterprises' CSR performance and that makes them unable to continuesuch performance in sustained and healthy mode. Besides, the research group also said that the centralenterprises usually pay more attention to after-summary rather thanprior management. Few of them try to set clear their CSR strategiesand corresponding work plans, making it difficult to obtain a goodeffect under such an unplanned and non-systematic situation.
Moreover, performance management is the basic means tointegrate CSR concept into daily management. In reality, the CSRconcept is hard to be born in enterprises' operation proceduresbecause the enterprises seldom include responsibility performanceinto their personal, unit and/or department assessment. Theaforementioned limitations make some central enterprises remain ina catch-up stage after three or four years efforts despite an earlystarting in CSR advancing work. Transparency counts "Central enterprises should actively perform their CSR, tostabilize and expand employment, promote energy conservation andemission reductions, feedback the society, and play a role of modelin maintaining social harmony and stability" said Zhang Dejiang,member of the Politburo of the CPC Central Committee and vicepremier of the State Council, on the central enterprise principalssummit.
The SASAC has declared many times to actively guide and urgethe central enterprises to turn to a development path with well CSRperformance. As required by the SASAC, each and every centralenterprise should release CSR report in 2012. Li Weiyang said that the State Grid has understood the socialcognition and enterprise self-cognition since the release of itsfirst CSR report in 2006. Li said, "Besides correct understanding and activeinstitutional innovation associated with CSR, the centralenterprises should attach more importance to strengtheningcommunications with all circles of the society and enhancing theirtransparency. There is a common problem existing in all the centralenterprises that they simply insist on implementing the deploymentdetermined by the central government and the state council, butforget their nature as an enterprise, a social public enterprisebut not an internal government organ.
There will be nothing calledresponsibility in case there is no transparency." And transparency is the most important value itself becausethis is the accumulation of the whole society's social capital. TheChinese are lack of trust that originating from exchange,communication and cooperation. If there is no trust, the wholesocial capital will be in decline. "An enterprise should think about its capability to create itssocial values, the content of its transparency strategy, theaudience, content and way of its transparency, and the system toachieve its transparency. However, there is no enterprise does so.It requires the joint effort from the whole society, the SASAC, theState Council and the central enterprises together."(People's DailyOnline). I am a professional writer from Keyboard Cleaners, which contains a great deal of information about rainbow sapphire ring , sunglass visor clip, welcome to visit!
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