Workshop on Chinese Firms
China has been in the news lately for safety concerns about its products – a variety of Chinese food and drug exports have been tainted with toxic substances, and even jewelry has been found to contain harmful e-waste. I recently participated in a workshop that focused on corporate social responsibility in China and the potential of shareholder advocacy with Chinese companies. The workshop was organized in part because of concern about the safety of Chinese goods, to try and use the situation as an opportunity to promote corporate social responsibility (including safer products) within Chinese companies.
The workshop provided an overview of Chinese corporate structure and law, and served as a primer for possible shareholder engagement with Chinese firms. Shareholder advocacy with Chinese firms is a difficult undertaking. Most shares are owned by the Chinese government, and shareholders have few legal rights. The concept of corporate social responsibility is also very new in China, and interpretations diverge from Western definitions. Socially concerned investors have had little impact in China so far, but we hope to open the door to meaningful advocacy in the coming years.
