International Corporate Responsibility Series

Volume 3, 2007

Controversies in International Corporate Responsibility

A Study of the Transfer of Corporate Social Responsibility from Well-Established Foreign Multinational Enterprises to Chinese Subsidiaries

The study is designed to examine the perceptions of Chinese executives of corporate social responsibility (CSR) and to explore possible strategies by which well-established foreign multinational enterprises can carry out their CSR in China. The interviewees’ interpretation of CSR is found to be oriented toward internal operations of the Chinese subsidiaries and economic responsibility. Many interviewees have the classical view of CSR, while headquarters has the modern view. The main problems of implementing CSR are: specific Chinese business culture, intellectual property rights, internal due process, and insufficient Chinese government support. It is recommended that socialization of Chinese executives about CSR be accomplished through personnel transfer among various functional areas in the corporate system, the development of a just organizational culture in the Chinese subsidiaries, and collaboration with external partners that advocate CSR.