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2020 | OriginalPaper | Chapter

China

Authors : Guangjian Tu, Si Chen

Published in: Private International Law Aspects of Corporate Social Responsibility

Publisher: Springer International Publishing

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Abstract

The idea of Corporate Social Responsibility (CSR) was not conceptualized when the first Chinese Company Law (CCL) was enacted in the 1990s. But CSR was one of the many issues considered in the process of modernizing company law and it has been given an explicit legal recognition by Chinese Company Law since 2006. However, there is no clear and specific definition for CSR in the Chinese legal system. It is also a controversial concept among the Chinese academia. Currently, there is no obvious sign that Chinese government officials would apply the concept embodied in international instruments such as ISO 26000, OECD Guidelines for Multinational Enterprises (OECD Guidelines) and the United Nations Guiding Principles on Business and Human Rights (UN Guiding Principles). However, the number of CSR reports published in China has grown steadily in the past decade. International initiatives on CSR are increasingly incorporated into local initiatives in China. A persuasive online survey indicates that respondents are broadly confident about the future development of CSR in China, with 84% believing that the level of CSR knowledge, implementation and communication will grow in the next decade. Although the government will remain the key driver of CSR development, the role of the general public will continue to grow in importance. As far as Private International Law (PIL) issues of CSR are concerned, generally no distinct rules have been developed in China yet.

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Footnotes
1
Zhao (2014).
 
3
See OECD-China: 20 Years of Partnership (2015) (available at https://​www.​slideshare.​net/​OECDpsd/​oecd-20years-china).
 
4
See China Signs Cooperation Agreements with OECD and Joins OECD Development Centre (available at http://​www.​oecd.​org/​newsroom/​china-signs-cooperation-agreements-with-oecd-and-joins-oecd-development-centre.​htm).
 
5
See OECD, Active with The People’s Republic of China (available at http://​www.​oecd.​org/​china/​active-with-china.​pdf).
 
6
Chinses Chamber of Commerce for Metals, Minerals and Chemicals Importers and Exporters (CCCMC) is a national social organization in China’s metal mining industry, and it is a subordination of the Ministry of Commerce. CCCMC has around 6300 company members, which are engaged in metals, non-metallic minerals, coal, construction materials, hardware, oil, chemicals, plastics, fine chemicals, agro-chemicals and rubber products, encompassing the majority of Chinese mining companies investing abroad and trading mineral, metal, and hydrocarbon products. CCCMC is the largest and most professional industrial organization in these sectors. CCCMC has made great efforts to provide information and consulting services to its member companies, including but not limited to the following: developing policy and tools in extractive sector; helping Chinese companies to identify, reduce and avoid risks; improving their capacity to integrate social responsibility into their business strategies; and promoting sustainable development in overseas mining investments. For more information on Chinses Chamber of Commerce for Metals, Minerals and Chemicals Importers and Exporters (中国五矿化工进出口商会), please visit http://​en.​cccmc.​org.​cn.
 
7
For the OECD and CCCMC co-operation, see OECD page for Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains (available at http://​mneguidelines.​oecd.​org/​chinese-due-diligence-guidelines-for-responsible-mineral-supply-chains.​htm).
 
8
Chinese Guidelines for Social Responsibility in Outbound Mining Investment [hereinafter in this report, “CCCMC Guidelines (2014)”], in other occasions, is also referred to as “CCCMC Guidelines”, “Chinese Responsible Mining Guidelines” etc. The CCCMC Guidelines (2014) addresses a wide variety of issues structured along the main topics of corporate social responsibility with a focus on human rights and supply-chain management such as environment, labor practices as well as occupational health and safety. The CCCMC Guidelines (2014) applies to all outbound Chinese investments in the fields of mineral exploration, extraction and processing. For CCCMC Guidelines (2014), please visit http://​www.​cccmc.​org.​cn/​docs/​2016-05/​2016050316125190​6597.​pdf.
 
9
See CCCMC Guidelines (2015), Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains (available at http://​www.​cccmc.​org.​cn/​docs/​2016-05/​2016050316140815​3738.​pdf).
 
10
See CCCMC SMAP, Sustainable Mining Action Plan officially launched in Beijing (available at http://​en.​cccmc.​org.​cn/​news/​cccmcinformation​/​58817.​htm).
 
11
See CCCMC RCI, Responsible Cobalt Initiative: Facing Challenges, Sharing Responsibility, Joining Hands and Achieving Win-win (available at http://​www.​cccmc.​org.​cn/​docs/​2016-11/​2016112114150267​4021.​pdf).
 
12
CCCMC and the OECD have signed a Memorandum of Understanding to cooperate in the development of the CCCMC Guidelines (2015). The task is listed in the “China-OECD Medium Term Vision and Action Plan for 2015-2016”. See CCCMC Guidelines (2015), supra note 9.
 
13
See Human Rights Council, 2011 UN Guiding Principles on Business and Human Rights (available at http://​www.​ohchr.​org/​Documents/​Publications/​GuidingPrinciple​sBusinessHR_​EN.​pdf).
 
14
See Peking University International Law Institute & Beijing Rong Zhi Corporate Responsibility Institute, Tracktwo & Global Business Initiative on Human Rights; The Corporate Responsibility to Respect Human Rights in China and Globally (2014 Project Report) (available at https://​gbihr.​org/​images/​general/​EN-China-Learning-Project-Report.​pdf). Also see Global Witness, Promissing Chinese Guidelines for Mineral Supply Chain Checks - Public Consultation Begins (2015 Project) (available at https://​www.​globalwitness.​org/​en/​countries/​china/​promising-chinese-guidelines-mineral-supply-chain-checks-public-consultation-begins/​).
 
15
See articles written by a Chinese professional, researcher and scholar, Dr. LIANG Xiaohui in 2013 (in Chinese, accessible at http://​www.​pkulaw.​cn/​fulltext_​form.​aspx?​Gid=​1510162215) and in 2015 (in English, accessible at https://​business-humanrights.​org/​en/​looking-forward-2015-the-“pillar-ii”-policy-shift-in-china-and-business-practices-in-the-ungps).
 
16
See CCCMC Guidelines (2014), supra note 8.
 
17
See CCCMC Guidelines (2014), supra note 8. The Clause 2.4.6 of the CCCMC Guidelines (2014) reads as follows: “2.4 Human Rights: Admitting and respecting human rights is very important for the rule of law, social justice, stability, and a harmonious society. The companies shoulder the responsibility to respect human rights within their sphere of influence. The companies shall take active measures to avoid the passive acceptance or active involvement in human rights violations… 2.4.6 Conduct risk-based supply chain due diligence in order to prevent engagement with materials that may have funded or fuelled conflict: Conduct an assessment to define whether the mining project from which traded minerals originate or the mineral trading routes used are located in a conflict-affected and/or high-risk area. Adapt existing due diligence measures to the specific needs of conflict-affected and high-risk areas Measures should be third-party audited and publically reported on. When operating in a conflict-affected and/or high-risk area, take steps to monitor the business relations, transactions, and flows of funds and resources and avoid the trade of conflict minerals.”
 
18
Ibid at 8, II Objective.
 
19
Ibid at 8.
 
20
Further details could be found on the ISO Country Page: China (accessible at http://​iso26000.​info/​countries/​).
 
21
Ibid.
 
22
Supra note 8.
 
23
Supra note 8, Foreword.
 
24
Ibid at 40.
 
25
See Chinese United Association of Industry and Economy, Management Directory of Chinese Industrial and Corporate Social Responsibility (2015) (available at http://​www.​cfie.​org.​cn/​2710757099819/​2724474915407/​index.​html).
 
26
Please visit Sino-Swedish Corporate Social Responsibility website and see Jiangsu Province Issues Guidance on Corporate Social Responsibility Construction (available at http://​csr2.​mofcom.​gov.​cn/​article/​csrnews/​news2017/​201703/​20170302544126.​shtml).
 
27
Ibid.
 
28
For SynTao Co., Ltd. (CSR Consulting) [商道纵横], please visit http://​en.​syntao.​com.
 
29
For Beijing Rongzhi CSR Istitute [北京融智企业社会责任研究院], please visit http://​en.​rzcsri.​com.
 
31
For Corporate Citizenship in Action (CSR Consulting) [明善道], please visit http://​www.​csrconsulting.​com.​cn/​en/​main.​HTM.
 
32
See GoldenBee CSR Consulting, Chief Expert of GoldenBee CSR Consulting Attends ISO 26000 Conference in Stockholm (in English accessible at http://​en.​goldenbeechina.​com/​index.​php/​Home/​Insights/​show/​id/​29) and the sources in Chinese (accessible at http://​www.​goldenbeechina.​com/​html/​2015-10/​466.​html).
 
33
Ibid.
 
34
Ibid.
 
35
Ibid.
 
36
Ibid.
 
37
See GoldenBee CSR Consulting, A Study of Corporate Social Responsibility Reports by Central Enterprises (2016)《2016中央企业社会责任报告研究》at 7 (available at http://​www.​goldenbeechina.​com/​html/​2017-01/​532.​html).
 
38
See GoldenBee CSR Consulting, A Study of Corporate Social Responsibility Reports by Chinese Enterprises Listed in the Hong Kong Exchanges and Clearing Limited (2016) (available at http://​www.​goldenbeechina.​com/​html/​2017-04/​541.​html).
 
39
For more information on the State-owned Assets Supervision and Administration Commission of the State Council (国务院国有资产监督管理委员会), please visit http://​en.​sasac.​gov.​cn.
 
40
For more information on the Department of Outward Investment and Economic Cooperation of Ministry of Commerce (商务部对外投资和经济合作司), please visit http://​english.​mofcom.​gov.​cn/​departments/​hzs2/​.
 
41
For more information on China National Institute of Standardization (中国标准化研究院), please visit http://​en.​cnis.​gov.​cn.
 
42
For more information on Standardization Administration of The People’s Republic of China (中国国家标准化管理委员会), please visit http://​www.​sac.​gov.​cn.
 
43
See The Company Law of the People’s Republic of China (《中华人民共和国公司法》) (available at http://​www.​npc.​gov.​cn/​wxzl/​gongbao/​2014-03/​21/​content_​1867695.​htm). It was enacted in 1993, revised in 2005, and amended in 2013, and then came into effect as of March 1, 2014. It was initially adopted at the 5th Session of the Standing Committee of the 8th National People’s Congress on December 29, 1993, amended for the first time on December 25, 1999 in accordance with the Decision of the 13th Session of the Standing Committee of the Ninth People’s Congress on Amending the Company Law of the People’s Republic of China and amended for the second time on August 28, 2004 in accordance with the Decision of the 11th Session of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on Amending the Company Law of the People’s Republic of China. It was further revised at the 18th Session of the 10th National People’s Congress of the People’s Republic of China on October 27, 2005 and amended for the third time on December 28, 2013 in accordance with the Decision on Amending Seven Laws Including the Marine Environment Protection Law of the People’s Republic of China at the 6th Session of the Standing Committee of the 12th National People’s Congress, and then came into effect as of March 1, 2014.
 
44
Article 5 is a new article in the Chinese Company Law (2005) and the article remains in the Chinese Company Law (2013).
 
45
Zhao (2014).
 
46
Zhao (2014). It was reported that around 700 tons of San Lu baby milk powder had been contaminated with melamine, to meet company requirements for protein content in the short-term interests of the shareholders. As a result of consuming the contaminated milk, infants allegedly suffered diseases such as kidney stones.
 
47
See The Contract Law of the People’s Republic of China (《中华人民共和国合同法》) (available at http://​www.​npc.​gov.​cn/​npc/​lfzt/​rlyw/​2016-07/​01/​content_​1992739.​htm). It was adopted at the Second Session of the Ninth National People’s Congress of the People’s Republic of China on March 15, 1999, and came into effect on October 1, 1999.
 
48
See The Labor Contract Law of the People’s Republic of China (《中华人民共和国劳动合同法》) (available at http://​www.​npc.​gov.​cn/​wxzl/​wxzl/​2007-08/​14/​content_​374713.​htm#). It was adopted at the 28th Session of Standing Committee of the 10th National People’s Congress of the People’s Republic of China on June 29, 2007, and amended on December 28, 2012 in accordance with the Decision of the 30th Session of the Standing Committee of the 11th National People’s Congress on Amending the Labor Contract Law of the People’s Republic of China.
 
49
See The Tort Liability Law of the People’s Republic of China (《中华人民共和国侵权责任法》) (available at http://​www.​npc.​gov.​cn/​huiyi/​cwh/​1112/​2009-12/​26/​content_​1533221.​htm). It was adopted at the 12th Session of the Standing Committee of the 11th National People’s Congress on December 26, 2009 and came into effect on July 1, 2010.
 
50
The Labor Law of the People’s Republic of China (《中华人民共和国劳动法》) was adopted at the 8th Meeting of the Standing Committee of the 8th National People’s Congress on July 5, 1994 and amended on August 27, 2009 in accordance with the Decision of the 10th Session of the Standing Committee of the 11th National People’s Congress of the People’s Republic of China on Amending Some Laws of the People’s Republic of China (available at http://​www.​gov.​cn/​banshi/​2005-05/​25/​content_​905.​htm).
 
51
See Xie (2016).
 
52
See Tu (2016), p. 126.
 
53
Ibid.
 
54
Ibid., p. 127.
 
55
Ibid., p. 130.
 
56
See Article 14 of the Law on the Application of Law for Foreign-related Civil legal Relationships of the People’s Republic of China (LAL); Tu (2011), pp. 575–576.
 
57
See Article 41 of LAL; Tu (2011), pp. 579–581.
 
58
See Article 44 of LAL; Tu (2011), pp. 582–584.
 
59
See Article 281 of CCPL; Tu (2016), pp. 169–176.
 
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Metadata
Title
China
Authors
Guangjian Tu
Si Chen
Copyright Year
2020
Publisher
Springer International Publishing
DOI
https://doi.org/10.1007/978-3-030-35187-8_7