Coporate Social Responsibility and voluntary standards – an important theme

From 20 – 24 July, a meeting took place in Beijing, bringing together GTZ experts from bilateral cooperation projects that promote and implement CSR (corporate social responsibility) in the emerging economies of India and China. GTZ has been advising the Ministry of Trade in China since April 2007, while in India it has been closely cooperating with the Ministry of Corporate Affairs since March 2008.
Since May 2009 the CSR project in China has benefited from additional financing through the Monterrey Fund of the German Federal Ministry for Economic Cooperation and Development (BMZ) intended to improve conditions for pro-poor, sustainable implementation of voluntary social standards in the Chinese private sector. It is supported by the Programme Office for Social and Ecological Standards at GTZ Head Office, which was also represented at the meeting between the Chinese and Indian programmes.
The exchange was mainly about learning from each other what strategies and approaches seem particularly promising for integrating CSR in these countries, and how the central Programme Office can support the external structures from Eschborn, particularly in spreading voluntary standards. The discussions also covered international trends in CSR, and developments and approaches in the promotion of voluntary standards. Visits to Chinese partner institutions were organised, as well as two CSR pilot establishments.

In China, particularly, public-private partnerships (PPP) in CSR pilot enterprises involving both Chinese and international companies have proven very effective for raising awareness of social and environmental standards. One example involves a project with adidas to improve the situation of Chinese migrant workers, while in another partnership with Tchibo, employees are trained in social improvement approaches for supplier enterprises.

The spread of voluntary social and ecological standards to promote competitiveness or acceptance of products from emerging nations on international markets is particularly attractive to businesses which have their value chain in China or India, or have goods produced there. In recognition of this, the voluntary standards programme based at the GTZ Head Office has provided advice not only to the CSR projects but also to Chinese national service providers. Further cooperative ventures have been agreed.

The GTZ experts were unanimous in their appreciation of the major benefits and synergy effects of the week-long meeting. Particularly useful was the active involvement of the Chinese partner institutions and CIM experts from Chinese CSR organisations.