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Corporate Social Responsibility Report 2018 China Europe International Corporate Social Responsibility Report

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Corporate Social Responsibility Report 2018 China Europe International Corporate Social Responsibility Report CEIBS WeChat China Europe International Business School China Europe InternationalChina Europe Business School Corporate Social Responsibility Report 2018 Corporate Social Responsibility Report Shanghai 699 Hongfeng Road, Pudong, Shanghai 201206, P.R.C. Tel: +86-21-2890 5890 Beijing Building 20, Zhongguancun Software Park, 8 Dongbeiwang West Road, Haidian District, Beijing 100193, P.R.C. Tel: +86-10-8296 6600 Shenzhen Suite 10A, Taihua Wutong Industrial Park, Gushu Development Zone, Hangcheng sub-district, Baoan, Shenzhen 518126, P.R.C. Tel: +86-755-3699 5111 Zurich Hirsackerstrasse 46, P.O. Box, CH-8810 Horgen, Switzerland Tel: +41 44 728 99 44 Accra 5 Monrovia Road, East Legon, Accra, Ghana Tel: +233 544315238 Nigeria office contact: +234 9031855879 CEIBS shall reserve the right to revise, update and interpret this report. Foreword In 2018, the world economy became more complex and volatile with increased uncertainties. China’s economy grew at a slower pace amid structural transformation, but this does not necessarily mean that businesses have to brace for tough times ahead. Instead, they can expect to unleash the vitality and impetus to generate more social and economic benefits by introducing forward-looking innovations. Editorial Board Businesses around the world have to begin to embrace inclusive development in order to survive and thrive in a world driven by increasingly diverse values and rapidly evolving Guest Editors technologies. CEIBS, as a product of the broader China-EU partnership, has been working to Li Mingjun: President, Professor of Management, promote inclusive development by facilitating economic and cultural exchanges between Programme Co-Director of Key Talent Programme for Chinese Companies Going Global, CEIBS China and the world in addition to pursuing academic excellence and imparting business knowledge. Supported by its three mainstay mission components: China depth, global Ding Yuan: Vice President and Dean, Professor of Accounting, Cathay Capital Chair in Accounting, CEIBS breadth and social responsibility, the school, in conjunction with its alumni, launched in 2018 Executive Editor a Corporate Social Responsibility Action Plan and published its first CSR report, which was one of the first in summarizing practices and exploring theoretical issues in this area. Chen Jieping: Professor Emeritus, CEIBS Editorial Board Members This year’s report is now out as planned. It contains a thorough analysis of the developments with CSR in China and internationally over the last year, a run-through of the best CSR Xu Bin: Professor of Economics and Finance, Wu Jinglian Chair in Economics, Associate Dean (Research), CEIBS practices implemented by CEIBS alumni-owned businesses, and findings of research Rui Meng: Professor of Finance and Accounting, Parkland Chair in Finance, Director of Ph.D. Programme, conducted by CEIBS professors. The report reveals that inclusive development has been Director of CEIBS Center for Wealth Management, Co-Director of CEIBS Centre for Family Heritage, prioritized by leaders in the manufacturing, services and consumer industries, generating Programme Director of Family Office Diploma Programme, CEIBS positive social and economic benefits. Chen Shimin: Professor of Accounting, Zhu Xiaoming Chair in Accounting, Director of Case Development Centre, CEIBS According to the latest research in 2019, China was responsible for a quarter of the increase Lu Wenzhen: Professor of Management, Director of CEIBS Research Centre for Emerging Market Studies, CEIBS in forestation across the world between 2000 and 2017. This impressive contribution could Chen Shaohui: Professor of Management Practice, Co-Director of CEIBS Centre for Health Care Management and Policy, not have happened without the relentless greening efforts made by countless businesses Programme Co-Director of Advanced Management Programme, CEIBS and individuals. As China keeps surprising the world with its advancements, we at CEIBS are Tian Ming: President of CEIBS Alumni Association; Chairman of Landsea Group more united than ever to serve as a force for good, helping businesses navigate their future (CEIBS EMBA 2005) through uncertainties. Jiao Sheng: Executive Council Member and Director of the CSR Committee, CEIBS Alumni Association; Dr. Li Mingjun Dr. Ding Yuan Chairman of Jiangsu Hanjin Group Co., Ltd. President, Vice President and Dean, (CEIBS EMBA 2008) Professor of Management, Professor of Accounting, Li Wen: Executive Council Member and Co-Director of the CSR Committee, CEIBS Alumni Association; Programme Co-Director of Key Talent Cathay Capital Chair in Accounting, Programme for Chinese Companies CEIBS Chairman of China Universal Asset Management Company Co., Ltd. Going Global, (CEIBS EMBA 2010) CEIBS This report is produced by China Europe International Business School and its Alumni Association. CSR Trends Across the World: 01A Time for Bold Action CSR in China: Practices, Lessons and Way Forward CONTENTS 02 CSR Practices of CEIBS Alumni Companies 03 • Poten Enviro: Promoting Corporate Ambition and Social Impact Through CSR Practices • CHERVON: Building Better Tools to Help Build a Better World • Jianye Group: A Corporate to the Society is Like a Tree to the Earth • First Respond®: Sparking Universal Mutual Aid in Emergencies • Essilor: Helping Needy Children with Poor Vision in China’s Mountain Areas See the World Clearly • CEDAR Charity: Making Public Welfare a Strong Force for Good CEIBS CSR Research • Selection of Published Papers 04 • Research Projects in Progress Research on CSR Reports 05 of A-Share Listed Companies CSR Trends Across the World CSR Trends Across the World: A Time for Bold Action Lydia J. Price, Professor of Marketing, CEIBS Laurie Underwood, Professor of Management, Xian Jiaotong Liverpool University Zhao Yongqing, CEIBS MBA Alumnus From controlling climate change to managing waste and ensuring economic inclusivity, today’s most pressing “corporate social responsibility” issues are systems-level, global challenges. Knowledgeable NGOs, governments, and even nations have long realized that no single entity can solve issues of such magnitude and complexity by working in isolation. What’s new in recent years is a rapid growth in the number of companies leveraging opportunities to collaborate with public entities in bringing innovative ideas and solutions to market. To facilitate that work, others are mobilizing finances, collecting and disseminating useful data about supply chains, and coaching a new generation of leaders. In this chapter, we have compiled examples of pioneering initiatives illustrating what promises to be a massive reconfiguration of the global economy as companies come to grips with new social expectations and demands. We have organized these cases to illustrate five major trends that capture the spirit of this budding evolutionary change, and thus warrant close consideration by business executives in China and abroad. Collaboration on Disruptive Mobilizing Boosting Supply Leadership Systems-level Solutions Innovation Finances Chain Transparency Engagement CSR Trends Across the World · CEIBS CSR Report 2018｜003 TREND #1: TREND #2: Collaboration on Systems-level Solutions Disruptive Innovation A decade of rigorous research has shifted conversations about what constitutes responsible Circular Economy business behavior away from the moral and emotional arguments that characterized yesteryear The second trend we see emerging from the new face of corporate social responsibility is a and toward more rational assessments of what is needed to fix problems. Nowhere is this rise in innovations designed to break away from business-as-usual. One of the most innova- more visible than in the efforts to mitigate and manage climate change. Scientific evidence tive methods for addressing waste management, for example, is the Circular Economy (CE). amassed by the United Nation’s Intergovernmental Panel on Climate Change (UN IPCC) was The basic idea of CE is to entirely eliminate waste by designing and managing closed loop analyzed by a consortium of non-profit organizations to establish science-based targets that systems of materials and components that flow into production systems, on to customer indicate the reductions in greenhouse gas (GHG) emissions needed by individual countries usage as finished products, and then back into input streams as refurbished components or and industrial sectors to meet the goal of capping global temperature increases at 2 degrees, recycled and composted materials for new products and usages. Companies are innovating and more ambitiously, at 1.5 degrees. This has prompted more and more companies to products, processes and business models in a drive to put this concept into practice. Experi- establish their own science-based targets for individual GHG commitments as a function of ments in “product-as-a-service” (PaaS) are a case in point. proportionate contributions to an overall industry baseline. In February 2019, for example, IKEA announced a ‘lease not own’ program for office furniture Delivering on these newly ambitious targets requires collaboration, given that major shifts in in Switzerland as part of its “wider ambition to become a fully circular business by 2030.” To supply chains and operations are typically required. Energy intensive western IT companies implement a PaaS business model innovation like this, IKEA will have to redesign its furniture like Google, for example, must quickly adopt renewable energy to contribute what’s considered as composites of durable
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