1 MODERN OPPORTUNITIES FOR CHINESE SOCIAL INTRAPRENEURSHIP Kati Chen TC 660H Plan II Honors Program The University of Texas at Austin May 2020 John N. Doggett Department of Management Supervising Professor Huaiyin Li Department of History Second Reader 2 ABSTRACT Author: Kati Chen, B.A. Plan II Honors, B.B.A. Business Honors and Management Information Systems Title: Modern Opportunities for Chinese Social Intrapreneurship Supervisor: John N. Doggett, J.D., M.B.A Second Reader: Huaiyin Li, Ph.D. China’s rapid and large-scale development over the past few decades has completely transformed the nation. The reforms of “socialism with Chinese characteristics” have led to great economic success and global attention. These economic changes have brought large social and lifestyle changes to the Chinese people. Poverty has greatly decreased in Chinese society. More than 850 million citizens have been lifted out of extreme poverty1. Additionally, urbanization has seen a large increase. China’s urban residents have risen from 10% of the population in 1949 to 60% today2. These social changes have brought about a series of fascinating and complex challenges in Chinese society. They include growing mental health concerns, a rapidly aging population, and environmental pollution. China is unique in population size, cultural history, and governance style. Therefore, the world is carefully watching how China responds to these unique challenges. The Chinese Communist Party (CCP) has already taken decisive steps towards addressing these issues. However, these challenges present an opportunity for the Chinese 1 World Bank. “The World Bank in China - Overview.” Text/HTML, April 23, 2020. https://www.worldbank.org/en/country/china/overview. 2 SCMP Graphics. “The People’s Republic of China: 70 Years of Changes,” October 1, 2019. https://multimedia.scmp.com/infographics/news/china/article/3030959/china-70th- anniversary/index.html?src=social. 3 government to increase the available resources addressing social needs. The CPP should encourage Party members to create new initiatives that will engage Chinese citizens in Party- supported activities. These partnerships have the potential to create a larger impact and promote a harmonious society. This concept is known as social intrapreneurship. It’s the idea that Party members and large corporations should promote initiatives that create social and/or environmental good while aligning with the Chinese government’s vision. Social intrapreneurship is an ideal way to incorporate Chinese characteristics, such as social stability and patriotism, into projects that address China’s largest challenges. Currently, social intrapreneurship initiatives have been focused on efforts such as poverty relief. These projects have seen remarkable results. Thanks to government and corporate initiatives, over 68 million rural Chinese have been lifted out of poverty over the past five years3. The CCP should promote social intrapreneurship as a tool to address other socioenvironmental challenges that the country is facing. The Chinese government has created policies and plans for issues such as mental health, an aging population, and pollution. However, COVID-19’s mental health and economic fallouts will spur a pressing need for increased relief and support. These issues could be alleviated if the government engaged more citizens to work with the Party. Within the Party, social intrapreneurship can be used to create community volunteer programs and nationwide campaigns, such as President Xi’s “three tough battles” poverty alleviation campaign. Within large corporations, Party members could create donation drives, spearhead 3 Diallo, Fatoumata. “China’s Anti-Poverty Efforts: Problems and Progress.” Institute for Security and Development Policy. Accessed April 29, 2020. https://isdp.eu/publication/chinas-anti-poverty-efforts-problems- and-progress/. 4 social projects, and develop corporate programs centered towards giving back. Both of these applications of social intrapreneurship will increase the resources addressing these social issues under the Party’s leadership. This thesis will look at how social intrapreneurship can add engage a new cohort of Chinese citizens to join with the CCP to address some of China’s most fascinating challenges. The first three sections will discuss the uniqueness, relevancy, and potential impact of the challenges that China faces. The last four chapters will discuss how social intrapreneurship and corporate social responsibility can help China address these challenges. Ultimately, this thesis will demonstrate how creating infrastructure for social intrapreneurship is an innovative opportunity for modern Chinese society. 5 To my family: here, abroad, and above. 6 ACKNOWLEDGEMENTS This thesis would be a shadow of its current form if it weren’t for my supervisor, Professor John Doggett. He said he’d push me further than I thought I could go. He did that every week. Professor Doggett’s knowledge and experience helped me discover new dimensions to my topic. Under his supervision, I learned how to be a better speaker, writer, and global citizen. This thesis has been a process of me discovering my own voice as much as it has been a process of learning how to conduct research. Now, when I am searching for the right words to say, I put on Spiegel im Spiegel. More than anything, I am grateful to Professor Doggett for preparing me to live a life that moves the needle. I am also thankful for the support and guidance of my second reader, Dr. Huaiyin Li. He expressed interest in my ideas when I was still formulating my topic, and he helped me create a more focused research question. Dr. Li walked me through the essential steps of research when I was just beginning to write this thesis. He also provided insight on emerging Chinese civil societies and Confucian ideals. In January of 2020, I travelled to China to conduct field research through interviews. I interviewed 10 high-level CEOs, VPs, and managers about their organization’s viewpoints on corporate social responsibility. They worked in a variety of industries, from finance, tech, and consulting companies to children’s educational centers and dairy farms. These interviews were conducted before Chinese New Year, which is the busiest part of the business year. Even though the interviewees had tight schedules and did not know me personally, they were willing to offer their insights because they were interested in my research. I would like to deeply thank them for their time and hospitality. Because of those interviews, I gained a much deeper insight on contemporary Chinese society. I would also like to thank my aunt, Mrs. Lu, and family friend, Mrs. Zhang, for helping me reach out to find these interviewees. They both have broad connections in China, and they were willing to refer me to people who they thought would add value to my research. They worked hard to make sure I could hear viewpoints from many different industries. I could not have set up these interviews without their help. I am deeply grateful that they would introduce me to so many knowledgeable individuals. I would not have chosen this thesis topic if it weren’t for my family in China. Even though we rarely see each other, each time I go back I gain a new understanding of what it means to be part of a family. Thank you for ensuring I never forget my roots. And finally, to Mom, Dad, and Jeffrey: I love you. Thank you for your endless support, and for always encouraging me to learn more. 7 TABLE OF CONTENTS ABSTRACT ................................................................................................................ 2 DEDICATION ............................................................................................................. 5 ACKNOWLEDGEMENTS ........................................................................................... 6 INTRODUCTION ........................................................................................................ 8 THE CHALLENGES ................................................................................................. 12 TRAUMATIC EFFECTS OF COVID-19 .......................................................................... 12 AN AGING POPULATION ............................................................................................... 23 ENVIRONMENTAL POLLUTION ................................................................................... 31 SOCIAL INTRAPRENEURSHIP ................................................................................ 41 AN OVERVIEW ................................................................................................................. 41 SOCIAL INTRAPRENEURSHIP IN SINGAPORE .......................................................... 43 SOCIAL INTRAPRENEURSHIP IN CANADA ............................................................... 52 CHINESE SOCIAL INTRAPRENEURSHIP ................................................................ 56 THE BEGINNINGS ............................................................................................................ 56 THE UNIQUENESS OF CHINA ....................................................................................... 61 THE OPPORTUNITY ........................................................................................................ 64 BIOGRAPHY ............................................................................................................ 71 WORKS CITED .......................................................................................................