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					Acknowledgement
The accomplishment of this thesis benefits of the help and direction from my dear
supervisor—Prof. Mammo Muchie. Prof. Muchie is always happy and willing to help
me solve the confusions and direct me approach to the final result of the thesis. On
top of that, Prof. Muchie is an easy-going and open-minded person, whom is also a
good friend to me. Without his encouragement, I would not finish this final work in
my master study. Thank you very much, Mammo!


Furthermore, I would like to show my grateful feeling to Prof. Li Xing, who once
taught me and was my project supervisor in the 8th semester. Prof. Li is a
warm-hearted and discipline-keeping person, with whose supervision I accomplish
my master study in time. He is always patient to help me out with questions in terms
of administration and rules. Thank you very much, Li!




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Abstract



Corporate Social Responsibility (CSR) as an American academic concept has already
been discussed for more than four decades in the academic field and adopted by the
corporations in the developed countries for more than 20 years. Now it is blossoming
in China, which has become an important part of the supply chains for the capitalist
world system. Under the international context and the domestic context, the four
major players in CSR implementation—the Chinese government, the subsidiaries of
TNCs in China, the SOEs and the NPOEs—have different understandings and
performances in reality.


In this thesis, I am going to explore how do the four players understand CSR by
asking two questions: 1. How does the Chinese Government understand CSR and
what policies does it issue? 2. How do the Corporations in China (SOEs, NPOEs and
subsidiaries of TNCs in China) react and perform in CSR implementation?




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Abbreviation

CSR             Corporate Social Responsibility
UN              United Nations
ILO             International Labour Organization
WTO             World Trade Union
TNCs            Transnational Corporations
SOEs           State-Owned Enterprises
NGOs            Non-Governmental Organizations
SAI             Social Accountability International
SA 8000         Social Accountability 8000
ISO             International Organization for Standardization
NPOEs           Non-Public Owned Enterprises
FDI             Foreign Direct Investment
PRC             People’s Republic of China
GDP             General Domestic Product
AA 1000        Account Ability standards 1000 series
SR             Social Responsibility
OECD           Organization for Economic Cooperation and Development
CPC            Communist Party of China
CSPGP          China Society for Promotion of Guangcai Program
SMEs            Small-Medium Sized Enterprises
RMB            Renminbi
SGCC/ SG        State Grid Corporation of China
ACFTU          All China Federation of Trade Unions
CNCP           China National Petroleum Corporation




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Content
Acknowledgement……………………………………………………………………i
Abstract………………………………………………………………………………ii
Abbreviations………………………………………………………………………..iii

Chapter 1 Introduction

1.1 Background
    1.1.1 Background of CSR Under the International Background………………………….……1
    1.1.2 Background of CSR in China…………………………………………………………….4
1.2 Problem Formulation…………………………………………………………………….……..7
1.3 Methodology……………………………………………………………………………………8
    1.3.1 Information and Data Collection…………………………………………………………9
    1.3.2 Theory Study…………………………………………………………………………….11
1.4 Chapter Introduction…………………………………………………………………………..14


Chapter 2 Theory Reviews

2.1 Overview of CSR……………………………………………………………………………..15
2.2 Milton Friedman’s View on CSR……………………………………………………………..16
2.3 R. Edward Freeman’s Stakeholder Theory……………………………………………………19
    2.3.1 The Notion and History of Stakeholder Approach………………………………………19
    2.3.2 Process of Stakeholder Management……………………………………………………21
          Stakeholder Analysis for Enterprise Strategy…………………………………………..22
          Values Analysis for Enterprise Strategy………………………………………………..22
          Social Issues Analysis for Enterprise Strategy………………………………………….23


Chapter 3 Empirical Part

3.1 The principles from the International Organizations………………………………………….25
3.2 The Policies or Reports from Chinese Central and Local Governments……………………..27
    3.2.1 Policies and Guidelines from CPC and the Central Government……………………….28
         Policies towards FDI…………………………………………………………………….28
         The 11th Five-Year Plan and Harmonious Society……………………………………….28
         Amendment of the Law on Employment Contract………………………………………29
         Amendment of Company Law of PRC…………………………………………………..30
         Guangcai Program………………………………………………………………………..31
    3.2.2 Report from Jiaxing City Government, Zhejiang Province……………………………31
          Self-Awareness of CSR………………………………………………………………..33
          Public Perception of the CSR Implementation in NPOEs……………………………..33
          Factors that Affect CSR Implementation by NPOEs…………………………………...35
3.3 CSR Implementation in Both Local Corporations and TNCs in China……………………….36
    3.3.1 TNCs’ Case Study—Wal-Mart…………………………………………………………..38


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   3.3.2 CSR Understanding by Chinese Corporations………………………………………….40
         SOEs’ Understanding and Performance………………………………………………..40
         NPOEs’ Understanding…………………………………………………………………41


Chapter 4 Analysis

4.1 The Government’s and the CPC’s Understanding of CSR…………………………………….42
    4.1.1 The External and Internal Factors That Affect the Government’s Attitude of CSR…….42
    4.1.2 The Measures Adopted by the Government on CSR Implementation…………………..44
4.2 The Subsidiaries of TNCs’ Understanding of CSR………………………………45
    Wal-Mart Case Study…………………………………………………………….46
4.3 The SOEs’ Understanding of CSR……………………………………………….47
4.4 The NPOEs’ Understanding of CSR……………………………………………..49

Chapter 5 Conclusion………………………………………………………………50

Reference……………………………………………………………………………54




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