China CSR Watch

By China CSR Watch (www.csrcsr.com)

Alibaba.com, a leading business-to-business e-commerce website in China that is 40% owned by Yahoo!, was criticized for allowing online trading of shark fins.

“Alibaba, which has more than 180 companies engaged in buying or selling shark fins, is “the New York Stock Exchange of shark fins,” quoted in the Business Week report on July 20th.

“Yahoo’s response to the news report was, ‘We know the sale of shark products is both legal in Asia and a centuries-old tradition. This issue is largely a cultural-practices one’”, according to ViceZilla’s Views.

Many shark fin traders can still be found at Alibaba.com as of July 23rd.

Sources (in Chinese and English):
Sina News: http://tech.sina.com.cn/i/2007-07-21/11351628915.shtml
Business Week: http://www.businessweek.com/globalbiz/content/jul2007/gb20070720_756191.htm
Alibaba: http://www.alibaba.com/buyeroffers/Shark.html
ViceZilla’s Views: http://vicezilla.com/views/index.php/2007/06/28/yahoo_has_1_billion_dollar_stake_in_succ
Stop Shark Finning: http://www.stopsharkfinning.net/

By China CSR Watch (www.csrcsr.com)

Although nearly all MNCs publish CSR report, Ford may well be the first to publish CSR reports specially for China. And not only once, but twice.

October 18th 2006, Ford China published its second CSR report detailing its CSR efforts from 2003 to 2005. Ford China published its first CSR report in China in 2002 about its CSR achievement from 1992-2002.

The billingual Ford CSR report can be downloaded here: Ford China CSR Report on ford.com.cn

Sources (in Chinese):
Xinhua: http://www.xinhuanet.com/classad/zxft/20061018/index.htm
Sina Foreign Management: http://leadership.jrj.com.cn/news/2007-06-29/000002373777.html
Sina.com: http://finance.sina.com.cn/roll/20061017/0752979755.shtml

By China CSR Watch (www.csrcsr.com)

PetroChina published its first Corporate Social Responsibility report on February 28th 2007, in an effort to be more open and transparent to public to improve its image amid oil price gauging accusations and after some major accidents.

According to the report, “in 2006, PetroChina donated a total of RMB 80.11 million in disaster relief, 16.45 million in education, 80,000 PetroChina volunteers served more then 200,000 people.”

PetroChina, the second largest Chinese oil company ranked at 39th in the Fortune Global 500 list, has been plagued with major accidents in recent years. It was ranked 63rd, of all 64 companies evaluated, in the 2006 Fortune Accountability list with an accountability score of 3 out of 100.

In 2003, a blowout of its natural gas well in Chongqing province killed 243 villagers. In 2005, a blast in its oil chemical plant in Jilin province polluted the water system and halted the tap water supply of Harbin, a major city of 3.5 million residents, for 4 days, and directly resulted the resignation of head of the environmental protection bureau of China.

PetroChina has been trying hard to improve its record on safety.

“Compared with 2005, accidents with fatality were lowered by 25%, and fatality was reduced by 12%. However we are regret to see 3 major accidents happened and 21 lives lost,” stated in the CSR report.

PetroChina has been ranked number one in the Top 50 Corporate Social Responsibility Chart compiled by Hurun Report published April 2007.

According to Hurun Report, PetroChina has more than 1 million employees, 177.1 billion Chinese yuan tax payment, and 720 million donation from 2003-2006. PetroChina is a clear leader in corporate social responsibility in China. (According to PetroChina’s CSR report, it has 446,000 employees excluding external employees.)

Sources (in English and Chinese):
PetroChina English CSR Report: http://www.petrochina.com.cn/chinese/zrgg/Corporate%20Social%20Responsibility%20Report%202006.rar
163.com http://money.163.com/07/0411/13/3BQ74E1V00251RJ2.html
Huran Report: http://www.hurun.net/listcn62.aspx
Xinghuanet: http://news.xinhuanet.com/fortune/2007-03/22/content_5880218.htm
WTO Guide: http://chinawto.mofcom.gov.cn/aarticle/by/cb/200704/20070404614048.html
Chinanews: http://news.163.com/06/1114/02/2VRSKH01000120GU.html
Fortune: http://money.cnn.com/magazines/fortune/global500/2006/accountability/full_list.html

By China CSR Watch (www.csrcsr.com)

Shanghai General Motors, GM’s JV branch in China, has announced its plan to set up a paint-spray plant in Shenyang of northeast China, which will have the capacity to paint 150,000 Chevrolet-branded cars per year. The plant is located in highly populated areas and faces strong opposition from local residents for environmental concerns.

According to the public environmental impact announcement jointly issued on May 29th 2007 by Shanghai GM and Liaoning Environment Science Research Institute, the plant will generate pollutants such as P-Xylene.

“I chose to settle down in this area mostly because of the nice environment and the orchard that has decades of history. However, if now we have a pollutant-generating plant very close to my home, my life will surely be greatly effected,” said LI Nong, a local resident, a lawyer, and a representative elected by unhappy local residents.

On June 1st, more than 200 residents protested the potential pollution brought by this new plant in their community plaza and again on June 6th, more than 100 residents gathered in front of the Shenyang government to demonstrate their opposition. It is estimated that around 500,000 people reside within several kilometers of the plant, and the closest residential building is only 50 meters away.

Sources (in Chinese):
China Philanthropy Times: http://www.gongyishibao.com/jrxw.asp?newsid=53&act=jrxw
Soufan.com: http://bbs.sy.soufun.com/1617144623~-1~509/951937_951937.htm
Shenyang Department of Publicity: http://www.syxcb.gov.cn/index/gzdt-13.htm