China:: Getting your corporate sustainability approach right from the start
This post was originally published on Peter Korchnak’s Sustainable Marketing Blog.
***
No week goes by in China without a new Sustainability/CSR conference being held or a new Corporate Sustainability (CS) initiative being launched.
Despite the economic crisis, the field of Corporate Sustainability has kept on growing and expanding. However, as CS is getting more mature, it is also getting more complex, so that a few basic, but nonetheless important, market-specific principles should be kept in mind when launching CS initiatives in China.
Corporate sustainability is no longer a ‘nice-to-have’, but a must have
Not so long ago, foreign companies operating in China could literally buy a ‘good reputation’ through a well-placed donation to a leading politician’s favorite charity or a disaster relief fund.
However today, CS strategies based solely on philanthropy are insufficient and companies that are making increasing profits in China are expected to “give back to the society” and do their fair share through a more hands-on role.
Sustainability efforts do not have to be exclusively green!
It is critical that foreign companies align their Corporate Sustainability efforts with the Chinese political agenda and priorities, since the government’s support, and even endorsement, is necessary to secure market access and credibility with other stakeholders (e.g. government-controlled media) in China.
However, today, being good and responsible does not automatically mean being green. As a result of the economic crisis, the environment has become less of a priority for the government. Limiting further layoffs, improving access to and quality of social services (particularly health and education), and encouraging local innovation are now top national concerns, and therefore ‘hot issues’ to potentially engage with.
Authenticity is key…otherwise beware of word-of-mouth!
Beyond government and media, employees and consumers are also key audiences of CS programs. They have increasing expectations towards companies, and will value CS as a relevant proof of companies’ and/or brands’ transparency and trustworthiness.
However, as multinational corporations in China are traditionally held to higher standards than their domestic counterparts, authenticity is key when engaging consumers or employees. Any ‘greenwashing’ type of accusation or corporate misconduct can be voiced and amplified online by more than 300 millions netizens, which are seen as the most trusted source of information in China. Some examples of past online crises in China show how careful companies and brands have to be when they market their CS initiatives online.
Corporate Sustainability plays an increasing role in driving corporate and brand reputation in China, perhaps more than any other country. Foreign companies are implementing CS programs in China as never before, yet those programs need to be relevant the local context and issues. To do this effectively, it is imperative to have two-way communications platforms in place in order to effectively understand what stakeholders expect., and how to move things forward.
