Trade body urges banks to be socially responsible
March 17, 2009 | BY
clpstaff &clp articlesGovernment continues promotion of sustainable development
China is continuing its push to encourage businesses to take corporate social responsibility (CSR) seriously, this time targeting financial institutions. Recent guidelines urge banks to produce a CSR report by the end of June 2009, and every year in the future.
The self-regulating China Banking Association (CBA) published the Guidelines on Corporate Social Responsibility for Banking Financial Institutions in China on January 12 2009, asking institutions to take economic, social and environmental responsibility. Banks are told to ensure fair employee and consumer rights, contribute to the community, and participate in environmental campaigns as well as to provide preferential terms to clients with a good CSR track record.
The Guidelines are formulated in accordance with the PRC Company Law, PRC Commercial Banking Law, and PRC Banking Supervision Law, as well as the CBA's own Articles of Association. Although they are not legally binding, the CBA has links to the government and is regarded as influential; most institutions will feel obliged to follow its rules.
The Guidelines apply to all banking financial institutions with Chinese legal person status: this will include the locally-established branches of HSBC, Standard Chartered, DBS, Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate, Hang Seng Bank, First Sino Bank, Xamen International Bank, ABN AMRO, Deutsche Bank and OCBC.
Some observers have said that 2009 will be “the year of CSR” in China, and the government has certainly been sending signals that support that theory. In 2007, the State Council's State-owned Assets Supervision and Administration Commission produced its CSR Guidelines for State Owned Enterprises and in August 2008 a Ministry of Commerce subsidiary drafted the Guidelines on Corporate Social Responsibility Compliance for Foreign Invested Enterprises. Shortly after the latter rules were issued, Clare Pearson, CSR manager for Asia at DLA Piper, said that the third wave of development under the 11th Five-year Plan would be corporate citizenship.
It remains to be seen how many resources the government and banks will be willing to dedicate to CSR, which may not be viewed as priority given this year's unprecedented economic conditions.
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