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CSR and Regional Responsible Competitiveness Mr. Rolf Dietmar Project Director

CSR and Regional Responsible Competitiveness Mr. Rolf Dietmar Project Director Sino-German CSR Project CSR Training for SMEs China Institute of Industrial Relations 24-25 July, 2008. jobs & revenue. livelihoods. Economic Performance. Social Justice. Ecological Sustainability.

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CSR and Regional Responsible Competitiveness Mr. Rolf Dietmar Project Director

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  1. CSR and Regional Responsible Competitiveness Mr. Rolf Dietmar Project Director Sino-German CSR Project CSR Training for SMEs China Institute of Industrial Relations 24-25 July, 2008 jobs & revenue livelihoods

  2. Economic Performance Social Justice Ecological Sustainability Introduction to GTZ GTZ – Partner in 126 countries • Europe, Caucasus • Central Asia • Asia and Pacific • South America • Caribbean • Africa • Middle East

  3. GTZ Focus Areas Economic and Social Reform Legal Advisory Services Financial Sector Development Environmental Policy Energy Management Natural Resources Management Sino-German CSR Project Sustainable Urban Development Corporate Social Responsibility

  4. Sino-German CSR Project Concept Objective To have key political institutions and enterprises incorporate CSR into their policies, strategies and practices. Duration April 2007 – March 2011 Implementing partners Department of WTO Affairs, Ministry of Commerce of PRC Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Intermediaries Employees and management of partner organisations, research institutions, media, and civil society. Intervention Areas • National-level policy development and stakeholder dialogue (Macro) • Provincial-level policy development and stakeholder dialogue (Meso) • Enterprise-level PPP (Micro) • International exchange

  5. “…The Sino-German Corporate Social Responsibility Project emphasizes collaboration and cooperation with a variety of organizations to maximize the impact of its activities…” Cooperation principles Provide assistance on the basis of needs Support existing efforts Work with organizations which are highly interested in CSR and self-motivated to cooperate. Focus on outcomes and impact Apply a cooperation model where partners make contributions demonstrating active ownership. Incorporate all relevant stakeholders into project activities Cooperation Partners jobs & revenue

  6. Corporate Social Responsibility • Strategically incorporating social and environmental considerations into daily business practices to achieve sustainability and competitive advantages • Moving from compliance to a comprehensive CSR strategy CSR stages: Maximising opportunities and managing risks

  7. Responsible Competitiveness and Value • Responsible Competitiveness is about making sustainable development count in global and regional markets. • Markets reward business practices that improve social, environmental and • economic outcomes • Economic success for nations that encourage such business practice • through public policies, societal norms and citizen action • Regional success for provinces and cities that encourage the same business • practices • Responsibility can and does reinforce competitiveness at all levels of development “Responsible competitiveness…blends forward-looking corporate strategies, innovative public policies and engaged and vibrant civil societies. It is about creating a new generation of profitable products and business processes underpinned by rules that support societies’ broader social, environmental and economic aims” Pascal Lamy, Director-General, World Trade Organization

  8. Accountability • 200 members include businesses, non-governmental organizations and research bodies • Representatives from all five continents • Developed AA1000 Framework Series on Sustainability Assurance and Stakeholder Engagement Standards • Cutting edge research on governance and accountability of partnerships and links between responsible business practices and the competitiveness of nations. AccountAbility is an international non-profit, membership organisation (est. 1995) to promote accountability innovations that advance responsible practices of business, government, civil society and other institutions

  9. Accountability 2007 Responsible Competitiveness Report

  10. Core Principles of Responsible Competitiveness

  11. The State of Responsible Competitiveness 2007

  12. BRICS and Responsible Competitiveness Brazil, Russia, India, China and South Africa will be, together, stronger than the old G6 economies of France, Germany, Italy Japan, the UK and US (Goldman Sachs Group’s forecast for 2050) However, each country must confront enormous challenges, and the present Responsible Competitiveness Index (RCI) ratings reflect this. BRICS performance in RCI in 2007

  13. China and challenges to Responsible Competitiveness Remarkable economic development but social and environmental challenges exist. • Environmental Challenges • Dramatic increase in • the demand for natural • resources • Poorly regulated • industrial and • household emissions • and waste • Environmental • degradation and pollution • Social challenges • Work safety • Public health problems • Mass migration • Forced resettlement • Social unrest China

  14. A Central Framework for Responsible Competitiveness Harmonious Society • shifts the focus of development from centralized control to increased participation and • multi-stakeholder involvement and from a premium on economic growth to overall • societal balance, including environmental sustainability Hu Jintao’s 8 Dos and Don’ts 1. Love the motherland, do not harm it. 2. Serve, don't disserve the people. 3. Uphold science, don't be ignorant and unenlightened. 4. Work diligently, don't indulge in ease and comfort 5. Be united and help each other, don't benefit at the expense of others. 6. Be honest, not profit-mongering. 7. Be disciplined and law-abiding, not chaotic and lawless. 8. Know plain living and hard struggle, do not wallow in luxuries 4 March 2006

  15. Responsible Competitiveness and Harmonious Society “[The] Idea of Responsible Competitiveness embodies many of the principles that accord with China’s process of implementing sustainable development strategies and the direction of constructing a harmonious society.” Cheng Siwei Climate change • Haier Group Company, and the China Ocean Shipping Group (COSCO) have embraced the UN Global Compact’s “Caring for Climate” initiative with the UNEP and the WBCSD Forestry • Chinese Forestry Ministry now "positively guides and standardises Chinese companies' sustainable forestry activities overseas, promotes the sustainable development of forestry in those countries (and) protects the international image of our government being responsible”

  16. Towards Responsible Competitiveness China-based regional CSR initiatives

  17. Commercial Centre Competitiveness The MasterCard Worldwide Centers of Commerce Index is an innovative research Program designed to identify and rank the world’s leading cities and explore their role in driving global commerce. The index utilizes seven dimensions • 1. Legal and political framework • 2. Economic stability • 3. Ease of doing business • 4. Financial flow • 5. Business centre • 6. Knowledge creation and information flow • 7. Livability

  18. Headline Results Top Ten Centers of Commerce in the world Five Chinese Cities

  19. The Pudong New District’s New Development Model Background information • National-level development zone • Total output value growing from six billion RMB in 1990 to 2.75 trillion RMB in 2007 • Investors from 98 countries and regions had invested in nearly 15,000 projects in the district, totalling US$35.643 billion • Development in the district has been focused on four key areas: Lujiazui Financial and Trade Zone, Waigaoqiao Free Trade Zone, Jinqiao Export Processing Zone and Zhangjiang High-Tech Park Still, accepted that Shanghai needs to quickly transform its mode of economic development, push industrial restructuring and optimisation, and spur sustainable development. Four-in-One (a system that advances CSR through)

  20. Highlights of Pudong New Development Model A. Government guidance and principles for CSR work system • ‘Pudong New District’s Corporate Social Responsibility Leading Principles’ • ‘Suggestions on Pudong New District’s Push to Implement CSR’ • ‘The Pudong New District’s three year CSR System Action Programme’ *Also, created a CSR ‘connection conference’. B. Corporations • Joint declaration on implementing CSR in Pudong to construct harmonious companies, voluntary CSR implementation, and collaborative construction of a harmonious society C. Social Participation • CSR tool system is a multiple stakeholder engagement mechanism • ‘Pudong New District’s CSR Model Case Studies’. • ‘The Pudong New District CSR Leading Principle’

  21. Thank you for your attention! If you have any further questions, Please contact us! Sino-German Corporate Social Responsibility Project Tel: 0086-10-84195686 Fax: 0086-10-84195996 Email: rolf.dietmar@gtz.de

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