Factors Impacting The Implementation Of Corporate Social Responsibility In Chinese Food Industry

Given the penetration of globalization and pervasion of sustainable development, Corporate Social Responsibility (hereinafter referred to as CSR) has been regarded as a compulsive choice in business both by researchers and practitioners. As a matter of fact, there are an increasing number of companies which incorporate CSR and business ethics into their strategic planning since all companies are expected to take initiatives in CSR implementation. Not only is it the demand from civil society, but also it is the critical strategy to gain competitiveness and impel sustainable development. Since the implementation of Open up and Reform Policy, the past decades have witnessed an bourgeoning growth of Chinese food industry, which has contributed more and more to the general domestic economics. However, due to the low industry threshold of entrance, Chinese food companies are characterized by large numbers, small scale, dispersed distribution, low concentration and poor safety control ability. Chinese food industry suffers from a series of food safety problems caused by low ethic standard of manufacturers and the deficiency in government regulation. Such continual misconducts of food industry exposed by media have impaired the confidence of the civilian and smeared its reputation in the international market. A nation roots in its people and the people could only survive on food. Either for the concern of the welfare and basic right of common people, or for the prosperity of a company, it is of highly importance to research and promote CSR in Chinese food industry.Responding to the current situation, this paper delves into the theme of how to promote CSR in Chinese food industry by following the logical line of recognizing problems, analyzing problems then solving the problems after a review of research relating to CSR by former scholars. By the combination of qualitative and quantitative methods, this paper proposes a trilateral framework for analysis, i.e. business-government-NGOs, inspired by classical theories (such as CSR Theory, Sustainable Development Theory, Stakeholder Theory, Principal Theory and Regulation Theory) as well as conclusions by preeminent predecessors. Following that, Chapter3presents a realistic description of Chinese food industry, inundated by ceaseless food safety problems, which are further summarized and dissected by the trilateral framework. It expounds these problems in several aspects in accordance with the CSR of food supply chain and pinpoints the source of such problems from the perspective of business, government and society respectively. Chapter4draws some valuable experience from European Union, USA and Japan in CSR practice by detailed introduction of efforts exerted by each part (business, government and NGOs) by comparative study. It employs the method of case study to reveal initiatives by the3companies. On the basis of results deduced from theoretical analysis and practice summary in former chapters, Chapter5conducts an empirical study of Chinese food industry to verify these conclusions. The purpose of this part is to explore how the following independent variables, drawn from former analysis, specifically, the quality of employees, profitability, public pressure, management efficiency, impact the dependant variable, CSR, calculated according to Stakeholder Theory. The author collects data by examining official annual report of2010released by listed Chinese food and drinking companies indirectly or acquiring from CSMAR database directly. This paper uses the enterprise nature and scale as control variables to test hypotheses and ascertain the relationship. A discussion is presented after the regression analysis.Preceded by theoretical analysis, comparative study and empirical study, this dissertation comes to the following conclusions:Firstly, food safety is the top priority of CSR for food companies. However, CSR of food companies is not confined to food safety, which justifiably is assume to be the kernel and critical part of CSR for food companies. Instead, it covers the interest of various stakeholders decided by the,holistic food supply chain.Secondly, NGO, which is not full-fledged in China, actually possesses enormous power in the promotion of CSR. Successful implementation of CSR in a country entails balanced and collaborative initiative from business, government and NGOs, which are supposed to position their appropriate role in different cause of economic development.Thirdly, the quality of employees, profitability, public pressure, management efficiency, would pose positive impact on internal CSR promotion in a food enterprise. Hence, in order to enhance CSR performance, a company is supposed to invest more on above aspects.Confronted with the facts and based on the study results, this paper puts forward corresponding countermeasures for the holistic promotion of CSR tentatively by the trilateral framework. It indicates that only with the balanced and cooperative endeavor from business, government and NGOs, could an efficient and stable CSR promotion mechanism be established. With a consummated institution of CSR promotion, people then would be freed from anxiety for food safety and responsibility defects of food industry. The trilateral analytical framework could potentially be the creativity of this research.