International Political And Economic Factors On The CSR Practice Of Chinese Extractive Enterprises In Africa

Mining is a traditional area of Chinese investment in Africa. In recent years, corporate social responsibility (CSR) of Chinese extractive enterprises in Africa has gradually been a topic of concern both at home and broad. State-owned extractive enterprises, usually undertaking large-scale project, are the major force of Chinese mining investment in Africa. As these projects are often concentrated on the construction of infrastructure in environmentally sensitive areas of host country, CSR of Chinese extractive enterprises has been playing a more and more important role in influencing on Chinese national image as well as Chinese mining industry. In a word, it is so important to study on CSR that it improves not only Chinese extractive enterprises’competitiveness in the international market but also the level of diplomacy.This paper argues that the practice of CSR by Chinese mining industry in Africa is influenced by international political and economic factors from perspective of international relations rather than business management. Therefore, the paper draws on research methods of international political economy, a political-economic analysis framework, to analyze the practice of CSR by Chinese extractive enterprises in Africa.To provide context and lay foundation for later discussion, the first chapter of the paper reviews the development of the concept of CSR from the perspective of business management and international relations. On the basis of understanding connotation of CSR concept, the paper focuses on the current situation of CSR development in China. Then, the second chapter examines China’s status quo of extractive industry in Africa and hot issues related to CSR problems.The third and the forth chapters are the main part of this analysis. According to the political and economic policies issued by host and home countries, the paper analyzes the impact of political and economic factors on the practice of CSR by Chinese extractive enterprises in Africa. It is obvious that the home country’s policy on aid to Africa and establishment of foreign investment public service system render enterprises behave under political framework. Meanwhile, business investment flow of production factors and distribution problems caused in Africa, will have an impact on CSR. To solve these economic problems, home and host countries will take actions on CSR of Chinese extractive enterprises.In conclusion, compared with the past, Chinese extractive enterprises are constantly advancing CSR institutionalization process in Africa under the guidance of home country. Besides, CSR institutionalization process in Africa is inseparable with international political and economic factors. Last but not least, Chinese extractive enterprises should drag detailed research on host countries according to different cultures and religious assessments in order to enhance the localization level and the flexibility to resist risks of the enterprises.