China's State-Centric Approach to Corporate Social Responsibility Overseas: A Case Study in Africa

Abstract

Corporate social responsibility (CSR) is conventionally understood as voluntary and market- based corporate behaviour without direct government involvement. The development of CSR in China challenges this understanding in the light of the growing role of government in promoting it. Over the past decade China has demonstrated a state-centric approach towards promoting CSR. Existing studies focus only on Chinese domestic CSR practices. However, with the rise of Chinese companies in Africa under China's ‘Belt and Road Initiative’, it is important to examine how the state-centric approach applies to the overseas CSR practice of Chinese companies. This article aims to fill the literature gap through in-depth interviews and analysis of the Standard Gauge Railway project in Kenya. It shows that close institutional, relational, and bureaucratic ties between the state and the business community give the Chinese government the power to influence the behaviour of Chinese state-owned enterprises overseas. The Chinese government can influence the CSR practices of Chinese companies overseas through mandating, facilitating, endorsing and partnering in order to minimize the negative externalities of companies’ overseas activities. However, the state-centric CSR approach limits the space for civil society engagement and the effectiveness of the approach abroad is constrained by a variety of institutional contexts and corporate ownership models.

Is power shifting? China's evolving engagement with UNESCO

“…Furthermore, China's mechanisms of indirect influence within UNESCO have shifted towards a 'homeland diplomacy' strategy that offers additional entry points to shape organisational agendas. While the Chinese government remains the predominant participant in international fora (Odgaard, 2020;Liu, 2021;see Cai, 2024, this volume), a diverse range of domestic actors, comprising universities, Category II institutions and private companies, are now more actively shaping and participating in UNESCO's initiatives. Despite China's expanding influence over the last decade, the future of China-related power shifts at UNESCO is uncertain, especially in light of the return of the United States to the organisation.…”

Understanding the influence of business strategy in corporate social responsibility: evidence from Chinese firms in Africa

“…Because, by adopting business strategy, enterprises in African can improve their CSR practice, and also, they can use the environment as a strategic competitive advantage to their firms (B. Liu, 2020). As we mentioned above in the introduction section, recently, Chinese firms have recognized themselves as one of the most challenging competitors in the African manufacturing firms.…”

“…By adopting improved environmental norms, Chinese enterprises can use the environment as a strategic competitive advantage, gaining financial access, greater legitimacy and gaining access to markets in African host countries (Liu, 2020). As stakeholders’ interest in sustainable development grows, the strategy of the business has become a critical factor in effective CSR.…”

Striving for sustainable development: The impact of corporate social responsibility on corporate performance of Chinese manufacturing multinationals in Africa

“…Some limitations were identified for this study, raising possible avenues for future research. First, China has demonstrated a state‐centric approach towards promoting CSR (Liu, 2021). This implies that MNCs' CSR initiatives are primarily driven and framed by the Chinese government.…”