Between political legitimacy and strategic competitiveness: Overseas corporate social responsibility patterns of Chinese international contractors
Vol 8, Issue 8, 2024
VIEWS - 152 (Abstract) 80 (PDF)
Abstract
This article examines the overseas corporate social responsibility (CSR) patterns of Chinese international contractors (CICs). Adopting an institutional and political economy approach, a unique dataset is constructed with country-specific contents drawn from CSR-related reports and website information of 50 top CICs. This dataset provides a foundation for systematic content analysis of CICs’ overseas CSR practices, revealing that both political legitimacy-seeking and strategic competitiveness-seeking motivations drive CICs’ CSR activities abroad, characterized by the prioritization of customer and community engagement. The findings highlight the coexistence of the exogenous pressures for the national image-building purpose and the endogenous awareness of CSR strategic importance for corporate internationalization. The hybridization of political and economic rationales is presented as the defining feature of CICs’ current overseas CSR patterns, with the balance between them being determined by stakeholder type and internal business needs influenced by corporate internationalization experience.
Keywords
Full Text:
PDFReferences
ACEG. (2018). Localized management promotes new development of overseas projects (Chinese). Available online: http://www.acegoec.com/display.php?id=4076 (accessed on 21 September 2022).
Ali, W., Frynas, J. G., & Mahmood, Z. (2017). Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review. Corporate Social Responsibility and Environmental Management, 24(4), 273–294. https://doi.org/10.1002/csr.1410
Bai, C., Sarkis, J., & Dou, Y. (2015). Corporate Sustainability Development in China: Review and Analysis. Industrial Management & Data Systems, 115(1), 5–40. https://doi.org/10.1108/imds-09-2014-0258
Banerjee, S. B. (2008). Corporate Social Responsibility: The Good, the Bad and the Ugly. Critical Sociology, 34(1), 51–79. https://doi.org/10.1177/0896920507084623
Beck, K. I., & Brødsgaard, K. E. (2022). Corporate Governance with Chinese Characteristics: Party Organization in State-owned Enterprises. The China Quarterly, 250, 486–508. https://doi.org/10.1017/s0305741021001351
Bersch, K., & Koivumaeki, R.-I. (2019). Making Inroads: Infrastructure, State Capacity, and Chinese Dominance in Latin American Development. Studies in Comparative International Development, 54(3), 323–345. https://doi.org/10.1007/s12116-019-09282-5
BHRRC. (2021). ‘Going Out’ Responsibly: The Human Rights Impact of China’s Global Investments. Available online: https://www.business-humanrights.org/documents/36365/2021_BHRRC_China_Briefing.pdf (accessed on 10 March 2022).
Brautigam, D., & Hwang, J. (2019). Great Walls over African Rivers: Chinese Engagement in African Hydropower Projects. Development Policy Review, 37(3), 313–330. https://doi.org/10.1111/dpr.12350
Buhmann, K. (2017). Chinese Human Rights Guidance on Minerals Sourcing: Building Soft Power. Journal of Current Chinese Affairs, 46(2), 135–154. https://doi.org/10.1177/186810261704600206
CCCC. (2018a). CCCC going global battling for the market in Saudi Arabia (Chinese). Available online: https://www.sohu.com/a/232633720_825950 (accessed on 10 December 2022).
CCCC. (2018b). Chinese company plays a major role in overcoming infrastructure construction bottlenecks in Senegal (Chinese). Available online: https://www.ccccltd.cn/news/mtjj/202209/t20220909_180685.html (accessed on 10 December 2022).
CCCC. (2018c). After 396 days of hard work, the Indonesia Palembang Light Rail project is completed ahead of schedule (Chinese). Available online: http://www.ccccltd.cn/news/jcxw/sdbd/201809/t20180903_94123.html (accessed on 10 December 2022).
CEEC. (2020). Chinese company is constructing a world-class coal-fired power plant in Turkey, contributing to local development (Chinese). Available online: http://www.ceec.net.cn/art/2020/9/29/art_11023_2299696.html (accessed on 10 December 2022).
Coni-Zimmer, M. (2017). The localization of CSR norms: Development agencies and the promotion of responsible business conduct in China. In: Bonacker, T., von Heusinger, J., & Zimmer, K. (editors). Localization in Development Aid. London: Routledge. pp. 203-219.
CREC. (2021). Demonstrate the advantages of being pioneer in globalization by achievements in expanding overseas market (Chinese). Available online: http://www.crecg.com/web/10089492/10091154/10187729/index.html (accessed on 18 September 2022).
Drebes, M. J. (2014). Including the ‘Other’: Power and Postcolonialism as Underrepresented Perspectives in the Discourse on Corporate Social Responsibility. Critical Sociology, 42(1), 105–121. https://doi.org/10.1177/0896920513509824
Du, Q. R. & Chen, D. (2020). Research on the main risks and countermeasures of China’s overseas integrated Investment-Construction-Operation model (Chinese). Macroeconomics, 10, 32-41.
ENR. (2001). The top 225 international contractors. ENR.
ENR. (2015). The top 250 international contractors. ENR.
ENR. (2022). The top 250 international contractors. ENR.
Fei, D. (2023). Internationalizing China Standards Through Corporate Social Responsibility: An Exploratory Study of Chinese State-Owned Enterprises in Africa. Journal of Contemporary China, 33(147), 465–485. https://doi.org/10.1080/10670564.2023.2204811
Fessehaie, J., & Morris, M. (2013). Value Chain Dynamics of Chinese Copper Mining in Zambia: Enclave or Linkage Development? The European Journal of Development Research, 25(4), 537–556. https://doi.org/10.1057/ejdr.2013.21
Gezhouba. (2019). Social Responsibility Report 2019. Available online: https://static.cninfo.com.cn/finalpage/2020-04-01/1207441474.PDF (accessed on 14 November 2022).
Gugler, P., & Shi, J. Y. J. (2008). Corporate Social Responsibility for Developing Country Multinational Corporations: Lost War in Pertaining Global Competitiveness? Journal of Business Ethics, 87(S1), 3–24. https://doi.org/10.1007/s10551-008-9801-5
Jackson, G., Bartosch, J., Avetisyan, E., et al. (2019). Mandatory Non-financial Disclosure and Its Influence on CSR: An International Comparison. Journal of Business Ethics, 162(2), 323–342. https://doi.org/10.1007/s10551-019-04200-0
Jamali, D., & Neville, B. (2011). Convergence Versus Divergence of CSR in Developing Countries: An Embedded Multi-Layered Institutional Lens. Journal of Business Ethics, 102(4), 599–621. https://doi.org/10.1007/s10551-011-0830-0
Jiang, W., & Wong, J. K. W. (2016). Key Activity Areas of Corporate Social Responsibility (CSR) in the Construction Industry: A Study of China. Journal of Cleaner Production, 113, 850–860. https://doi.org/10.1016/j.jclepro.2015.10.093
Karakır, İ. A. (2018). Environmental Foreign Policy as a Soft Power Instrument: Cases of China and India. Journal of Contemporary Eastern Asia, 17(1), 5-26. https://doi.org/10.17477/jcea.2018.17.1.005
Karlsson, N. P. E., Laurell, H., Lindgren, J., et al. (2018). A Cross-country Comparison and Validation of Firms’ Stakeholder Considerations in Sustainable Business Practices. Corporate Governance: The International Journal of Business in Society, 18(3), 408–424. https://doi.org/10.1108/cg-07-2017-0131
Kitano, N., & Miyabayashi. Y. (2020). Estimating China’s Foreign Aid: 2019-2020 Preliminary Figures. Tokyo: JICA Ogata Sadako Research Institute for Peace and Development.
Lattemann, C., Alon, I., Spigarelli, F., et al. (2017). Dynamic Embeddedness in Chinese Firm Internationalization. Thunderbird International Business Review, 59(4), 547–559. https://doi.org/10.1002/tie.21898
Li, C. (2016). Holding “China Inc.” Together: The CCP and The Rise of China’s Yangqi. The China Quarterly, 228, 927–949. https://doi.org/10.1017/s0305741016001466
Li, X., Gao-Zeller, X., Rizzuto, T. E., et al. (2019). Institutional Pressures on Corporate Social Responsibility Strategy in Construction Corporations: The role of Internal Motivations. Corporate Social Responsibility and Environmental Management, 26(4), 721–740. https://doi.org/10.1002/csr.1713
Liao, P.-C., Xia, N.-N., Wu, C.-L., et al. (2017). Communicating the Corporate Social Responsibility (CSR) of International Contractors: Content Analysis of CSR Reporting. Journal of Cleaner Production, 156, 327–336. https://doi.org/10.1016/j.jclepro.2017.04.027
Liao, P.-C., Liao, J.-Q., Wu, G., et al. (2018). Comparing International Contractors’ CSR Communication Patterns: A Semantic Analysis. Journal of Cleaner Production, 203, 353–366. https://doi.org/10.1016/j.jclepro.2018.08.218
Lin, K., Banik, D., & Yi, L. (2016). An Exogenous Path of Development: Explaining the Rise of Corporate Social Responsibility in China. The International Journal of Social Quality, 6(1). https://doi.org/10.3167/ijsq.2016.060106
Lin, L. W. (2010). Corporate Social Responsibility in China: Window Dressing or Structural Change. Berkeley Journal of International Law, 28, 64.
Lin, L. W., & Milhaupt, C. J. (2013). We Are the (National) Champions: Understanding the Mechanisms of State Capitalism in China. Stanford Law Review, 697-759.
Lin, Y. (2023). The Belt and Road Initiative and Corporate Social Responsibility Development in China. China and International Norms, 90–110. https://doi.org/10.4324/9781003299387-5
Lin, Y. (2024). Evolving Normative Dynamics: Understanding China’s Varied Approaches to Overseas Corporate Social Responsibility in the Belt and Road Initiative Era. Journal of Current Chinese Studies; in press.
Lin, Y., & Esteban, M. (2023). Variations of China’s Stances toward International Norms in the Belt and Road Era. China and International Norms, 179–193. https://doi.org/10.4324/9781003299387-9
Liou, C. (2014). Rent-seeking at Home, Capturing Market Share Abroad: The Domestic Determinants of the Transnationalization of China State Construction Engineering Corporation. World Development, 54, 220–231. https://doi.org/10.1016/j.worlddev.2013.08.011
Liu, B. (2020). China’s State-Centric Approach to Corporate Social Responsibility Overseas: A Case Study in Africa. Transnational Environmental Law, 10(1), 57–84. https://doi.org/10.1017/s2047102520000229
Low, S. P., & Jiang, H. B. (2003). Internationalization of Chinese Construction Enterprises. Journal of Construction Engineering and Management, 129(6), 589-598. https://doi.org/10.1061/(ASCE)0733-9364(2003)129:6(589)
Lu, W., Ye, M., Flanagan, R., et al. (2016). Corporate Social Responsibility Disclosures in International Construction Business: Trends And Prospects. Journal of Construction Engineering and Management, 142(1), 04015053. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001034
Luo, X. R., & Wang, D. (2019). Are Politically Endorsed Firms More Socially Responsible? Selective Engagement in Corporate Social Responsibility. Journal of Business Ethics, 170(3), 535–555. https://doi.org/10.1007/s10551-019-04367-6
Lusteau, G., Barth, I., & Jaussaud, J. (2018). The Chinese Way to The Development of Corporate Social Responsibility. China’s Global Political Economy, 168–176. https://doi.org/10.4324/9781315102566-11
Ma, H., Zeng, S., Shen, G. Q., et al. (2016). International Diversification and Corporate Social Responsibility. Management Decision, 54(3), 750–774. https://doi.org/10.1108/md-07-2015-0322
Ma, T., & Liu, Y. (2022). Multiple Paths to Enhancing the Resilience of Project-Based Organizations from the Perspective of CSR Configuration: Evidence from the Chinese Construction Industry. Engineering, Construction and Architectural Management, 31(2), 835–865. https://doi.org/10.1108/ecam-06-2022-0526
Maurin, C., & Yeophantong, P. (2013). Going Global Responsibly? China’s Strategies Towards “Sustainable” Overseas Investments. Pacific Affairs, 86(2), 281–303. https://doi.org/10.5509/2013862281
MOFCOM (2019). The guidance on promoting the development of high-quality foreign contracting projects by the Ministry of Commerce and other 19 departments (Chinese). Available online: http://hzs.mofcom.gov.cn/article/zcfb/a/201909/20190902900658.shtml (accessed on 11 January 2023).
MOFCOM (2020). 2020 Statistical Bulletin on China International Project Contracting. Available online: http://images.mofcom.gov.cn/hzs/202110/20211013103551781.pdf (accessed on 11 January 2023).
National Bureau of Statistics of China. (2024). Available online: https://data.stats.gov.cn/english/easyquery.htm?cn=C01 (accessed on 5 April 2024).
Noronha, C., Tou, S., Cynthia, M. I., et al. (2012). Corporate Social Responsibility Reporting in China: An Overview and Comparison with Major Trends. Corporate Social Responsibility and Environmental Management, 20(1), 29–42. https://doi.org/10.1002/csr.1276
Park, H. (2023). Global Norm-Maker as China’s New Brand? An Analysis of the Responsible Cobalt Initiative. The Chinese Journal of International Politics, 16(2), 129–156. https://doi.org/10.1093/cjip/poad002
Patten, D. M., Ren, Y., & Zhao, N. (2015). Standalone Corporate Social Responsibility Reporting in China: An Exploratory Analysis of its Relation to Legitimation. Social and Environmental Accountability Journal, 35(1), 17–31. https://doi.org/10.1080/0969160x.2015.1007467
RDBC. (2013). The proportion of turnkey projects under the EPC general contracting model in China’s international contracting projects continues to increase (Chinese). Available online: http://www.rdbcpm.com/archives/wo-guo-epc-xiang-mu-zeng-duo.html (accessed on 20 April 2023).
Sang, M., Zhang, Y., Ye, K., et al. (2022). Moderating Effects of Internationalization between Corporate Social Responsibility and Financial Performance: The Case of Construction Firms. Buildings, 12(2), 185. https://doi.org/10.3390/buildings12020185
Tan-Mullins, M., & Mohan, G. (2012). The Potential of Corporate Environmental Responsibility of Chinese State-Owned Enterprises in Africa. Environment, Development and Sustainability, 15(2), 265–284. https://doi.org/10.1007/s10668-012-9409-x
Tan-Mullins, M., Urban, F., & Mang, G. (2017). Evaluating the Behaviour of Chinese Stakeholders Engaged in Large Hydropower Projects in Asia and Africa. The China Quarterly, 230, 464–488. https://doi.org/10.1017/s0305741016001041
Tan Mullins, M. (2019). Smoothing the Silk Road through Successful Chinese Corporate Social Responsibility Practices: Evidence from East Africa. Journal of Contemporary China, 29(122), 207–220. https://doi.org/10.1080/10670564.2019.1637568
Three Gorges. (2020). Belt and Road Sustainable Development Report 2020. Available online: https://www.ctg.com.cn/sxjt/resource/cms/article/721034/1225240/2021090311035589862.pdf (accessed on 15 November 2022).
Vogel, D. (2009). The Private Regulation of Global Corporate Conduct. Business & Society, 49(1), 68–87. https://doi.org/10.1177/0007650309343407
Wang, H., & Hu, X. (2017). China’s “Going-Out” Strategy and Corporate Social Responsibility: Preliminary Evidence of a “Boomerang Effect.” Journal of Contemporary China, 26(108), 820–833. https://doi.org/10.1080/10670564.2017.1337301
Weng, X., & Buckley, L. (2016). Chinese Businesses in Africa: Perspectives on Corporate Social Responsibility and The Role of Chinese Government Policies. International Institute for Environment and Development (IIED).
Werther, W. B., & Chandler, D. (2014). Strategic Corporate Social Responsibility: Stakeholders, Globalization, and Sustainable Value Creation. London: SAGE.
Whelan, G. (2012). The Political Perspective of Corporate Social Responsibility: A Critical Research Agenda. Business Ethics Quarterly, 22(4), 709–737. https://doi.org/10.5840/beq201222445
Whelan, G., & Muthuri, J. (2015). Chinese State-Owned Enterprises and Human Rights: The Importance of National and Intra-Organizational Pressures. Business & Society, 56(5), 738–781. https://doi.org/10.1177/0007650315612399
Wu, C.-L., Fang, D.-P., Liao, P.-C., et al. (2015). Perception of Corporate Social Responsibility: The Case of Chinese International Contractors. Journal of Cleaner Production, 107, 185–194. https://doi.org/10.1016/j.jclepro.2015.04.143
Wuyi (2018). Social Responsibility Report 2017. Available online: http://static.cninfo.com.cn/finalpage/2018-04-25/1204735011.PDF (accessed on 16 November 2022).
Xia, B., Olanipekun, A., Chen, Q., et al. (2018). Conceptualising The State of The Art of Corporate Social Responsibility (CSR) in the Construction Industry and Its Nexus to Sustainable Development. Journal of Cleaner Production, 195, 340–353. https://doi.org/10.1016/j.jclepro.2018.05.157
Xinhua. (2016). Xi Jinping presides the 31st collective study of the Politburo of the CCP (Chinese). Available online: http://www.xinhuanet.com//politics/2016-04/30/c_1118778656.htm (accessed on 12 November 2020).
Xinhua. (2018). Xi Jinping attended the symposium on the 5th anniversary of the Belt and Road construction and delivered an important speech (Chinese). Available online: http://www.gov.cn/xinwen/2018-08/27/content_5316913.htm (accessed on 12 November 2020).
Xu, S., & Liu, D. (2020). Political Connections and Corporate Social Responsibility: Political Incentives in China. Business Ethics: A European Review, 29(4), 664–693. https://doi.org/10.1111/beer.12308
Yang, H. X. (2019). Challenges in the transformation to Investment-Construction-Operation (Chinese). Zhongguo Touzi, 23, 30-33.
Yang, Z. H., & Yang, N. L. (2019). The basic picture of 70 years of China aid with Chinese characteristics and its optimization suggestions (Chinese). DRC. pp. 68-75.
Ye, M., Lu, W., Flanagan, R., et al. (2019). Corporate Social Responsibility “Glocalisation”: Evidence from The International Construction Business. Corporate Social Responsibility and Environmental Management, 27(2), 655–669. https://doi.org/10.1002/csr.1831
Zahra, S. A., & Covin, J. G. (1993). Business Strategy, Technology Policy and Firm Performance. Strategic Management Journal, 14(6), 451–478. https://doi.org/10.1002/smj.4250140605
Zhang, H. (2020). The Aid-Contracting Nexus: The Role of The International Contracting Industry in China’s Overseas Development Engagements. China Perspectives, 2020(4), 17–27. https://doi.org/10.4000/chinaperspectives.11124
Zhang, H. (2021). Chinese international contractors in Africa: Structure and agency. SAIS Working Paper, 47.
Zhang, Q., Oo, B. L., & Lim, B. T. H. (2020). Corporate Social Responsibility Practices by Leading Construction Firms in China: A Case Study. International Journal of Construction Management, 22(8), 1420–1431. https://doi.org/10.1080/15623599.2020.1717107
Zhang, Q., Oo, B. L., & Lim, B. T.-H. (2022). Modeling Influence Mechanism of Factors on Corporate Social Responsibility Implementation: Evidence from Chinese Construction Firms. Engineering, Construction and Architectural Management, 31(1), 324–362. https://doi.org/10.1108/ecam-07-2021-0603
Zhang, W. J. (2019). Some reflections on achieving high-quality development of overseas construction enterprises (Chinese). International Project Contracting And Labour Service, 12, 39-41.
Zhu, J. G., Wang, Y., & Tang, G. L. (2019). Research on the social responsibility of central SOEs under the Belt and Road Initiative (Chinese). China Industrial Economic, 9, 174-192.
DOI: https://doi.org/10.24294/jipd.v8i8.5729
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Yue Lin
License URL: https://creativecommons.org/licenses/by/4.0/
This site is licensed under a Creative Commons Attribution 4.0 International License.