From CSR 1.0 to CSR 2.0

Dr. Michael Porter said that a key point of strategy-based CSR is that it is always together with a business. Like business activities, CSR is an interactive process with a corporation's stakeholders.

David Zhao, Managing Director of Hill & Knowlton Shanghai, used the concept of Web 2.0 and explained the changes in the content of CSR to be a transition from CSR 1.0 to CSR 2.0 where interactivity is more emphasized. David Zhao said, "CSR activities are not unilateral actions of corporations anymore. They have become more interactive than in the past."

David Zhao also noted that enterprises should analyze national macro-policies and various social needs from a social responsibility perspective before determining what they can do, where their competitiveness lies, and what their competitors and their industry are doing. Following this, they can then maximize areas in which they can contribute in terms of social responsibility. "This is the gist of CSR 2.0."

What H&K is now introducing is an integrated CSR consultation service. Its first item is analysis and evaluation. H&K will begin looking at the situation from the company's viewpoint to ascertain what CSR items are most suitable. H&K will also establish a set of standards and measures for the project. In addition, they will study and examine the new dynamics in the field of CSR. For example, while some foreign companies have started recycling discarded electronic products, China does not have this kind of mandatory policy.

Many foreign companies, in addition to creating financial annual reports, have also established a CSR annual report. For example, Intel, HP and Motorola have created these types of reports. This allows them to clearly communicate with stakeholders and to express how they manage the issue of CSR, as well as how they fulfill their own CSR objectives.

The annual report is a very important communication tool with the business's stakeholders. Investors read it. The media reads it. Financial analysts read it. Partners read it. Even the government reads it.

David Zhao also noted that companies not only need to communicate their social responsibilities to their own employees, they should also influence their suppliers and even the entire supply chain to carry out their work in accordance with the enterprise's standards. "Corporate social responsibility cannot rely on any single enterprise - it must be promoted from one link of the industry to another," he stated.

It is reported that many international companies have systems that allow employees to participate in these CSR initiatives, and the companies encourage employees to become a part of CSR activities. This brings CSR into the company's internal communications. In that case, the loyalty of employees to the company would increase. They would feel that they belonged to a good company, and that they worked for a responsible company.

David Zhao said that when H&K has broached the subject of corporate responsibility with local enterprises, most of them listened intently. Some would even agree with them on the principle. However, when the subject of implementation was raised, they often shied away from making a commitment. "This is because they have many issues to contend with, and thus CSR was not on their immediate agenda." In their eyes, CSR is just "window dressing", and not a part of their sustainable development strategy.

The Olympics will be a catalyst in China. This will first of all be reflected in the food system. A food safety tracking system will be established for the Beijing Olympics. Under this system, one needs only to enter the information for all the food supplied during the Olympics to not only know who the manufacturers are, but also the suppliers of raw materials. In fact, one can even find out where the raw materials are produced. If a problem occurs, it can be traced back to its source.

"It seems a matter of technologies. However if you look at the whole thing from a social responsibility viewpoint, this is in fact the biggest business problem the food enterprises are facing."