This chapter presents challenges in China's governance outlook within a Corporate Social Responsibility (CSR) analysis of China's social, environmental and economic resources and potential impacts in other countries. The purpose of this article sheds light of how CSR in China is emerging as a doorway to a) promote understanding of changes in firm governance for general managers through state and corporate socially responsible practices and b) to explain that preserving the environment and preventing pollution is necessary if China would like to trade with the West and enter global markets with other countries that place importance of governance and CSR principles.
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Governments worldwide are steering Corporate Social Responsibility (CSR) nationally and globally through varying roles in public-private collaborations and in sustainability programs (Dentchev et al., 2015). Likewise, other countries within the continent of Africa are also seeking the value of CSR into their national and business strategies, and often focus on corruption and governance issues and concerns (Kolk & Tulder, 2010). India has known the value of social responsibility from the Vedic periods to CSR practices within Indian corporations today, with an emphasis in cultural and religious traditions such as dharma as a moral and economic driver of CSR in India (Dhanesh, 2015). However, values, ethics, regulations, and broad variance of CSR constructs across countries may contradict current CSR strategies and practices in each country, thereby increasing tension and widening gaps in CSR globally. Moreover, some local acts, and regulations in local areas of emerging and developing countries often lack adequate regulatory capacity and NGO engagement, despite sufficient labor and environmental laws (Jamali, Lund-Thomsen & Jeppesen, 2015). Although CSR practices are growing in emerging economies, there is less specific information about sociocultural practices and traditions that could drive CSR (Dhanesh, 2015), China can play a key role in how governments can shape CSR business models within emerging and developing countries.
This chapter will focus on the development of CSR in China among government departments, large and small firms with a strong focus on the political role in CSR (Scherer & Palazzo, 2011) and instrumental and ethical theories of CSR (Garriga & Mele, 2004) between public and private sectors in China and worldwide. The chapter will shed light about how CSR in China is emerging as a doorway to promote understanding of changes in firm governance for general managers through state and corporate socially responsible practices and behavior by decreasing poor corporate and state governance, and to demonstrate that preserving the environment and preventing pollution is necessary if China would like to trade with the West and enter global markets with other countries that place importance of governance and CSR principles.