Unpacking the Corporate Social Responsibility (CSR) of Chinese enterprises in Nepal
The Corporate Social Responsibility (CSR) report by the Chinese Enterprise Association of Nepal (CEAN) of 2024 is the third CSR report prepared that highlights Chinese enterprise's efforts in sustainability and social responsibility in Nepal.
Globally, CSR has been widely important to Chinese companies in recent years. According to Prof Jiangyu Wang of City University of Hongkong, before 2005 Chinese companies issued only a total of 22 CSR reports. Now in 2022, it has risen to 2,330 displaying China’s developing CSR landscape and its impact on Chinese enterprises.
For Chinese companies, CSR has become an important tool of communication between the government, enterprise, and society. In 2024, the central government of the PRC announced the “high standards of fulfillment of social responsibilities by state enterprises” highlighting the need for enterprises to fully integrate social responsibility into enterprise strategy and in their daily operations and management and overall adhere to the Party’s vision.
No longer is the scenario that the core social responsibility of Chinese enterprises was nothing but economic performance. Nowadays, Chinese enterprises, both in Nepal and overseas are incredibly highlighting the need for environmental and social aspects of their operations overseas which is done largely through its CSR activities. Furthermore, given the Chinese government’s mandate to carry out socially responsible activities, CSR or other activities will be important to gauge the development effectiveness of Chinese enterprises in host countries.
In that regard, the CEAN report on the CSR of Chinese enterprises provides an overall summary of some of the CSR activities undertaken by Chinese enterprises in Nepal.
As per the CEAN CSR report of 2024, a vast majority of Chinese enterprises, nearly 7 out of 8 of the CEAN enterprise members, have focused their CSR activities in developing the education sector and talent development in Nepal.
Huawei, one of China’s leading tech companies with initiatives such as the “Intelligent Nepal through ICT Technologies and Talents” which supports over 500 ICT graduates, and the “Seeds for the Future” Program, provides overseas study opportunities for ICT students and employees. These programs not only have empowered Nepali youth but also align with Huawei’s global vision of digital development.
Another company, The China Construction Seventh Engineering Bureau, has provided a platform to empower and showcase Nepali talent by conducting campus recruitment for engineering and technical employees in collaboration with Oxford College of Engineering and Management (OCEM) for the Kathmandu-Terai/Medhesh Fast Track Road Project blending its CSR activities with government’s project priorities.
While education and talent development has remained a top priority for the enterprises this year, it will be interesting to observe how Chinese enterprises address the environmental and sustainablity challenges in near future.
Given China’s commitment to green development through its flagship initiatives like the Belt and Road Initiative (BRI), along with Chinese enterprises having to abide by the Environmental, Social, and Governance (ESG) practices in China, increased environmental stewardship by Chinese companies will be a key focus in the coming years in their CSR activities.
Furthermore, Chinese enterprises could take a more holistic approach by exploring opportunities to collaborate or other organizations, with a more holistic strategy that encompasses environmental and socio-economic development. Companies could engage stakeholders to gather their input on the relevance and local impact of CSR projects, to identify areas for improvement further.
In conclusion, the third volume report of the CSR initiative by the CEAN 2024, provides an outline of how CEAN members are actively engaging with the local communities, improving lives via community support and development, education, healthcare, and environmental efforts. The report highlights the voluntary initiatives and sustainable practices undertaken by its members and their positive impact on Nepal’s socio-economic advancement.
Lakshana Rana is a Research Intern at The Araniko Project and a current undergraduate student at Language and Culture at Chulalongkorn University.
The report can be accessed here