As part of this presentation to the Shanghai Chapter of the British Chamber of Commerce, I discuss the dynamics of CSR/ sustainability in China and how firms are responding.

1. CSR and Sustainability in China

3. Conduct research, study problems, assess program, & create partnerships

4. Work with social entrepreneurs and NGO leaders to develop capacity

6. Support project partners with direct donations, fundraising planning and execution, community project design/implementation

8. Improve student awareness of the social and environmental challenges in China

10. Issues of Economy

12. Air Pollution – 16 of the world’s 20 cities with the worst air are in China

14. Regular sand storms in the North of China

16. Gender Imbalances: More then 115 boys for every 100 girls born

17. Aging Society: By 2050, China will have more than 440 million people older than 60, 31% of the population

18. Community Engagement: Integration and engagement within community is diminishing

20. Key Questions/ Debates

22. Are these problems systemic?

24. Will Beijing fail to find more water?

27. Wait until perhaps it’s too late….How much can be solved today? Who should take the first step? Confidence becomes the biggest issue, and source of further pressure

28. Who’s to Blame / Who Should Lead Business Leaders Citizens Politicians Change Leadership Personal Accountability Harmonious Society

29. How Big Should the Response Be? Is 750 billion enough to save the global economy? Is 5 Trillion enough? … and how much is saving the polar bears going to cost?

30. What Pressures Do Firms Face:

31. CSR/ Sustainability Governance Workplace Environment Community Consumers Internal programs focused on employee wellbeing and job satisfaction Developing process and programs that minimize impact to environment External programs that link firm & community through volunteering & philanthropy Providing products/ services to consumers that are safe and live up to expectations Internal program meant to reduce risks of corruption / abuse in the firm

33. Factories with up to 20 beds in a room

36. Firms are having to improve working conditions to attract and retain workers

39. SEPA and NRDC were given more power and support

41. Immediate tightening of all investment regulations occurred and turning away investments

43. Government incentives meant to entice high-value production

46. Source of contamination was US manufacturing site

47. Limited to few batches

48. Batches were sold in the United States, Puerto Rico, Caribbean

49. Unlicensed sales of product has been found in China

52. Employee people

53. Make Money

54. Pay Taxes

56. Healthy vents and feedback mechanisms are being added

59. Rebalancing risk / reward equation

60. Improving labor conditions and standards

62. Moving away from environmentally damaging processes

64. Creating core values that align with values of employees

66. Partnerships reflected global issues of interest

68. Alignment of issues at the regional level that tie to global level

69. High local ownership / engagementGlobal firms (and their foundations) began developing capacity internally to locally source project partners as a means to create more stable programs that have greater buy in locally China HQ Corning BU Local Organization Local Partner Local Partner Local Partner

70. Publicly Governance Workplace Environment Community Consumers Developing green products PR/ media messaging referencing “commitment to the environment Website and CSR reporting on labor practices Sustainability Reporting Donations to green NGOs Splash advertising of any green credentials of product, services, or investments Long term financial commitments to local NGOs Employee volunteering None

71. Privately Governance Workplace Environment Community Consumers Working to figure out what it is consumers value Working with suppliers / distributors to ensure safe products Preparing disaster plans Review of employee handbooks, and alignment of benefits to market Internal programs focused on moral boost Environmental assessments of operations Private engagement with NGOs and Agencies to understand future concern Internal program guidelines being developed Exploring mechanisms for more effective giving with local NGOs Risk Assessment and process evaluation Installation of systems to identify, track, and alert to misconduct