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September 30, 2016

Responding To: U.S.- China Cooperation: Opportunities and Challenges

Doing Well by Doing Good: How American Business Can Work with China to Benefit the Global Community

Amy Duan

Northeast China and neighboring parts of far eastern Russia and Mongolia support the beautiful creature of the wetlands—cranes. These wetlands provide a breeding ground for most of the world’s red-crowned, white-naped, and hooded cranes, and are an essential stopover habitat for almost all the world’s Siberian cranes. However, variable rainfall, water diversions, and climate change threaten the crane habitats. Today, four of the six species of cranes living there are threatened with extinction, including the Siberian crane and the red-crowned crane, a symbol of good fortune and long life across East Asia.

As a 24-year-old Chinese, I grew up listening to the story of how Xu Xiujuan, a college student in Heilongjiang province, sacrificed her life while saving two lost cranes. I am still touched by this twentieth century story because of the pure love between a human being and other creatures. But considering today’s situation, a single person’s effort would be far less than enough to save hundreds of endangered cranes. The good news is Xu Xiujuan’s followers are no longer alone, even China as a country is not alone. As a summer intern at the American Chamber of Commerce in Beijing, I heard another touching story while supporting a corporate social responsibility (CSR) project. Since April 2012, ConocoPhillips, one of the biggest American energy companies, has invested RMB 3.7 million (approximately $600,000) working with the International Crane Foundation in the at-risk areas. ConocoPhillips also cooperates with the foundation on a program focused on environmental education for primary school students living in wetlands areas. The program includes a nature course for children in wetland areas and the building of capacity among college student volunteers so that they can educate other children living in wetlands areas on environmental conservation and crane habitats.

After 30 years of reform and opening up, China has enjoyed rapid economic development, but has also suffered from serious environmental issues caused by industrialization. In recent years, amid an economic slowdown, China has worked to transform its economy from quantity-focused manufacturing to one that puts quality and environmental protection first. The world’s sustainable development would not be possible without enterprises’ sustainable development. Business plays an important role in achieving this, be it domestic or international.

How could American business work with China to benefit the global community? My first suggestion is that more enterprises should follow ConocoPhillips’ example to work with the Chinese government, business partners, educators, and nonprofit organizations to realize green manufacturing, guarantee a sustainable supply chain, promote environment protection, and drive scientific research. Business and philanthropy have always gone together, and good business leaders have the vision, the leadership, and the passion to give back to the community. During my reading of Intel’s 2015 CSR report, I was inspired by the statement “The Only Thing More Amazing than Our Technology is What the World Does with It.” As a leading innovator in computer science, Intel believes that cultivating talent and unleashing innovative power is a key to achieving sustainable growth. Intel has supported education in China for over 20 years with various education programs: it launched the Mass Makerspace Accelerator project, supported China-U.S. Young Maker Competition and Social Innovation Week, as well as “Popular Entrepreneurship and Mass Innovation” initiated by the Chinese government in recent years.

My second suggestion is that enterprises should work with government and education institutions to bring the benefits of technology to more ordinary people. Another story I read from my CSR program research is as follows: “Before 3rd grade, I often didn’t have lunch at school because my father couldn't give lunch to me every day. When this happened, my classmate shared his dry bun lunch with me. Sometimes, I was too hungry to study. I cried a couple of times because I was so hungry. Now, I can have eggs as breakfast and a hot lunch every day! I can eat up two big bowls.” These are the words of Wang Qiang, a fifth grade student at a Chinese primary school. Wang Qiang is one of the students enjoyed the Sunshine Free Lunch project. Since 2011, the central government of China has set aside RMB 18 to 20 billion every year to subsidize free lunches for rural students. However, at the beginning, many schools couldn't provide quality food to students or would only buy crackers with the funds. The government needed an efficient tool to track the program. With the support of Microsoft Cloud + Enterprise teams, China Development Research Foundation (CDRF) built up a school meal platform based on Azure, Micosoft's cloud computing platform, to monitor the enforcement of the policy. The platform went live in June 2015. Now 10,000 schools send data and pictures to Azure daily. Microsoft also helps CDRF to analyze the data regarding nutrition, health index, and the food costs. The project was recognized by Chinese government and the public. Microsoft’s action delivers a message: great technology alone is not enough. Too many of technology’s benefits have yet to reach the people who need them. We should work together to build an effective social-economic ecosystem, and bring the promise of technology to the whole community.

Apart from public sector and NGOs’ efforts to increase access to education and technology, the private sector should also leverage business resources to help. Environment protection and sustainable development can only be achieved through a full cooperation between the public sector, private sector, NGOs, and individuals.

Amy Duan is currently pursuing her master’s degree in translation studies at Beijing Foreign Studies University.


COMMENT FROM CALEB HUFFMAN (November 21, 2016):

Amy, your call for private businesses to collaborate for environmentally sustainable outcomes and to increase technology access to all people is a strong one. Your experience interning at the American Chamber of Commerce has provided you with an understanding of corporate social responsibility and its practical applications.

I have one major concern: incentive. Why should businesses, with an aim for profit, invest resources into philanthropy? I am tempted to cite morality or a sense of duty to humanity, but morality and duty are philosophical, probably theological, concepts. Mutual agreement on these subjects is unlikely. Let me know if I am mistaken on this point. (What great pleasure that would bring me!)

Your essay’s examples of corporate responsibility directly assist the companies’ bottom line. The question is, how can businesses be incentivized to increase corporate social responsibility without an intrinsic morality or a profit incentive?

COMMENT FROM ZHIHANG DU (November 21, 2016):

Amy, you cited your personal experience to suggest how business can benefit society by working with NGOs, non-profit organizations (NPO), and the government on environmental protection and sustainable development, which is a brand new idea for me. Maybe it can be a new model of social development cooperation between China and the United States, as operations of a single NGO and NPO may not have enough impact, and sometimes the source of their sponsorship is also doubted.


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