The Corporate Global Citizenship ChallengeAmong China’s largest enterprises, “going out”—or globalization—is a central theme of business. Chinese companies are increasingly establishing operations in overseas markets. Along with this expansion comes the requirement to engage directly with local communities and improve them through corporate citizenship activities. However, the traditional view is that corporate citizenship will have a negative effect on corporate profits. As a result, Chinese companies need to reconcile these two imperatives when they go global.
Unlike early forms of philanthropy—such as cash donations, often pledged in the wake of a natural disaster—the innovative solutions many Chinese companies are developing align corporate citizenship and business strategy. These companies are able to match local needs with their core business strengths, yielding better results for communities as well as new business opportunities. Structured the right way, these efforts can actually drive revenue—and thus be sustainable over time.
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