GOCO, JHEANNA DC

MACAY, JAMICAH
MENDOZA, ALEXANDREA ADEITRA
MC1-M – CSR & BUSINESS ETHICS

CORPORATE SOCIAL RESPONSIBILITY (CSR) IN CHINA:HUAWEI AS A CASE STUDY

1. WHAT IS YOUR TAKE ON MILTON FRIEDMAN’S SHAREHOLDER THEORY?

- MILTON FRIEDMAN'S THEORY DID A GREAT HELP IN TIME OF FINANCIAL

CRISIS AT THE END OF 2007 - EARLY 2008. I MY OPINION, THIS THEORY
MADE A HUGE IMPACT TO THE COMPANIES BACK THEN BY THINKING OF
THEIR SHAREHOLDERS FIRST RATHER THAN GIVING BACK TO THE
CONSUMERS AND I CANNOT BLAME THEM FOR DOING THAT BUT THEN, A
BUSINESS SHOULD EARN A PROFIT SO THAT THEY CAN BE 'SOCIALLY
RESPONSIBLE'. THE PROFIT IS THE BASIS OF A BUSINESS TO FUNCTION
INSIDE AND OUTSIDE OF ITS PREMISES. NOW, SOME BUSINESSES USE THIS
THEORY TO SAVE THEM AND AT THE SPAN OF THEIR CRISIS, THEY GIVE A
FIRM GRIP ON THEIR PROFIT TO AT LEAST STABILISE THE TRANSACTIONS
OR WORK INSIDE THE BUSINESS

2. IS CSR JUST AN ETHICAL IMPERATIVE? WHY OR WHY NOT?

- NO, CSR IN NOT JUST AN ETHICAL IMPERATIVE. THIS VALUES TURN OUT
TO BE A GUIDANCE IN CHINESE COMPANIES AND ALSO COMPANIES
OUTSIDE CHINESE BUSINESS WITH THE CURIOUSITY OF EVERY BUSINESS
OWNER HOW CHINESE BUSINESSMAN NOR OWNERS KEEP THEIR
COMPANY ALIVE AND STILL ON-GOING WITH A SUCCESSFUL MARKETING,
THEY CAME UP TO THE STRATEGY OF CSR AND IT IS BEING STUDIED AND
LAUNCH IN EVERY BUSINESS THAT IS ESTABLISHING. WHICH HELPS THE
BUSINESS INDUSTRY TO GROW NOT JUST THE PROFIT BUT ALSO THE
VALUE AND ETHICS.
3. WHAT COULD BE SOME OF HUAWEI’S REASON FOR VENTURING INTO
SOCIAL RESPONSIBILITY?

- THE REASON OF HUAWEI FOR VENTURING INTO SOCIAL RESPONSIBILITY

IS THE VISIBLE SUCCESS OF CHINESE BUSINESSES. WHICH THEY OPTIMISE
THEIR CSR IMPLEMENTATION AND EXECUTION. TO HAVE BALANCE
SUSTAINABILITY, REPONSIBILTY AND PROFITABLE BUSINESS. IT’S N OT
JUST ABOUT THE PROFIT ITSELF BUT ALSO THE RELATIONSHIP BETWEEN
THE BUSINESS AND THE PEOPLE OUTSIDE AND INSIDE THE BUSINESS.
HUAWEI IS NOW IMPLEMENTING THE ECONOMIC VALUE THAT A BUSINESS
SHOULD HAVE.

4. HOW CAN STAKEHOLDER’S THEORY BE APPLIED IN THE BUSINESS

STRATEGIES OF CHINESE BUSINESS PLAYERS?

- STAKEHOLDER’S THEORY ALLOWS THE STAKEHOLDERS TO INFLUENCE

EVERYTHING AND EVERYONE IN A PROJECT OR ORGANIZATIONS, AND
THOSE ARE THE SENIOR MANAGEMENT, PROJECT LEADERS, TEAM
MEMBERS, CUSTOMERS, USERS AND MANY OTHERS. CHINA IS
EXPERIENCING ENVIRONMENTAL PROBLEMS SUCH AS POLLUTION IN THE
LAND AND SEAS. IT IS ONE OF THEIR RESPONSIBILITIES TO TAKE CARE OF
IT AS WELL. CHINESE BUSINESS PLAYERS CAN SIMPLY TAKE PART OF THE
ENVIRONMENTAL CLEANUP THAT THEY WILL BE DOING OR THEY CAN
INNOVATE PRODUCTS TO HELP THE PRESERVATION OF THEIR
ENVIRONMENT. STAKEHOLDERS INVOLVING THEMSELVES IN THIS
ACTIVITY HELP THE LOW TIER MEMBERS FEEL LIKE THEY ARE ONE OF
THE STAKEHOLDERS AS WELL. EMPLOYEES WILL FEEL VALUABLE TO THE
COMPANY THEN THEY’RE GOING TO WORK HARDER WITHOUT ANY
PROVISIONS. IF THE PRODUCTIVITY IS UP THE PRODUCTS WILL BE
AFFECTED AS WELL. THIS WILL INCREASE THE QUALITY AND THE
SERVICE DELIVERED TO EACH CUSTOMER. CUSTOMERS THEN CAN FEEL A
LOYALTY WITH THE COMPANY; THEY WILL CONSIDER THE COMPANY
ESPECIALLY WHEN THEY ARE MAKING DECISIONS ON WHAT TO
PRODUCTS TO SUPPORT.
5. WHY DOES CSR SEEMS TO BE A LOT CHALLENGING FOR THE CHINESE
BUSINESSMEN?

CSR IS A LOT OF CHALLENGE WHEN IT COMES TO CHINESE BUSINESSMEN.

ONE REASON IS BECAUSE CUSTOMERS SEEM TO BE AWARE ABOUT CSR
BEING USED AS A BUSINESS STRATEGY. THEY VIEW THIS SOCIAL
RESPONSIBILITY AS AN ACT OF WANTING TO RAISE THEIR MARKET
VALUE AND NOT BECAUSE THEY ARE DOING THIS OUT OF THEIR FREE
WILL. SECOND REASON IS THEY DON’T FOSTER THIS KIND OF BEHAVIOUR.
BEING THE WORLD’S NUMBER ONE FACTORY AND KEY SUPPLIER TO THE
WESTERN BUSINESS WORLD, THEY FEEL LIKE THEY DON’T NEED TO DO
THIS REASON IS THEY ARE EARNING MONEY EVEN WITHOUT PUBLICITY.
ALL THEY HAVE TO DO IS JUST PRODUCE PRODUCTS FOR THE MARKET.
THIS BEHAVIOUR NEVER FOSTERED A BUSINESS ATTITUDE THAT TAKES
CARE ABOUT THE WELFARE OF THE ENVIRONMENT.