Chapter Five: Corruption and Business Activities

Assessing the conditions under which CSR-values and practices can be implemented in China requires at some point an evaluation of the extent to which corruption may weigh on business activities. For sure, corruption is a phenomenon that affects, at various degrees, all countries in the world, taking different shapes according to social, political and cultural prevailing conditions. The Chinese government has made the struggle against corruption one of its top priorities, while recognizing the pervasive character of the phenomenon and how difficult it would be to eradicate it. President Xi Jinping has exhorted fellow leaders to learn from the experience of other countries where corruption has played a “big role in conflicts that grew over lengthy periods”, and led to “popular discontent, social unrest and the overthrow of the political power”. The new leadership describes the challenge created by corruption practices with striking expressions: “Combating corruption and promoting political integrity, which is a major political issue of great concern to the people, is a clear-cut and long-term political commitment of the Party. If we fail to handle this issue well, it could prove fatal to the Party, and even cause the collapse of the Party and the fall of the state … We must maintain a tough position in cracking down on corruption at all times, conduct thorough investigations into major corruption cases and work hard to resolve problems of corruption that directly affect the people. All those who violate Party discipline and state laws, whoever they are and whatever power or official positions they have, must be brought to justice without mercy.” And indeed, corruption generates much public discontent. According to an online survey jointly conducted in February 2011 by Xinhuanet.com and Sina.com, the top five concerns expressed by the public were: (a) housing prices; (b) income distribution; (c) inflation and commodity prices; (d) combating corruption; as well as (e) employment promotion and equal employment opportunities. The importance that the topic conveys for public opinion is evidenced by other surveys as well as by the traffic and comments that corruption cases trigger on the Chinese internet.