Overview of CSR Reporting in China 2011

As an important tool in disclosing social responsibility performance and promoting social responsibility management in a deeply-going way, CSR reporting is receiving much more recognition and attention than that in the past. In accordance with our data statistics, a total of 817 CSR reports were released in mainland China from January 1st to October 31st in 2011, up 23 percent from a year earlier, which was 663 CSR reports. The fast growth momentum is continued through 2009 to 2011 in terms of the number of CSR reports released in China.

Main Findings

Finding 1: The number of social responsibility reports released continually grew, and that of private enterprises gained the fastest growth.

In the first ten months of 2011, the total amount of CSR reports released in China reached 817, exceeded the amount released in 2010, and increased 23.2 percent compared with the same period of 2010. The growth rates of east, central and west area of China were 12.0 percent, 14.0 percent, and 17.5 percent respectively. Reports released by different nature of enterprises achieved simultaneous growth. The private enterprises released 187 reports, with an increase of 41.7 percent year on year.

Finding 2: The quality of reports got improved, but the overall level was still at “the bottom of the pyramid”.

Compared with 2010, the general quality of reports got improved. There were more than half of the reports still at the beginning level. The reports in the level of excellent, improving and developing stage increased obviously. The report structure became more comprehensive and standard, with more humanized means of expressions. Many reports included stakeholder evaluation or third party assessment to enhance the credibility of reports.

Finding 3: The reporting creditability was improved and the number of reports adopting multi-compiling standards increased.

The overall credibility of report was improved; most of them can present the social responsibility performance of the company objectively. Many reports contained the stakeholder evaluation such as the government, employees, media and industrial institutions. The number of reports compiled according to specialized standards, such as Guideline on Fulfilling Social Responsibility by Central Enterprises issued by the State-Owned Assets Supervision and Administration Bureau, GRI G3, CASS-CSR, reached 152, with 73 percent increase year-on-year.

Finding 4: The reporting originality was enhanced, showing new characteristics

The originality of reports was enhanced actively compared with last year. Enterprises focused more on presenting new concepts, applying new compiling model, referring to specialized standards, and adopting new report structures.

Finding 5: The reporting substantiality declined, and the information disclosure was unbalanced

The information disclosure for stakeholders such as employees, communities, the environment and the government was sufficient, but information disclosure for competitors, social organizations and media was insufficient. The reports presented more information on compulsory responsibility and less information on obligatory responsibility and voluntary responsibility; disclosed more positive information and less negative information; publish sufficient information on social performance, but insufficient information on economic performance and environmental performance.

Finding 6: By promulgating polices, formulating guidelines, and releasing collective reports to actively guide enterprises to release social responsibility reports, local governments and industrial organizations have become important driving forces for the development of social responsibility reporting.

China Federation of Industrial Economics (CFIE), Shandong Province Association for Enterprises Credit & Social Responsibility, Shaanxi Federation of Industrial Economics, Guizhou Federation of Industrial Economics , Dalian Environmental Protection Bureau, the Environmental Protection Bureau of Tianjin Economic-technological Development Area actively promoted the enterprises to release social responsibility report; China National Textile and Apparel Council (CNTAC) and China Banking Associations continuously published industry social responsibility report. By the leading of the above organizations and associations, 124 CSR reports were released, occupied 15.2 percent of the total social responsibility reports of China in 2010.

Finding 7: The number of Chinese version social responsibility reports released by foreign-funded companies got continuously increased. And, country report has become the main form of social responsibility reports released by foreign-funded companies.

To adapt to the need of development in China, foreign-funded enterprises release Chinese reports, which comprehensively present the social responsibility concepts, measures and performance implemented in China. However, the total amount of reports released by foreign-funded enterprises was relatively small which offers a great potential for foreign-funded enterprises. Moreover, the reports disclose relatively more social and environmental responsibility information but less economic responsibility information.