China's State-Centric Approach to Corporate Social Responsibility Overseas: A Case Study in Africa

Abstract

Corporate social responsibility (CSR) is conventionally understood as voluntary and market- based corporate behaviour without direct government involvement. The development of CSR in China challenges this understanding in the light of the growing role of government in promoting it. Over the past decade China has demonstrated a state-centric approach towards promoting CSR. Existing studies focus only on Chinese domestic CSR practices. However, with the rise of Chinese companies in Africa under China's 'Belt and Road Initiative', it is important to examine how the state-centric approach applies to the overseas CSR practice of Chinese companies. This article aims to fill the literature gap through in-depth interviews and analysis of the Standard Gauge Railway project in Kenya. It shows that close institutional, relational, and bureaucratic ties between the state and the business community give the Chinese government the power to influence the behaviour of Chinese state-owned enterprises overseas. The Chinese government can influence the CSR practices of Chinese companies overseas through mandating, facilitating, endorsing and partnering in order to minimize the negative externalities of companies' overseas activities. However, the state-centric CSR approach limits the space for civil society engagement and the effectiveness of the approach abroad is constrained by a variety of institutional contexts and corporate ownership models.