Social Innovation and Chinese Overseas Hydropower Dams: The Nexus of National Social Policy and Corporate Social Responsibility

Abstract

The nexus between hydropower dams, social policy and corporate social responsibility (CSR) is a currently understudied topic. This paper aims to fill parts of this gap by discussing these issues in relation to the world's largest builder of hydropower dams, Chinese state-owned enterprise Sinohydro. This paper draws on the analysis of firm strategy documents and CSR documents and gains additional insights from key informant interviews. The research finds that in 2011 Sinohydro developed its first comprehensive policy framework for social and environmental safeguards that was in line with international standards set by the World Bank/International Finance Corporation. These policies were however later replaced by weaker, vaguer policy. The paper suggests there is a need for Sinohydro and other dam-builders to re-engage with social innovation to mitigate some of the negative social and environmental implications of hydropower dams.