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March 22, 2012

Liu Junhai: "Globalization and CSR Requirements" - Thursday, March 29, 2012

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Globalization and CSR Requirements for Multinationals Doing Business in China

Liu Junhai
Professor, School of Law
Director, Business Law Center
Renmin University of China

Thursday, March 29, 2012 | 5pm-6:30pm
Room R2230 Ross School of Business
715 Tappan Street

Professor Liu will discuss the requirements of Corporate Social Responsibility from both legal and moral perspectives, and the significance of CSR-oriented corporate governance for corporations including multinationals doing business in China.

His core argument is that CSR is not a financial burden or transaction cost for multinationals. Instead, socially responsible multinationals will gain competitive advantage and reduce transaction costs substantially. He will analyze the causes of CSR scandals at multinationals in China, and prescribe some reform suggestions for multinationals, Chinese governments, institutional investors and consumers. For the purpose of building a win-win and harmonious environment for doing business in China, multinationals need to improve their corporate governance, create CSR-friendly supplier chain management frameworks, and enable the stakeholders in their supply chains to influence their decision making. Further, government procurement should be used to motivate socially responsible business.

Prof. Liu Junhai is the first Chinese scholar to study corporate social responsibility (CSR) in China. His academic work The Corporate Social Responsibility based on his visiting research at Norwegian Institute of Human Rights from 1996 to 1997, was published by Press of Law in 1999 as the first monograph on the research of CSR. Many of the suggestions in this book were endorsed by Article 5 and other articles of Corporate Law of 2005, which is the first statute in the world to include a special CSR article. Additionally, employee representatives on the board of directors in state-owned or controlled corporations and the board of supervisors in every corporation were also made mandatory by the legislature in 2005, due to the pressure from the All China Federation of Trade Unions (ACFTU) and his theoretical support to ACFTU with the employee participation in corporate governance in his monograph. Prof. Liu has been making efforts in advising Chinese legislature to extend the CSR philosophy broadly to many other legal areas such as consumer law and labor law. His current research covers modernization of Chinese corporate law, securities regulation and private equity funds. He is a Hughes Fellow and Grotius Fellow at Michigan for the academic year of 2011-2012.

This presentation is co-sponsored by the U-M Center for Chinese Studies and the ERB Institute for Sustainable Enterprise.

Posted by zzhu at March 22, 2012 02:15 PM