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Transnational firms in need of 'good behavior' (2)

2011-10-27 13:31    Ecns.cn     Web Editor: Xu Aqing
In recent years, a considerable number of foreign companies have been found committing fraud, running false advertisements, as well as abusing their workers.

In recent years, a considerable number of foreign companies have been found committing fraud, running false advertisements, as well as abusing their workers.

These incidences echo the Corporate Social Responsibility Blue Book released last year by the Chinese Academy of Social Sciences. It revealed that foreign corporations scored an 8.1 on their social responsibility behaviors in China, lower than the 13.9 score for private companies and much lower than the 28.9 score for state-run ones. In recent years, a considerable number of foreign companies have been found committing fraud, running false advertisements, as well as abusing their workers.

"It's time for these giant corporations to make a change," suggested Xue Wensheng, a senior Marketing researcher fellow with the Chinese Investment Consulting Company. Such voices have been repeatedly heard in recent months as more and more Chinese are getting angry about being "fooled by such companies," who are usually model citizens in other countries.

As an instinctual reaction, consumers of foreign products started to turn to the law and the media to safeguard their rights.

Earlier last month, web users in Beijing declared "war" on Nike the sporting goods manufacturer located in America. They revealed that Nike shoes sold in China were 400 RMB higher in price, but one shoe pad less than shoes sold in America. Domestic media instantly followed in the probe, which forced the Chinese branch of Nike to give refunds to customers.

To support customers, quite a few governmental bureaus including the Entry-Exit Inspection and Quarantine Bureau and Industrial and Commercial Bureau also stepped in to supervise the potential misbehavior of foreign companies.

The whole country is now getting more rational when dealing with transnational corporations, concluded Xue the marketing expert. "If they want to stay in the market, they have to improve their products and services for Chinese customers."

"Otherwise, as the market gets more mature, sooner or later, the Chinese government will be forced to learn from foreign countries and tighten their policies towards transnational corporations," said Dong Zhengwei, a lawyer in Beijing.