During his first official visit to China this month, British Prime Minister David Cameron's meetings with Premier Wen Jiabao and President Hu Jintao, speech at the China-UK Business Summit and walk on the Great Wall were very much in the spotlight of international media. What went under the public radar was his side visit to Beijing's 'old hutong area' to attend a civil society event.

In the trendy, low-lit Comtempio hutong, the Prime Minister met with about thirty NGO representatives who were participating in the "Skills for Social Entrepreneurs" workshop run by the British Council. Among the NGO leaders were a lady who sells silverware made by minorities, a man who runs organic farms and a woman who looks after autistic children. Clare Pearson, the Asia corporate social responsibility (CSR) manager of DLA Piper, was invited to speak on how NGOs should work with business during a roundtable discussion as part of the workshop.

A growing number of multinational companies now regard contributing to China's social sustainability as a central part of their business development strategy. Pearson and her firm has seen increasing demand from multinational companies that are seeking advice on forming and implementing sound CSR strategy and initiatives in China.
 
"The smart companies and companies that are doing well here have at least four or five CSR managers in Beijing. Companies who are just here to make short-term profit from low wages are no longer welcome, but the companies that are committed to develop and integrate into the social fabric of the country will be guaranteed with commercial success here," said Pearson.

However, an effective CSR policy is much more than donating money or building schools. "CSR isn't distinct from business strategy: it is business strategy in a developing country. In China, it is about aligning the businesses with the government's current five-year plan and addressing the specific requirements of the local communities," Pearson explained.
 
In addition to advising its corporate clients on designing and implementing tailor-made CSR programs, her firm also has developed its own CSR initiatives. For example, the firm provides free legal advice and drafts the agreements between companies and education authorities to build schools on a pro bono basis. Increasingly, Pearson and her team also provide free legal services to global NGOs on incorporating in China. Ultimately, the firm plans to develop a charity practice in anticipation of the promulgation of the country's first Charity law.

"A large percentage of companies' CSR projects are delivered and implemented through working with NGOs," said Pearson. "The charity law will make clearer the delineation between NGO foundations and corporations. If NGOs become more legally recognised, then it will be easier for corporations to work with them." ALB