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BIZCHINA> Review & Analysis
Charity can't have strings attached
By You Nuo (China Daily)
Updated: 2008-05-26 15:08

For quite a few China-based businesses located far away from where the recent Sichuan earthquake took place, the damage caused by the quake may have been more serious than for the companies based in the epicenter.

They have become targets of China's Internet democracy for having been slow or seemingly stingy in their donations and aid to the disaster-hit communities. And some, which have been unable to deal with the public relations crisis adequately, are close to a humiliating loss of face.

Public sentiments appeared strong when individual citizens began to rush humanitarian aid to the quake victims, in hoping that they would be joined by all businesses, international and domestic. They seemed adamant on their right to know if the companies usually with sales in mass volumes were willing to stand on their side.

They first asked what those well-known international companies were doing. Some of those companies were called "iron roosters" - a Chinese name for those seen to be too tightfisted or miserly.

But the "iron rooster" allegations did not stay, thanks to both those companies' skill in crisis management, and to what they had actually been doing. A large quake aid budget might not be very fast to come along from their international headquarters. But at least, their China operations did act by providing not just staff donations, but also aid in services and goods.

In comparison, however, some of the largest companies in the Chinese real estate industry are in a truly miserable state. China Vanke, which had at times participated in some environmental projects as part of its corporate social responsibility program, has suffered a surprising setback in reputation.

Vanke's chairman first attracted criticisms, mostly on the Internet, of his company's commitment of a meager 2 million yuan (about $286,000) in quake aid, in contrast with more than 35 billion yuan sales revenue in 2007, almost double its record in 2006.

After a few days, the man repeatedly apologized through the press and committed another 100 million yuan, but most of the money was to be used in the rebuilding of Zundao township, Mianzhu city.

But soon enough, there were press reports exposing that Vanke's interest in Zundao township, known for its scenery and access to traffic before the quake, may have something to do with plans to convert part of the place into some future commercial housing projects.

It seems that Vanke will have to issue a statement to clarify whether or not it has the alleged hidden agenda. For no company would want to be seen as trying to kill two birds with one stone in a time of a national-level emergency - in trying unethically to use its tax-exempted aid to pave the way for its future business interests.

There are opinions that people in China tend to have too much interest in knowing what benefit others are getting for the effort they are putting in. Like this or not, with the Internet, it no longer seems easy for anyone, especially someone of some public importance, to hide things from others.

Of course, being nosy is one thing and demanding a basic level of fairness is another. At a time when all are making the same effort people do have less tolerance for those unprepared for, or mentally incapable of, helping others.

No one, to be sure, insists on any numerical standard regarding how much aid should be pledged by a company with how much sales. But in China, as elsewhere, there do exist rules when it comes to helping others. At least, when everyone else is giving something, one had better not attempt to give nothing, or to give something only on his or her own terms.


(For more biz stories, please visit Industries)

 

 

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