China’s economic growth over the past three decades has had some undeniably positive effects on the country’s development.  However, it has also created significant social and environmental problems. Companies in China today are facing the challenge of balancing economic development with the social and environmental impacts of their operations.

In order to effectively practice CSR, companies must strategically incorporate social and environmental concerns into a framework of responsible business management. Credible voluntary standards provide an important market-driven mechanism through which CSR activities can be promoted and rewarded, giving businesses, governments and consumers the ability to choose goods and services that fulfill certain ecological and social minimum standards.

In implementing CSR, companies therefore not only contribute to harmonious development, but also increase their overall competitiveness through risk aversion, and increased quality and productivity. Further benefits can be derived from the improved relationship with employees, customers, government and the general public.