China Media Say Ten Multinational Corporations Fail On CSR

Local sources report that according to a committee organized by Chinese media, ten multinational corporations have been exposed for lack of corporate social responsibility in China.

According to Sina.com, the ten companies are Sanyo, Michelin, P&G, Carlsberg, Starbucks, LG, Federal Express, Honda, Lucent, and Jinmailang.

The committee used the LCL5+1 evaluation system, developed by Liu Chuanlun, chief editor of Multinational Corporation, China Enterprise News. It refers to a mix of research results from the UN Global Compact, RepuTex, and other others. The six areas the LCL5+1 evaluation system covers are illegal employment and infringing employees' legal rights and interests; product quality; illegal management; lack of honesty; safety or environmental accidents; and bad influence. Once a company fails in the first five areas, it is regarded as defaulting in its CSR. Combined with "bad influence", the company will be graded for the levels of its problems.

Some companies like Michelin have sent letters to local Chinese media explaining their behavior since the campaign in February 2008.

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