Pioneering Social Innovation in China

7/31/2019 Pioneering Social Innovation in China

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EMERGE: PIONEERINGSOCIAL INNOVATION IN CHINA

01.08.12

Discussing the challenges, opportunities, and role o sustainability in pioneeringsocial innovation in China. Curated in partnership with We Impact.


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On 10 July 2012, Hub Islington hosted a

discussion on Pioneering Social Innovationin China.

Chaired by Lawrence Bloom , whocurrently spends hal his time in Chinaconnected with the highest levels o theChinese Administration and advising onbreakthrough environmental and economictechnologies, projects and policies, thediscussion was aimed at pro essionals inthe social enterprise, sustainability, CSRand not- or-pro t sector looking to learnmore about the relevance o China.

Opening a discussion on the lessonsand opportunities driving these sectors,the debate invited the perspectives opro essionals Isabel Hilton , Erika Helms and Tristan Edmonson , who have workedin China, to share rst-hand expertise owhat the country has to o er.

Start-up entrepreneurs rom the UK withrecent experience in China, includingHenry Tugendhat (Future Leaders oAsia Group), Oliver Waddington-Ball (Inovenergy), and Adam Tyndall (China-Britain Youth Associat ion) were also invitedto join the discussion.

The ollowing is a synthesis o the eventand the discussions that arose, as captured

by Christina Rebel rom We Impact.

Pioneering Social Innovation in China CSR in China Sustainability in China Youth in China


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PIONEERING SOCIAL INNOVATIONIN CHINA

As concerns about Chinas industrialisationcontinue to mount, the central government hasbeen establishing the legislative structures andincentives to drive what appears to be a new model

or growth. Our collective uture depends on Chinas

development, the worlds second biggest economy,and all eyes are keeping a close watch on how thismight un old.

To grasp what this might mean in its entirety, itwarrants a new look at China with a resh perspective.

A QUESTION OF IDENTITY

Just like in Britain, Chinese social entrepreneursnd themselves lacking an ideal legal ramework

in which to trade with, uncom ortably deliberatingbetween not- or-pro t or or-pro t s tatus.

CHALLENGE: The dual-administration systemproves to be an important barrier or registration asthe respective supervisory agency routinely rejectsnon- pro ts applications. This is especially thecase or non- pro ts seeking to deal with politicallysensitive issues.1 That said, local experiments inGuangdong are trialing the devolution o such powersto local authorities to allow or ease in registration.

THE QUESTION IS, WHATRESOURCES ARE

AVAILABLE IN CHINA TOSUPPORT THE SOCIALENTPRENEUR?

POSSIBILITIES OF GROWTH

Whilst yet to catch up with Europe and the US interms o scale, China has already seen a number osocial enterprise organisations tackling a wide rangeo social issues, as well as a ew support institutionsand networks establish themselve. 2

CHALLENGE: Erika Helms, whose socialenterprise ocuses on exchanges between Third

Sectors o Europe and China, explains that the keyobstacle to social enterprise in China involves a lacko local capacity and experience.

Erika comments: The greatest need right now is orcapacity building to enhance the abilities o groupsthroughout the civil society sector to work moree ectively, with greater transparency and betterleadership and management.

EASTERN PROMISE

The emergence o social entrepreneurship in China,endorsed by the government and buttressed by theestablishment o the appropriate support networksand institutions, provides real opportunities or UKentrepreneurs to venture East or trade.

OPPORTUNITIES: The key to the successo any such initiative is respecting that, whilstinfuenced by European and American practiceso social enterprise, the trend in China will stillpertain characteristics that refect local culture andtradition. Getting to grips with what this might meanin practice is essential or any start-up entrepreneurwishing to gain rom the opportunities in China.

1Social Enterprise Emerges in China, Stan ord SocialInnovation Review (2012)

2Organisations such as the China Social EntrepreneurFoundation, The Non-Pro t Incubator (NPI), the NaradaFoundation, and ECSEL. In terms o urban landmarks orsocial innovation, The Nest and other co-working spaces inChina like Xindanwei are setting-up shop in all o the major

Chinese cities.

I DONT CARE WHAT COLOUR THE CAT,AS LONG AS IT CATCHES THE MICE.

(Deng Ziaoping)


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CORPORATE SOCIAL RESPONSIBILITY(CSR) IN CHINA

As Chinese entrepreneurs increasingly gain globalpresence, they come to recognise that they wouldindeed be su ering a competitive disadvantage inthe global market i they neglect the trend towards

corporate and social responsibility.

NATIONAL AND GLOBAL INCENTIVES

Although the history o sustainability reportingin China is short, with Shell China rst issuing asustainability report in 1999, Petrochina, Ford China,Baosteel Corporation Limited, Ping An Insurance,and Toshiba China soon joined the trend. Now in2011, 817 companies disclose CSR reports. 3

Whilst international competitiveness might havebeen a stimulus, it is worthwhile to mention the

homegrown commitment towards disclosurethrough a variety o institutional rameworks .4

The Wenchuan earthquake in 2008 and the BeijingOlympics captivated the worlds attention, helpingcatalyse the support to raise the pro le o economicgrowth with matched social responsibility practicesin place.

Several scholars also note that the concept ocorporate and social responsibility resonateswith Wen Jiabaos statements or a harmonioussociety. Since the rst appearance o the termand the publishing o 2,876 papers on the matter,

328 have both corporate social responsibility andharmonious society in their titles. 5

Clearly, the succession o CSR commitments inChinese enterprises have been spurred by nationaland global incentives.

THE CSR TREND ISPROMISING AND

WARRANTS SUPPORT,BUT HOW CAN WE GOFURTHER?

CHALLENGES AND OPPORTUNITIES

There is still a lack o knowledge among leadersand managerial departments that must be attendedto, and legal requirements should continue to bestrengthened. CSR training and support providerswould assist in ensuring extensive understandingo the triple bottom- line principles o sustainable

development.

With the pro le and experience o CSR consultanciesin the UK and in Europe, these limiting actors canbe ameliorated and provide an opportunity to proveleadership through transnational collaboration.

3World Economic Forum (2011)

4Such as the Taida Environmental Index in the ShenzhenStock Exchange in 2008 and the State Owned AssetSupervision and Administration Concession (SASAC)sNoti cation on the Issuance o The Guidelines on Ful llingSocial Responsibility by Central Enterprises in 2007.

5WangFeng Data (2012)

SOCIAL ENTREPRENEURSHIP HAS COME RECENTLYTO CHINA, BUT SEEMS TO BE GROWING FASTERTHAN THE SKYSCRAPERS HERE.

#EMERGECHINAAdam Tyndall, @AdamTyndallChina ready to open up social innovation in the way Deng opened up China to business. #emergechina

We Impact, @We_ImpactWill #socent be the new experiment in #china? Lets make it happen #emergechina

Erika Helms, @lundunhelijiaThanks or hosting #emergechina I think it was the promising start to gett ing a community going in London!

(Cliff Prior)


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SUSTAINABILITY IN CHINA

As part o Chinas 12th 5-year plan, the o cialgovernment strategy announced in 2011 concerningthe development o China saw the central governmentstipulate an emphasis on energy conservation,in ormation technology, biotechnology, and clean

transport. Already the worlds largest manu acturero solar panels and wind turbines, China appearsto have an environmental drive or greenindustrialisation.

This incites hope, but it must be understood witha caveat: on paper, there are the environmentallaws, regulations and strategic white papers topush green industry in China, but whether they areen orced is another point in matter.

FROM STRATEGY TO IMPLEMENTATION

When it comes to the realisation o these strategicstatements in the implementation o policies, thetax and resource management system o the centralgovernment is proving to be a real limitation.

CHALLENGE: In practice, local o cials are acedwith the temptation o issuing rights o resourceextraction to businesses, as the local governmentsdepend on the tax revenues rom these businesses

or their local governments maintenance. The pro leo environmental regulations and agencies, to whichNGOs play a key part, must be raised to allow themto counter this by assisting the government in themonitoring o policies.

A GREEN BUDGET

From a monetary perspective, China is provingits commitment to the green economy in budgetallocation, as it currently boasts the worlds biggestgreen stimulus package at US$201 billion, more thandouble o the United States US$94 billion. 6

CHALLENGE: Green budgets are never set instone, and should the economic situation becomedi cult, there would be no surprise i that nancialaid would be channelled elsewhere. This is not acharacteristic o China alone. The UKs dissolutiono its renewable energy investment saw it cut downto just US$3.3 billion (around 2 billion) in 2010,bringing it down rom third in the world, in terms oinvestment in green growth, to 13th place, behindmost BRIC countries.

IF TOP-DOWN

ENVIRONMENTALMANAGEMENT IS TO BEEXPECTED, WHAT ARETHE CONCERNS OF THEPEOPLE IN CHINA?

OPPORTUNITIES FOR INNOVATION

With the proposed governmental strategy, andbudget or clean technology investment beingindispensable or the uture o China, UK clean techinnovators would are well i they use the emergingeconomy as an incubator o innovation.As Foreign Secretarys Special Representative onClimate Change, John Ashton elucidated in May:There are big opportunities to partner with Chinesecompanies and pioneer new technologies in theChinese market that will cost you less and get yourprices down the cost curve the learning curve,

aster than it would elsewhere

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The Hu ngton Post (2012)

BY MAKING INVESTMENT EFFICIENT...[IT] ALLOWS FOR THE RULE OF LAW TOASSIST THE SUSTAINABILITY CHALLENGE.

(Tristan Edmonson)

Based on data rom National Geographic andGlobeScan (2010), the top two environmentalconcerns are water pollution and air pollution .


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YOUTH IN CHINA

The demographic landscape in China is rapidlyevolving into a young and urban territory. Fastrates o urbanization show that infuence andopportunities will be in the uture top-tier cities, andwith a burgeoning a fuent class o mostly youngpersons aged 25-34 7, rates o consumption are set toskyrocket.

Already the biggest market or luxury products, thereis a clear consumer pre erence or oreign brands incars, ashion, beauty and li estyle accessories.

CHALLENGE: I purchasing power is to fourishor the population at large and not just or the ew, the

lack o social security nets and nancial instrumentsthat lead the Chinese to be the worlds biggest savers 8

have to be attended to. I the government wants to

see a shi t towards more discretionary spending asit develops its consumption-led model o growth,it will have to develop a robust social securitysystem that will ease the populations concerns overhealthcare and retirement, or example.

IS BOOSTING CONSUMPTION AT ODDSWITH SUSTAINABILITY?

A global survey ound that the Chinese youthexpressed the highest demand or low carbonproducts 9. Does growth in consumption in Chinahave to lead to an equivalent growth in carbonemissions, as it has happened in the industrialisedeconomies, or is there a way o decoupling one romthe other?

CHALLENGE: To the conscious consumer in theUK, the market or ethical and sustainable productsis accessible, increasingly a ordable and clearlydesirable or ones health and even ashion taste.With ood sa ety scandals appearing weekly inChinese news, the organic ood market is leading theway 10 and there are a ew sustainable li estyle brandsemerging 11, but this trend still needs to be curatedand promoted.

OPPORTUNITY: The UKs top pioneers inthe sustainable design industry should considerexpanding their market reach to China, servingthis gap in the market and inspiring local Chinesedesigners. It would make use o the robust traderelations between the UK and China, the UKs thirdmost important trade partner, as well as increaseinvestment opportunities rom Chinese investors inthe UK.

7According to McKinsey (2011), 80 per cent o the a fuentpopulation in China is aged 25-34 years.

8Foreign Policy (2012) in Why the Chinese Save suggeststhat the most credible estimate o savings as percentageo household income was or 2007, with nearly 27 percent.

9The Carbon Trust (2010) Global Survey o Young AdultsPerception on Carbon and Climate Change

10Lohai, one o Chinas major producers and retailers oorganic ood, reported in 2011 a 30% growth in revenueswhen compared to the previous year.

11Like trendy design brand EMOI and ashion brand La Vieby Jenny Lie

START SMALL AND JUST DO IT.THERES SO MUCH TO DO.

#EMERGECHINAChristina Rebel, @chromomentIt takes developing the HR resources or civil society and #socent to really see #socinn in #china #emergechina

Leigh-Anne Russell, @MovaShakaTuning in rom Shanghai! #emergechina @We_Impact and@hubislington #emergechina

Adam Tyndall, @AdamTyndallBringing people together or a cause is *doing* civil society in China. Far better than preaching it. #emergechina !

(Isabel Hilton)


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PHOTOS OF EMERGE CHINA

by Justinien Tribillon

A generous thank you to our sponsors.


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The HUB is home to a riendly and dynamic community o social entrepreneurs and innova-tive start-ups. Now a global movement with over 40 co-working spaces and 4,000 membersacross ve continents, the HUB Islington is where it all began.

For more in ormation visit http://islington.the-hub.net/ or contact [email protected]

Report written by Christina Rebel - UK Projects and Research,We Impact Design by Debbie So - 00:/

WE IMPACT is a social enterprise dedicated to making sustainable li estyles a reality inChina. This Intelligence Report on Pioneering Social Innovation in China is amongst a serieso reports, including Li estyle in China, E-Fashion Eco, Ethical & Exceptional, Climate ChangeFood, Fashion &Transport, Sport Campaigns & Brands, Sustainable Printing and Emerge: Pio-neering Social Innovation in China. As part o We Impacts Digital Knowledge Library, thesereports on sustainable li estyle themes are released through creative commons with the aimto raise the pro le and possibilities o a more sustainable uture.

For more in ormation visit www.we-impact.com or contact in [email protected]

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Pioneering Social Innovation in China