Clash of CSR and SCS

Situation

The project examines the dynamic interplay between two value-based systems that govern human interactions in corporate settings: Corporate Social Responsibility (CSR) and China’s Social Credit System (SCS). China is the focal point, as foreign firms operating there must comply not only with their home country’s CSR obligations but also with the compulsory rules of the SCS. China thus represents the most advanced example of a non-Western emerging economy that has developed a comprehensive corporate governance model rooted in its own cultural and historical context. The research focuses on the challenges faced by companies from Germany, Sweden, and Switzerland when engaging with Chinese business partners. Particular emphasis is placed on supplier vetting and partner selection practices in line with CSR standards. Through the analysis of corporate documents (such as codes of conduct and sustainability reports) and semi-structured interviews with executives, the project aims to gain deeper insights into how companies manage the tensions between CSR commitments and the demands of China’s SCS.