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Quake kindles sense of CSR among domestic automakers

Yang Jian From Automotive News China| May 28 , 2008 17:52 BJT

SHANGHAI -- Over the years, I've been impressed by the great strides domestic automakers have taken in striving to match overseas rivals on everything from technology to brand identity.

But these days, they are measuring up on another international standard -- that of corporate social responsibility (CSR), complete with goodwill outreach, charity work and disaster relief.

The powerful May 12 earthquake that rocked southwestern China, killing more than 60,000 people, showcases the trend like nothing before. Corporate social responsibility, once the domain of rich Western companies with deep pockets, has finally taken root among fledgling Chinese rivals, despite more fragile finances and only a brief history of corporate citizenship.

Each day, my heart aches at the quake's rising death toll. Yet at the same time, I am delighted to see a group of young domestic automakers taking swift action to help the victims.

Take Chery Automobile Co. and Geely Holdings Group for example.

To date, each has donated more than 10 million yuan ($1.4 million) to the affected areas.

Chery has also dispatched two aid teams to Sichuan, the province worst hit. One is assisting local relief work; the other is helping Chery's local suppliers restart production.

Geely President Li Shufu donated 1.2 million yuan ($174,000) out of his own pocket to affected areas. He also promised to set up a foundation to support local education in the aftermath.

Li even wrote a poem to mourn the loss of human life and appealed to his fellow citizens to step up their support for relief work.

Other young domestic automakers, including Great Wall Motor Co. and BYD Auto Co., have likewise joined the relief effort.

The day after the quake, Great Wall offered 20 of its SUVs and pickups, while BYD donated 10 million yuan ($1.4 million) to support reconstruction.

First introduced to China by multinational corporations, the very concept of corporate social responsibility was all but unknown to domestic auto manufacturers until recently.

But no more. This month's deadly earthquake awakened them. And they are rising to the call.

"When natural disasters happen to our motherland and our fellow countrymen, Chery as a corporate citizen has the obligation to share the sorrow and contribute to the relief work," Chery spokesman Jin Yibo told reporters after the temblor.

Sure, there is an element of self-serving publicity in these acts of disaster relief. Plenty of foreign automakers, especially in Japan, wasted no time in distributing press releases to advertise the thousands of dollars they were shelling out to help victims in the quake zone.

Cynics will point out that Chinese companies have simply learned to play the game – and with impeccable timing and visibility, thanks to the biggest tragedy in the country's recent memory.

But the point is not just that China's automakers are now so image savvy. It's that they have reached a coming of age with the confidence and cash to tackle causes beyond their bottom lines.

 

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