As a new class of wealthy entrepreneurs comes to the fore in Mainland China, they face public anti-wealth sentiments. Social problems thrown up by the growing divide between rich and poor lie at the heart of this resentment. There seems little that this new class of wealthy entrepreneurs can do to remedy the situation. Yet one solution is to address this resentment through philanthropy. Only when wealth can be shown to be socially responsible can it become acceptable, reports Lu Zhao*.
Perhaps similar to 1955 when Fortune magazine launched its Fortune 500 ranking, a directory of the largest companies in the US, Euromoney China could never have expected its inaugural China Philanthropy List this year to have stimulated so much media attention.
The basis of our research into China's philanthropists started out with the concept that we would search for China's own version of Andrew Carnegie, the legendary American entrepreneur and philanthropist, but as we got deeper into our research, we realized that it was early days. China does not yet have anyone to match Carnegie. Its businesses are still too young. Our subtitle to the China Philanthropy List, “In Search of China's Carnegie”, highlights our conclusion: that China requires time before it can produce its own homegrown version of Andrew Carnegie.
Bridging the gap
Social welfare and the fledgling charity industry require the support of successful entrepreneurs, because these entrepreneurs have a special talent. They look to generate maximum return on minimum investment, precisely what public welfare so urgently needs. It takes skill to generate wealth, and it takes that same skill to spend it properly.
As entrepreneurs begin to take on more public roles, they attract more media attention. In some cases, entrepreneurs have become role models for the young. As a result, it is imperative that they improve their social image, perhaps through philanthropy. Although philanthropy may only benefit a small group of people at a time, the spirit behind philanthropy can influence generations to come.
Social responsibility
The philanthropists on our ranking may share such a mentality, but social responsibility is more than just about donating to charity. It is also about building a sustainable business that creates more job opportunities and pays more taxes. Other considerations for entrepreneurs to take into account include business ethics, employee welfare, product quality and environmental protection. That is the basis for corporate social responsibility and corporate citizenship.
For a business to be a long-term concern, it must move away from a system based on guanxi (relationships) to a system based on values. Multinationals with more than a century of corporate history can survive because of their corporate culture and values. They take their social responsibilities seriously, resulting in a better environment conducive for further business development.
I look forward to the time when social responsibility and corporate citizenship take root in Chinese businesses and entrepreneurs.
*The author is director-general of the Committee of Corporate Citizenship, Euromoney China associate for the China Philanthropy List.
