Chairman of China Enterprise Confederation and China Enterprise Directors' Association  Chen Jinhua

 (March 28th, 2006)

Distinguished Chairman Travis Engen, President Stigson,
Honorable Mr. Pan Yue, Deputy Director General of SEPAC
Dear Guests, ladies & Gentlemen,
Good Morning.

Today the meeting of “Focusing East—the Liaison Delegates Meeting of WBCSD” jointly organized by CBCSD and WBCSD is kicked off in Beijing. On behalf of CEC, CEDA， I would like to extend warmest welcome to all the friends from the industrial sectors and businesses worldwide, and express heart-felt gratitude to WBCSD for the strong support to Corporate China.

The current world featuring economic globalization and every-changing technologies has accelerated world economic development and enhanced international cooperation in economic and technology areas. In the meantime, however it brought some increasingly negative impact. Such issues as deterioration of natural resources and eco-system, widening gap between the well-off and the poor, unemployment, and deficiency in social security system caused public attention and uncertainty among all the countries. Thus care and attention have been given to sustainable development by the international community and the concept is more and more prevailing in people’s mindset.  

As the most populous developing country, China is under the pressure of resource shortage and environment protection in the course of its socio-economic development. The Chinese government sets sustainable development as a national strategy to boost socio-economic progress and makes resource conservation and environment protection as the basic national policy. The government clearly proposes to establish a resource-efficient and environment-friendly society. The whole Chinese society, especially Corporate China, are actively pushing forward sustainable development. As the representative of Chinese employer association, CEC shoulders the social function in maintaining the interests of the business employers. While being active in coordinating labor relations, CEC is committed to encouraging the business to take social responsibility and in pursuit of effective ways of CSR implementation. While delivering production and economic results, CEC also contributes much to respecting human rights, labor standards, maintaining labor interests and rights, environment protection, operational credibility, employment improvement, support on minority groups and public benefit, helping and activating the neighboring economically underdeveloped areas.   

CEC represents the first Chinese organization as the member of Global Compact. In early 2002, I paid a special visit to Global Compact Office of the United Nations to exchange views on how to carry out work within Chinese business community and proposed Chinese business to join the programs of Global Compact. At the meeting of Chinese Entrepreneurs’ Activity Day, I called for Chinese business to actively participate in the activities of Global Compact. The companies recommended by CEC in the letter of commitment all represent giant group companies which have built widespread presence in their sectors. Currently, such prominent Chinese companies as Sinopec, CNPC, Baosteel, Haier, COSCO, and China Railway have joined Global Compact. They integrated the GC principle into their own development strategy, the operational philosophy and corporate behavior so as to fulfill corporate social responsibility. In recent years, CEC and UNDP organized joint training programs to encourage more and more Chinese business to join Global Compact’s activities. These efforts were well recognized by the international community including Secretary-General Kofi Anan. Over a long period, CEC has been working friendly with WBCSD. Initiated and supported by WBCSD, CBCSD was established to promote sustainable development oriented to CSR, environment protection and clean protection.

We are fully aware that these efforts are just a start. The situation and mission in front of us present long-term and arduous tasks. The Chinese government becomes much clearer of the importance and the imperative option of sustainable development. Premier Wen Jiabao has seriously pointed out on March 15th press conference that the 10th Five-Year Plan was successfully delivered, though our environment targets were not. It is emphasized that China should not follow the old path of pollution first and then treatment. It should leave green mountains and clear water to our offspring. We should not only focus our eyes on economic growth, instead we should pay attention to energy conservation and environmental protection. In the 11th Five-Year Plan period, the Chinese government will more stringently implement the scientific development outlook featuring two important targets. Firstly, the 2010’s GDP per capita should double that of 2000 based on improved structure, efficiency and consumption. Secondly, resource utilization rate is supposed to be increased. The energy consumption in terms of per capita GDP should go down by 20% as against the end of 10th Five-Year plan period. The total pollutant emission should drop by 10%. Such targets represent strict requirement in many aspects of Chinese business. They are preconditions, factors and results of each other. Doubling of China’s GDP requires various conditions of which the most important is to change the random growth featuring high energy consumption, reckless resource exploitation and environment deterioration, namely, the quicker the economy grows, the higher the expense is in terms of resource and environment, and China would end up losing the strength and foundation for sustainable development. Chinese companies must identify they are responsible for sustainable development. And they are duty-bound to deliver effective fruits with utmost efforts.     

Ladies and gentlemen, China’s SD has a bearing both on China and the globe. Chinese business community is expected to start work towards development while preserving natural environment, various resources, and delivering sustainable development. In the fierce market competition, the business, especially the large-size business and multinationals, have broad influence on the economic, social, political, and cultural life. Entrepreneurs are playing out more important functions than ever. CEC sincerely expects Chinese entrepreneurs, especially those influential ones, to not only do a good job in their own business, but also play an example and take a leading position in their industry. They are expected to conform to scientific development outlook with advanced technologies and rational management. As long as corporate China are making it, the whole society’s sustainable development will be well grounded and secured.  

We should work hard to learn advanced experience from our foreign counterparts. There is no other option except riding on sustainable development. Thanks.