Corporate Social Responsibility of Chinese State Owned Firms Investing in Africa

The purpose of the study is to provide further research concerning China’s increasing interest and investment in Africa, and the sustainability. From initial research, there is the observation that fragile economies are in a poor bargaining power and accept low prices for the sale of its natural resource, in order to try and raise capital for economic growth. From initial observations, after china has made its investment, profits are circulated back to China, and the product / service is exported out of the host country, therefore limiting the positive impact of China’s investment on economic growth. The research will further explore if this theory is true and to what extent.
In order to understand the link, context on china’s economic growth and as a result its motivations for investment abroad will be explained. Furthermore, the dissertation will explain for what reasons china has chosen to invest in Africa.
It will also look into the CSR theories that Chinese SOE’s have adopted as they face pressure over poor working conditions and health and safety standards. This dissertation will focus on Chinese state owned enterprises as they are the firms investing heavily into infrastructure and natural resource extraction, and private businesses tend to be in the services sector. There will be a case study on the Chambishi mine in Zambia, where following an explosion and shooting where Zambian workers were killed, the Zambian government has insisted Chinese firms now perform CSR. I will analyse the gap between formulation of CSR policies and the implementation in the African countries china has invested in, and in the conclusion will provide recommendations on how it could be more successful.

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