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8 White Paper on the Business Environment in China
training to over 50,000 Chinese professionals on aviation China become one of the leaders in Leadership in Energy
safety, aviation quality practices, business and executive and Environmental Design (LEED) certified facilities in
training, and technical support, and opened its “Boeing the world. Several foreign companies have their most
Academy” in China in 2012 to provide a central platform sustainable facilities in the world in China.
for its training initiatives in China (Boeing Company; Cliff
et al.). Shaping the CSR Landscape in China: U.S. and other
FIEs/FAs have helped shaped the CSR landscape in China.
Integrating China into Regional and Global Early leaders included Intel China, which put forward
Management: Many U.S. and other foreign companies the CSR3.0 standards. Coca-Cola, P&G, Pratt & Whitney,
are integrating China into regional and global Boeing, HP, and others have supported educational
management through the location of regional programs around China. U.S. companies that have won
headquarters, business unit headquarters, and other CSR awards in China have included Amway, Cisco, Coca-
high-level corporate functions in China. These activities Cola, Dell, DuPont, Emerson, GM, HP, IBM, P&G, PepsiCo,
create demand for high-end services in China, provide PPG, Starbucks, and Walmart. These and others like
critical training to Chinese employees, and facilitate them have set the standards for CSR programs that are
China’s integration with the global economy. Ford, GM, increasingly being adopted by Chinese firms as well.
Ashland, IBM, GE, and others have moved regional or
global business unit headquarters to China. These moves Providing Policy Advice and Advocacy for China: Since
have brought management and coordination skills in China’s opening, its central and local governments have
running world-class global operations to China, which increasingly turned to leading multinational firms for
can provide spillovers for local companies as well as advice related to economics and business. The process
demand for high-end services. received a jump start from the famous exhortation from
Deng Xiaoping in 1983, to “beef up reform and opening-
Providing Technical Assistance in China: U.S. and up with more help from foreign brains” (Zhang). Since
other foreign companies and organizations have played then, high-level advisory groups of foreign executives
a significant role in providing technical assistance and have been set up around China. U.S. companies that have
input in China. Official assistance has been credited played significant roles on international advisory bodies
with contributing to social development, building include AIG, Alcoa, Autodesk, Bain & Company, Baker &
foundations for civil society, nurturing relationships McKenzie, Colgate-Palmolive, Continental Grain, DuPont,
among governmental and nongovernmental actors Eastman Kodak, Emerson, FedEx, Ford, GE, HP, IBM,
in the PRC and abroad, and providing environmental McKinsey, MetLife, Microsoft, Morgan Stanley, Motorola
and public health benefits (Lum). Foreign business Solutions, PepsiCo, Pfizer, P&G, Starr Companies, Coca-
groups, law firms, and professional service providers Cola, TPG Capital, United Technologies, and UPS. In
have provided technical assistance commercial law, addition, U.S. and other foreign companies active in
environmental standards, securities regulation, CSR China have long been leading advocates for China with
practices, and support in a wide range of technical areas respect to their home countries and governments.
across the economy. China makes its own decisions
when it comes to systems and institutions, but does A Brief Case Study3
examine other systems in the process, particularly those
from the U.S. In this section, we use publicly available information
to estimate the economic impact of a single company,
Enhancing Sustainability Practices in China: Procter and Gamble (P&G) on China’s economy.4 In
Environmental sustainability has become a critical goal 2014, sales of P&G goods in China by retailers (including
of China’s leadership (Asia U.S. Chamber of Commerce). distribution and retail mark-ups) were estimated at
Companies like GM, HP, Deloitte, CH2MHill, GE, P&G, US$10 billion (Coolidge). P&G’s sales to retailers and
and others have helped bring world-class sustainability distributors in Greater China were around US$6.44
practices to China. U.S. and other foreign firms have billion.5 If we assume that 85% of these sales were to
played a major role in introducing sustainable design
and construction to China, with facilities built for 3 A more complete version of this study can be found in Enright
Plantronics, GM, Coca-Cola, ExxonMobil, Stryker, Nike, (Developing China).
Johnson & Johnson, PepsiCo, and others have helped 4 These estimates are those of ESA, not P&G. We have not received
any information directly from the company to perform this analysis,
42 or any comments on the validity of the assumptions ESA has used.
5 Calculated from US$80,510 million in global sales and 8% of global
sales in Greater China from the P&G 2015 Annual Report.
training to over 50,000 Chinese professionals on aviation China become one of the leaders in Leadership in Energy
safety, aviation quality practices, business and executive and Environmental Design (LEED) certified facilities in
training, and technical support, and opened its “Boeing the world. Several foreign companies have their most
Academy” in China in 2012 to provide a central platform sustainable facilities in the world in China.
for its training initiatives in China (Boeing Company; Cliff
et al.). Shaping the CSR Landscape in China: U.S. and other
FIEs/FAs have helped shaped the CSR landscape in China.
Integrating China into Regional and Global Early leaders included Intel China, which put forward
Management: Many U.S. and other foreign companies the CSR3.0 standards. Coca-Cola, P&G, Pratt & Whitney,
are integrating China into regional and global Boeing, HP, and others have supported educational
management through the location of regional programs around China. U.S. companies that have won
headquarters, business unit headquarters, and other CSR awards in China have included Amway, Cisco, Coca-
high-level corporate functions in China. These activities Cola, Dell, DuPont, Emerson, GM, HP, IBM, P&G, PepsiCo,
create demand for high-end services in China, provide PPG, Starbucks, and Walmart. These and others like
critical training to Chinese employees, and facilitate them have set the standards for CSR programs that are
China’s integration with the global economy. Ford, GM, increasingly being adopted by Chinese firms as well.
Ashland, IBM, GE, and others have moved regional or
global business unit headquarters to China. These moves Providing Policy Advice and Advocacy for China: Since
have brought management and coordination skills in China’s opening, its central and local governments have
running world-class global operations to China, which increasingly turned to leading multinational firms for
can provide spillovers for local companies as well as advice related to economics and business. The process
demand for high-end services. received a jump start from the famous exhortation from
Deng Xiaoping in 1983, to “beef up reform and opening-
Providing Technical Assistance in China: U.S. and up with more help from foreign brains” (Zhang). Since
other foreign companies and organizations have played then, high-level advisory groups of foreign executives
a significant role in providing technical assistance and have been set up around China. U.S. companies that have
input in China. Official assistance has been credited played significant roles on international advisory bodies
with contributing to social development, building include AIG, Alcoa, Autodesk, Bain & Company, Baker &
foundations for civil society, nurturing relationships McKenzie, Colgate-Palmolive, Continental Grain, DuPont,
among governmental and nongovernmental actors Eastman Kodak, Emerson, FedEx, Ford, GE, HP, IBM,
in the PRC and abroad, and providing environmental McKinsey, MetLife, Microsoft, Morgan Stanley, Motorola
and public health benefits (Lum). Foreign business Solutions, PepsiCo, Pfizer, P&G, Starr Companies, Coca-
groups, law firms, and professional service providers Cola, TPG Capital, United Technologies, and UPS. In
have provided technical assistance commercial law, addition, U.S. and other foreign companies active in
environmental standards, securities regulation, CSR China have long been leading advocates for China with
practices, and support in a wide range of technical areas respect to their home countries and governments.
across the economy. China makes its own decisions
when it comes to systems and institutions, but does A Brief Case Study3
examine other systems in the process, particularly those
from the U.S. In this section, we use publicly available information
to estimate the economic impact of a single company,
Enhancing Sustainability Practices in China: Procter and Gamble (P&G) on China’s economy.4 In
Environmental sustainability has become a critical goal 2014, sales of P&G goods in China by retailers (including
of China’s leadership (Asia U.S. Chamber of Commerce). distribution and retail mark-ups) were estimated at
Companies like GM, HP, Deloitte, CH2MHill, GE, P&G, US$10 billion (Coolidge). P&G’s sales to retailers and
and others have helped bring world-class sustainability distributors in Greater China were around US$6.44
practices to China. U.S. and other foreign firms have billion.5 If we assume that 85% of these sales were to
played a major role in introducing sustainable design
and construction to China, with facilities built for 3 A more complete version of this study can be found in Enright
Plantronics, GM, Coca-Cola, ExxonMobil, Stryker, Nike, (Developing China).
Johnson & Johnson, PepsiCo, and others have helped 4 These estimates are those of ESA, not P&G. We have not received
any information directly from the company to perform this analysis,
42 or any comments on the validity of the assumptions ESA has used.
5 Calculated from US$80,510 million in global sales and 8% of global
sales in Greater China from the P&G 2015 Annual Report.
