Zhang 1 Beichen Zhang Kristen Foster CO150.

401 10 December 2013 To State Administration for Industry and Commerce of the People's Republic of China (SAIC of China): As we know, there are a lot of companies operating in China now. According to the statistic of the SAIC of China, there are 14,837,400 corporations in China as of October 2013. Whats more, this number is still increasing. You can go to STATISTIC.GOV.CN to find more information. With the development of the global economy, the competition among businesses is becoming more and more intense. To some degree, the competition among corporations is changing into the competition among countries. It is becoming increasingly important to keep our corporations running in a correct way. From my perspective, we should encourage our corporations to practice corporate social responsibility (CSR). There are no doubts that there are a lot of smart Chinese in the corporate environment, however some managers still dont know the importance of CSR. They are quite good at dealing with business matters, such as expanding profits and decreasing cost. They know how to be a leader when doing business. Because our country has a long history with doing business we dont lack experience and there are a lot of business colleges in China now. They teach people how to run a corporation so we also dont lack knowledge. But our companies still cant compare to American companies. Based on the Fortune Global 500, also known as Global 500, which is an annual ranking of the top 500 corporations worldwide as measured by Fortune magazine, there are 132 American corporations in top 500 corporations, however China only has 89

Zhang 2 companies in the list as of 2013 (Wikipedia). If you want to get more information about it, you could go to WIKIPEDIA.FORTUNE GLOBAL 500. Although the population of China is five times as large as America, we have less successful companies then the USA. There were too many corporations in China went into bankruptcy during the economic crisis in 2008, even some very famous big companies. It had caused very bad effects on our economics. One of the reasons is that they didnt practice CSR. What should we do when next economic crisis coming? Our education system in business is also different from America I am a business student. Actually I studied for 2 years in China already and in the middle of this year I was transferred to Colorado Sate University (CSU). In the American university, I am still learning business and I have found they teach students how to practice business ethics and business law before teaching students how to do business. We are told that every corporation should practice CSR or it wouldnt be successful. To be honest, I never saw the term-CSR during my education in China. However, CSR is really important to our companies. I conducted a research in about 30 days. You can go to my blog to see my academic essay (http://beichenzhangco150researchblog.weebly.com/). The result is obvious. CSR is important to corporations and corporations should practice CSR if they want to be successful. Practicing CSR is good for making profits. Take the HP Company for example, this American company has a very good culture and they treat the company as a citizen in the world. They take social responsibilities as their mission statement (HP 2012 Global citizenship Summary Report). I think that is why HP has had much success in recent years. The products of HP are very popular in the world, and they have a lot of subsidiary companies in the world. If we want to have several companies like HP in our country, we should encourage our corporations practice (CSR). You can see more detail in the HP 2012 Global citizenship Summary Report.

Zhang 3 Practicing CSR is also good for our countrys image. An example is news about some Chinese companies in Myanmar. The news said Chinese corporations didnt do a good job in practicing CSR. The news discussed Chinese corporations brought some pollutants to Myanmar while doing business. Then the government of China had to try to fix this problem to rebuild the image of Chinese companies. From this report we can know that the good image of corporations is good for the countrys image. Chinese firms in Myanmar attempt to fix image problem will provide more information for you about that repot. In conclusion, our government should encourage corporations to practice CSR. We can do an online-learning program to train managers how to practice CSR and require every manager to take it. We also can require our corporations to issue a CSR report each year and give some reward or some preferential treatment to companies which did very well in practicing CSR. Although this is my personal advice, I still hope government can take some measures to make our business more successful. Thanks for reading. Beichen Zhang