This paper will examine changes in the China’s social order and structure beginning with the reform period induced by Deng Xiaoping focusing on the DWS. Subsequently CSR in China is assessed. Followed by a comparison of benefits the DWS provided and CSR can provide, it is concluded if, or up to what extent, CSR can compensate social benefits the former DWS supplied to its beneficiaries.
There is no other country which embodies the achievements and drawbacks of globalization as evidently as the Peoples Republic of China. Within the last 30 years, China became the fastest growing national economy of the world weekly attracting more than one billion USD. Even though its "march" has just begun, the PRC nowadays already has grown to the world’s third biggest national economy bringing great prosperity to the few and vast hardships for the many.
China’s economic ascension did not only create a thin middle- and thinner upper class with unprecedented purchasing power, but also triggered far-flung political and social transformation processes. The magnitude of future social challenges, originating from a transformation of the economic order from a planned economy to a "socialist economy with Chinese characteristics", yet remains unpredictable and imponderable.
Table of Contents
1. Introduction
2. Social Security in China
2.1 The Exodus of the "Danwei" System
2.2 The Status Quo of the Social Safety System in China
3. Corporate Social Responsibility in China
4. Contrasting Social CSR- and Danwei Benefits in China
4.1 CSR Intensity in China
4.2 Social Security Contributions of CSR in China
5. Conclusion
Objectives and Topics
This paper examines the transformation of China's social order following the economic reforms starting in 1978, specifically focusing on the shift from the state-managed "Danwei" system to a market-driven environment. The central research question investigates whether and to what extent Corporate Social Responsibility (CSR) can compensate for the social security benefits that were previously provided by the state-run Danwei system.
- The historical role of the Danwei system in providing social security.
- Impact of market liberalization and state retreat from social responsibilities.
- Evaluation of CSR practices within the Chinese market.
- Comparison of social benefits provided by the Danwei system versus modern CSR.
- Challenges for small and medium-sized enterprises in implementing CSR.
Excerpt from the Book
2.1 The Exodus of the "Danwei" System
For a long time the essential prerequisite in urban China for "survival" was not considered to be employed, but being a registered member of a Danwei. The Danwei, being a cluster in the hierarchy of state owned workplace units, was one of the primary structural entities which segmented and organized Chinese societal order and stability. For publicly employed workers the Danwei provided almost all encompassing social benefits. By contrast, albeit not of the same quality and sophistication compared to urban Danweis, people on the countryside organized in PCs enjoyed comparable benefits (Lv & Perry 1997: 8). Besides basic services like housing and meals, the Danwei also provided its employees with collectively used establishments like recreation facilities, nursery schools and schooling for the workers children.
On top of that workers being a Danwei member did not have to worry about health insurance as they were lifetime covered by the Danwei’s healthcare plan (Hebel 1997: 193). In addition, besides earning "wages", all Danwei members were signed up for the Danwei’s retirement plan (Hebel 1997: 193). Apart from that every Danwei had a Chinese Communist Party (zhongguo gongchandang 中国共产党; hereafter CCP) branch which was in charge of political education of its members (Hebel 1997: 193). Not only after schooling, but also during their work life, Danwei members had to attend regular political education classes in order to stay in aligned to the present party line. Chinese who grew up in their Danwei considered it being their home and extended family in which they lived from birth to death (Lv 1997: 164). The policy of not being able to move to another Danwei freely enabled the CCP branch to monitor the working unit’s employees social and ideological behavior closely, "wielding an assortment of sanctions and rewards to encourage politically acceptable behavior" (Lv & Perry 1997: 3).
Chapter Summary
1. Introduction: This chapter introduces China's rapid economic transition since 1978 and frames the debate regarding the retreat of the state from social security and the emerging interest in Corporate Social Responsibility.
2. Social Security in China: This section details the collapse of the traditional Danwei system and the resulting vacuum in social security, as well as the current state of social protection for Chinese citizens.
2.1 The Exodus of the "Danwei" System: Explores the historical function of the Danwei as an all-encompassing social unit and the consequences of its dissolution during economic liberalization.
2.2 The Status Quo of the Social Safety System in China: Discusses the fragmented nature of current social insurance and the challenges regarding pensions, healthcare, and unemployment in the post-Danwei era.
3. Corporate Social Responsibility in China: Defines CSR in the Chinese context and examines how it is influenced by foreign business culture and the government's vision of a "harmonious society."
4. Contrasting Social CSR- and Danwei Benefits in China: Analyzes the similarities and differences between CSR initiatives and the former Danwei system in providing social security.
4.1 CSR Intensity in China: Assesses the prevalence of CSR practices among multinational companies versus small and medium-sized enterprises in China.
4.2 Social Security Contributions of CSR in China: Investigates the effectiveness of CSR in providing actual social security benefits, such as healthcare and pension support, to the workforce.
5. Conclusion: Summarizes the findings, arguing that the private sector is currently only able to provide rudimentary compensation for the social security gaps left by the dismantling of the Danwei system.
Keywords
China, Danwei, Social Security, Corporate Social Responsibility, CSR, Economic Reform, State-Owned Enterprises, Socialism, Harmonious Society, Labor Law, Pension System, Healthcare, Market Liberalization, Globalization, Socio-economic Transition
Frequently Asked Questions
What is the central focus of this research paper?
The paper examines the social consequences of China's economic shift away from the Maoist planned economy, focusing on the disappearance of the Danwei system and the potential for CSR to fill the resulting social security gaps.
What are the primary themes covered in the study?
Key themes include the historical role of state-owned units, the transition to market-rule economy, the challenges of modern social insurance, and the practical application of CSR in an emerging market context.
What is the main objective or research question?
The core objective is to determine if, or to what extent, Corporate Social Responsibility practiced by private enterprises can compensate for the benefits formerly provided by the state-run Danwei system.
Which scientific methods are employed in this analysis?
The study utilizes a qualitative assessment of socio-economic changes, incorporating academic literature, policy documents, and data on social security developments in China to contrast past and present systems.
What topics are explored in the main body of the work?
The body explores the systemic dismantling of the Danwei, the current status of China's fragmented social safety net, the motivations behind CSR in Chinese enterprises, and a comparative analysis of the reach and effectiveness of CSR versus the Danwei model.
Which keywords best characterize this work?
The work is best characterized by terms such as Danwei, Social Security, CSR, Economic Reform, and the socio-economic transition of China.
How does the author view the effectiveness of CSR in China?
The author concludes that CSR currently serves more as a tool for profit maximization and human resource retention rather than a comprehensive social safety net, reaching only a fraction of the population.
Why does the author argue that CSR cannot fully replace the Danwei system?
The author argues that the Danwei system provided cradle-to-grave benefits to the entire collective, whereas CSR is limited to specific wealthy enterprises and primarily benefits highly-educated workers, leaving the most vulnerable populations without support.
- Citation du texte
- Philipp Stiebeling (Auteur), 2010, The Danwei System in China. Can Corporate Social Responsibility Make Up For Its Exodus?, Munich, GRIN Verlag, https://www.grin.com/document/153422
