24.12.2020 | A Chinese take on corporate social responsibility
Alaco director Oliver Gorton was quoted in Asia Sentinel commenting on China’s Corporate Social Credit System (CSCS), an initiative to track the ‘responsible behaviour’ of individuals and corporations.
“For foreign businesses dealing with Chinese companies, the CSCS will add another element to factor into their due diligence, said Oliver Gorton, director of Alaco, a UK risk consultancy.
“You would not want your (Chinese) joint venture partner being a blacklisted company, for example. It doesn’t automatically follow that Chinese companies operating abroad will become Trojan horses for carrying out the government’s bidding. But it does create an environment in which cooperation with the state is likely to be rewarded and a lack of it, we assume, will lead to disadvantage. Whether that poses a geopolitical risk to other countries depends on the sector and its strategic sensitivity,” Gorton said.”
Read the full article here (paywall).
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