The purpose of this study is to identify China’s indigenous conceptual dimensions of corporate social responsibility (CSR) and to increase the knowledge and comprehension about CSR in specific context. We conducted an inductive analysis of CSR in China based on an open-ended survey of 630 CEOs and business owners in 12 provinces (municipalities) in China. In the survey, we collected CSR sample responses. After examining the qualitative data, we identified nine dimensions of CSR, among which six dimensions are similar to (...) their western counterparts; however, the other three dimensions were never mentioned in previous literature, which mostly study the cases in the western world. In addition, two of the widely accepted CSR dimensions in the western world have no embodiments in China. A comparative study of CSR between China and western countries also unveiled some unique dimensions of CSR in China. In conclusion, CSR manifested in China is different from that in western countries, and China’s CSR is closely related to its social and cultural background. (shrink)

Employing a unique dataset of Chinese non-listed firms, this paper investigates the effects of the presence of 19 governance structures on 20 employees’ interest indicators. In general, we find that firms with the governance structures pay workers higher hourly wages, require less monthly working hours, and have a smaller chance of wage arrears. Meanwhile, the shares of total wage and welfare expenditures in total sales revenue are lower in these firms, which results in higher profitability. Moreover, firms with the governance (...) structures invest significantly more into training and provide employees with better fringe benefits. Considering the low labor protection standard and the weak external regulations of China’s labor market, we explain the positive findings thusly: corporate governance structures induce managers to adjust wage payments to the “efficiency wage” level, which is the best balance point for the interests of both shareholders and employees and, therefore, for maintaining the stakeholder relationships. We also find the governance structures that give blockholders superpower are negatively associated with employees interests. These results highlight the importance of giving enough discretion to managers in order to successfully find the common ground for creating mutual values for shareholders and employees. (shrink)