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To Create Better Environments and Conditions for Private Enterprises in China to Take Social Responsibility

Editor's note: on March 4, 2010, the CPC central committee general secretary, State President and chairman of the Military Commission of the CPC Central Committee Jintao Hu, National Committee of CPPCC chairman Qinglin Jia and some other central leaders attended the Federation Committee meeting of China National Democratic Construction Association and Federation of Industry and Commerce members. The 11 committee members expressed their opinions at this convention. The member of Standing Committee of CPPCC, vice chairman of ACFIC, chairman Zhiqiang Lu delivered a speech for the topic to ‘create better environments and conditions for private enterprises in China to take their social responsibilities’. The chairman's speech got highly affirmation from the general secretary Jintao Hu etc. central leaders and other committee members. CCTV ‘News’ made a report on this. The following was the whole contents of chairman’s speech.

Thanks for general secretary Jintao Hu and every central leading comrade attended the discussion on Federation Group meeting of China National Democratic Construction Association and Federation of Industry and Commerce. 

I would talk about some experiences and mention several suggestions on ‘creating better environment and conditions for private enterprises in China to take their social responsibilities’.

Reform and opening up for 30 years, a large number of outstanding private enterprises and private entrepreneurs have been completed. Their own growth and development had the same root with achievements of Chinese social progress and economic development. Private enterprises and private entrepreneurs are both the beneficiaries and practitioners of reform and opening up, their core values and core benefits are the same with our party’s core interests. Their value positions in our society are the same with state-owned enterprises for they are both ‘the son of China’, ‘the world of nation’ and they are both the ruling foundation of the CPC. Along with the continuous development of our country socialist market economy, this group is bigger and bigger, and the effect is more and more remarkable. We are grateful to the reform and opening up of our country, and China's social progress, especially through the study and practice on Scientific Outlook on Development, taking social responsibility has become the inherent requirements and consciousness of the development of private enterprises.

Combined with own experience, private enterprises should take social responsibility, first of all, it should manage and develop the company well on the concept of science and innovation; secondly, it should perform the obligation to pay tax in accordance with law; thirdly, it has to provide more employment opportunities; Fourthly, it should participate actively in commonweal philanthropy; Fifthly, it should stand up at the critical moment when the state and society are in need of help. 

According to the statistics of ACFIC, only Guangcai Program, private entrepreneurs have invested 186.4 billion Yuan to poverty-stricken regions and the mid-west areas from 1994 to 2008, and arranged more than 5.4 million jobs for people to be employed, helped 10.12 million people to get rid of poverty, and donated 138.3 billion Yuan to public welfare. Especially in the Wenchuan earthquake, the private entrepreneurs regarded the earthquake relief as their own duty. They donated money and power, which emerged many moving and heroic deeds. Taking our Oceanwide Group as an example, we have already donated 1 billion Yuan in total for charities. After Wenchuan earthquake, we donated 230 million Yuan rapidly.

In order to deal with the international financial crisis in 2009, a large number of private enterprises actively responded to the call of our nation for ‘no layoff, no pay cut, no unpaid wage’. Overcoming difficulties, expanding the employment stably, guaranteeing the stable operation and development of our enterprises and fulfilling their obligations to pay taxes. Employees of private economy in 2009 increased 15.12 million than that of in 2008, an increase of 11%. More than 90% new obtain employment of town was absorbed by the private enterprise; 2009 private economy total tax was 858.6 billion Yuan, an increase of 9.2% than 2008, including some private enterprises paying taxes over a billion more and billions.

It has been found that the desires of private enterprises on performing social responsibility become more and more intense. We should create a better social environments and conditions and give more support and encouragement, for this, putting forward some suggestions.

Firstly, it should guide and encourage private enterprise to actively shoulder their social responsibility from policy and law.

Currently, The taxation, credit and loan etc. are mostly based on the production and business operation benefit, less for consideration from corporate social responsibility aspects, it is necessary to perfect and push from policies and laws. On one hand, such as tax, environmental conservation, resource conservation, production safety etc. as the social responsibility of the enterprise must be fixed down to regulations by the state, forming the rigid constraints. On the other hand, we should give better support to private enterprises that perform social responsibility in taxation, credit and loan, administrative examination and approval etc. aspects. For example, private enterprise can set public charity foundation and lay down more tax preferential policies to inspire more citizens attending to charities.

Secondly, pay more attention to play the role of private enterprises in the national strategy, major social and the people’s livelihood career.  

Our country should pay more attention to play the role of private enterprises in foreign development strategy, people’s livelihood social career, response to major events etc. aspects, to effectively provide the platform for their social responsibilities. It is suggested that a number of important commonweal projects and social investment projects should be determined by state annually. Giving full play to the advantages of Federation of Industry and Commerce, to improve and perfect the relevant government department's coordinated service mechanism, guiding and organizing conditional private enterprises to actively participate to better play to the role of private enterprises, in order to better reflect the social values of private enterprises.

Thirdly, attach importance on the educational training, to create a better public opinion environment for private entrepreneurs to take their social responsibilities.

The central leading comrades paid high attention to the third recognition event of   outstanding builders of the socialist cause with Chinese characteristics. Chairman Qinglin Jia has made important instructions for three times successively. The United Front Work Department of CPC Central Committee etc. five departments organized recognition event successfully according to the memorandum spirit of chairman Jia. This reflected the party’s political concern to private enterprises, and gave the private enterprises with tremendous spiritual encouragement. It was hoped to further strengthen propaganda recognition dynamics, expand to praising scope, and increase praising quota. Meanwhile, it was suggested that non-public economy personages should be added to the education training system of our party and the government. Continuing the study and practice on Scientific Outlook on Development and ensured the agreement of private enterprise's strategic development direction and the goals of our party and nations. It was suggested that the advanced deeds of excellent private-owned enterprises should be strengthened by mainstream media, and guide the whole society to respect the creation and dedication of enterprises and entrepreneurs. It was a kind of incentive and education to the entrepreneurs of private enterprises which would reduce gap between different classes in creating a harmonious society and form the atmosphere of ‘I for one, one for all ’. 

Take this opportunity, expressing a wish to general secretary and the central leading comrades, in the first half of this year, China Society for Promotion of the Guangcai Program would be transformed. Everybody hoped to get the encouragements with Guangcai Program from central department. The most we hoped that we could publish a congratulatory letter in the name of general secretary to encourage more private entrepreneurs into our Guangcai Program!

Thanks for general secretary! Thank you!

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