Governing Resources Companies and Corporate Social Responsibility: Can China Do Better?

Should companies fulfi ll their social responsibilities and protect stakeholder interests while pursuing profi t-seeking objectives? While debate continues on the legitimacy of corporate social responsibility (CSR) (Bakan, 2004), there is an emerging consensus among many leading companies that stakeholder interests should be protected at least to a certain extent so as to avoid bad publicity. This is especially true for resources companies as most are large multinational companies and have their reputation (brand value) at risk. In addition, resources companies operate in a high-risk industry associated with the challenges of maintaining the health and safety of their workers, and protecting communities and the environment.