Corporate Social Responsibility and Labour Relation in China: The Significance of Chinese Corporations as Global Suppliers Obtaining SA8000 Certification

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Master Thesis of International Business and Management

Corporate Social Responsibility and Labour Relation in China:

The Significance of Chinese Corporations as Global Suppliers

Obtaining SA8000 Certification

By

Fangbing Yuan

Supervisor: Dr. M. van Offenbeek

University of Groningen Faculty of Economics and Business

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Abstract:

The importance of global corporate social responsibility (CSR) made more Chinese suppliers are told by their European and US clients that they should fulfil SA8000 standard before talk business, which is a verifiable indicator of socially responsible behaviour. This paper discusses the possible effects of certification on the financial performance of Chinese corporations. “Whether the SA8000 certification affects the sample firms’ “profit figures” was tested. The thesis took two subsamples to analyze differences in profit changes for firms with and comparable firms without SA8000 certification. The population of the first subsample was taken from consisted of 218 Chinese firms with SA8000 certification till September, 2008. The paper finally targeted 25 firms which gained their certification before 2006. And have employee number ranging from 5000 to 20,000. Then the other group of uncertified sample firms were chose randomly, which also have employees from 5000 to 20,000 and in the same industries with certified firms. Using a quasi-experimental research method, the study shows a weak, non-significant positive relationship between proceeding SA8000 certification and Chinese firms’ financial performance. But start from the second year, there were positive and significant results when compare their profits change and profits change in percentage. That means firms as suppliers could not have a big profit right after obtaining SA8000 certification, but theoretically it is possible that they will have a more stable financial performance and increasing profits in the long run, since they are expected to gain more orders from buyers. Moreover, the results show the certification did not harm the firms’ profitability.

Keywords: Corporate Social Responsibility, CSR, Social Accountability 8000,

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Introduction

Against the backdrop of economic globalization and expansion of multinationals’ global business operations, there is a growing interest in cross-border efforts for corporate self-regulation. The notion of corporate social responsibility (CSR) is gaining worldwide attention as an international, universal measure with which to assess companies. The growing use of global supply chains and supplier codes of conduct in MNEs have brought out proliferation of CSR standard, MNEs strive to ensure that practices of global suppliers do not damage their reputation, with CSR initiatives undertaken to show their operations reach the legal requirements and societal norms in their home country or abroad (Hu, 2006).

In the context of labour-related CSR, voluntary codes of conduct are used by companies to communicate their commitment to a set of labour standards and working conditions. The most labour-related CSR initiatives are directly or indirectly linked to initiatives that strive to ensure compliance with minimal labour standards or improve working conditions. The most significant developments of corporations have to do with reasonable working time and conditions, compliance with the laws, no discrimination or harassment, elimination of child labour and forced work, training, and others. The standards have been key issues to which CSR policies have been addressed. Through voluntary commitment to codes of conduct, companies hope to send a positive signal about their behaviours to their various stakeholders (Hu, 2006).

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China has stringent labour laws, many are only weakly enforced. Working conditions often include long working hours, low wages and limited health and safety measures (Crijns, 2005). One of the labour standard systems that has attracted considerable attention in China is Social Accountability 8000 (SA8000) (Crijns, 2005). My study will focus on positive and negative influences of SA8000 on Chinese export enterprises in terms of the profit changes before and after obtaining SA8000 certification.

Problem indication:

As mentioned before, in China where labour-related laws and regulations have not been adequately laid down, a large number of companies have problems with working conditions and industrial safety provided to workers (Suzuki, 2005). It can be said that corporate codes of conduct and policies for action have a role to play in ensuring sufficient levels of working conditions and industrial safety for workers in lieu of the law. It is significant and at the same time a major challenge to gain understanding within such local companies of the standards and values of Europe and the U.S. (Suzuki, 2005). And MNCs deal with complex issues regarding maintaining high standards of working conditions in supplier factories. A number of multinational corporations in the US and Europe such as Avon and Wal-mart ask their suppliers to meet the standards. More and more Chinese firms are told by their European and US clients that they should meet these criteria before they can talk business. (Suzuki, 2005)

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This Mishuai case indicated a fact that in these years, exporters in China did realize the significance of obtaining SA8000 certification. However in reality, there are not so many companies willing to do it. They do not think they will be as lucky as Xia. It is clear that the increasing costs for working conditions improvement and high costs needed for passing the certification itself, making the exporters worried about the SA8000 requirements. They may think such would reduce the benefit of access to an inexpensive labour force and affect their exporting advantage, because most of them as suppliers are private and small-scale players seeking quick returns. According to calculations, a 1,500 employee company will spend 230,000 Yuan (US$27,811) on the first-time accreditation and following reviews for three years. Chinese producers of electronic products, apparels, textiles, toys, sporting equipment and shoes are thought to be most vulnerable to the strict requirements (China Daily, 2004).

Due to this conflict, the problem will be focused on whether the good side of the issue will prevail over the negative impact. Waddock and Graves (1997) states a “virtuous circle” may exist about relation of CSR and financial performance, which suggest that positive stakeholder relationships can reduce the likelihood of difficulty when dealing with groups such as employees, customers, and the community. In addition, good social performance and good managerial practice may be related, so this in turn may lead to strong financial performance.

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Main research question

In my paper I studied Chinese exporting companies in some industries as example to investigate necessity to generalize certifications to SA8000 standard in developing countries. At the end I discussed whether Chinese exporting companies should certifications to SA8000 standard, because they may be able to benefit from it by better financial performance. Therefore my research question is: Whether the SA8000 Certification affects the sample firms’ financial performance? The financial performance could be measured by change of firms’ profits. The initial research model is shown in figure 1. This model indicates a possible positive relationship between SA8000 certification and Chinese firms’ financial performance, since good social performance and good managerial practice could lead to strong financial performance. Therefore, certified firms may gain more profits than uncertified firms.

Figure 1: The initial research model of the thesis

Structure of the thesis

In this paper I firstly reviewed the literatures to introduce and theoretically discuss the existing knowledge related the CSR and the SA8000 standard, such as what CSR means to global trade, which benefits SA8000 certification would bring to the companies, and what relationship between SA8000 certification and companies’ financial performance. In the next section, I explained the methodology and data sampling for this research. The third step provided the research results. I tested whether proceeding SA8000 certification has a positive relation with firms’ financial performance. The fourth part was the conclusion and the discussion of the results. Finally, the paper ended with reflection on the limitations and recommendations to practitioners, also for future research.

SA8000 Certification

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Literature Review

The importance of global corporate social responsibility (CSR) is evident by the increasing spread adoption of ISO9000 and ISO14000 management systems by worldwide corporations (Maignan et al, 2002). CSR is defined as “achieving commercial success in ways of honour ethical values, and respecting people, communities and the natural environment” (McWilliams and Siegel, 2000), Which mainly focus on responsibility and on the important relationship between business and the community has changed the language of business behaviour. SA8000 standard, as a verifiable indicator of socially responsible behaviour, is modelled after the environmental auditing processes that were developed through the ISO (Hassel, 2008).

The SA8000 standard, introduced by the Council on Economic Priorities Accreditation Agency (CEPAA, 1997), is dedicated to improve workplace standards by developing and implementing social accountability standards. This standard is the benchmark against which companies or factories can measure their performances. It is based on workplace norms promulgated by ILO conventions and other human rights organizations. Those who comply with SA8000 have adopted policies that protect the basic human rights of workers. The main “performance requirements” of SA8000 address eight labour issues: 1) child labour; 2) force labour; 3) health and safety; 4) freedom of association and the right to collective bargaining; 5) discrimination; 6) disciplinary practices; 7) working hours; 8)compensation. Member groups of SA8000 include companies, certifying bodies, NGOs, trade unions and academia (SAI). Although SA8000 is not an official standard, there are more and more leading companies and organisations like Avon, inc.(USA), Otto-Versand(Germany), the body shop(UK), International textile garment and leather workers’ federation (Belgium); Reebok international(USA), Toys’R’ Us (USA) .etc. that have adopted the SA8000 model and support it over a wide spectrum of interests (SAI).

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employment and working conditions on the suppliers’ employees. When applying SA8000 certification, the organization has to build and implement a “Social Management System” (SMS) to ensure compliance and continuous improvement to reach the eight SA8000 requirements. The SA8000 SMS works just like the quality management system of ISO standards. The main process including planning, implementation, checking and corrective actions, and management review (Göbbels & Jonker, 2003).

To answer the question “What is the role of certification standard like SA8000 within a company's CSR policy and practice?” The study of Maignan et al. (2002) states the socially responsible buying practices, which means companies use social issues as noneconomic procurement criteria, are becoming important for company brand positioning in many industries, as more consumers demand companies follow social responsible practices. Therefore, some major companies adopted the SA8000 model as a strategy to enhance reputation, and build competitive advantages. It is becoming an increasing important issue as more corporations outsourcing more of the labor intensive production to lower labor costs countries to gain cost advantages, because the US and European consumers now are especially prefer socially responsible productions goods with workers treated fairly. Retailers therefore tend to require SA8000 certification from their suppliers. These suppliers will then pass this certification requirements to their supply chain, resulting in SA8000 having a “domino like” effect throughout the global supply chain (Miles and Munilla, 2004).

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make it difficult to carry out social dumping and would be an obstacle to disloyal competition based on unfair and undignified working conditions. Companies would also benefit from attract the best work force and keep them motivated, and would also increase their sales as a result of their improved image. In sum, the benefits of adopting SA8000 are significant and may include improved staff morale, more reliable business partnerships, enhanced competitiveness, less staff turnover and better worker-manager communication.

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discussed that indeed there is an association between good social performance or ethical business practices and good financial returns. But it is not clear that good social performance increases profits, it may be the other way around. It means companies better spend some money on improving their social and environmental performance to prevent damages arising from its bad behaviour, which could cost very high.

In conclusion, it is likely that CSR will bring benefits to retailers, suppliers and investors in the long run, although it may not show in the financial profitability. The reason that there are different study results about relationship between CSR and financial performance may be because of different definitions of financial performance. They use different variables to represent financial performance. In much the same way, the data from different sources also significantly differ from one another, regarding how they evaluate the CSR performance of a firm. The differences may depend on specific company’s size, the particular industry involved, even cultural differences.

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maintaining a social accountability management system and cost of the certification process itself. According to Miles and Munilla (2004), low costs suppliers will be most affected by SA8000, as their source of competitive advantage is broken up by cost increases, for others whose competitive advantage rests on quality, innovation, or customer focus all the time will less affected. As more global buyers demanding SA8000 compliance by their suppliers, those who operate in developing countries will be pressured to comply with SA8000 requirements if they expect to remain member of the supply chain of multinational corporations.

In my thesis, I would like to test the significance of Chinese exporting corporations proceeding SA8000 certification from these exporters’ point of view. From the perspectives of theories about the CSR and financial performance mentioned above, SA8000 certification could help suppliers in China by increasing their chances to be accepted on the global market. Suppliers should adopt the SA8000 as a CSR based marketing strategy, If not for ethical purposes alone. However, since the relationship between CSR practices and financial performance is not evident, and maybe depend on situational factors like market characteristics, I focused my research on China. I collected financial data from Chinese firms in specific industries which already or not got SA8000 certification.

In sum, my research question was: Whether the SA8000 Certification affects the sample firms’ financial performance? I gave two sub-questions:

Sub-Q1: As global suppliers, whether exporting corporations benefit from complying

with SA8000 by increasing profits during last three years?

Sub-Q2: For the other similar companies that do not have SA8000 Certification,

whether there is decreasing profits during last three years.

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firms’ profitability. It is show as a “positive feedback loop” (Stacey, 1996). It means the feedback systems can operate in a positive and amplifying manner.

The suppliers reached SA8000 standard and obtain SA8000 certification, this action could make them gain much more customers in global market than the ones who did not. After that they become more profitable and are able to invest more on their CSR practices. More investment on CSR practices could finally attract more global buyers in future. In this model, one change led to further amplifying changes. This amplifying feedback generates a “virtuous circle”.

Figure 2: The conceptual model of the thesis.

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Data and Methods

Research design

A “quasi-experiment” was used for my research. There were two sample groups. The first sample groups were those Chinese firms that already implemented SA8000 standards three years ago. I studied their performance from 2006 to 2008. I set three years as a research period because according to information on SAI website, the very first firm in China obtaining SA8000 certification was in 2003. Till 2005, there were only about 50 Chinese firms who got this certification, but this number started increasing faster from 2006. Till September 2008, there were 218 Chinese firms that obtained this certification. Apparel, Footwear, Textiles, Accessories, Plastics and Electronics were the six industries which take much bigger share of total 218 companies than other industries. Most of those certified firms are located in “South China's Pearl River Delta”, one of the country's thriving processing trade centres (SAI).

At the same time, I researched other Chinese exporting companies’ financial performance from 2006 to 2008 that had not yet obtained the SA8000 certification. They had similar firm size and in same industries with the 218 Chinese firms have SA8000 certification. In short, I assumed they have the biggest possibility to apply for obtaining SA8000 certification as the companies developing in future.

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Population and sampling procedure

I collected certified firms’ information from the SA8000 homepage. There were 218 Chinese firms that obtained SA8000 certification till September, 2008 (See firms list on Appendix 5); which were in 32 different industries. Manufacturing industries (96.8% of total) such as apparel (64), footwear (21), textiles (17), accessories (15), plastics (15), electronics (11), toy (9), jewellery & watches (8), house wares (6) took a share of 76.14% of the total 218 firms. There were a few service industries (3.2% of total) involved such as pharmaceutical services (2), packaging (2), financial services (1), printing (1) and staffing (1) (See Appendix 5). Then I checked each firm’s websites to find their financial data. At the same time, I searched these firms through the “Google Finance” website, which could provide many firms’ consolidated income statement for the last four years (2005 to 2008).

Other exporting companies, who have not obtained SA8000 certifications, were studied as comparable sample group. They were chosen based on the following criteria: similar industries, company size and location with certified ones. “www.qiyes.com” is a website for searching companies in China. I chose one industry on its home page (the industry should be the same with one of industries of certified firms), and then there is a firms list which shows the location and website for each firm at the same time. I targeted some exporting firms near or located in “South China's Pearl River Delta”, and entered the firm’s website to check their company size, and whether they were indeed certified or not. The target group should have employees from 5000 to 20,000, which are firms’ sizes of most certified ones. Finally, I collected the target firms’ financial data from their websites and from “Google Finance” as well to enhance reliability.

Data collection

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SA8000 certification, I finally targeted 25 firms. They all gained their certification before 2006, and they have employees from 5000 to 20,000. For the other comparison group of firms, which I picked from “www.qiyes.com”, there is also a problem with financial data collection. I was able to target 35 firms in total from which data of their financial performance in these years was available. For both sub samples, I found most of their financial data at “Google Finance” and sometimes also on their own websites.

Data analysis

The reason I tried to compare the change in companies’ earnings every year is that it directly reflects the companies’ financial performance. When there were stable or increases in profits after they get SA8000 certification, which would suggest that it is also economically worth while to obtain SA8000 certification.

After the data collection, I used SPSS as tool for data testing. Nonparametric tests for two independent samples were the methods used to test the differences in annual profits changes between the sample firms in two groups. The dates were not normally distributed, but they showed a same shape of distribution. Therefore, I used “Mann-Whitney test”, which is used in place of the two sample t-test. It is most widely-used significance test for comparing two independent samples. It uses ordering and then ranking the data in terms of closest to farthest from the median to determine whether there is a significant difference between the population medians.

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Results

Descriptive Results

There are two groups of data. As table 1 show, there are totally 25 certified Chinese companies and the uncertified 35 Chinese companies as compare group. After collected their earnings from 2006 to 2008, I also computed new variables as the yearly profits change, and yearly percentage profits change for further analysis, the descriptive results of the new valuables show in table 2 and table 3 (See complete tables on Appendix 3). The table 1 indicates the descriptive results of firms’ profits of 2006, 2007 and 2008. It is clear that in general, the profits of certified and uncertified firms all keep increasing from 2006 to 2008.

Table 1: the descriptive firms’ profits each year (Million RMB).

Certified

/Not N Minimum Maximum Mean Median

Std. Deviation Yr2006 Uncertified 35 204,800 18929,970 2504,21600 1363,74000 3892,948163 Certified 25 34,483 17451,670 1947,40664 659,50000 3514,061437 Yr2007 Uncertified 35 208,240 25876,430 3056,67286 1443,41000 5583,729778 Certified 25 55,405 25301,000 2444,41940 880,00000 5027,887800 Yr2008 Uncertified 35 118,230 34560,570 3377,67857 1349,39000 6747,428648 Certified 25 55,664 39017,000 3140,56240 935,00000 7669,070088

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profits increased in certified firms were high than uncertified sample firms between 2006 and 2008.

Table 2: the descriptive results of firms’ yearly profit changes (Million RMB).

Certified /Not N Min. Max. Mean Median Std. Deviation

Change0607 Uncertified 35 -442,98 8394,59 552,4569 59,8200 1822,82905 Certified 25 -334,12 7849,33 497,0128 71,2200 1592,00025 Change0708 Uncertified 35 -1340,43 8684,14 321,0057 -26,4400 1638,49561 Certified 25 -353,60 13716,00 696,1430 83,6800 2729,00403 Change0608 Uncertified 35 -608,11 15630,60 873,4626 49,7000 2955,20964 Certified 25 -120,06 21565,33 1193,1558 152,9800 4270,92064

When it comes to profits change in percentage, as table 3 shows, the mean of profits of certified firms increased by 17.7% in 2007 and 12.4% in 2008. Therefore, their profits increased by totally 32.12% from 2006 to 2008. On the other hand, the mean of profits of uncertified firms increased by 7.15% in 2007. However, there was no overall profit increased in 2008, the mean of profits change decreased by 2.08%. Compare with certified firms, the uncertified ones gain only 7.09% profits increased between 2006 and 2008.

Table 3: the descriptive results of firms’ yearly profits change in percentage (%).

Certified /Not N Min. Max. Mean Median Std. Deviation

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Analytic Results

Mann-Whitney test for profits each year

Mann-Whitney Test firstly compared the profits of 2006 with 2007, 2007 with 2008, and 2006 with 2008 between certified and uncertified firms. Results in table 4 show the mean rank (median) of certified firms is 26.72 in 2006. In 2007, the results of mean rank change to be 27.64. For the other group of uncertified firms, the mean rank in 2006 is 33.2, and it changing to be 32.54 in 2007. In short, there was a small profit increase within certified firms, and a small profit decrease within uncertified firms between 2006 and 2007. When comparing profits change between 2007 and 2008, I found a similar result with the one between 2006 and 2007. The mean rank of certified firms is 27.64 in 2007. It increases as 29.68 in 2008. For the uncertified ones, the mean rank is 32.54 in 2007 and decrease to be 31.09 in 2008.

Table 4: Concluded Mann-Whitney Test results of profits between two groups

Finally, I compared the profits change of two groups between 2006 and 2008 to show the overall changes. The mean rank of certified firms changed from 26.72 to 29.68, sum of ranks increase from 668 to 742. The mean rank of uncertified firms changed from

With With With

With SA8000 SAMPLESSA8000 SAMPLESSA8000 SAMPLES SA8000 SAMPLES

Without SA8000 CERTIFICATION Without SA8000 CERTIFICATION Without SA8000 CERTIFICATION Without SA8000 CERTIFICATION

SAMPLES SAMPLES SAMPLES SAMPLES

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33.2 to 31.09, with the sum of ranks decreasing from 1162 to 1088. However, all these results are not statistically significant (See Appendix 4), the p values are: 0.156 for 2006, 0.284 for 2007 and 0.759 for 2008.

In sum, there was a profit increasing within certified firms and a profit decreasing within uncertified firms during the three years, although the results show not statistically significant. This Mann-Whitney test results show there is no significant difference of financial performance between two groups. It may means the SA8000 certification just did not bring very strong effects on firms financial performance in short time. Therefore we can not say firms’ CSR practices are usefulness for companies’ profitability. It is possible that the research could show a significant result when a longer time span had been covered. And the two other Mann-Whitney tests below show more about different of profits change within two groups.

Mann-Whitney test for profits change.

For further analysis, I tested the firms’ yearly profits change to show more about which group gained more profits in general. I computed the profits differences between 2006 and 2007, 2007 and 2008, and 2006 and 2008 of all firms.

The Mann-Whitney Test results of profits change between two groups show in table 5. It is clear that the certified firms gained more than uncertified ones between 2006 and 2008, although some firms in both groups suffered profits decreasing. The results also show the certified firms had stable and increasing profits, there was a bigger profit increasing between 2007 and 2008. However, it seems the uncertified firms gain less profit year after year. The profits of uncertified firms especially became less between 2007 and 2008.

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difference between certified and uncertified groups when compare their profits change from 2006 to 2007. But there was a significant difference profits change between 2007 and 2008, certified firms gain much more than uncertified ones. It therefore made a significant difference when compare profits change between 2006 and 2008 within two groups.

Table 5: Concluded Mann-Whitney Test results of profits change between two groups

Mann-Whitney test for profits change in percentage.

The third Mann-Whitney test was testing profits change in percentage within two groups. The results in table 6 indicate that profits in percentage of certified firms increased much more than uncertified ones in between 2006 and 2007. The mean rank is 34.52 in certifies firms compare with 27.63 in uncertified firms. But this result shows not significant (p=0.132).

There is a significant result when compare profits change in percentage of two groups between 2007 and 2008 (p=0.015). Table 6 shows that profits change in percentage of certified firms keep increased, but uncertified firms in general suffered decreased in

With With With

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profits percentage change. In sum, profits in certified firms increased more than uncertified firms between 2006 and 2008, and the result also show significant (p=0.027).

Table 6: Concluded Mann-Whitney Test results of profits change in percentage between two groups

With With With

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Conclusion and discussion

To answer the question” Whether the SA8000 certification affects the sample firms’ financial performance,” I collected data of two subsamples to show the financial differences with and without SA8000 certification. According to testing results, on one hand, the certified Chinese firms in the sample benefit from SA8000 certification by increasing profits over the last three year, but the effect is not significant if compared to annual profits of uncertified firms, although the uncertified firms had unstable and decreasing profits during last three years. On the other hand, there are significant results when test profits change and the change in percentage between 2007 and 2008, and 2006 and 2008 within two groups. Profits of certified firms indeed increased more than uncertified firms. That means the SA8000 certification is not totally unrelated to the sample firms’ financial performance. Moreover, the results at least show that CSR practices such us obtaining SA8000 certification could not harm in firms’ financial terms, because there were almost no profits decreased within certified firms in general. In sum, the CSR practices could bring added value to these firms. It is possible the tests could show significant results if using other financial indicators, sample firms, or a longer time span covered. And there are other papers already proved “good ethics is good business”, the no significant results of comparing annual profits between two groups from 2006 to 2008 only indicate the CSR practices could not result in immediate short term payoffs to the firms.

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global retailer, although the expenses get increasing as well. On the other hand, it is more important for the global retailers, such as MNCs in developed countries, to attract customers by offering higher quality products and service, ensure their suppliers provide socially responsible productions goods to enhance their reputation, since customers now demand firms follow social responsible practices.

However, there is still a long way to go for disseminating SA8000 in China and other developing countries. Most of the certified export companies who willing to join the CSR practices were because the buyers in US, EU and Australia asked for, so apply for a SA8000 certification is basically the only option for them. Some of these certified exporters in China are as subsidiaries of foreign MNCs. But most of other local Chinese exporters still do not know much about these standards. Many of them see it as a way “Western” governments try to ban low costs Chinese imports. But the original goal of SA8000 certification is to help companies maintain decent working conditions throughout the supply chain. Certification makes companies guarantee their working condition meet minimum standards based on ILO conventions. Pressure of Western export markets, which led to the establishment of supply chain labour standards in Western countries, is a major impetus for improving working conditions in China (Crijns, 2005). At the core lies the desire of Western firms to protect their corporate and brand images. Strong brand companies usually have their own supplier monitoring programs. For small firms who can not afford their own monitoring systems, buying SA8000 certified goods could be an option. This is also a better guarantee for the independent monitoring and control of these CSR practices.

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(Miles and Munilla, 2004), the owners of Chinese firms should realize as global suppliers, cost advantages of Chinese goods can not always working in future global business as Chinese economies growing that fast, and this advantage should not to be get on exploit rights from workers, the cost of SA8000 certification would finally be modest in terms of market access, reputation and productivity.

Limitations

The difficult part of conducting this research was the data collection. There was very little Chinese sample companies provide reports with the information I needed on websites, especially the ones with SA8000 certification. Most of firms are medium and small size manufacturing companies without financial information put on their websites. For those providing financial information, it only concluded financial performance in very general ways, which only showed annual profits of last four years at most. This faced me to change my research method, because I had planed to study the firms’ financial performance by collecting data on return on assets (ROA), return on equity (ROE), and return on sales (ROS), or even the number of orders from global buyers. However, this turned out not to be possible. In addition, although CSR practices directly link to firms’ operating cost, I realize in global market, there are many other factors could affect firms’ profitability, such as productivity, availability, utilization, resale value even the interest rate.

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Recommendations

Although the “good ethics is good business” was not strongly be proved in my thesis, the owners of Chinese firms should aware of the possibility that the profitability related to their CSR practices one day in future. Therefore, at least they should start prepare for obtaining or collecting relative information about SA8000 certification. In the meantime, because of companies’ reputation could affect the buying decisions of consumers, those global retailers should also realize the importance of choosing suppliers with CSR certifications, or they can also push their suppliers to reach basic standards before buying from them.

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References

:

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Enterprises and their Impacts to Developing Countries”, Research paper of The Japan Institute for Labour Policy and Training

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Websites:

Certified Facilities List SA8000:

http://www.saasaccreditation.org/certfacilitieslist.htm#summary Interview: SA8000 requires positive attitude:

http://english.peopledaily.com.cn/200407/06/eng20040706_148628.html SAI: SA8000 statement, 2008:

http://www.sa-intl.org/

Search Chinese companies by industries: www.qiyes.com

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Appendix 1: Source of data on sample

without SA8000 certification

Textiles

Xinjiang Tianshan wool textile Co.Ltd

http://www.google.com/finance?q=SHE:000813&fstype=ii&gl=cn Fujian Fynex Textile Science & Technology Co., Ltd

http://www.google.com/finance?q=SHA:600493&fstype=ii&gl=cn Shijiazhuang Changshan Textile co., Ltd.

http://www.google.com/finance?q=SHE:000158&fstype=ii&gl=cn Anhui Huamao Group Co., Ltd

http://www.google.com/finance?q=SHE:000850&fstype=ii&gl=cn Huafu Top Dyed Melange Yarn Co., Ltd

http://www.google.com/finance?q=SHE:002042&fstype=ii&gl=cn Hubei Mailyard Co.,Ltd

http://www.google.com/finance?q=SHA:600107&fstype=ii&gl=cn Apparel:

China Garments Co., Ltd

http://www.google.com/finance?q=SHE:000902&fstype=ii&gl=cn Jiangsu Wuzhong Industrial Co., Ltd

http://www.google.com/finance?q=SHA:600200&fstype=ii&gl=cn HUBEI MAIYA HOLDING CO.,LTD

http://www.google.com/finance?q=SHE:000971&fstype=ii&gl=cn Jiangsu Sanyou Group Co., Ltd

http://www.google.com/finance?q=SHE:002044&fstype=ii&gl=cn NINGBO SHANSHAN CO.,LTD.

http://www.google.com/finance?q=SHA:600884&fstype=ii&gl=cn Youngor Group Company Limited

(30)

Footwear:

Doublestar Group Corporation

http://www.google.com/finance?q=SHE:000599&fstype=ii&gl=cn Cosmetics:

Shanghai Jahwa Company

http://www.google.com/finance?q=SHA:600315&fstype=ii&gl=cn Softto Company limited co.ltd.

http://www.google.com/finance?q=SHE:000662&fstype=ii&gl=cn Toys:

Kiu Hung Energy Holdings Limited

http://www.hmdatalink.com/c00550/Annual_Reportlist.php?cmd=resetall Electrical equipment:

Wuzhou Minovo Co., Ltd

http://www.google.com/finance?q=SHA:600873&fstype=ii&gl=cn Tebian Electric Apparatus Co., Ltd. (TBEA)

http://www.google.com/finance?q=SHA:600089&fstype=ii&gl=cn Dong yuan Electrical Co.Ltd.

http://www.google.com/finance?q=SHE:002074&fstype=ii&gl=cn Shanghai Sieyuan Electric Co., Ltd (Sieyuan),

http://www.google.com/finance?q=SHE:002028&fstype=ii&gl=cn Plastics:

Foshan plastic Co.Ltd

http://www.google.com/finance?q=SHE:000973&fstype=ii&gl=cn Jiangnan Mould & Plastic Technology Co., LTD.

http://www.google.com/finance?q=SHE:000700&fstype=ii&gl=cn ANHUI GUOFENG PLASTIC INDUSTRY CO.,LTD.

http://www.google.com/finance?q=SHE:000859&fstype=ii&gl=cn Wuhan Plastics Industrial Group Co.,Ltd

(31)

VV Food & Beverage Co., Ltd

http://www.google.com/finance?q=SHA:600300&fstype=ii&gl=cn Telecommunication

Shenzhen SED Co., Ltd.

http://www.google.com/finance?q=SHE:000032&fstype=ii&gl=cn

WU HAN YANGTZE COMMUNICATIONS INDUSTRY GROUP CO.,LTD http://www.google.com/finance?q=SHA:600345&fstype=ii&gl=cn

Financial Services Industrial Bank CO.LTD

http://www.google.com/finance?q=SHA:601166&fstype=ii&gl=cn Shanghai Pudong Development Bank

http://www.google.com/finance?q=SHA:600000&fstype=ii&gl=cn Chemicals:

Zhejiang Qianjiang Biochemical Co.,Ltd

http://www.google.com/finance?q=SHA:600796&fstype=ii&gl=cn Hebei Veyong Bio-Chemical Co. Ltd

http://www.google.com/finance?q=SHA:600803&fstype=ii&gl=cn Shanghai Jiao Da Onlly Co., Ltd.

http://www.google.com/finance?q=SHA:600530&fstype=ii&gl=cn Electronics:

Shanghai Feilo co.,ltd

http://www.google.com/finance?q=SHA:600654&fstype=ii&gl=cn Jiangxi Lianovation Co.,Ltd

http://www.google.com/finance?q=SHA:600363&fstype=ii&gl=cn Shenzhen Deren Electronic Co., Ltd.

http://www.google.com/finance?q=SHE:002055&fstype=ii&gl=cn

Appendix 2: Source of data on samples with

(32)

Apparel

Bosideng Co. Ltd, Changshu Garment Factory http://company.bosideng.com/gb/ir/finhigh.htm

Black Peony Group Co Ltd / Black Peony Group Co Ltd Import and Export Co Ltd Textiles

http://www.google.com/finance?q=SHA:600510&fstype=ii&gl=cn Jiangsu Guotai International Group Textile Imp. and Exp. Co., Ltd. http://www.gtigtex.com/about.html

http://www.google.com/finance?q=SHE:002091&fstype=ii&gl=cn Lu Thai Textile Co. Ltd

http://www.lttc.com.cn/lta/stock.html

http://www.google.com/finance?q=SHE:200726&fstype=ii&gl=cn Nantong Teijin Co Ltd

http://www.teijin.co.jp/english/about/company/achievement.html SHANDONG YULONG EMBROIDERY CO LTD

http://yunlongroup.texindex.com/

Wendeng Yunxiang Embroidere Product Co. Ltd

http://www.madeinchina.com/2819341/P6063310/Curtiains.shtml Plastics

Rexam Derk Wei Industrial Co Ltd

http://www.rexam.com/index.asp?pageid=54 Toys

ZHANGJIAGANG GUOTO TOY DESING CENTER LTD

http://www.google.com/finance?q=SHA:600444&fstype=ii&gl=cn Jewelry & Watches

Qingdao Tunan Arts & Crafts Co., Ltd. http://www.narae.co.kr/

Medical / Pharmaceutical

North China Pharmaceutical Victor Co. Ltd.

(33)

Housewares

Guangzhou Seagull Kitchen and Bath Products Co., Ltd

http://www.google.com/finance?q=SHE:002084&fstype=ii&gl=cn Electronics

Everlight Electronics Co, Ltd

http://www.everlight.com/investor.php?item=7&cate_index=1&set_lang=en Guangzhou i. Tech Electronic Technology Ltd.

http://www.hutchisonharbourring.com/chi/Investor_Relations/index.asp Regent Electron Co., Ltd

http://www.rmih.com/en/content_5_2.htm Telecommunication

Eltek Valere Energy Technology Ltd

http://www.eltek.com/wip4/detail_annual.epl?cat=16587 http://www.google.com/finance?q=NASDAQ:ELTK&gl=cn Financial Services

China Minsheng Banking Corp. Ltd

http://www.google.com/finance?q=SHA:600016&fstype=ii&gl=cn Chemicals

Anhui BBCA Biochemical Co.,Ltd.

http://www.google.com/finance?q=SHE:000930&fstype=ii&gl=cn Firmenich Aromatics Co., Ltd.

http://www.firmenich.com.cn/

http://www.firmenich.com/m/company/about-us/profile/2009-in-brief/index.lbl RZBC Co., Ltd

http://www.google.com/finance?q=SHA:600017&fstype=ii&gl=cn Computer Products & Services

Allwin Tele Co. Ltd

(34)

AAC ACOUSTIC TECHNOLOGIES CO., LTD http://www.aacacoustic.com/EFinancia.aspx Guangdong Tianle Telecom Equipment Ltd. http://www.tianlecom.com/gytl/index.htm JABIL CIRCUIT Co., Ltd.

http://jbl.client.shareholder.com/fin_highlights.cfm

Appendix 3: SPSS Results of descriptive

statistics on all data

Descriptives

Certified or no Certified Statistic Std. Error

Mean 2504,21600 658,028341

Lower Bound 1166,94152 95% Confidence Interval for

Mean Upper Bound 3841,49048 5% Trimmed Mean 1843,07897 Median 1363,74000 Variance 1,516E7 Std. Deviation 3892,948163 Minimum 204,800 Maximum 18929,970 Range 18725,170 Interquartile Range 1774,380 Skewness 3,107 ,398 0 Kurtosis 10,381 ,778 Mean 1947,40664 702,812287 Lower Bound 496,87337 95% Confidence Interval for

(35)

Variance 1,235E7 Std. Deviation 3514,061437 Minimum 34,483 Maximum 17451,670 Range 17417,187 Interquartile Range 2762,585 Skewness 3,864 ,464 Kurtosis 16,928 ,902 Mean 3056,67286 943,822596 Lower Bound 1138,59457 95% Confidence Interval for

Mean _{Upper Bound} _4974,75115

5% Trimmed Mean 2037,20841 Median 1443,41000 Variance 3,118E7 Std. Deviation 5583,729778 Minimum 208,240 Maximum 25876,430 Range 25668,190 Interquartile Range 1913,620 Skewness 3,353 ,398 0 Kurtosis 11,289 ,778 Mean 2444,41940 1005,577560 Lower Bound 369,00932 95% Confidence Interval for

(36)

Mean 3377,67857 1140,523606 Lower Bound 1059,85574

95% Confidence Interval for

5% Trimmed Mean 2153,33548 Median 1349,39000 Variance 4,553E7 Std. Deviation 6747,428648 Minimum 118,230 Maximum 34560,570 Range 34442,340 Interquartile Range 2083,690 Skewness 3,640 ,398 0 Kurtosis 14,371 ,778 Mean 3140,56240 1533,814018 Lower Bound -25,07414 95% Confidence Interval for

5% Trimmed Mean 1692,70316 Median 935,00000 Variance 5,881E7 Std. Deviation 7669,070088 Minimum 55,664 Maximum 39017,000 Range 38961,336 Interquartile Range 3118,590 Skewness 4,609 ,464 yr2008 1 Kurtosis 22,232 ,902 Mean 552,4569 308,11434 Lower Bound -73,7068 95% Confidence Interval for

(37)

Maximum 8394,59 Range 8837,57 Interquartile Range 332,88 Skewness 3,810 ,398 Kurtosis 14,071 ,778 Mean 497,0128 318,40005 Lower Bound -160,1326 95% Confidence Interval for

5% Trimmed Mean 198,0360 Median 71,2200 Variance 2534464,788 Std. Deviation 1592,00025 Minimum -334,12 Maximum 7849,33 Range 8183,45 Interquartile Range 212,66 Skewness 4,468 ,464 1 Kurtosis 20,981 ,902 Mean 321,0057 276,95631 Lower Bound -241,8372 95% Confidence Interval for

5% Trimmed Mean 46,7210 Median -26,4400 Variance 2684667,876 Std. Deviation 1638,49561 Minimum -1340,43 Maximum 8684,14 Range 10024,57 Interquartile Range 226,85 Skewness 4,396 ,398 0 Kurtosis 21,263 ,778 Mean 696,1430 545,80081 Lower Bound -430,3345 change0708 1

95% Confidence Interval for

(38)

5% Trimmed Mean 170,6981 Median 83,6800 Variance 7447463,004 Std. Deviation 2729,00403 Minimum -353,60 Maximum 13716,00 Range 14069,60 Interquartile Range 374,22 Skewness 4,903 ,464 Kurtosis 24,320 ,902 Mean 873,4626 499,52160 Lower Bound -141,6875 95% Confidence Interval for

5% Trimmed Mean 337,4443 Median 49,7000 Variance 8733264,022 Std. Deviation 2955,20964 Minimum -608,11 Maximum 15630,60 Range 16238,71 Interquartile Range 514,74 Skewness 4,188 ,398 0 Kurtosis 19,277 ,778 Mean 1193,1558 854,18413 Lower Bound -569,7936 95% Confidence Interval for

(39)

Skewness 4,901 ,464

Kurtosis 24,298 ,902

Certified or no Certified Statistic Std. Error

Mean ,0715 ,03742

Lower Bound -,0046 95% Confidence Interval for

Mean Upper Bound ,1475 5% Trimmed Mean ,0698 Median ,0662 Variance ,049 Std. Deviation ,22136 Minimum -,48 Maximum ,61 Range 1,09 Interquartile Range ,28 Skewness ,059 ,398 0 Kurtosis ,661 ,778 Mean ,1707 ,04308 Lower Bound ,0817 95% Confidence Interval for

Mean Upper Bound ,2596 5% Trimmed Mean ,1600 Median ,1165 Variance ,046 Std. Deviation ,21540 Minimum -,15 Maximum ,69 Range ,85 Interquartile Range ,22 Skewness ,894 ,464 percentagechange0607 1 Kurtosis ,495 ,902 Mean -,0208 ,03499 percentagechange0708 0

(40)

Upper Bound ,0503 5% Trimmed Mean -,0230 Median -,0340 Variance ,043 Std. Deviation ,20703 Minimum -,46 Maximum ,53 Range 1,00 Interquartile Range ,22 Skewness ,238 ,398 Kurtosis ,796 ,778 Mean ,1242 ,05404 Lower Bound ,0127 95% Confidence Interval for

Mean _{Upper Bound} _,2358

5% Trimmed Mean ,1101 Median ,1276 Variance ,073 Std. Deviation ,27019 Minimum -,36 Maximum ,92 Range 1,28 Interquartile Range ,32 Skewness ,817 ,464 1 Kurtosis 2,088 ,902 Mean ,0709 ,06271 Lower Bound -,0565 95% Confidence Interval for

(41)

Interquartile Range ,54

Skewness ,311 ,398

Kurtosis -,127 ,778

Mean ,3212 ,08010

Lower Bound ,1559 95% Confidence Interval for

5% Trimmed Mean ,3111 Median ,3058 Variance ,160 Std. Deviation ,40051 Minimum -,42 Maximum 1,24 Range 1,65 Interquartile Range ,53 Skewness ,381 ,464 1 Kurtosis ,010 ,902

Appendix 4: SPSS Results of

Mann-Whitney Test

1. Profits in each year Ranks Certifie

d or no Certifie

d N Mean Rank Sum of Ranks

(42)

0 35 31,09 1088,00

1 25 29,68 742,00

yr2008

Total 60

Test Statisticsa

yr2006 yr2007 yr2008 Mann-Whitney U 343,000 366,000 417,000 Wilcoxon W 668,000 691,000 742,000

Z -1,417 -1,072 -,307

Asymp. Sig. (2-tailed) ,156 ,284 ,759 a. Grouping Variable: Certified or no Certified

2. Profits change

Ranks Certifie

d or no Certifie

0 35 29,83 1044,00 1 25 31,44 786,00 change0607 Total 60 0 35 26,09 913,00 1 25 36,68 917,00 change0708 Total 60 0 35 26,74 936,00 1 25 35,76 894,00 change0608 Total 60 Test Statisticsa

(43)

Wilcoxon W 1044,000 913,000 936,000

Z -,352 -2,317 -1,972

Asymp. Sig. (2-tailed) ,725 ,021 ,049 a. Grouping Variable: Certified or no Certified

3. Profits change in percentage.

Ranks

Certifie d or no Certifie

0 35 27,63 967,00 1 25 34,52 863,00 percentagechange0607 Total 60 0 35 25,89 906,00 1 25 36,96 924,00 percentagechange0708 Total 60 0 35 26,29 920,00 1 25 36,40 910,00 percentagechange0608 Total 60 Test Statisticsa percentagechan ge0607 percentagechan ge0708 percentagechan ge0608 Mann-Whitney U 337,000 276,000 290,000 Wilcoxon W 967,000 906,000 920,000 Z -1,507 -2,422 -2,212

(44)

Appendix 5: Certified companies in China

Company Address Scope of certification Industry

AAC Acoustic Technologies (Changzhou) Co. Ltd

Bldg.1, 2, 3 Gangqiao St., Nanxia Shu Town, Wujin, Changzhou city, Jiangsu, 213167, China

Developing, Manufacturing & Sales of Miniature Accoustic

Components Electronics

AAC ACOUSTIC TECHNOLOGIES (SHENZHEN) CO., LTD

Block A, 2/F, Bldg.8, Tianan Ind. Park, Nanyou Dengliang Rd., Nandhan, Shenzhen,

P.R.CHINA DESIGN AND MANUFACTURE OF ELECTRO-MAGNETIC AUDIO TRANSDUCERS, MICROPHONES, CONNECTORS AND

VIBRATION MOTORS Electrical Equipment

Allwin

Telecommunication Co. Ltd

No.6,Gaoge Road,Hunnan Development District,Shenyang,Liaoning

Design,Manufacture and Installation Service of Relay Amplifier,Optical

Transmission

Device,Coupler,Splitter and Antenna for Mobile

Communication;Development of Professional Computer Software and System Integration

Computer Products & Services

Anhui BBCA Biochemical Co.,Ltd.

No.73, DaQing Road, BengBu City, AnHui Province., China

Manufacture of citric acid and

their salt products. Chemicals

Antique Electronic Art Woodwork Ltd.

9th Building, Tongfuyu Industrial Zone, Pingshan Town, Longgang District, Shenzhen City, Guangdong Province, P.R. China

Design, manufacture, selling and supply of antique music systems with wooden case, turntable, AM/FM stereo receiver, cassette player and

built-in compact disc player. Electronics

Asia Vision (China) Co., Ltd.

Fuxing Road, Fuxing Industrial Zone, XiaGang, Changan Town, Dongguan City, Guangdong Province, P.R.China

Manufacture and supply of diary, calendars and books.

Paper Products / Printing

Aska Watch (Dongguan) Limited

Tianxin Mgt District, Huangjiang Town, Dongguan, Guangdong, PR China

Design and manufacture of watch, clock products and

artificial jewelry Jewelry & Watches

Bai Sheng Apparel Company LTD

XIN KE ER LU, BAIJIAO SCIENCE AND TECHNOLOGY PARK, DOUMEN

DISTRICT, ZHUHAI CITY, 'GUANGDONG,

PRODUCTION AND SALE OF WOVEN, KNIT,

(45)

CHINA OTHER CLOTHING PRODUCTS, PLUS THEIR

EMBROIDERY AND PRINTING

Berdini Furniture Engineering Co Ltd

Dongxi Hu District. Zhangbo Road No.1 China, Hubei, Wuhan. Postal code 430042 GMT +8 China

Manufacture of upholdstered

sofa and sofabed Furnishings

Billion Ford Plastic Products Co., Ltd.

No.880, Citong North Road, Quanzhou City, Fujian Province, P.R. China.

Manufacture of oxford bags, canvas bags and artificial

leather handbags. Accessories ***Black Peony

Group Co Ltd / Black Peony Group Co Ltd Import and Export Co

Ltd NO 47 Heping Rd S, Changzhou, P.R. China

Design, production and sale of yarns and denim fabrics; import and export of textiles, garments and textile

machinery Textiles BODA NANOMETER SCIENCE TECHNOLOGY CO LTD

77 WANG CUO SHAN,XUN ZHONG TOWN,DE HUA COUNTY, 'FUJIAN PROVINCE, China

MANUFACTURE AND SALES OF NANOMETER

CERAMIC CUP Industrial Equipment

Bosideng Co. Ltd, Changshu Garment Factory

Baimao Industrial Development zone, Changshu City, Jiangsu Province, China

Manufacturing of down wear, sports wear, seam-seal wear, pants, outer wear, kid's wear,

baby's wear Apparel

Bright Fashion (Tang Xia) Garment Making Factory

Block 40, New Sun Industrial City, Tang Xia,

Dongguan, Guangdong, China Garment Manufacturing. Apparel

Brilliant Footwear Co. Ltd.

13 HONG YE ROAD,138 INDUSTRIAL DISTRICT TANG XIA, 'DONG GUAN,GUANG DONG, CHINA

MANUFACTURE OF INFANTS' AND SPORTS

SHOES Footwear

Carlington Shoes Factory

3rd Industrial Zone, Qingxi, Dong Gaun, Guangdong, China

Developing, producing for

indoor slipper, sandal Apparel Changhou Dongchuan

Fashions Co. Ltd.

128 HANJIANG ROAD, XINBEI DISTRICT, CHANGZHOU, CHINA

Manufacturing and sales of

garments. Apparel

Changzhou Niutang Chemical Plant Co. Ltd / Nantong Chang-Fai Food Ingredients Co. Ltd (Nantong Changhai Food Additives Co. Ltd)

Site 1: No. 117 Hubin Road, Niutang Town, Changzhou, Jiangsu, China / Site 2: South of Daqing Road Qinglong Chemical Garden Haimen economic development zone, Jiangsu, China

Development, Manufacturing and Sales of Aspartame Food Changzhou Tooku

Garments Co Ltd

NO 1-2 Guang Hua Road, Chang Zhou, Jiangsu, P.R. China

Production of pants and

(46)

China Construction First Division Group Construction & Development Co., Ltd

No 17 Building, Wanghualuxili Road, Chaoyang District, Beijing City, China

General construction contract for building construction,

M&E work and steel structure Construction China Minsheng

Banking Corp. Ltd

No. 2, Fuxingmennei Ave., Xicheng District, Beijing 100031, China

Bank relevant services

providing Financial Services

China National Machinery Industry

Corporation No.3 Danling Street, Haidian District, Beijing

Provision of management administration supporting services for subsidiaries;

construction projects Staffing Chu-Shun Shoe

Factory

The Third Industry District, Qing Xi Town, Dong Guan City, Guang Dong Province, China

Design and manufacture of

shoes Footwear

Concord Camera H.G. Electronic Factory

189 INDUSTRIAL ESTATE HENGGANG LONGGANG SHENZHEN, China

MANUFACTURE OF APS, 35MM, SINGLE USE AND

DIGITAL CAMERAS Electronics Creative Kids

International Inc Shanghai Office / Suzhou Creative Kids Co Ltd

No 7 Juyuan Road, Nanjiao Town, Taicang, Jiangsu, 215400, P.R. China

To manufacture and handle childrens stationary; to package and handle childrens

toys Toys

Dashixiong (Jinjiang) Leather Garments Co Ltd

Jingshan Comprehensive Industrial Zone, Xintang Town, Jinjiang City, Fujian Province, PR China

Design, production and sales

of the clothing, pack bag Apparel Dong Guan Castle

Way Industrial Co., Ltd.

No. 7, Tangxia Science Road 7, Industrial Park, Tangxia Science City, Tangxia Town, Dongguan City, Guangdong, P.R. China

Manufacture of Plastic and Metal Packaging Products for

Cosmetics Plastics

Dong Guan Huang Jiang Cheng Tai Shoes Factory

MANAGEMENT DISTRICT OF XU-HONG,JI DI GANG, HUANG 'CHIANG TOWN, DONG GUAN CITY, GUANGDONG, CHINA

Shoe development and

production Footwear

DONG GUAN LU YANG SHOES CO., LTD. (FACTORY ONE)

Chilling Village, Houjie Town, Dongguan City,

Guangdong, P.R.China Manufacture of sports shoes Footwear

Dong Guan Sun Jade Footwear Co., Ltd.

Chong Tou Ind. Zone, Chang An, Dong Guan, Guang Dong Province, P.R.China

Manufacture and sales of shoes and shoemaking

materials Footwear Dong Zen Garment

Factory (Operated by Ocean Progress Ltd.)

1 – 4 / F, Longrui Industry and Commerce Building, Shaxi South Road

Manufacturing of Casual

Wear Apparel

Dongguan ACE Technology Co., Ltd.

No.2, Gaolong West Raod, Gaobu Town, Dongguan City, Guangdong, P.R.China

MANUFACTURE OF WIRELESS TELECOM RF PRODUCTS

(47)

Candyartech Confectionary Co., Ltd.

Town, Dongguan, Guangdong, China

Dongguan Cgroup Manufacturing Services Ltd.

Building 5-6, Shang Keng Industrial Estate, Chang Ping Town, Dongguan City, P.R. China

Filling of cosmetics, assembly of point of sale display

products and gift sets. Cosmetics Dongguan City

Humen Ming Feng plastic hardware manufactory

HUAIDE DASEN INDUSTRIAL PARK, HUMEN TOWN, DONGGUAN CITY, GUANGDONG, CHINA

Manufacturing of protectors for sports use

Sporting Goods & Equipment

Dongguan Da Tian Shores Co. Ltd.

No. 2 Industrial Estate, Qingxi, Dongguan City, Guangdong Province, P.R. China

Developing, producing, and marketing for vulcanized

shoes Footwear

Dongguan Dalang Guansheng Knitting Factory

Qiufu road Industrial Estate, Minying Industrial Zone, Dalang Town, Dongguan, Guangdong, China

Weave & Processing of

Knitting Sweater Apparel Dongguan Dong Hing

Labels & Emboidery Co., Ltd (member of SML Group)

Shangsha District, Changan Town, Dongguan City, Guangdong Province, P.R. China

Sales, supply and manufacture of woven labels, printed labels, paper hangtags & labels.

Paper Products / Printing

Dongguan Elite Footwear Co Ltd

No. 12 Chashang Industrial Avenue, Huanjinting Industrial Zone, Wentang, Dongcheng District, Dongguan, China

Manufacture of sport shoes, casual shoes, travel shoes and

kids shoes Footwear

Dongguan Guan Fuma Costume Co Ltd

Unit 2 Yima Industrial Park Chigang District,

Humen Town, Dongguan, Guangdong, China Manufacture of garment Apparel Dongguan Kin Yip

Bags & Hats Manufactory Factory

Guxia, Shipai Town, Dongguan City, Guangdong Province, P.R. China

Manufacture, selling and

supply of bags. Accessories

Dongguan Lida Sport Company Ltd

Yang Gong Zhou Village, Sha Tian Town, Dong Guan City, Guangdong Province, P.R. China

Manufacture and sales sports goods including helmet products and injected products, foam products, vacuum forming shells related to helmet products.

Sporting Goods & Equipment Dongguan Lixiang

Shoes Footwear Co., Ltd. (Factory One)

Chilling Village, Houjie Town, Dongguan City,

Guangdong, P.R.China Manufacture of Sports Shoes Footwear Dongguan Mekon

Plastic Products Co., Ltd

First Industrial Zone, Longbeiling, Tangxia Town, Dongguan City, Guangdong Province,China

supply of plastic hangers Plastics Dongguan Shijie

Fargo Pacific Garment & Accesssories Manufacturing

Xia Yi Village Industrial Area, Shijie Village, Shijie Town, Dongguan, Guangdong, China

Manufacture of hand bag (casual Bag, fashion Bag), trolley bag, travel bag, cap

(48)

and casual wear

Dongguan Shingtak Shoes Company Limited

Xiexi Village, Shatian Town, Dongguan City, Guangdong, P.R.C

Design, Manufacture of sport

shoes and leisure shoes. Footwear~ Dongguan Yongsheng

Shoes Co., Ltd. (Factory two)

E Building, No. 28, Shangyong Road, Santun Industrial Area, Houjie Town, Dongguan City,

Guangdong Province, P.R. China Manufacture of sports shoes Footwear DONGUAN

SUNRISE KNITTING LIMITED

Bai Yuan Qian Industrial Zone, Caibian, Dalang,

Dongguan, Guangdong, China Manufacture of knitwear Apparel

E’mei Mt. Jin Wei Li Footwear Co.,Ltd.

Fuxi Town, E’mei mountain city, Sichuan Province ,P.R. China

Manufacture, selling and supply of sport shoes and

casual shoes. Footwear

Eastco Enterprise (Zhongshan) Ltd.

1st Industrial District, Shen Wan, Zhongshan, Guangdong, China

Manufacture of toys (telescopes, microscopes and educational toys) Toys Eastech Electronics

(Hui Yang) Co., Ltd.

Dongfong District, Xinxu, Huiyang, Huizhou, 516226, China

Manufacturing of MP3

Players and DVD Players Electronics Echo Hardware

Drafting Factory

Shangtun Industrial District, Liaobu Town, Dongguan, Guangdong, China

Manufacture of hardware fittings

Computer products & services

Eltek Valere Energy Technology (Dongguan) Ltd

Guangcheng S&T Park, Shilong Road, Guanlong Road’s Section, Guancheng District, Dongguan City 523119, Guangdong Province, P.R.China

Design and manufacture of

telecom power supply. Telecommunication

Everlight Electronics (Suzhou) Co, Ltd

No. 2135 Zhong Shan North Rd. Wujiang Economy Development zone (Yun Xi area), Wuji City, Jiang Su, China

Design and Manufacture of surface mount devices for PCB, Infra remote control receiver modules, photo

coupler, lamp and power LED Electronics

Extrawell Garment (Shenzhen) Limited

5-6/F., Block 1, An Lok Estate Xinan Section, Guang Shen Road 43 Area, Bao An District

518100 / Shenzhen, Guangdong Province

Design and Manufacturing of Sportswear, Tracksuits, Ski-jackets, Overalls, Trousers, Down Jackets, Waterproof & Breathable Suits, Underwear and

Blankets Apparel

Fa Fu Toys Factory

Fu Rong Industrial District, Sha Jing, Bao An, Shen Zhen City, China

Manufacturing of plastic toys (plastic injection, spraying,

pad printing and packing) Toys

Fargo Hats & Sack Manufacturing

No. 16 Dongxing Road, Huangsiwei Village, Shijie Town, Dongguan City, Guangdong

(49)

Fashionstar Textile Garment Co., Ltd.

Workshop Building A1, Yinsha Industrial Park, Shapu, Xintang Town, Zengcheng City, Guangdong Province, China

supply of jeans wears Apparel

Firmenich Aromatics (China) Co., Ltd.

No. 3901 Jindu Road, Xingzhuang Industry Park, Shangai, China

Manufacture, selling and supply of flavours and

fragrances Chemicals

Flyn Plastic Metal (Shenzhen) Co. Ltd

LAIWUSHAN, LONGHUA TOWN,

SHENZHEN, CHINA Plastics

Foshan Nanhai Shyang Ho Footwear Co., Ltd.

Shengli Road, Pingzhou Industry Zone, Nanhai District, Foshan City, Guangdong Province, P.R. China

supply of cold cement shoes Footwear

Foshan Shunde Cobalt Electronics Co. Ltd., Kabalt Electronics Factory

1 San Le Road, Beijiao Town, Shunde District, Foshan City, Guangdong, P.R. China

Manufacture, selling and supply of audio earphones, headphones and speakers. Selling and supply of noise reduction headphones, MP3 headphones, wireless headphones, infrared headphones, bluetooth headphones and related

accessories. Electronics

Foxda Technology Industrial (Shenzhen) Co.

Building NO.1, FOXDA Industrial Park, Northern Lanzhu Road,

Shen Zhen Grand Industrial Zone,Ping Shan Town, Longgang

District, ShenZhen,China

Manufacture and sale of MP3 and MP4 players.

Computer Products & Services

Fujian Jinjian Guohui Shoes & Costumes Co Ltd

Fujian Jinjiang Guohui Industrial Area , Chendai Town, Jinjiang City, Fujian Province, PR China

Design, production and sales of sports shoes and travelling

shoes Footwear

Fujian Liyao Textile Garments Co

Shaohui Industrial Zone, Longhu town, Jinjiang,

Fujian, China. Manufacturing of garments. Apparel

Fujian Putian Lake Sport Goods Co.,LTD

Nanshaolin Industry Park, Xitianwei Town, Licheng District, Putian City, Fujian province,P.R.China

Design, manufacture, selling

and supply of sport footwears. Footwear Gao Yao Top Chain

Plastic and Metal Manufacturing Co., Ltd.

Shatian Industry District, Jiaotang Town, Gaoyao County, Zhaoqing City, Guangdong Province, P.R. China

Design, manufacture, selling and supply of bicycle helpets, plastic furniture parts, PU

foram, plastic toys Plastics Gloriwin Packaging

(Shenzhen) Co., Ltd

No.109, Lija Road, Henggang Town, Shenzhen, China

Manufacturing of pakaging

materials Packaging

Goodview Apparel Co Ltd

No. 35 Bajiao Road South, Bajiao Science & Technology Industrial Park, Doumen District,

Corporate Social Responsibility and Labour Relation in China: The Significance of Chinese Corporations as Global Suppliers Obtaining SA8000 Certification

Master Thesis of International Business and Management