Huawei brandishes its CSR credentials

Huawei was out selling its corporate social responsibility (CSR) programme this week. Cue eyes rolling in the Pentagon.

There's nothing unusual about CSR for western corporations, but among private sector Chinese companies it's still quite rare.

About 120 large Chinese firms have signed the UN Global Compact, which was set up in 2000 to encourage the corporate to adopt sustainable business practices. But almost all of them are state-owned, like China Mobile, ZTE, and oil companies Sinochem and CNOOC.

They’re probably following a state policy, but the UNGC is problematic for companies operating in China, both local and foreign. The first principle - to take one random example – is to “respect the protection of internationally-proclaimed human rights.” 

At a media lunch in Hong Kong, PR vice-president Scott Sykes said Huawei’s CSR was not about improving its image abroad but was “the right thing to do.” 

Still, most of Huawei’s CSR work is conducted outside China.The single biggest part, an ICT skills development scheme called Telecom Seeds, operates solely offshore, although CSR head Holy Ranaivozanany says the company is weighing whether to set it up at home.

Telecom Seeds is in 18 countries, mostly in the developing world, but will also be expanded to Japan, Spain and Australia in the coming year.

When it comes to supply chain management – the tricky area of labour standards that has caught up Apple, Samsung and others – Huawei audits all of its suppliers and, according to Ranaivozanany, has won a UN Global Compact award for best practice in the supply chain.

Ranaivozanany did disclose that Huawei sources as many components from the US as it does from China – 30%. Which presumably makes it as much a threat to Chinese national security as to the USA’s.

There's nothing special about Huawei's CSR programme, other than the fact it has one and is promoting it. 

For most people it's a Rorsach test. Those who believe Huawei is a PLA wormhole into the west's secrets will see it as a feint; those who think it's a company put-upon by protectionist scaremongerers likewise will see it as no different from any other CSR scheme.