The number of Chinese and Indian companies participating in a United Nations programme that monitors and promotes corporate social responsibility has grown over the last year, vaulting them to the top 10 countries that participate, an annual UN Global Compact (UNGC) survey said in United Nations on Wednesday.
There are currently 172 Chinese business participants followed by 149 Indian businesses that engage in the programme, said the 2008 UNGC survey, joining the ranks of France, Spain, Mexico, Brazil, the United States, Argentina, Columbia and Germany.
"Non-financial issues -- environmental, social and governance -- are increasingly taken seriously," president of the UNGC, George Kell, told reporters on Wednesday. "Participants don't engage for brand differentiation or public relations but for reasons of risk mitigation."
In a 30 per cent increase from 2007, 1,473 new businesses joined the initiative bringing the total number of participants to 5,000 in more than 130 countries, said the survey which was conducted by The Wharton School of Business at the University of Pennsylvania in April 2008.
In exchange for adopting 10 core principles regarding human rights, labour, environmental and anti-corruption standards, and agreeing to report on their own progress toward meeting them, participating companies can apply to use the UN's "We Support the Global Compact" logo, which acts as a sort of seal of approval.
By doing so, business, as a primary agent driving globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere.
But critics contend that the UNGC lacks teeth, as it does not independently monitor or verify its members' practices. Rather, the UNGC will de-list a member if it repeatedly fails to disclose its practices. In 2008, more than 400 business participants were delisted for failing to communicate progress, bringing the total number to over 800, according to the survey.