Management in Finland, however, noted that the company’s contribution was equal to those following similar disasters in Indonesia and Myanmar, and questioned why China should be an exception. Done by Yun Xin, Putri and Xuan Hui. Second, MNCs must understand the cultural context. More than 40 companies attended the meeting, originally intended to include only 10. China’s hydro rich Sichuan Province was recently shaken by the country’s strongest earthquake for over 30 years. On the other hand, firms that acted quickly and generously enjoyed an extremely favorable public response. In the year since this disaster, the Chinese government has undertaken the enormous task of rebuilding homes and schools through an innovative twinning approach, allocating rural and urban areas hit by the earthquake to various provinces and cities across … Over the last 15 years, China Evergrande Group has embarked on an astonishing growth path that saw its four-person team become one of the largest and most well-known real estate developers in China. Domestic firms, by all accounts, out-donated multinationals. LINKING EFFECTS TO SOCIAL FACTORS: The Sichuan earthquake had a massive effect on Chinese society; The 87, 000 fatalities and over 370, 000 injuries left a lasting impact on families throughout the province. Effects of the Earthquake. The sum surpasses the $120bn reconstruction bill for the 1995 Kobe earthquake in Japan. Sichuan is a province in China with an extensive history of earthquakes. Impacts of the Sichuan earthquake by sichuanheartquake on March 2, 2010 Social Impact During the quake, a large number of schools collasped and a lot of houses were destroyed, leaving about 4.8 million of people homeless. The death toll was stated at 69,000 two months after the earthquake. Extent of the most damaged areas from the Sichuan earthquake. Well, I have got some environmental impacts: The earthquake that struck Sichuan Province, was China’s most damaging earthquake since the 1976 Tangshan earthquake disaster. Aftershocks can cause even more damage to an area. In his book Shaken Authority: China’s Communist Party and the 2008 Sichuan Earthquake, Christian Sorace examines the political mechanisms at work in the aftermath of the tragedy. 97,150 people were killed and missing; a number so large that only the people who experienced it will really know how truly devastating it was. Many of the dead were young people at … At least 15,899 people died, and another 2,500 went missing. MNCs need to recognize that a thoughtfully developed CSR strategy is not merely conducive to doing business in China: It’s a precondition. The popular perception was that international firms’ relief contributions not only did not match those of local Chinese companies in terms of scale or timeliness, but also were not commensurate with their presence in the Chinese market. China remains the country that has suffered the greatest human impact from earthquakes. Right-click to open the map in a new window and find out more about some of the worst-affected places. For companies looking to develop their CSR policies in China, they have to be very careful about how they market their initiatives online. China’s important young market, a cultural propensity to link CSR and company image, and a highly vocal and active online population make CSR critical in China. Facing the force of the public’s reaction after the Sichuan earthquake, company executives need to equip themselves with a well thought-out strategy for confronting CSR issues, as well as a policy to harness the collective power of netizens. CSR requires creating the right escalation mechanisms and organizational reporting lines. In an updated and expanded edition of her book ‘The Shopping Revolution,’ Wharton’s Barbara Kahn examines the retailers that have been most successful during the pandemic and in the face of other enormous changes in the industry. Shieh, Shawn & Deng Guosheng (2011): “An emerging civil society: The impact of the 2008 Sichuan earthquake on grassroots associations in China”. Create a free website or blog at WordPress.com. This study examines how various measures of social capital are associated with disaster recovery after the 2008 Sichuan earthquake. Many MNCs in China were hamstrung by bureaucratic red tape and simply could not react as quickly as many local companies. The contribution rates of earthquake, drought and flood disaster to the resilience of livelihood were -0.9 percent, -0.8 percent, and -0.3percent respectively. Uncountable of agriculture were also damaged with 12.5 million animals and birds. Want to Get Unstuck? Some MNCs took to posting a live tally of their employee donations on their websites. In implementing these measures, MNCs may find it beneficial not only to allocate a greater amount of their marketing budget to CSR efforts, but also, given the importance of first-mover advantages, to allow local managers more autonomy to act quickly in response to future situations. The first element involves organizational structure and processes. The company’s explosive growth was built on[…]. While some multinationals pledged cash, many others pledged a combination of cash, equipment and services. As Scott Kronick remarks: “CSR is in many ways the future of public relations [in China]. In China, however, firms that had operated under the perception that international CSR doctrines could be simply applied cookie-cutter style received a rude wake-up call in the aftermath of the May 12, 2008, Sichuan earthquake. Nokia increased donations on May 17 from 3 million RMB to 10 million RMB (US$430,000 million to US$1.43 million) and Coca Cola raised donations from 5 million RMB to 17 million RMB (US$710,000 to US$2.4 million). The impact of the Sichuan quake was not only felt through the death toll and significant economic loss but also in terms of the sheer number of people … It was devastating: more than 80,000 lives disappeared. The earthquake caused massive infrastructure damages hence affecting China’s economical development. This was a quake that had two strong tremors, and caused utter destruction in some areas of the Sichuan Province. After the news was released, enthusiastic netizens encouraged others to purchase the drink, comparing Wang Lao Ji’s generosity to that of rivals’ miserliness (e.g., Coke and Pepsi). The rebuilding and healing process continues, and I hope to better understand what can be done to help the people of Sichuan recover,” Zoellick said in a press release as he was leaving for China. Xu, Bin (2014): “Consensus crisis and civil society: The Sichuan earthquake response and state-society relations”. In the Sichuan province a lot of pigs who died from out of the total number of 60 million. Due to the necessity of prompt action in times of crisis, it may be prudent to have set aside a predetermined budget for CSR issues. The list of “iron roosters,” first appearing on May 14 included the following notable MNCs: Samsung, Nokia, Coca Cola, McDonald’s and KFC. 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