The Perception of Chinese SMEs in the Apparel Industry about Incorporating CSC9000T into their Business Agenda

Corporate Social Responsibility (CSR) has been discussed widely from developed countries to developing countries. Social responsibility is an old idea but a new term in China. Although there are numerous international CSR accountability standards around the world, in 2005, the China National Textile & Apparel Council (CNTAC) issued a new guideline, the China Social Compliance 9000 for the Textile & Apparel Industry (CSC9000T). CSC9000T implementation was scaled-up from ten pilot large size enterprises to a thousand Small and Medium size Enterprises (SMEs) in 2007. This paper focuses on the perception of Chinese apparel SMEs about incorporating CSC9000T into their strategic planning. My research explores how the CSR agenda has been implemented using CSC9000T as a guideline and what benefits and challenges SMEs have faced when implementing CSC9000T. I begin with a literature review of five areas: the understanding of CSR and its relevant theories and practices; CSR and strategic management; the development of the Textile and Apparel Industry in China; and the relevant Chinese CSR policies and regulations. Based on Castak et al’s CSR framework and Vogel’s promoting CSR with government intervention and regulation, this paper discusses the implementation of CSC9000T in SMEs in China. The author discusses SMEs’ difficulties and benefits of taking CSR initiatives and implementing CSC9000T. Some practical recommendations in terms of improving SMEs’ CSR performance are also proposed to CNTAC, the Chinese government and related enterprises