Analysis Report on Social Responsibility Behaviors of Chinese Food Enterprises in 2023 (Excerpt)
The world today is facing many long-term challenges such as climate crisis, environmental pollution, and slowing economic growth. After decades of rapid economic growth, China will bid farewell to the extensive development model of high resource input, high environmental costs, high investment, high energy consumption, low efficiency, and low technological progress, and instead implement the new development concept of innovation, coordination, green, openness, sharing, and sustainability. Through technological progress, innovation driven promotion of economic growth, high-quality social development, and comprehensive modernization, China has entered a new era of development, with high-quality development, common prosperity, and dual carbon strategy becoming new goals.
The activities of food enterprises have dual attributes of economic and social attributes, and the moral level of management directly carries the health and safety of human life. In the context of the times, food enterprises actively practice social responsibility and make their due contributions.
Overall status of social responsibility fulfillment in 2023
Based on the information disclosed by the companies, an overall evaluation was conducted on the social responsibility information disclosed by the sample companies, and the results are shown in the table below.
The social responsibility performance of food enterprises will continue to improve in 2023.
Characteristics of fulfilling social responsibility
(1) The level of attention given by various industries, regions, and enterprises varies
According to the reports of listed companies, the proportion of agricultural and sideline food processing industries that independently release social responsibility reports is 35.85% of all companies in the industry; The number of listed companies in the food manufacturing industry that issue separate social responsibility reports accounts for 44.61% of all companies in the industry; The proportion of separate social responsibility reports released by the alcohol, beverage, and refined tea manufacturing industries is 43.75%.
The proportion of food companies publishing social responsibility reports is higher than that of all listed companies (34.32%), indicating the responsibility of food companies.
The number of social responsibility reports released by enterprises in economically developed areas is higher than that in economically underdeveloped areas, resulting in higher quality. This to some extent indicates that enterprises in economically developed areas generally place greater emphasis on corporate social responsibility compared to those in economically underdeveloped areas.
(2) Excellent enterprises attach great importance to social responsibility governance
The basic requirement of social responsibility governance is to integrate the principles of social responsibility into the entire process of enterprise decision-making and implementation. Secondly, when establishing and improving their governance system, enterprises (organizations) should take into account the core themes and related issues of social responsibility. The third is to strive to integrate social responsibility into the entire enterprise (organization). The fourth is to pay special attention to the role of the leadership, especially in social responsibility decision-making, cultivating employee social responsibility awareness, and integrating social responsibility into the entire enterprise (organization). Social responsibility governance requires companies to establish and improve a complete set of decision-making procedures and institutions related to social responsibility, including formal and informal ones.
China Kweichow Moutai Distillery (Group) Co., Ltd. systematically promotes ESG (environmental, social and corporate governance) work under the guidance of the concept of responsibility. The Board of Directors is the highest responsible agency for ESG matters. The management makes overall arrangements for ESG work. All departments and subordinate units carry out ESG topic management and practice according to business attributes. Identify and organize the most relevant issues to the business activities of the enterprise and the concerns of various stakeholders, and make them the focus of the company's ESG work and social responsibility communication, forming ESG management priorities; At the same time, we will gain a deep understanding of the concerns and demands of stakeholders, incorporate them into the company's ESG management scope, and respond with practical actions, effectively integrating ESG management requirements into the entire process of the company's operations.
(3) Emphasize employee career development and training
The vast majority of enterprises attach importance to employee career development and training, including employee training plans, career development paths, skill enhancement courses, etc., and emphasize employee promotion opportunities and career development support.
Luzhou Laojiao Co., Ltd. attaches great importance to employee training and has established five training plans: a departure plan for new employees to better enter their work roles and meet job requirements more quickly; A diving plan for improving key business skills and general management; A long-range plan to enhance self-management, work management, and interpersonal management abilities, expand the depth and breadth of professional knowledge, and enhance job competence; A navigation plan aimed at expanding management perspectives, improving management skills, and improving management methods; A learning program aimed at professional sequence employees to enhance their professional skills and work efficiency.
Foshan Haitian Seasoning Food Co., Ltd. comprehensively elaborates on the company's support and protection of various rights and interests of employees in the report, and has also established an effective democratic management and appeal mechanism for employees, providing multiple channels for employees to anonymously report problems or complaints, to ensure that they can safely raise concerns or freely provide suggestions for the company; Haitian Flavor Industry also carries out an extremely rich range of activities and provides comprehensive care to employees, building a sound mechanism for employee safety and health protection, successfully establishing employee trust, and maintaining employee satisfaction.
(4) Enterprises attach great importance to their own and surrounding environmental governance
Under the background of the national "dual carbon" strategy and sustainable development strategy, most enterprises attach great importance to environmental responsibility, especially in the alcohol and beverage industry, adapting to high standards in the food and beverage manufacturing industry.
The vast majority of enterprises actively prevent pollution, strictly control carbon emissions, save water resources, continuously promote technological progress, increase technological investment around energy conservation and emission reduction, improve technology, update equipment, improve production processes, reduce the impact of production on the environment, update environmental accident emergency mechanisms, innovate resource utilization methods, efficiently utilize and reduce energy consumption, and promote green production and development of enterprises.
New Hope Dairy Co., Ltd. has deeply integrated the concept of environmental friendliness into its operational development, adhering to the sustainable development strategy of "safety, environmental protection, green and low-carbon". It adopts efficient equipment, monitoring and management of resource consumption technology, and resource management policies to establish a comprehensive environmental accident emergency mechanism and simulate drills to respond to sudden environmental incidents and effectively protect the environment. In terms of ecological environment governance in the factory area and surrounding areas, we will establish a "circular agriculture" production model, restore a more natural and scientific "fertilizer field crop cow" circular agriculture model, achieve a complete and sustainable ecological cycle, and make practical achievements in protecting the ecological environment in the factory area and surrounding areas.
Yibin Wuliangye Co., Ltd. ensures the transparency of environmental information, conducts regular inspections and assessments, and has a clear division of responsibilities to ensure that pollution violations can be promptly held accountable and dealt with. Wuliangye integrates the concept of green development into its corporate philosophy and employee training, actively promotes World Earth Day and National Low Carbon Day, organizes several training activities and themed essay solicitations, conducts emergency drills for sudden environmental incidents, and strengthens the ability of employees and the company to respond to environmental pollution incidents. At the same time, Wuliangye has formulated and implemented the "Brewing Wastewater Discharge Standards", investing heavily in the maintenance of ecological wetlands, establishing wastewater stations, deep treatment areas, etc.
Guangming Dairy Co., Ltd. actively responds to the national goal of peaking carbon emissions and achieving carbon neutrality, always regards sustainable development as its development strategy, and is committed to becoming an environmentally friendly, socially responsible, and well governed enterprise. Guangming Dairy continuously explores ESG practices with company characteristics, takes the lead in demonstrating waste classification work, and becomes the first dairy product enterprise in the industry to promote the public welfare action of milk paper box recycling nationwide; Guangming Dairy continues to provide employment, poverty alleviation, and education assistance, actively fulfilling its corporate social responsibility.
(5) Highly value food safety and quality
Food manufacturing enterprises attach great importance to food safety and quality. The social responsibility report emphasizes the high commitment of food manufacturing enterprises to food safety and quality. Due to the increasing demand from consumers for food safety and quality, food safety and quality have always been the focus of attention. The enterprise has taken various measures, including improving quality control processes, adhering to strict food safety standards, and supplier management.
Jiangsu Agricultural Reclamation and Development Co., Ltd. attaches great importance to quality and safety management, and has established a comprehensive quality and safety management system from farmland to dining tables, which includes "all staff participation, all factor control, and full process management". The company aims to achieve the full process management, controllability, and traceability of agricultural products, and to establish a quality and safety control system for agricultural products throughout the entire industry chain and process. The company is committed to creating high-quality products and promoting sustainable consumption.
(6) Responding to the national call and fulfilling the responsibility with Chinese characteristics
China Kweichow Moutai Distillery (Group) Co., Ltd. deeply practices the responsibility concept of "big brand, big responsibility", actively engages in social public welfare undertakings, pays attention to the needs of the community and people for a better life, develops with the company, drives community prosperity, and shares development achievements with all sectors of society. Establishing the Maotai Public Welfare Foundation, actively dedicating oneself to the growth of young people, the health of the elderly, global medical improvement, protection of cultural and historical relics, disaster relief and other social welfare undertakings. Joining hands with the China Youth Development Foundation (hereinafter referred to as the "China Youth Foundation") and various provincial youth development foundations, we have carried out the "Maotai, the pillar of the country" Hope Project for 12 consecutive years to fulfill our dreams, helping disadvantaged students enter universities from their "homes" and grow into builders in various industries, realizing their life dreams. In 2023, Kweichow Moutai will donate another 100 million yuan to CYDF, helping more than 20000 students complete the leap from home to school. Over the past 12 years, Kweichow Moutai has donated more than 1.2 billion yuan to students, covering more than 2700 counties in 31 provinces (cities, districts) across the country, helping 230000 students across the country realize their dreams and become pillars of talent.
Jiangsu Agricultural Reclamation Agricultural Development Co., Ltd. implemented the Opinions of the CPC Central Committee and the State Council on the Implementation of the Key Work of Overall Promoting Rural Revitalization in 2022, carried out a new round of "urban and rural paired civilization co construction" activities, gave play to its industrial advantages to carry out activities such as "sending agricultural technology into villages and households", science and technology services, "Mowensui love Congee", provided "Suken suggestions" for land management, accurately grasped the development trend of "agriculture, rural areas and farmers" and the major strategic opportunities for seed industry revitalization, helped improve the quality and efficiency of agricultural production, and promoted the construction of livable, employable and beautiful villages. In addition, Suken Agricultural Development also actively promotes community construction, carries out various volunteer service activities such as voluntary blood donation, charitable donations, condolences and assistance, expands the field of volunteer service, improves the volunteer service mechanism, and sincerely connects the "last mile" of serving the people.
New Hope Dairy Co., Ltd. has effectively responded to the decisions and deployments of the Party Central Committee and the State Council on rural revitalization, guided by policies, fully leveraged the advantages of the industrial chain, actively fulfilled its responsibilities, and assisted in rural revitalization through methods such as purchasing silage, promoting employment, and providing assistance and support. The new dairy industry establishes a close cooperative relationship between the enterprise and the local community, promotes sustainable development of the community, and plays a positive role for the enterprise in society.
(7) Insufficient fulfillment of social responsibility
One is that companies generally do not attach enough importance to the personal information and privacy of employees and consumers, such as data security measures, confidentiality of employee information, and compliance with applicable privacy regulations, and there is also little disclosure.
The second is to attach importance to the disclosure of one's own social responsibility information, but there is insufficient disclosure of corporate responsibility management information for the value chain, industrial chain, and ecosystem of the enterprise. Excellent enterprises should not only consider their own operations when promoting the development of ESG, but also need to promote the overall business of the entire value chain, industry chain, and business ecosystem.
Thirdly, food safety incidents occur frequently, and campus food safety has attracted widespread attention.
(8) There is a lot of room for improvement in information disclosure
Firstly, many enterprises do not attach enough importance to information disclosure and have low enthusiasm. At the same time, there is a shortage of relevant talents and lack of professionalism, and it takes some time to improve talent capabilities.
Secondly, there are not many high-quality reports, and some reports have relatively low quality and insufficient information accuracy. Although the company has disclosed, it may not necessarily be calculated using the correct method.
The third is the lack of uniformity in standards, the multitude of preparation standards, and the strong arbitrariness of information disclosure. There are nearly 30 basis for the formulation of corporate social responsibility. Some of the more professional ones include the Shanghai Stock Exchange's "Guidelines for Environmental Information Disclosure of Listed Companies" and "Guidelines for Reporting on Corporate Social Responsibility", the Chinese Academy of Social Sciences' "Guidelines for Writing Corporate Social Responsibility Reports", and the State owned Assets Supervision and Administration Commission of the State Council's "Guiding Opinions on Better Performance of Social Responsibility by State Owned Enterprises".
The fourth is the existence of "washing green" behavior. Individual enterprises disclose their obligations or contributions in ecological environment protection through false, exaggerated, or misleading means. Some companies disclose untrue carbon emission data, while others selectively disclose information that is beneficial to them, deliberately concealing negative information, and avoiding information disclosure that is not conducive to the construction of the company's environmental protection image; Some people fabricate reports and use "washing green" or "bleaching green" to obtain high ratings and a good impression from society.
Future outlook
In recent years, ESG has attracted widespread attention. Many listed companies have changed their social responsibility reports to ESG reports. For example, on September 22, China Kweichow Moutai Distillery (Group) Co., Ltd. released the Chinese and English version of the Environmental, Social and Governance (ESG) Report of Kweichow Moutai Group in 2022, which is the second ESG report issued by Guizhou Moutai and also the fifteenth social responsibility report.
On June 26, 2023, the International Sustainable Standards Board issued International Financial Reporting Sustainability Disclosure Standard 1- General Requirements for Sustainability Related Financial Information Disclosure and International Financial Reporting Sustainability Disclosure Standard 2- Climate Related Disclosures. The introduction of new guidelines establishes a unified global benchmark for sustainable information disclosure for enterprises, helping companies tell their sustainable stories in a stable, comparable, and verifiable manner. Better sustainable information disclosure will bring better economic decisions and new development opportunities for enterprises to enhance their ESG competitiveness.
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