A CRITICAL INVESTIGATION INTO CSR WITHIN CHINA’S HOTEL INDUSTRY

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

A CRITICAL INVESTIGATION INTO CSR WITHIN CHINA‘S HOTEL

INDUSTRY

WENJING.HUANG

University of Wolverhampton

2009

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

A CRITICAL INVESTIGATION INTO CSR WITHIN CHINA’S HOTEL

INDUSTRY

BY

WENJING.HUANG

A Dissertation Submitted to the School of Sport, Performing Arts and

Leisure in partial fulfilment of the requirements for

an MA in Hospitality Management

University of Wolverhampton

2009

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

Chapter 1: Introduction

Nowadays, a lot of incidents have happened in China such as food safety, Labour Rights, Environmental Issues, integrity problem and other related issues. Even though Chinese economy is still growing rapidly, the CSR (corporate social responsibility) is developing slowly (China, 2009). China‘s hotel industry has rapidly developed in the past three decades, but the development of CSR seriously lags behind Chinese society‘s perception (Zhao, 2009). This study focuses on the hotel sector. Although the industry‘s management has been improved, the industry‘s strategies or policies haven‘t fully carried out its CSR.

However, CSR need to be further developed in diverse aspects including increase of hotel revenue, protect of environment, employees training and career development, Concern of communities. CSR is a new concept to the hotels practitioners. It is a beginning for China‘s CSR development. CSR has long journey to go in China. For example, money donations were considered as key implementation of CSR. In 2008, Great Sichuan Earthquake occurred in Sichuan province of China. China World Hotel, Swissotel Beijing, Hotel New Otani Chang Fu Gong, Gloria Hotel, SciTech Hotel, and other hotels fast went to Tourism Bureau for donation to the disaster area In Beijing (Xinhua, 2008).

1.1. Background

China has a huge market for the hospitality market. The country had not any independent hotel before 1980s. All the lodging properties and facilities belonged to the government. The condition of lodging was very poor and limited. The economic activities and communications were inactive within both national market and international market at that period. A few tourists went to China because the limitation of government policies. The flow of people encountered similar situation within the nation. ―When China first opened its borders to

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

international tourism in 1978, the country suffered from a severe shortage of adequate

lodging. At that time, the government owned all lodging facilities. Gradually, a few exclusive state guest houses normally used for PRC leaders opened their doors to the growing number of inbound tourists.‖ (Yu and Smith, 2007, p.16).

The government of China started to launch the programme of economic reform in 1978. The economy of China had achieved a rapid development period from the year. Chinese hotels industry gained a significant development from 1980. Many hotels with stars were opened in the early 1980s. Corporations of joint venture appeared at that time. ―The opening of the Jianguo Hotel in Beijing in 1982—the first Sino-foreign joint venture in the industry—ushered in a new wave of FDI (foreign direct investment) in the hotel industry that lasted through the 1980s and 1990s.‖ (Yu and Smith, 2007, pp.16-17).

The role of hotel industry had been changed completely. The previous government‘s

reception system has become a competitive industry in national economy. In the past, most tourism hotels belonged to foreign reception organisation. Most reception centres were

official residential institutions. These even can not be treated as hotel industry. The industry has reached significant receipts as an important part of China‘s economy after thirty years of development. The tourism and hotel industry is closely linked. The receipt of hotel industry accounts for a significant percentage in the receipt of tourism. ―Hotel industry still remains potential to go further. China is emerging as a key player in international tourism market, ranking the fifth in the world in terms of both tourist arrivals and tourism receipts in 2001 and is expected to become the top destination country in the world by 2020.‖ (Zheng, 2005, p.74).

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

The hotel industry was opened to foreigners early. The government allowed foreign

investment and joint venture in the hotel industry. As of 2002, China owned 6100 star-rated hotels. The hotel industry had utilised FDI up to 20 billions U.S. dollar. The joint-venture hotels had reached 800 (Xinhua, 2003). The industry had become an open industry from closed industry after thirty years of development.

More international hotel companies engaged in the Chinese hotel industry because of

China‘s economic vitality and development of tourism. This intensified competition among hotels. It also promoted changes in the supply-demand relationship. The operation of Chinese hotels more concerned the needs from customers. In hotel management, customers‘ demands adapted hotels‘ supply in the past.

The situation is different now. Hotels‘ supply made an effort to meet customers‘ demands through Exemplary role of star-rated hotel. The hotel industry had been changed to buyer‘s market from seller‘s market. Due to too fast development, oversupply appears in some areas in the recent years. It caused more intense competition among enterprises. The operators of hotel enterprises pay more attention to market trends and change of customer needs. This concept and behavior promoted the hotel to further improve the competitiveness of

enterprises.

CSR is still fresh topic both academia and business community in China. With economic and social development, China is interested in research of social responsibility in recent years. Many people began to understand and accept the concept of CSR through the discussion of CSR by theory Circle. Some companies‘ CSR practices are specific behaviours to support the development of CSR theory in China.

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

However, the research of CSR is not insufficient. The development of CSR seriously lags behind Chinese society‘s perception. And the development of CSR is very slow in

comparison with western world. Most hotels did not implement CSR adequately to society or communities. And the Chinese society exists in too much incidents including product safety, product quality and services. Therefore, this study was carried out for China‘s hotel industry. This study focuses on researching CSR practices within China‘s hospitality industry.

1.2. Aim

The aim of this study is to critically investigate CSR practices within China‘s hospitality industry. In order to fulfil the aim the following research objectives were addressed:

1) To critically review CSR theory.

2) To critically assess CSR practices in China‘s hospitality industry.

3) To provide recommendations as to how China‘s hospitality industry can improve or

develop CSR practices and policies.

This study will help advance understanding on the CSR practices within China‘s hospitality industry. And hotels can improve its management or strategy for the hotels‘ CSR. They also can be inspired by this study to gain ever better solutions and management implement of CSR. This study is going to show

The implement of CSR related to hotels‘ operation as well.

Chapter 2: Development of CSR

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

CSR is promoted universally by many organisations in lots of countries, especially in developed countries. The theories CSR has been tighter coupling with corporate financial objective. By the late 1990s, the idea of CSR became almost universally sanctioned and promoted by all constituents in society from governments and corporations to non-

governmental organizations and individual consumers (Lee, 2008, p.53).

In the beginning of the twenty-first century, the researches of CSR blend with stakeholder theory tighter. The trend of CSR is still evolving in society. One the one hand, CSR as the framework of a voluntary act become will develop into the concept of civil society in the obligations of citizens. On the other hand, corporations as the central status of stakeholder theory would become a coordinate with other stakeholders, but the community would stay in the central status. (Shen and Chen, 2007). Besides, Lee mentioned the rationalization shifts in the conceptualization of CSR. First, in terms of the level of analysis, researchers have moved from the discussion of the macro-social effects of CSR to organisational-level analysis of CSR‘s effect on profit. Next, in terms of theoretical orientation, researchers have moved from explicitly normative and ethics oriented arguments to implicitly normative and performance-oriented managerial studies (Lee, 2008). Most of scholars recognised the extension of CSR.

However, the meaning of CSR has been also changing within the content of CSR. The

concept of CSR, particularly in terms of how it relates to other organisational goals, has been steadily evolving ever since the concept was introduced half a century ago (Carroll, 1991). In the past, the concept of CSP has been changing progressively. The conceptualization of CSR has been a long process. The macro-social analysis aspect has been changed to

organizational-level analysis regarding to financial performance. In addition, explicitly normative and ethics oriented studies has been changed to implicitly normative and

performance-oriented studies (Lee, 2008). During the last two decades, however, the concept

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

of CSR has been progressively rationalized and became associated with broader

organizational goals such as reputation and stakeholder management. Furthermore, the vast majority of studies and popular literature on CSR argue that CSR positively affects the

bottom-line performance of a corporation (Margolis and Walsh, 2003; Orlitzky et al., 2003).

2.1. The 1950s and 1960s

The theory of CSR has a long history. Especially in the US and UK, the rudiment of CSR appeared in The Nineteenth Century. Bowen was first scholar to theorize the relationship between corporations and society. Most scholars point to Howard Bowen‘s Social

Responsibilities of Businessman (1953) as the first attempt to theorize the relationship

between corporations and society (Carroll, 1979; Preston, 1975; Wartick and Cochran, 1985). Even though Bowen does not declare CSR can solve all the problems in the society, he called for support for the development of the CSR. Bowen insists that the businessmen have responsibility to consider the consequences when they did business (Lee, 2008).

Bowen‘s concept of CSR includes three aspects. Firstly, the modern major corporations are main part to undertake CSR. Secondly, the managers of corporations are implementer for CSR. Finally, the principle of CSR is voluntary (Shen, and Chen, 2007). Bowen explains the definition of the social responsibilities of Businessmen: It refers to the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society‘ (Bowen,

1953). CSR seemed to be limited within large companies. Most mid-level managers played a negative role in CSR. Most of them focused on the profit of the company, so they just paid a little attention to CSR (Ackeman, 1973).

Objectors of CSR idea also joined in the discussion of CSR. They seemed to use the

opportunity to oppose CSR. In fact, some of their views were reasonable. Friedman is one of

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

representative objectors. He states that the corporation‘s only responsibility is to create profits for shareholders. The most prominent objection to CSR was the classical economic argument proposed by Milton Friedman. He argued that the social responsibility of a

corporation is to make money for its shareholders and considered CSR a subversive doctrine that threatened the very foundation of free enterprise society (Friedman, 1962).

2.2. The 1970s

A new rationale occurred in the 1970s. The new rationale was created to adapt the changing society, environment, and economy. With the consumer bill of rights was signed by

Kennedy in the 1960s, sustained consumer movement appeared in the US. The new rational tried to respond the request of society without damaging shareholder internets (Shen and Chen, 2007). Wallich and Mcgowan recognized that, without demonstrating that CSR is consistent with stockholder interests, CSR will always remain controversial. Therefore, they took on the task of providing a new rationale‘ that upholds CSR without compromising stockholder interest (Lee, 2008). Most research stopped to discuss the participation of CSR. They trended to focus on the implementation and content of CSR. They still remained the priority of fundamental interest (Ackerman, 1973; Fitch, 1976; Murray, 1976). In this period, The CSR was loose coupling with CFP. The concept of CSR still maintained unclear. But it is progressive step over 1960s. The CSR and CFP became responsive (Weick, 1977).

2.3. The 1980s

Corporate social performance occurred in the 1980S, and then the concept of CSP leaded study of CSR. Wartick, Cochran (1985) and Wood (1991) explained the definition of CSP: corporate social performance is to point out the results of corporation‘s actions or activities (Shen and Chen, 2007). At that time, an important contribution was Carroll‘s three-

dimensional conceptual model of corporate social performance. The main thrust in Carroll‘s

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

three-dimensions in CSP, which are CSR, social issues and corporate social responsiveness under one rubric. The purpose of the model was to help clarify and integrate various

definitional strands that have appeared in the literature (Lee, 2008). In this three-dimensional model, a first dimension includes economic responsibility, legal responsibility, ethic responsibility and voluntary responsibility. Second dimension is social problems

management. Third dimension is the strategy, method and Philosophy of manages resolving CSR and Social problems (Shen and Chen, 2007).

The most important contribution of the model is that the three-dimensional model does not treat the economic and social goals of corporation as incompatible trade-offs. Rather, both corporate objectives are integrated into the framework of total social responsibility of business which includes economic, legal, ethical and discretionary categories (Lee, 2008). The shortcoming of the CSP missed an important aspect, which was implementation. There was a big problem in measuring and testing the CSP (Wood and Jones, 1995). Besides, it is difficult to compare the corporate social performance without objective and behavioural, the measure should be founded in order to measure the performance (Lee, 2008).

2.4. The 1990s

The concept of CSR and stakeholder theory used to be independent studies field developed separately. CSR was to discuss corporations to undertake social responsibility. The

stakeholder theory researched the relationship between corporations and stakeholders. Since 1990s, the stakeholder theory was considered the relevant framework of theory to assess CSR, the two theories between CSR and stakeholder theory commenced to the trend of

comprehensive combination (Shen and Chen, 2007). The stakeholder model of CSR was developed mainly by management scholars who were frustrated by the lack of practicality of the previous theoretical models.

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

The stakeholder model solved the problem of measurement and testing by more narrowly

identifying the actors and defining their positions and function in relation to one another (Lee, 2008). Stakeholder theory has brought three transitions for CSR: to specify definition of CSR, finding out the correct method to measure CSR, and providing a fundamental theory for CSR (Shen and Chen, 2007). In strategic CSR, There is no longer a conceptual break separating corporations‘ social and economic performance. The concept of CSR is stretched and applied to all the activities a company engages in while doing businesses as well as the competitive context of the company (Porter and Kramer, 2006).

In the future, the trend is tighter coupling between CSR and CFP. The concept of CSR is very ride. Corporations treat CSR as a part of business management. CSR has been incorporated into the corporations‘ management and institution. In fact, CSR actually help corporations to improve bottom line performance (Lee, 2008). The concept of CSR is much more attractive to corporate managers at any aspects because of rationalization of CSR and the convergence between CSR. It also can help to promote CSR to other corporate managers (Vogel, 2005). The CSR and CFP become much more coupling ever. But it does not mean the relationship between CSR and CFP as close as it can be (Lee, 2008). From a theoretical point view, it is not an exaggeration to say that the coupling between CSR and CFP has been as tight as it can be (Lee, 2008).

Small and medium enterprises have not been implicated in the implement of CSR over the years. SMEs were like an independent kingdom to be away from CSR. The current research of CSR exists restrictive. The lack of SMEs‘ CSR research is to limit a further development of CSR. Currently, the vast majority of CSR research focuses almost exclusively on large publicly traded corporations (e.g. Fortune 500) in a uniform institutional environment. There

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

is very little reflection on what CSR means for SMEs and firms with different ownership structure (Lee, 2008). Moreover, with the corporation‘s expansion, the local‘ CSR occurred. The current problem is that the local‘ CSR go further as CSR in home country. There are not enough case studies to compare the difference of CSR between home country and

international foreign countries. Another important aspect of CSR research that has lacked rigorous scholarship is its comparative aspect (Lee, 2008).

2.5. 21st Century

Except the general concept of CSR, a new concept of corporate citizenship was born in the turn of century. Many well-known scholars who engaged in CSR research turned interest to corporate citizenship, such as Post, Carroll, Wood, Waddock. They published a series of research results regarding corporate citizenship in the past few years. Epstein is earlier to research corporate citizenship. Epstein (1989, p.583) states that the concept of good corporate citizenship has vague and old-fashioned flavour in U.S. The reason is that the concept has wildly been used in corporate practices.

Although scholars commenced to research the topic in new century, the concept has wildly been used in corporate practices. For example, in 1979, Johnson announced its beliefs. The beliefs promised the company had to be good citizen. They would support good conduct and charities and undertake due taxes. They had to promote people development and holding better health and education. They had to protect environment and nature.

In 1996, corporate citizenship conference and Ron Brown Award for Corporate Leadership is an important impetus for corporate citizenship. The Ron Brown Award for Corporate

Leadership was established in 1996 advocated by U.S former president Bill Clinton. Clinton defined the five basic factors in corporate citizenship. Firstly, the workplace should be closer

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

to family. This can help staffs to be good employees as well as good parents. Secondly, companies should provide sufficient health and retire welfare. Thirdly, workplace has to be safe to employees. Fourthly, employees‘ education and training is the foot for enhancing productivity. Fifthly, companies should encourage employees in world place and avoid lying off employees (Ron Brown Award, 2009).

In 1990s, most American international companies implemented CSR. The implementation prompted the concept of corporate citizenship was wildly accepted by corporate managers and the public. However, the concept of corporate citizenship have not got clear and specific theory framework. The previous CSR concept was about narrow CSR, corporate social

responsiveness, corporate social performance and stakeholder theory. That is a question that what is different between corporate citizenship and previous CSR. Different scholars had different views.

According to Matten and Crane (2005, p.173), there were three types of perspective for

corporate citizenship. The first one was that the corporate citizenship was a part of CSR. The second one was that the corporate citizenship was same with previous CSR. The third one was that the corporate citizenship surpassed the concept of CSR. The essence and core of corporate citizenship is the citizenship. Locke believes that the citizenship is citizens‘ natural rights regarding life, liberty and property (Moon et al., 2005, p.435).

The researchers of corporate citizenship had given three different answers. The first one was that the corporations were citizen. The second one was that corporations were like citizen. The third one was that corporations managed citizenship. Most scholars focused on the

discussion of concept of corporate citizenship. At the same time, a few scholars realised that the evaluation of corporate citizenship performance can not be ignored. Waddock was one of

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

the main researchers of corporate citizenship performance. She divided evaluation of

corporate citizenship into internal evaluation and external evaluation. The internal evaluation of corporate citizenship adopted responsibility audit or social audit. The external evaluation of corporate citizenship included the evaluation of social investment and the stakeholders‘ rank regarding to the company‘s corporate citizenship performance (Waddock, 2004).

The concept of corporate citizenship was a new theory to know the relation between

corporation and society. However, at the same time, the corporate citizenship has brought new questions. There are two urgent and outstanding questions. The first one is that how to use a unified language define and specify corporate citizenship and theoretical basis. The second one is to eliminate mismatch between theory and practice. Let the concept of

corporate citizenship be the reality of a wide adaptability. These are direction of research in the future. Corporate citizenship is not a new concept, but an arrived era (Vidaver-Cohen and Altman, 2000, p.167).

Summary

CSR has passed through several steps in the past. The contemporary CSR is tightly coupling with corporate financial performance. The theory and concept of CSR has been developed to relatively mature stage, and the CSR practices and activities has been applied by most multinational corporations all over the world. Over the years, the idea of CSR has been

discussed by different scholars. In the early 21 century, the idea of CSR has been universally sanctioned and promoted by different institutions among government, Corporation, non-governmental organisation and other relative groups or individual. Howard Bowen‘s Social Responsibilities of the Businessman‘ (1953) was sanctioned as the first scholar to theorize the relationship between the corporation and society. Bowen‘s idea of CSR was milestone for the development of CSR.

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

The concept of CSR was not clear in the 1950s and 1960s. It had a lot of uncertain elements at that time. That is the reason why Milton Friedman argued that the idea of CSR. Friedman‘s idea was that the corporation‘s only responsibility is to make an effort to create profits. The idea of CSR was no coupling with corporate financial performance. In 1970s, Wallich and McGowan considered that the stockholder interest was primary task. They agreed with

Friedman‘ view corporations should not engage in CSR. The relationship between CSR and corporate financial performance was loose coupling. In 1980s, an important contribution was Carroll‘s three-dimensional conceptual model of corporate social performance. The main thrust in Carroll‘s three-dimensions in CSP, which are CSR, social issues and corporate social responsiveness under one rubric. The relationship between CSR and CFP became tighter, but still somewhere loose coupling.

In 1990s, the stakeholder theory was considered the relevant framework of theory to assess CSR, the two theories between CSR and stakeholder theory commenced to the trend of comprehensive combination. The relationship between CSR and CSF was tight coupling. In the future, the research of CSR is tighter coupling with CSF. Even though the relationship between CSR and CSF has ever been tight coupling, the relationship can be further coupling. The research of CSR has concentrated on large publicly traded corporations at present. The future research of CSR could include small and medium enterprise. The process could extend the research of CSR to new area.

Except the general concept of CSR, a new concept of corporate citizenship was born in the turn of century. The concept of corporate citizenship was a new theory to know the relation between corporation and society. However, at the same time, the corporate citizenship has brought new questions. There are two urgent and outstanding questions. The first one is that

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

how to use a unified language define and specify corporate citizenship and theoretical basis. The second one is to eliminate mismatch between theory and practice. Let the concept of corporate citizenship be the reality of a wide adaptability.

Chapter 3. China

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

China located in East Asia, west coast of the Pacific Ocean. The coastline is more than 18,000 km in Eastern and southern China. Water area of inland sea and coastal waters is about more than 470 millions square kilometres. China borders with 14 countries. And the country is adjacent with 8 countries at the sea. Provincial-level administrations were divided into 4 direct-controlled municipalities, 23 provinces, 5 autonomous regions, 2 Special Administrative Regions. China‘s capital is Beijing (the central people‘s government of the people‘s republic of China, 2009). The Figure 1 is Map f China.

Figure 1. Map of China

Source: Lonely Planet. Map of China (2009).

3.1. Political factors

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

China was found by Communist Party of China in 1949. Communist Party of China is only ruling part in China (China, 2009). The Communist Party of China concentrated on political struggle before 1978. After 1978, the party turned their attention to economic development. The economic reform was started in 1979 (Xinhua, 2008). At present, the part still firmly rules China. In the processes, the stability of China's political situation has undergone a severe test. The frequent turbulences had happened during 1980s. And the Precarious situation appeared in early 1990s. However, the China‘s political situation has become an unexpected stability after the mid-1990s (Kang, 2002). Although China has undergone

different challenges from the reform in 1979, China‘s government still continues to carry out open-door‘ policies. It‘s worth noting that the political reform has been very slow after

Tiananmen Square protests of 1989. The political system is difficult to change within a short period. At the same time, the country maintains a relatively stable phase (Bell, 2009).

China has been beset with Taiwan issue for a long time. The war across the Taiwan Strait was stopped by a message to the Compatriots in Taiwan‘ in 1979. The Taiwan issue also has interfered with the relations between China and other countries, especially United State and Japan (The central people‘s government of the people‘s republic of China, 2008). The war between China and Taiwan would not happen within a short term. The relation has been more harmonious after the installation of Taiwan president of Ma Ying-jeou. Some policies have been implemented in order to create better convenience and communication, Such as Three Links‘. Three Links‘ include direct postal, transportation, trade links. The three link‘ started on 15 December 2008 (Xinhua, 2008).

Ma Ying-jeou has brought a certain impact to cross-strait relation. Firstly, the two sides will continue to take the road of peaceful development. Secondly, The installation of Ma Ying-jeou was conducive to implement the outcome of Cross-Strait peaceful development. Thirdly,

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

to achieve real breakthroughs in cross-strait relations have a more difficult way to go. At the same time, Ma Ying-jeou‘s cross-strait policies have been facing pressures from the

opposition parties, because they would take counter-measures to Ma‘s policies (Zhu, 2009). Also, Dalai Lama is potential crisis to impact the cross-strait relation. ―Taiwan's president granted opposition requests for Tibet's spiritual leader to comfort victims of Typhoon Morakot.‖ (BBC, 2009). ―China‘s government protested the Dalai Lama‘s visitation to Taiwan. China has criticised an invitation from Taiwan to the Dalai Lama, calling him a separatist who wants to sabotage improving cross-strait relations.‖ (BBC, 2009). However, The Chinese government unlikely adopt Suspension of cross-strait trade, investment, tourism and non-governmental contacts initiatives in retaliation (Wu 2009).

According to corruption Perceptions Index 2008 (Transparency International, 2008), China was ranked as 72 in all the countries. It means that China‘s government still has a long

process to improve for its incorruptness. China has spent a lot of money and human for anti-corruption. Even though the government has made an effort for anti-corruption, corruption cases has been still emerging in the country. Corruption of senior officials has become greedy grab from the type of corrupt life. Anti-corruption is more important to build a perfect system except education and fight against corrupt officials (Li, 2005).

Chinese social instability includes people‘s protest, Tibet issues and Xingjiang issues.

Chinese people lack channels for complaints because of bureaucracy. The bureaucracy may cause lots of protests and unrests in the society. Riot may happen in Chinese society even a common case. Some government organisations are opaque and do-nothing. The government needs to provide more channels for peoples‘ complaints. This is effective way to divert social discontents (Deutsche Welle, 2009). Tibet Unrest was caused by some people who resented government‘s policies. Protests by monks in Lhasa marking the 49th anniversary of a failed

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

uprising against Chinese rule have turned into more than a week of riots and clashes with security forces (BBC, 2008). Xinjiang unrest was regarding economy and race problems. Violence in China's restive western region of Xinjiang has left at least 156 people dead and more than 800 people injured, state media say (BBC 2009).

3.2. Economic factors

The standard of living is a marked difference within the nation. The east is relatively rich. And the west is relatively poor. The cities – Shanghai, Guangzhou and, of course, Beijing – which rank among China‘s leading tourist destinations, are modern and sophisticated, while the western interior remains relatively backward and isolated (Mintel, 2008). ―China is the third-largest country in the world (after Russia and Canada) – home to some 22% of the world‘s population. It sprawls over a huge landmass – 9.4 millions square kilometres of

mostly mountains and deserts in the west, plains and deltas in the east – only 15% of which is arable.‖ (Mintel, 2008).

China is most populous developing country in the world. According to National Bureau of Statistics of China (2009), as of the end of 2008, China‘s total population was more than1.3 billions. China is one of highest population density countries. The average population density is 134 persons in per square kilometres with uneven distribution (Xinhua, 2009). Before 1979, China carried out planned economy so that its economy was tied. After 1978, Mao's successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living

standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight (CIA, 2009).

硕士毕业论文,探讨企业社会责任在中国酒店业的发展。

As the largest developing country regarding population and tertiary, China has been drawing great attention from all over the world. It also has been playing increasingly important role in the world. Since the late 1970s, China‘s GDP has been increasing rapidly at a rate of around 10% each year （NBS, 2008）. After 2002, its membership of WTO also provided China a good opportunity to perform in the global stage. According to World Bank, China has become the second largest economy in the world by 2007 (Huang, 2007).

China‘s economic miracle not only influences the Chinese domestic economy, but also had a strong effect on global business trends. According to NBS (2008), China‘s economy has experienced different stages. China‘s economy has been divided into three stages. The first stage was recovery and oscillation stage (1979-1990); the second stage was rapidity and soft landing stage (1991-2001); the third stage was prosperity phase (2002-2007). As a matter of fact, on the one hand, both the Chinese government and Chinese people have been benefited from the positive consequence such as more wealthy life and higher national image of the completion of these stages.

In first stage, it is believed that the year of 1979 can be viewed as a milestone in the history of China‘s economic development, as China started its economic reform and took its new economic policies into effect. In 1979, the ―open-door‖ policy was adopted by the Chinese government. The rich local resources and cheap labour are suggested as the main attractions of China for the international companies at that moment. The entry of these international companies enabled China to obtain more capital investments, latest knowledge and advanced professional technologies. During this period, due to China adopted the planned economy, the most of Chinese enterprises were stated-owned companies and the private businesses had not played an important role in markets (NBS, 2008).

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