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University of Vaasa - Vaasan yliopisto

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Conclusion<br />

206<br />

In comparison, the Chinese government’s role is more significant than the Danish<br />

government in CSR matters. In Danish organizations, the international market was<br />

more influential in the direction <strong>of</strong> CSR whereby the Danish companies are given a<br />

free reign in the way they would like to manage CSR in their companies, the same<br />

could not really be said for Chinese companies.<br />

There are some similarities in the collectivistic behaviour when looking at the<br />

societal or nation-institution level. However, when looking at the organizational level,<br />

individualism plays a bigger role in Danish companies since Danish capitalistic<br />

economy is based on free-market. Thus, the Danish collectivistic behaviour is<br />

reserved and demonstrated only in terms <strong>of</strong> its welfare state. In China, the<br />

collectivistic behaviour is still very much retained as it has just started its open-door<br />

policy. The Chinese display a stronger collectivistic behaviour as it practices a<br />

socialist market economy in which the government plays central role, especially in<br />

state-owned companies.<br />

Chinese companies also appear to be more influenced by government policies as they<br />

appear to dutifully align their goals with government aims; this suggests a<br />

nationalistic-collectivistic behaviour that was not apparent in Danish companies. The<br />

Chinese government’s power over economic matters in China is much more apparent;<br />

labour unions appear to be extensions <strong>of</strong> the Chinese Communist Party and are<br />

influential in the companies, especially state-owned ones. Danish labour unions are<br />

not influential in companies, partly due to Denmark being a welfare state. It is<br />

possible then to deduce that Chinese society and subsequently Chinese companies<br />

seem to place a lot <strong>of</strong> trust in government leadership, as opposed to the Danish<br />

companies who only seemed to consider government policies as merely helpful<br />

guidelines. With such loyalty and trust in leadership, it is no wonder that Chinese<br />

companies seem to project a large power distance, which is consistent in Chinese<br />

societal behaviour in terms <strong>of</strong> hierarchical structure. In contrast, Danish society<br />

which is egalitarian has a small power distance and this is shown in Danish<br />

companies. Hence, this behaviour is also translated in the way Danish and Chinese<br />

companies make decisions; Danish companies practise a bottom-up approach whilst<br />

Chinese companies, a top-down approach.<br />

From the CSR conduct analyses coupled with social constructivism theory, it was<br />

established that Danish companies are at a more advanced CSR wave, with particular<br />

emphases on employee relations and products and processes. Chinese companies are<br />

still on the first wave with particular concern for education. The difference in<br />

development <strong>of</strong> CSR in China and Denmark differs due to the varying capacitybuilding<br />

in terms <strong>of</strong> socio-economic environment, political environment,<br />

environmentalism movement and the interplay with globalisation pressures.<br />

Denmark has a more advanced development in terms <strong>of</strong> CSR due to its conducive<br />

capacity-building. China’s progress was disrupted due to political instability that<br />

affected the socio-economic environment. Both the Danish and the Chinese place<br />

high importance on acquiring knowledge but in terms <strong>of</strong> environmental<br />

consciousness, the Danish appear to be at a more advanced stage.

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