Global Influence of European Corporate Social Responsibility: China as Case Study

There are an increasing number of Chinese companies listing overseas. In getting listed on a European stock exchange, Chinese companies must comply with the company laws, corporate governance regulations, and other directives of the member state in question and of the European Union. These include requirements of corporate social responsibility. Corporate social responsibility refers to companies taking responsibility for their impact on society, instead of solely maximising profits for shareholders. Using China as a case study, this paper explores how European corporate social responsibility may be exported through cross-listing of companies, and address negative social impact by businesses. Furthermore, the bonding hypothesis argues that instead of going for a lower cost and less demanding option, companies tend to choose an internationally renowned market, generally with higher entry and ongoing requirements. This paper seeks to ascertain whether the bonding hypothesis can explain the case of China in particular relation to requirements of corporate social responsibility.