Subject: Roof Upgrade 15648837

From: "Contractor Service" <[email-masked]>
Date: Tue, 21 Jun 2016 10:33:53 -0700

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Our study reveals that the local governments high economic targets can explain such symbolic adoption While the central government had been proactive in outlining standards and highlighting the need for third party auditing enforcement of the regulations is inadequate That some firms have to juggle the conflicting demands from central and local government is a key factor in the countrys deteriorating environmental situation
Given the importance and effort expended by the central government to ensure company compliance it could be expected that the politicallyconnected firms those partially owned by the central government or whose CEOs held central government positions would have paid more attention to releasing stronger CSR statements But this was not the case What we found was that because these firms experienced the greatest tension from central and local bureaucracies demands they were the most likely to display this type of symbolic compliance
Unless there is a change in local government priorities the pollution problem is likely to continue
The problem with double intent
The problem of symbolic compliance brought about by conflicting pressures on business is not confined to China In many emerging markets companies are juggling demands of different government jurisdictions
A similar situation can happen inside organisations where lowerlevel managers may find themselves trying to meet the expectations of different levels of leadership While the CEO and board usually have a goal in mind they may not have set out a strategy as to how to reach it This ambiguity gives managers further down the chain room to consider what is important to them In some cases the end result may be very different from the spirit of the original target
In the case of China the central government is saying CSR is important you have to do it but it is not saying economic growth isnt important In fact it later clarified its position to say GDP growth is not the only target Local government took this to mean that while there were other considerations economic growth was still very important and it was their role to ensure that GDP numbers continue to rise supporting their push for economic growth at the expense of the environment
In some cases this double intent the tension between the two governments can present business opportunities IBM for example realising the pressure the Chinese central government was under to be seen as environmentally active and the embarrassment it felt when high profile international events were held under Beijings smogfilled skies came up with software to help map and control air pollution by identifying which plants needed to be temporarily closed to ease the citys toxic air pollution The software is in the process of being adopted by local governments allog them to continue pushing economic development while appearing to be responding to the central governments push for increased CSR
Goals need strategy
Band aid solutions like this are of course not an answer to Chinas pollution problem which needs to be addressed in a systemic way But what our study aims to do is to show national governments and by implication the top leadership of large organisations that its not enough to just lay down a goal They need to understand the conflicting pressures entities be they companies or departments are under to achieve that goal Without this understanding and without strong tools for evaluation penalties for noncompliance and incentives at lower levels action down the chain may very well be symbolic and they may not get the results they seek

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