Helsinki (15.12.2003 - Juhani Artto) The Finnish campaign to reform export credit agencies (ECA) organised a seminar in September on the social and environmental impact of Finnish enterprises exporting to and manufacturing in China. At this event the campaign published a pioneering study* on the subject by Chinese researcher Ge Yun.
The study includes a great deal of material to help the reader understand the Chinese situation and ask the right questions about the role of Finnish enterprises and Finnish ECAs. However, lack of transparency in the enterprises and ECAs leaves many questions unanswered concerning the true social and environmental impacts of Finnish businesses.
With the largest level of investment and personnel in China, Nokia was invited to send a representative to the seminar. However, the Finnish multinational declined this invitation and limited its participation to a written document: "Nokia's Comment on Corporate Social Responsibility and Trade in China".
In this document Nokia reports that all of its production plants in China have an ISO 14001 environmental certificate, and adds: "In recycling, China has been one of the first countries in the world where our product take-back scheme is being implemented."
"China is one of the largest markets for Nokia and consumer needs are best met by also having local product development and manufacture," Nokia continues. The corporation declined to offer any real comment on Ge Yun's study, other than the following: "We acknowledge the immense work that she has seen in making this study. It contains a wealth of useful information and presents a clear overview and interesting viewpoints on the economic, environmental and social challenges that modern China faces".
Ilpo Kaislaniemi, Vice President of the Finpro, Finnish export promoter, commented at the seminar that Finnish enterprises have the same ethical basis in China as elsewhere: "Openness and transparency, democracy and respect for human rights and the rule of law are self-evident principles for them."
Turo Bergman, Secretary of International Affairs at SAK, expressed scepticism about the standard of responsibility shown by enterprises that adhere to the notion of adapting to local custom, and he asked whether China could continue to flout freedom of association.
"This will hardly be possible as internal and external pressure grows." Bergman, however, pointed out that neither SAK nor the international trade union movement as a whole were in favour of seeking to isolate China: "The external pressure on China will come from the ILO, from consumer movements and from the dialogue between the World Bank, the IMF and international trade union organisations," Bergman commented.
"We also expect China's internal forces to grow more vigilant. With foreign enterprises manufacturing in China, collective bargaining will enter the picture step by step," Bergman predicted. According to information available to SAK, Finnish enterprises pay wages and salaries in China that exceed local averages: "In the long run a high standard of social responsibility will pay dividends to these enterprises in the competitive situation."
* "Great Leap Forward - or Backwards? Environmental and Social Impacts of the Finnish Trade with China".