Our company plans to invest USD100M, by taking up 35% shares of XYZ Company, one of the top five timber flooring company in Mainland Chia with a history of less than 15 years. In order to embrace responsibility for the said investment and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders1, we prepared this summary to review the key Corporate Social Responsibility (CSR) issues arise from this investment. In this summary, we will also provide suggestions and solutions to XYZ Company we will also provide suggestions and solutions to XYZ Company for better fulfillment of its CSR.
Plantation and Sourcing
Since XYZ Company has global supplier relationship and owns plantations in both China and Guatemala. The company should be committed to conduct business with plantations and suppliers that act in a socially responsible manner and meet their ethical expectations. It is crucial for the company and its suppliers not violating the local regulations (including but not limited to: using child/ illegal labor, paying below the minimum wage level). This should be also applied to all factories and subsidiaries of XYZ Company.
Meanwhile, as the plantation may harm the environment if it is over-developed, the company should put into practice its commitment to promote sustainable development: to request not only its plantations but also its global suppliers to guarantee sourcing timber only from qualified, well-managed forests and to implement responsible forest management policies. The company should also confirm with its plantations and suppliers that the origins of wood are legal, officially certified and not controversial.
Moreover, besides offering job opportunities to the local market in Guatemala and China, it is the company’s responsibility to provide good working conditions and...