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Top 500 Reveals Poor Records in Chinese Firms

A ranking list made by a well-known newspaper revealed the poor records of Fortune Top 500 companies in China in tax payment, charity donation, exploitation of employees and environmental protection.

 

Selected from nearly 400 companies, top 70 companies in the list for best investment were published Tuesday, reported the Beijing Times on Wednesday.

 

Among the 70 companies with the highest scores, merely 21 scored above one point while the full score is 10 points, according to the list made by Nanfang Weekend.

 

Samsung Electronics Co. ranks the first in the list for best investment companies with the score of 70.409 (full score 100), but its record for tax payment is only 1.203 points (full score 10).

 

Among all the factors concerned, investment accounts for 20 percent, business performance in China 25 percent, social responsibility 20 percent, contribution to local area 25 percent and brand image in China 10 percent.

 

Most of the companies had a bad record in charity donation. Samsung Electronics only scored 0.857 points and the best record went to IBM, which is 4.653 points. Altogether 27 companies got zero in the aspect.

 

Some multinationals did not perform well in the use of human resources, said Xian Guoming, director of multi-nationals research center at Nankai University.

 

Big companies usually offer salaries higher than the average level in China and pay insurance premiums for their employees in medical services, said Xian.

 

However, some small companies performed very badly in this respect, he said.

 

Another problem revealed in the list was energy consumption and environmental pollution by multinational companies.

 

Foreign companies set up factories in China and made use of local energy resources, which have been counted into China's domestic consumption, said the report.

 

"It is undeniable that some foreign companies misuse China's resources," said Xian.

 

Some foreign companies intentionally moved pollutant products and production to China and local governments turned a blind eye to environmental pollution caused by them, Xian explained.

 

The top ten companies in the list of the Fortune Top 500 companies in China are Samsung Electronics, Volkswagan, Royal Philips Electronis, Motorola, General Motors, Nokia, Coca-Cola, Intel, General Electric Co. and Honda.

 

(Xinhua News Agency December 8, 2005)

 

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