Business

Tech Companies Busted For Not Fulfilling Donation Promises In China

Statistics from China's Ministry of Commerce show that 12 companies, including Nokia, Google China, and Texas Instruments, have not fulfilled their promise of making donations to China's earthquake areas, but most of the companies say that they have been wronged as Ministry of Commerce's statistics are incomplete.

According to the data released by Ministry of Commerce's Information Office, as of June 13, 11 companies, including Wal-Mart China, had not or not completely made the cash donation as they previously promised. These companies reportedly pledged to donate CNY195.45 million, but they only donated more than CNY15.53 million.

Ministry of Commerce's latest data shows as of June 18 there had not been much change in the donation amount of the 11 companies. Instead, the number of the companies which failed to fulfill their promise had increased to 12 and the companies are Wal-Mart China, Google China, Texas Instruments, Unilever China, Bertelsmann, Mary Kay (China) Co., Ltd., Eli Lilly and Company, Auchan, Nokia China Investment Company, Shanxi Haixin Group, Taiwan Central Steel Company and Exce Group. Conveniently, almost all of these companies are foreign-owned.

In response to the public's doubt and blame as result of Ministry of Commerce's report, most of these companies have told local media that Ministry of Commerce's records are not complete. Wal-Mart China says though it is easier and more convenient for the company to make cash donations, it hopes to support some concrete projects which can better help the nation lessen the burden in disaster relief. Wal-Mart China says it is working actively with the local governments and Red Cross Society in seeking appropriate projects to efficiently support the disaster area.

Zeng Xiwen, vice president and spokesperson of Unilever China, told local media that Unilever has worked with the local government in rebuilding 12 schools in the earthquake areas. Zeng says that Unilever has donated CNY6 million in cash and CNY1.5 million materials. In addition, they are preparing the formalities for another CNY3 million donation.

Ministry of Commerce says that it will take some time for the donations made by companies to reach the disaster areas, but it also says it is the companies' untimely reports of their donations to the concerned departments has caused a misunderstanding among the public. Ministry of Commerce says it will work with relevant parties to update the donation data.

2 Comments

  1. This is disgusting. Does the "Ministry" think the companies can just hand over millions in cash after just a few weeks?

    Donating money takes time. If the situation is so urgent that they can't wait, the government should just use its own money.

    What they are doing is trying to strong-arm the companies and force them to pay immediately out of shame. This is a no-no.

    Let the companies work through their own money donation processes. They can't force these things to happen any faster.

  2. Too much direct cash donation only lead to more corruption. Should use the money wisely and work with those uncorrupted relief agencies to better fund the needy reconstruction projects and relief efforts. What is the motive of the Ministry of Commerce? Don't forget China Gov also has the biggest foreign reserve in the world US$1.8 trillion. Greed leads to more greed!
    Charity is about making ones life better, not so much about money.

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