File photo shows Huawei Mobile Kenya unveiled the much-anticipated Huawei Mate 20 Series to users in Kenya in January 2019. Photo: Xinhua

When most Chinese companies ventured into Africa in the early 2000s, their work ethic and development philosophy were often misunderstood and misinterpreted due to lack of systematic management and active communication. In recent years, concerted efforts have been made to correct and improve the situation through corporate social responsibility, effective communication and public diplomacy.

Corporate social responsibility (CSR) is a voluntary, self-regulating business model that guides companies to be socially responsible to the public. It makes companies conscious of the economic, social and environmental impact they have on society through their operations. It requires companies to make positive contributions to society by operating in ways that not only enhance profits, but also improve the society and environment. It also improves the image of the company among the local community for a better operating environment. 

The Chinese government's public diplomacy efforts and Chinese companies' practices are intricately linked. The moves of Chinese companies not only affect their own image but the image of China in Kenya. According to the Chinese Embassy in Kenya, more than 400 Chinese companies have been formally registered and are operating in the African country. These companies are individually and collectively playing a major role in China's public diplomacy in Kenya as they reflect the fame of China through their CSR activities. 

Collectively, a consortium of 73 Chinese companies in Kenya and their subsidiaries established an association by the name Kenya-China Economic and Trade Association (KCETA). It is intended to enhance corporate social responsibility to engage positively, build friendly relations and have positive impact on local populations. KCETA members represent diversified fields such as engineering, contracting, trade, real estate, logistics, scientific and technological services, manufacturing etc. According to their first CSR report, they all aspire to adhere to the principles of "sincerity, practical results, affinity and good faith, uphold the values of friendship, justice and shared interest" as emphasized by President Xi Jinping. The report also emphasizes that KCETA members should comply with local laws and regulations, proactively carry out social responsibility and integrate sustainable development goals into their business operations. 

The formation of KCETA was influenced by common challenges faced by Chinese companies in Kenya. Key among them were cultural differences, diverse business practices and business environment, market competition, lack of overseas operations experience among some companies, lack of technical and management expertise in some of them, supply chain management challenges as well as challenges with community communication and environmental protection. Misunderstandings led to excessive suspicion by Kenyans who often perceived their commercial activities as harmful and exploitative. Over time, the association has consistently improved its operational charter and systems by significantly improving the self-discipline of Chinese companies by encouraging members to open up charitable initiatives and carry out social responsibility, create closer ties with the community and establish a good corporate image for all Chinese companies and businesses.

The key responsibilities and undertakings of KCETA members include pursuing win-win economic cooperation, cultivating local talents, growing together with communities and living in harmony with the environment. They are responsible for increasing local materials procurement, job creation and technology transfer. Earlier, one of the major challenges and cause of dispute between Chinese companies and the Kenyan public was a perception that the companies import excessive Chinese labor from their country. A report said that as of 2016 KCETA member companies average employee localization rate reached 87 percent and that Chinese businesses in Kenya on average employ 360 local employees against the average of 147 by foreign companies in Kenya. 

Huawei Kenya, for example, has made a big impact in technology transfer and technical skills development with its "seeds for the future" initiative, an information and communications technology (ICT) training program in Kenya. Since its launch in 2014, Huawei annually selects outstanding ICT students in major colleges and sends them to its headquarters for training where they learn about cutting edge technical knowledge and practical understanding of the ICT industry. Some of them end up joining Huawei and other Chinese ICT companies. 

Huawei Kenya has also adapted to local corporate culture of open communication and accountability. It launched its first sustainability report in October, 2018 themed "Kuwa Nawe, Kua Nawe;" a Swahili phrase meaning "Being with You, Growing with You," highlighting its contribution to all the 17 Social Development Goals (SDGs) and the close partnership the company has established with its telecommunications customers, government and enterprise customers, development partners, and ecosystem partners such as universities and community organizations, suppliers, employees etc. The localization of language, its operations, networks make it more visible, acceptable, and respectable and trusted among Kenyans. 

These CSR activities have endeared Chinese companies to the public who are beginning to consider them as friends and view these initiatives as symbols of the true friendship between China and Kenya. 

The author is a PhD candidate at Fudan University and an expert on China-Africa relations. His research is on China's Public diplomacy in Kenya. opinion@globaltimes.com.cn