Philanthropy, charity, donating … these are all new words in China. Last year business magazine Forbes announced that it was cancelling its list of China’s top philanthropists. This was “mainly due to the immaturity of the charity sector” and many rich people’s “unwillingness to have their wealth disclosed and their names published”. The new rich of China had started to donate money but did not want it made public.

Then this year everything changed with the Sichuan earthquake in May. Across China, funds were established to solicit donations to rebuild the devastated area. This was something new. China has the world’s second largest foreign exchange reserves (after Japan) because of 20 years of booming exports and profits, and some of this cash has been used as international aid and to relieve domestic poverty. But personal donating has not been a tradition.

What is interesting about the swift rise in donations is that they have come from both the rich and the not so rich. According to the Hurun Philanthropy List, considered by many to be the most fully researched list of what the rich do with their money in China, the country’s top 100 philanthropists have given away 9bn yuan ($1.8bn) since 2003. Education, social welfare and poverty reduction were attracting the most donors until this year when Sichuan became the major cause.

Please login to view whole article - or subscribe here.
For a free two week trial to Ethical Corporation online, please click here.