Legal Challenges in Regulating Transnational Corporations Social Responsibility: Protecting Workers and the Environment under Chinese Law
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Legal Challenges in Regulating Transnational Corporations Social Responsibility: Protecting Workers and the Environment under Chinese Law

Zi Ding 1*
1 Southwest Petroleum University
*Corresponding author: 202331111102@stu.swpu.edu.cn
Published on 30 July 2025
Volume Cover
LNEP Vol.110
ISSN (Print): 2753-7056
ISSN (Online): 2753-7048
ISBN (Print): 978-1-80590-297-3
ISBN (Online): 978-1-80590-298-0
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Abstract

In the context of global economic integration, multinational corporations have become a significant force in driving global economic growth. However, the issue of their social responsibility in host countries is becoming increasingly prominent. This article focuses on two key issues: protecting the interests of multinational company employees and addressing environmental responsibilities. In practice, some multinational companies have engaged in labor rights violations, such as underpaying wages, excessive overtime, and neglecting occupational health and safety, as well as environmental pollution and ecological destruction. Although China's Company Law clearly requires enterprises to assume social responsibilities, there are still legal loopholes in practice, including double standards on environmental issues, lack of transparency, inadequate labor protection, and the gig economy's evasion of responsibilities. To address these issues, this article proposes a multi-level legal regulatory system: implementing mandatory environmental liability insurance, refining environmental information disclosure, adding a special chapter on cross-border employee rights protection, standardizing labor relations in the gig economy, and strengthening cross-border law enforcement cooperation and social supervision mechanisms. The aim is to achieve a balance between the economic benefits and social responsibilities of multinational companies, thereby ensuring the sustainable development of host countries.

Keywords:

Corporate social responsibility, host country legal regulation, protection of workers' interests, environmental responsibility, Chinese Company Law

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Ding,Z. (2025). Legal Challenges in Regulating Transnational Corporations Social Responsibility: Protecting Workers and the Environment under Chinese Law. Lecture Notes in Education Psychology and Public Media,110,48-55.

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[12]. ILO. （2024）. Decent Work. International Labour Organization. Retrieved from https: //www.ilo.org/topics-and-sectors/decent-work

[13]. SGS. （2020）. China Amends its Prevention and Control of Environmental Pollution by Solid Wastes Law. SGS News. Retrieved from https: //www.sgs.com/en/news/2020/11/safeguards-16220-china-amends-its-prevention-and-control-of-environmental-pollution

[14]. ILO. （2024）. Labour Administration and Inspection: International Labour Standards. International Labour Organization. Retrieved from https: //www.ilo.org/international-labour-standards

[15]. ILO, WHO. （2020）. Decent Work, ILO's Response to the Globalization of Working Life. Occupational and Environmental Medicine. Retrieved from https: //pmc.ncbi.nlm.nih.gov/articles/PMC7277660/

[16]. UN Global Compact.（2024）. Decent Work Toolkit for Sustainable Procurement. United Nations Global Compact. Retrieved from https: //sustainableprocurement.unglobalcompact.org/learn-more/

[17]. MEE China. （2020）. Law of the PRC on the Prevention and Control of Environmental Pollution by Solid Wastes. Ministry of Ecology and Environment of China. Retrieved from https: //english.mee.gov.cn/Resources/laws/environmental_laws/202011/t20201113_807786.shtml

[18]. AsianLII. （2020）. Environmental Protection Law of the PRC (Trial Implementation). Asian Legal Information Institute. Retrieved from https: //www.asianlii.org/cn/legis/cen/laws/eplotproc564/

[19]. SEPA. （2008）. Measures on Open Environmental Information (Trial). Yale Law School. Retrieved from https: //law.yale.edu/sites/default/files/area/center/china/document/sepa_measures_on_open_environmental_information_trial.pdf

References

[1]. Labor Rights Forum. （2024）. Chinese Factories Break Labor Rules. Industrial Distribution. Retrieved from https: //www.inddist.com/home/news/13766564/chinese-factories-break-labor-rules

[2]. H. Ritchie, M. Roser. （2021）. Plastic Pollution. Our World in Data. Retrieved from https: //ourworldindata.org/plastic-pollution

[3]. Break Free from Plastic. （2020）. The Coca-Cola Company, PepsiCo and Nestlé Named Top Plastic Polluters of 2020. Break Free from Plastic Report. Retrieved from https: //www.breakfreefromplastic.org/2020/12/02/top-plastic-polluters-of-2020/

[4]. WilmerHale. （2024）. China Revises Company Law Effective July 1. WilmerHale Insights. Retrieved from https: //www.wilmerhale.com/en/insights/client-alerts/20240118-china-revises-company-law-effective-july-1

[5]. Asian LII. （2020）. Environmental Protection Law of the People’s Republic of China (Trial). Asian Legal Information Institute. Retrieved from https: //www.asianlii.org/cn/legis/cen/laws/eplotproc564/

[6]. DLA Piper. （2024）. Chinese Company Law Amendment: Impact on HR Management. DLA Piper Publications. Retrieved from https: //www.dlapiper.com/en-us/insights/publications/2024/06/chinese-company-law-amendment-impact-on-hr-management

[7]. L& E Global.（2024）. Employment Law Overview: China. L& E Global. Retrieved from https: //leglobal.law/countries/china/employment-law/employment-law-overview-china/

[8]. SEPA. （2008）. Measures on Open Environmental Information (Trial). Yale Law School Environmental Law Center. Retrieved from https: //law.yale.edu/sites/default/files/area/center/china/document/sepa_measures_on_open_environmental_information_trial.pdf

[9]. Y. Huang. （2011）. Corporate Social Responsibility from the Chinese Perspective. Indiana International & Comparative Law Review, 21(3), 419–448. Retrieved from https: //mckinneylaw.iu.edu/practice/law-reviews/iiclr/pdf/vol21p419.pdf

[10]. ILO. （2024）. International Labour Standards. International Labour Organization. Retrieved from https: //www.ilo.org/international-labour-standards

[11]. ILO. （2024）. ILO Declaration on Fundamental Principles and Rights at Work. International Labour Organization. Retrieved from https: //www.ilo.org/about-ilo/mission-and-impact-ilo/ilo-declaration-fundamental-principles-and-rights-work

[12]. ILO. （2024）. Decent Work. International Labour Organization. Retrieved from https: //www.ilo.org/topics-and-sectors/decent-work

[13]. SGS. （2020）. China Amends its Prevention and Control of Environmental Pollution by Solid Wastes Law. SGS News. Retrieved from https: //www.sgs.com/en/news/2020/11/safeguards-16220-china-amends-its-prevention-and-control-of-environmental-pollution

[14]. ILO. （2024）. Labour Administration and Inspection: International Labour Standards. International Labour Organization. Retrieved from https: //www.ilo.org/international-labour-standards

[15]. ILO, WHO. （2020）. Decent Work, ILO's Response to the Globalization of Working Life. Occupational and Environmental Medicine. Retrieved from https: //pmc.ncbi.nlm.nih.gov/articles/PMC7277660/

[16]. UN Global Compact.（2024）. Decent Work Toolkit for Sustainable Procurement. United Nations Global Compact. Retrieved from https: //sustainableprocurement.unglobalcompact.org/learn-more/

[17]. MEE China. （2020）. Law of the PRC on the Prevention and Control of Environmental Pollution by Solid Wastes. Ministry of Ecology and Environment of China. Retrieved from https: //english.mee.gov.cn/Resources/laws/environmental_laws/202011/t20201113_807786.shtml

[18]. AsianLII. （2020）. Environmental Protection Law of the PRC (Trial Implementation). Asian Legal Information Institute. Retrieved from https: //www.asianlii.org/cn/legis/cen/laws/eplotproc564/

[19]. SEPA. （2008）. Measures on Open Environmental Information (Trial). Yale Law School. Retrieved from https: //law.yale.edu/sites/default/files/area/center/china/document/sepa_measures_on_open_environmental_information_trial.pdf

Cite this article

Ding,Z. (2025). Legal Challenges in Regulating Transnational Corporations Social Responsibility: Protecting Workers and the Environment under Chinese Law. Lecture Notes in Education Psychology and Public Media,110,48-55.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICILLP 2025 Symposium: Digital Governance: Inter-Firm Coopetition and Legal Frameworks for Sustainability

ISBN: 978-1-80590-297-3(Print) / 978-1-80590-298-0(Online)
Editor: Renuka Thakore, Tonejit Gad-Harry
Conference website: https://www.icillp.org/Bristol.html
Conference date: 18 September 2025
Series: Lecture Notes in Education Psychology and Public Media
Volume number: Vol.110
ISSN: 2753-7048(Print) / 2753-7056(Online)

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