Philanthropists desperately needed in China

The robust economic growth in China has created an expanding population of middle classes and business tycoons. However, according to a recent survey, the contribution of business sectors in philanthropic activities is far less when compared with the Western counterparts. The discrepancy can be attributed to the differences between the East and West in corporate culture and wealth management.

In many Chinese corporations, the founders make all the necessary arrangement to ensure the smooth transition of the business kingdom to his heir. The wealth of the first generation tycoons is passed to the subsequent generations. However, in most cases, the second generation of tycoons fails to keep the business flourish.

In the West, instead of passing all properties to their heir, it is far more common to see business founders apportioning most of their wealth to philanthropic activities. The recent acts of Warrant Buffet and Bill Gate are vivid examples. The leadership of the business seldom falls on the shoulder of family members.

The idea of corporate social responsibility is quite new to many Chinese tycoons. The rapid expansion of the well-off population widens the gap between the rich and the poor. This lays the seed of fury and social instability in China. If more Chinese tycoons act like their Western counterparts in terms of monetary contribution and determination in philanthropist activities, the under-privileges will taste the fruit of economic growth and the ‘anti-rich’ sentiment in the rural community will be soothed.