Using the findings of an intensive case study of a corporate social responsibility (CSR) project in China, this paper argues against the view that CSR and the state's regulations are mutually exclusive. It contests that the theorization of the transnational social movement (TSM) should not ignore the development of the state regime, which in turn is shaped by the power relations in the workplace and the community, and is embedded in the national political history. The findings of this research support the Polanyi-inspired approach which sees CSR as being embedded in the changing patterns of business–government–society relations. This approach highlights that the behaviour of the state and the engagement of civil society have actively shaped the scope and the implementation of CSR. Following this line of argument, this paper provides evidence of the dynamics and paradox of workers' and grassroots NGOs' engagement in CSR in China. The specificity of China stems from the state, on the road of China's transition from a state socialist country to being a part of global capitalism. Workers' and NGOs' frustration at the denial of freedom of association (FOA) under the CSR projects at this stage reflects well the legacy of Chinese state socialism, in particular the nature of the official trade unions and the suppressive function of the local state–global capital nexus. Therefore, the state is by no means being excluded from either business or civil society, as the orthodox view of CSR presumes.
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Chris King‐Chi Chan (2013) studied this question.
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