A positive corporate culture sets firm basis for the sustainable development of the enterprise. The Company lays emphasis on the construction of the corporate culture while expanding the business. All the staff is required to “maximize the return on equity” on the principles of “satisfying the customers and creating wealth for the customers”. Due to the great sense of responsibility for the staff, shareholders, customers, other business-relating counterparts and the society, people-oriented, the Company cultivates the values of Honesty, Innovation, Growth, Communication, Understanding, Management, Virtue and Service and encourages the whole-life study, which forms a working atmosphere of “Honesty, Endeavor, Creation and Innovation”.
Comprehensive risk management
Corporate risks, constituted of strategy risk, finance risk, market risk, operation risk, justice risk, etc, refer to the influence the uncertainties of the future have on realization of the operation targets. The general risk control refers to that centralized on the general operation targets, by taking fundamental procedures of risk control in the course of the operation and at each node of the corporate management, the Company cultivates sound risk control ideas, set up and perfect the general risk control system that includes risk control strategy, risk financing measures, organizational and functional system of risk control, information system of risk control and internal control system so as to provide the realization of the general targets of the risk control with reasonably ensured procedures and methods. In order to establish the internal control mechanism that meets the requirements of a listed company and to control the various risks on the respects of strategy, market, financial management and operation management, the Risk Control Committee was set up in August 2005, which formulates risk-controlling approaches and performs guidance, management and supervision over risks. The rebuilt progress and flow of risk control, justice risk control and investment risk control in a listed company was taken into account. In 2006, subject to the regulations of the State-owned Assets Supervision and Administration Commission of the State Council, in accordance with the unified deployment of the COSCO Container Lines, the framework of the general risk control system will be built up, initial information on risk control will be collected, risk assessment will be conducted, risk control policies will be formulated, risk control schemes will posed and implemented and supervision and improvement over risk control will be performed.
Implementation of global compact society responsibility system
Knowing the importance to keep harmonious relationship with the society, the Company has always placed emphasis on taking responsibility for the society ever since establishment. In October 2004, Mr. Wei Jiafu, President of the COSCO Group met with Kofi A. Annan, Secretary-General of the United Nations, posing the idea that COSCO would like to set up close relationship and cooperation with the institutions of the UN stationed in China to perform the responsibility of the Company for the society on the basis of the UN and to contribute to the general construction of a moderately prosperous society. The COSCO Container Lines would like to support the targets of the UN on the respects of improving the human rights, the labor standards and the environment protection. It was decided by the 17th President Office Meeting in 2004 that the Global Compact was to be implemented. In November 2004, the Declaration on Joining the Global Compact was delivered to the UN and the Company officially joined the Global Compact of the UN. The COSCO Container Lines, as one of the members of the Industry and Commerce Commission of Sustainable Development of China Enterprise Union, advocates and boosts the sustainable development and attempts to be the leader of environment and sustainable development in the industry. The Company is one of the most important members of the COSCO Container Lines and the pilot unit where the Report on Sustainable Development of Global Compact is carried out. In 2005, the enterprise-society responsibility security system that includes rights, labor, environment and combat against corruption was established, boosting the implementation of all the work concerning the Global Compact. The Sustainable Development Committee was established to formulate and implement the strategy and target of sustainable development. Through the internal communications, the requirements and regulations relevant to the Global Compact were announced and deploy to the subsidiaries, the work relating the Global Compact carried out within the whole Company.
Industrial and commercial associations and social communities
As one of the important entities of the global liner shipping economy, COSCO calls for constant and steady development and requires a steady and regular market. It is the duty of every strengthened liner company to maintain the order of the mutual market and to show the sound developing direction for the global shipping economy. The Company is the member of the international organizations as follows: IADA, TSA, WTSA, CTSA, CWTSA, IRA, AADA, TFA and WSC. By participating in the activities of the mentioned organizations, information can be communicated and exchanged in time, which enables the industry to reach a consensus on many problems and boosts the mutual cooperation.
The Company also lays great emphasis on the theoretical research of the shipping economy, adapting, learning and advocating the latest development of container and liner shipping business idealistically, technologically and modally. The Company is the member of 74 organizations, for example, China Navigation Academy (Standing Council), Shanghai Traffic and Transport Association (Vice Chairman), Shanghai Navigation Academy (Vice Chairman, Standing Council and Vice Secretary- General), Container Service Commission of China Navigation Academy (Vice Director), China Ship-owner Association (Standing Council), Shanghai Information Association, China Maritime Law Association, Logistics Commission of China Traffic and Transport Association, Shanghai Energy-saving Association, Shanghai Prevention Criminology Academy, Council of Shanghai Labor Security. As the leader of Chinese shipping industry, the Company conducts academic seminars, spreads the value of the enterprise, the service culture and the ideas of the social environment, advocates the Scientific View of Development, sticks to sustainable development, supports and participates in ecological protection, actively improves the ecological environment of the Company, learns advanced experience from all walks of life and boosts the harmonious development between the enterprise and the Nature and that between the human beings and the Nature.
Upstream and downstream influences
Embodying the social responsibility in the transport depends on the mutual dedication of all the nodes along the supplying chain. Counterpart Control Procedures was established by the Company to intensify the control over the supplying chain and the management and administration aims of the Company and responsibility for the society were announced to the suppliers. The outsourcers and suppliers of the Company are required to conform to the international conventions and the local laws and regulations. Under the conditions that the service quality is ensured, the ecological environment is protected, the health of the staff is guaranteed, social performances are highly concerned, the core value and principles regarding human rights, labor standard, environmental protection and combat against corruption, which are advocated in other fields as well, are accepted, supported and implemented. When annually assessing the ability of the suppliers, the Company throws light on their performances on environment and social responsibility that are taken as standards for supplier selection and the proportion of the suppliers in conformity to environment and social responsibility increases year on year.
Management of indirect economic, environmental and social influences
As the decision-making and controlling center, by all means, the Headquarters of the Company conveys to the subsidiaries, branches and sub-branches the social responsibility, strategy and targets of sustainable development that the Company engages in and the relevant schemes of implementation. For instance, IRIS-2 operation system is adopted to regulate the behaviors of the staff in service, which provided the customers with more direct, more effective and wider service and intensifies internal control. By signing management agreement with the administrative department of the entrusted vessels, all the social risks and environmental risks that may be encountered in managing the vessels are identified, the mutual responsibility and controlling requirements are regulated, and the emergency handling mechanism is set up to deal with urgent cases, to reduce loss and to prevent pollution. By establishing quality, environment and occupational health and safety control system, the influence of environment, society and safety requirements are exerted on the related parties of the Company to make sure all the measures are taken. By setting up internal control, the Company inspects if the subsidiaries observe the operation discipline and controls the occurrence of violation. In 2005, the social responsibility management system was only established in the Headquarters to carry out the strategy and targets of the sustainable development. In 2006, the influence and the scope of the system will be expanded gradually. Notice will be conveyed to the branches, the sub-branches, the subsidiaries, and the administrative companies of the entrusted vessels, advertising and introducing the policy and regulations on implementing the Global Compact, demanding to take relevant measures to make sure the realization of the targets of the sustainable development. Meanwhile, the Company will collect and learn about the information on the set-up and implementation of the quality, environment and career safety control systems in the subsidiaries, the branches and the sub-branches and the information on certification. It is demanded that the mentioned systems be established step by step and pass examination, inspection and certification to meet the requirements of laws and regulations.
