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1.Management approaches
2.Performance indicators
  1)Investment and purchase
2)Non-discrimination
3)Freedom of assocation and collective negotiation
4)Child labor
5)Enforced and compelled labor
6)Safety and security
  7)Rights of indigenous people
 
 
HUMAN RIGHT PERFORMANCE INDICATOR AND KEY REPORT
Management approaches
1. Objectives and performances
Guided by the systematic development concept, COSCO Group strives for the goals to "establish a long-lived company" and to meet the requirements of the second performance evaluation period implemented by the State-owned Assets Supervision and Administration Commission. Abiding by the national rules and regulations applicable to the company, the international agreements and labor standards affirmed by the Chinese Government and other applicable industrial standards in terms of investment and purchase, non-discrimination, rights to free association and collective negotiation, child labor, forced labor, security guarding and indiginous rights, etc., COSCO Group fulfils its commitments to respect human rights, prevent child labor, practice non-discrimination, and protect the rights of the local people, and so on. The trade union, acting on behalf of the employees, communicates and negotiates with the company's administration on issues related to the employees' interests and rights, so as to protect the employees' rights to free choice of employment, resignation, and labor freedom, etc., and to promote a harmonious and stable employer-employee relationship that boosts the company's development. COSCO Group attaches great importance to the human rights investigation on its suppliers and contractors. The human rights problems on the part of important suppliers and contractors may undermine COSCO Group's prestige, and/or result in unstable supplying. Therefore, COSCO Group conducts investigations on its suppliers and contractors to lower the company's management risks. In 2007, COSCO Group won the title of "Pioneer in Transparent and Democratic Administrative Management in China."
2. Policies and regulations
Implementing the State Council's Directives on Matters of Migrant Workers, COSCO Group solved the problems related to migrant workers, boosted the development of the company, and maintained social harmony and stability. The Women Workers' Committee actively protects the legal rights and special rights of female employees outlined in the rules and regulations for the protection of women workers. The corporate labor union signs collective agreements with such departments as the Department of Human Resources, protects the legal rights of the company and its employees, and maintains a stable and harmonious labor relationship. COSCO Group has formulated the Open Business Procedures and COSCO (Group) Headquarters Open Business Provisional Regulations, and accordingly, the subsidiaries have formulated practical plans and enforcement regulations in support of the establishment of a harmonious enterprise. With its robust personnel management system, COSCO Group prevents child labor and all forms of discrimination. The legitimate interests of the local people in COSCO Group's operational areas are protected, and the company's relationship with the local people properly dealt with. Furthermore, COSCO Group makes full use of the IT system and the Internet to promote the Global Compact, familiarizing the employees with the importance of the Global Compact to the development of COSCO Group and encouraging them to take active parts in the implementation of the Global Compact. IT is used as a tool for the realization of people-oriented business, and the Internet as a channel for communication. The employees are encouraged to participate in the management of the company's affairs and to contribute in their own ways to the sustainable development of COSCO Group, which demonstrates the company's respect for human rights.
3. Organization and responsibilities
The subsidiaries of COSCO Group have established their respective Employees Representative Conference for democratic management. The relevant competent authorities in each subsidiary, such as the Department of Human Resources, implement employee management policies. The company recruits new staff openly according to work needs, signs contracts of labor and establishes labor relations with the employees on principles of equality, voluntarity and mutual agreement and in accordance with the law. Child labor is firmly prevented according to the relevant national laws and regulations and COSCO Group's recruitment policies. Internally, all the employees enjoy equal opportunities at work, and male and female employees are entitled to equal pay for the same work. COSCO Group's Trade Union is responsible for the organization and implementation of the open business policies, and the secondary trade unions are responsible for the specific work. Public mailboxes and complaints handling systems are in place at every COSCO subsidiary, dealing with complaints from the employees with regard to human rights issues. Women Workers' Committee is established within the Trade Union to handle issues related to female employees and to protect their legal interests. Also, COSCO Group has introduced the management approaches for overseas companies which outline the regulations and requirements for overseas companies to comply with local laws, respect the manners, customers and rights of the local residents, etc.
4. Training and communications
COSCO Group enhances the employees' awareness of human rights and rights protection by organizing a variety of training programs and familiarizing the relevant employees with human rights and rights protection knowledge. To improve the company's capabilities to help the employees protect their rights, COSCO Group attaches great importance to the training of Trade Union cadres, and organizes a variety of training activities for the cadres every year to improve their comprehensive quality. The Trade Union organizes trainings for the officials responsible for the open business policies and labor protection supervision annually, so as to improve their abilities to protect the employees' legal rights. Meanwhile, the employees working in such section as the Department of Purchasing are given training in human rights knowledge. The human rights clauses in the purchase contracts are improved and assessments are carried out for the suppliers' human rights environment. The subsidiaries focus on the continuity of training policies in regard to safety management system, contract fulfillment, "Three 300s," and the arrangement for retired employees, employees on leave, and dismissed employees, etc. Guiding the practical work with solid knowledge and policies, COSCO Group establishes its sustainable development information management platform, makes full use of the Internet to promote the human rights concepts in the Global Compact, and strives for the realization of sustainable development of the company.
5. Supervision and certification
COSCO Group's Trade unions at different levels, formed by the employees on voluntary terms, not only protect the company's collective interests, but also work independently according to the Trade Union Law of the People's Republic of China and the Constitution of the Trade Unions of the People's Republic of China to represent and protect the employees' legal rights. The focus of human rights protection has shifted from the specific difficulties and problems of the employees to their fundamental interests and the establishment of rights protection mechanism. COSCO Group has formulated the Implementation Methods for the Supervision and Evaluation of Open Business, enhancing the supervision and evaluation systems and clarifying responsibilities. The implementation of the open business policy is regarded as the most important prerequisite for the evaluation of advanced companies, the performance of the company's open business assessed methodically and the quality improved significantly. Through such mechanisms as democratic management supervision, safe production supervision and labor safety supervision, etc., the employees' rights, the recruitment policy and the implementation of human rights obligations in the processes of purchasing are supervised, evaluated and brought into the overall assessment system of the companies. Meanwhile, the employees supervise, manage and implement the tasks at work through the Employees' Representative Conference, and they also offer suggestions for the implementation of human rights protection.
 
 
Cosco 2008.09