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    1.Management approaches
    2.Performance indicators
  1)Direct economic value created and distributed by COSCO Group
2)Financial inputs for climate changes
3)Fixed welfare plan
4)Financial supports provided by the Government
5)Minimum salary and comparison with the standards
6)Procurement and supplier
7)COSCO Group's procedures of employing local employees
in important operation regions and the proportion of local
senior executives
8)Infrastructure investment and services for public welfares by providing materials or free professional services through commercial activities, and the influences
  9)Important indirect economical influences
     

 

 

COSCO Group accepts the obligation of "comprehensive development and establishing its leading positions in international shipping, logistics business, terminal operation and ship-building/ship-repairing industries, keeping the honest and trustworthy relationships with customers, employees and partners, and bringing best returns to shareholders, the society and the environment, and fulfills its responsibilities as corporate citizenship by taking technology as a tool and benefits as the core while adhering to the human-oriented and market-oriented principles. It sticks to the twin drivers of production operation and capital operation to make international shipping business stronger, expand logistics and terminal business, and develop the ship-building and ship-repairing businesses. With shipping business as the basis, COSCO Group propels its transformation from a global shipping carrier to a global logistics operator and international shipping logistics system integrator and from a cross-border business player to a transnational company and global conglomerate, so as to build harmonious and evergreen COSCO and fulfill its healthy, fast and sustainable development.
Since 2004, profits of COSCO Group had exceeded RMB 10 billion for five years in a row. COCSO has been rated the A-class in annual inspection of the State-owned Assets Supervision and Administration Commission for successive three years from 2004 to 2006 and was rated as A-class again in three-year tenure again in 2007. In 2008, it was also rated A-class in annual evaluation again.
While keeping its economic performance, COSCO Group also paid back to society by establishing and running the charity foundation.

 

COSCO Group headquarters establishes the decision-making quality management system with ISO9000 as the framework, bringing decision-making management and objective management into the system. It also promotes comprehensive risk management system to control decision-making and operation risks. Besides, it adopts lean management to optimize business flows, reduce wastes in operation and reduce operational costs. All shipping, logistics and ship-building/ship-repairing subsidiaries also gradually establish and implement the quality, environment and occupational health & safety management systems to bring the decision-making, production and management processes into system. They also commenced the establishment of comprehensive risk management system to control decision-making and operational risks.
 
COSCO Group headquarters and its subsidiaries have set up special departments for the management system, and assigned the decision-making and management functionalities to each functional department through the Working Standards. Office in the COSCO Group headquarters is responsible for system maintenance and control of the headquarters. The Strategic Development Department is responsible for assignment of their targets to its subsidiaries and for supervision and evaluation on annual production and operation objectives of its subsidiaries. The Supervision Department is responsible for audit of operational performance of its subsidiaries. The Transportation Department, Safety Supervision Department, Accounting Department and other departments of the group are responsible for guidance, supervision and inspection and for establishing strategic partnership with related parties.
Subsidiaries of COSCO Group shall sub-divide the objectives assigned by the headquarters layer-by-layer, and analyze and report the fulfillment progress to the headquarters on a monthly basis. The offices in second-tier companies shall be responsible for system operation and maintenance, while functional departments are responsible for business expansion and implementation of production activities based on their respective work as well as related system documents regarding contract control, transportation & production service, procurement control, and working procedure control.
 
COSCO Group has established the Employee Training Procedures and identified employees' training needs from corporate development strategy, business demands, basic information of employees and career development. Each year, it formulates training plans, establishes mechanism and put special money to carry out multiple-formed trainings, and facilitates communications of all layers by ways such as meetings, internal information network, newspapers and news briefs. Subsidiaries of COSCO Group formulated annual training plans of the companies based on annual training plan of the headquarters and in combination with their practical situation. Trainings were organized to improve occupational quality and working skills of employees and ensure the effective fulfillment of the group's strategies and objectives.
 
COSCO Group's supervision over economic performance is fulfilled by following ways: First, evaluation and constant improvements on decision-making processes through after-decision evaluation, internal audit of management system and management evaluation; Second, daily and annual inspection through establishment of annual operational objectives, balance score card, performance indicators and other indicator systems; Third, audit supervision and effectiveness supervision over operational performances conducted by specific audit & supervision departments of COSCO Group headquarters and its subsidiaries; Fourth, operational supervision and control of management system; Fifth, first-party audit conducted by COSCO Group headquarters on its subsidiaries and second-party audit conducted by the subsidiaries on the headquarters.
The comprehensive management systems regarding quality, environment and occupational health & safety on COSCO Group headquarters won the jointly certification of DNV and CCS Quality Assurance Company. With the establishment of the Global Compact and sustainable development management system, quality, environment and occupational health & safety management systems were further improved.
All subsidiaries of COSCO Group has started to establish quality, environment and occupational health & safety management systems and organized related certifications (Please refer to following table for management system certification status of the companies.) The table below shows establishment and operation status of quality management system (according to ISO9000 standards), Global Compact sustainable development management system, and information safety management system of all companies.
 
COSCO 2009