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A.General introduction B.Strategy
and management
C1.
Econom
C2.
Environment
C3.
Products
C4.
Labors
C5.Human
Rights
Third party auditing opinions Table of Articles in GRI Report Guidance
   
      Management measures
      Performance indicators
  1、 Community
  2、 Anti-corruption
  3、 Public policies
  4、 Anti-competition behaviors
  5、 Compliance
 
 
1  Community
■ Establish good and friendly cooperation relationship with communities when entering communities

Before entering communities, COSCO's subsidiaries will actively seek communication and negotiation with community representatives (such as administrative governments, management associations, public welfare organizations and related suppliers) to understand the compositions of the communities, decide the positioning of the company and establish good and friendly cooperation with communities in accordance with different situations of communities No matter in office buildings or specific operation locations, all COSCO's subsidiaries can follow the existing requirements of the current community environment and establish good relationship with community representatives or public welfare organizations to effective prevent any damages to the communities.
As of the end of 2006, COSCO's subsidiaries had all established good cooperation and common development relationships with the communities where they are located, which is closely related to the cooperation with communities advocated by COSCO. In future, COSCO will continue following this principle to maintain its friendly cooperation relationship with communities.

■ Pay attention to current status of communities and find the entry points to make contributions to communities
Based on the sustainable development philosophy, COSCO initiatively seeds the entry points to make its contribution to the communities in accordance with the current status of the communities. In 2006, COSCO invested RMB2.2 million in community construction. COSCO's subsidiaries expressed their concern about the communities and their drivers to the development of communities:

(1) Organize the youth volunteer events to fully build the social accountability and mission for employees

Youths are the future of the enterprise and also the future of the society. Youths that are accountable to the society will also have a strong sense of accountability and mission for the enterprise. Therefore, COSCO's subsidiaries established the youth volunteer service teams to hold various social activities, cultivate their virtue of serving the society and enhance their ability to understand the societyand serve the society, thus providing favorable opportunities for young employees to take the social responsibility and build social
images. For instance, the youth volunteer service team of COSCO Container Lines proactively took part in the public welfare activities of communities. Considering the traffic jam in Shanghai, the youth volunteer service team sends its members regularly for maintaining the traffic order in the city, returning to the society with their own moves while lifting the company's brand image.

(2) Energetically build harmonious atmosphere in communities through joint efforts of the army and the masses

Since its inception, COSCO has been energetically promoting the joint efforts of the army and the masses. With the principle of òmutual learning and help, friendship enhancement, joint advancement and common developmentó, COSCO's officials including Capt. Wei Jiafu, Zhang Fusheng and Li Yunpeng, condoled the armed policemen who were safeguarding the Tiananmen Square at the Spring Festival andextended their warmest greetings. The two parties also signed the Agreement on Jointly Cultivating Socialist Spiritual Cultivation.
Demobilized soldiers of COSCO Logistics inherit and develop the glorious tradition of the military and the brave spirit to make contributions to the development of the enterprise. In recent years, the company has been cooperating with military units including CPC Central Guards Regiment, the armored division of No. 38 Group Armies, China Institute of Space Medicine Engineering, Exercising Brigade of Beijing Garrison, Armed Police Force Department of Fangshan District of Beijing and Song and Dance Ensemble of the PLA General Political Department, building deep friendships and making great achievements.

(3) Actively push environment protection in communities to improve the environments of communities with practical moves.

COSCO's subsidiaries have been proactively taking parting the activities of improving the environment of communities, making their contributions to the improvement of the biological environment through donation or plantation.
COSCO Xiamen invested RMB230,000 in 2003 in Huwei Mountain of Xiamen to construct the COSCO Forest mountain park, and the company added RMB20,000 in 2005 and 2006 to maintain the
COSCO Forest. After years of efforts, the hollow mountain with an area of 25 Mu (a unit of area) on Huwei Mountain has become a beautiful outdoor and rest place for tourists, playing a demonstration role in improving the biological environment in Hubin North Road of Xiamen.
In addition to the appropriation for plantation, COSCO's subsidiaries also organize employees to contract the hollow mountains for plantation. Employees donate voluntarily for sand control and plantation, and employee representatives are invited to visit the achievements. In 2006, COSCO Dalian organizes over 40 young employees to engage in the plantation of òCOSCO Dalian Youth Forestó in Shabao County, Pulandian of Dalia, with 200 COSCO-branded evergreen trees rooted on the originally hollow mountains; COSCO Real Estate Development organized nearly 100 employees to the voluntary plantation activity themed òCherish Society, Return to Societyó, planting 80 torches and mulberries on hollow mountains in Yanqing, Beijing.

(4) Control of industrial production-related noises
Located in downtown Nanting, Nantong COSCO KHI Ship Engineering is a heavy industry enterprise that in involved into iron and steel. The company's leaders have been concerning how to reduce the influence of the noises on nearing residents. In 2006, aiming at the noises due to section-based conveying and turning over the steel plates, the company invested over RMB4 million to make the open-air-span at the right of the workshop fully closed, thus fundamentally eliminating the influence of noises on the communities and enabling good sleep for neighboring residents. During the 2nd-phase engineering construction, the company adopted the noise-free pile driver of hydraulic pressure and fully-closed construction at the side nearing the road to avoid the extension of the noises along the road during the section-based production. Despite that the cost increased, the company earned the satisfaction of the neighboring residents and promoted the community harmoniousness.

(5) Control of ship-related noises
Eliminating and reducing the noise pollution during the operation of ships has been a subject researched by COSCO. From the initial stage of the building, COSCO strictly follows the requirements of ship-building and classification, achieving the 100% of up-to-standard rate. In addition, COSCO also invested human power and material resources to reduce the pollution of ship-related noises to environment and people, which has achieved significant effects. For instance, workers in engineering room, the noise source on board, are equipped with free-noise ear muffs; the engine room bulkhead is separated from the living areas of seamen, and some equipment are equipped with muffles.

(6) Control of vehicle-related noises
When buying vehicles, COSCO's logistics, ship-building & ship-repairing companies pay much attention to the noises of vehicles and strengthen the maintenance for vehicles to keep them under normal operation and reduce noises. In 2006, the up-to-standard rate of vehicle-related noises was 88.89%.


(7) Influence of large logistics goods during transport

Before transporting the goods, the company will investigate roads, bridges, residents' communities and major lanes involved into the transport; during the transportation, the vehicles will be driven slowly as much as possible in accordance with the investigation results, kept away from downtown areas and resident communities to avoid any trouble to residents due to vehicle noises.
■ Participate into community activities via other methods to perform social responsibility

COSCO's subsidiaries participated into social and community activities to perform their enterprise social responsibilities.

(1) In 2006, COSCO Xiamen bought tickets (RMB 5,000) and organized employees to watch the entertainment evening performed by disabled persons in a bid to the take parting the event of "Donate Love to Help Disabled“

(2) During New Year's Day and Spring Festival of 2006, CHIMBUSCO condoled 780 employees (including 215 retirees) and 40 vessels with total consolation funds amounting to RMB 3.39 million (RMB 3.314 million for retirees) and 70 leaders involved into the heart-warming activities. COSCO built a good social image through the consolation to employee families in the employees' communities.
(3) During the Children's Day on Jun. 1, 2006, COSCO Shipyard donated RMB50,000 to the parents of Wang Kuixu in Dalian who suffered from leucocythemia, expressing the enterprise's caring for vulnerable people.
(4) COSCO Qingdao extended their caring to seamen's families through visiting, workshops, sodalities and others; the company's officials personally led teams to hold large-scale and cross-region visiting activities; established archives for seaman employees in need and the heart-warming fund to motivate employees' voluntary donation for helping needy seamen especially poverty-stricken seaman employees; formulated and improved the system for seaman families and established the Registration Book for Seaman Families and Milestones of Seaman Family Liaison Network, improved the seaman family liaison networks, regularly held the routine meetings for family liaison networks and special topic meetings to timely guide the family liaison networks' work, encourage family members o participate into the safety activities for seamen on board, which were highly recognized by seamen and their families.
 
 
 
Cosco 2007.12