B. Management measures and
operation indicators

Part I. Analyses for strategies, risks & opportunities | Part II. Company administration structure
Part III. Participation of stakeholders
| Part IV. Major policies and management syste
Part V. Achievement indicators and keynote report

Achievement indicators and keynote report
 
I. Economic achievement indicators and economic report
i. Management measures
ii. Performance indicators
 
Direct influence
 
Indirect influence
II. Economic achievement indicators and economic report
 
i. Management measures
 
ii. Performance indicators
III. Social achievement indicators and social responsibility report
i. Labor
Management measures
 
Performance indicators
ii. Human rights
Management measures
Performance indicators
iii. Society
Management measures
Performance indicators
iv. Product responsibility
Management measures
Performance indicators
 
III. Social achievement indicators and social responsibility report
iv. Product responsibility: responsible for consumers, establishing harmonious supply and demand relationship
2. Performance indicators

(1) Consumer health & safety

COSCO’s transportation displacement service and logistics service belong to the service industry. On the premise of assurance for cargo safety, the group is supposed to ensure safety and no accident for the whole course of the service. In terms of shipbuilding and ship-repairing, the group should guarantee the ship quality first of all, and at the same time to ensure no use of poisonous and noxious materials, so that the health and safety of the ship users could be guaranteed. COSCO Group has been promoting the adoption of “Green Passport” for ships. From next year on the group will establish green documents for newly built ships and drive shipbuilding plants to jointly implement it.

(2) Products & services

Based on clients’ requirements, COSCO Group builds special ships, designs and develops shipping routes, launches fast and green shipping service, etc. As China’s largest shipping enterprise, the group pays high attention to the transportation of national resources and energy, and will actively develop resource and energy transportation business, which is taken as the important content in its development strategy. The group has successively signed strategic partnership agreements with large state-owned steel enterprises, petroleum chemical enterprises, power enterprises, coal enterprises, etc, which have been put into implementation. In 2004 COSCO Group started to build China’s first VLOC with 320,000 tons of carrying capacity, and has build up and owned China’s first VLCC and LNG special transportation vessel.

        Special ship built for client        
       

        Special ship built for client        
           

With the establishment of its transportation & production statistics system, COSCO Group has realized standardization for statistics indicator and scope, and therefore has the capability to provide related data accurately and in time for both internal and external clients of the group. In addition, the group is able to update and correct related indicator requirements according to the actual needs of the enterprise’ internal and external development, therefore is capable to provide more considerate service for clients.

According to the needs of production, COSCO Group has successfully developed out the ship dynamic management system with its pioneering spirit. With the development of the system, the group has realized innovation for ships from passive management to active management. What’s more, the group can now manage the procedures of ship production more completely and punctually. Therefore the group has improved its management efficiency and could better satisfy clients’ requirements.

The COSCO Enterprise Culture Compendium stipulates COSCO Group’s standards for public relation behaviors as follows:

Counter/Window staff should be smiling, absorbed, patient and polite to clients.
On-site service providers should be passionate, considerate, timely and keeping promise
?meeting with clients:
When meeting with clients, employees should be in good preparation for information, dating on time, absorbed, and have cordial communication.

Operators of the telephone exchange are supposed:

Operators of the telephone exchange are supposed to be rapid, active, standard and kind. The unsuccessful call connection is supposed to close after the caller gives up. Employees should be standard and polite when speaking on the telephone. He or she is not allowed to terminate the call before the other side buzzes off.

Vehicles of COSCO Groups are obliged to strictly follow traffic regulations. Companies with financial base should have the enterprise’ logo on the vehicles.

(3) Advertisement

The COSCO Enterprise Culture Compendium
stipulates the principles for employees to face with public opinion: be faithful to the public, and trying to take the public opinion as a good opportunity to shape good image. When COSCO Group is in a disadvantageous position or the image is damaged, employees are supposed to adopt replying policies, turn from passivity into initiative, and reshape a new enterprise image during the course of crisis elimination.

Adopting the 45th anniversary of COSCO as a good opportunity, the group has held a series of celebrating activities, including special programs on labor models, shipping seminar, broadcasting of COSCO online TV, anniversary celebrating party, etc. All these activities have not only promoted the internationalized image of the group, but also improved employees’ pride with COSCO.

        Celebrating ceremony for COSCO Group’s 45th Anniversary        
           

(4) Respect to privacy

COSCO Group has implemented the ISO17799 Information Security Management System Standard and established its information safety management procedure. It has also established the Secrecy Committee, which is responsible for the secret keeping. At the same time, the group has signed confidential contracts with employees, demanding them to have proper management for the information of clients and related parts, and give respect to the privacy of related parts. So far no complaint about the privacy has been launched.

(5) Abiding by law

COSCO Group has been in lawful management and faithful operation, maintaining legal rights and interests for clients and consumers, trying to provide more secure and convenient quality service with higher efficiency. These great efforts have won good public praise from the industry. In terms of product and service provision and adoption, the group hasn’t suffered great financial penalty due to violation of related laws and regulations.

 
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COSCO Group, October 2006