I. Overview VI. Social performance  
II. Statements of the general manager VII. Economic performance  
III. Long-term prospects and strategies VIII. Report of third-party auditing advices  
IV. Framework and management system IX. A comparison of terms used in report and GRI guidelines  
V. Safety and environmental performances    
 

Part C: Report of COSCON, a pilot unit of sustainable development of COSCO

Economy
Entironment
Society
VI. Social performance
 
Labor relations
Employment
Trade union
Health and safety
Training and education
Diversity
Human rights
Society
Product responsibilities
Health and safety of consumers
Products and services
Respect of privacy
Social responsibilities
 
Product responsibilities---Social responsibilities

a) Assistance for poor employees and their families

The civilization degree of an enterprise covers two parts. The first part is the degree for its strong group to be paid attention outside of the enterprise while the second part is the degree for its weak group to be cared inside the enterprise. In order to care the family lives of the poor employees, the company formed the living standard security mechanism for the poor employees by making COSCON Helping Poor Employees Foundation Constitution, and COSCON Poor Employee Children Educational Foundation Constitution to set up the Poverty Relief Fund and Education Fund to ensure the basic lives of the poor employees. The company launches the activity of “aid the poor, help the difficult and deliver warm” to console the poor employees and poor labor examples and provide the interdependent medical aid for them.

In order that every poor employee family lived a peaceful spring festival, the leaders of the company made up of over ten consolatory teams to bid farewell to the old and usher in the new with seamen in the holidays of the New Year and the Spring Festival last year. Statistically, total eight high ranking cadres, 47 middle ranking cadres and 318 basic ranking cadres jointly consoled 1164 poor employees, covering 99 extremely poor employees, 32 ships, 21 basic units and over 300 seamen. The total amount for the consolation and assistance reached RMB751, 700.

 
Company Leaders Console Seamen on Board

b) Care for seamen and their families

In order to improve the nautical abilities required by the positions, the company invested in building the “quality engineering” education & training base based on the characteristics of the seamen to provide a location for the off seamen to improve working abilities and learn new knowledge, helping them continuously update knowledge and improve the working skills.

In order to help seamen keep healthy and based on the limitation of their working location, the company edited and made the disk of knowledge for nautical nutrition and health, delivering the propagandistic healthy material to the ships to bring convenience to the lives and work of the seamen.

In addition, the company set up rest rooms and reading rooms for seamen to wait for ships and arranged some of their family member to be on board with them. The company arranges some seamen and their family members for relaxation and recuperation each year, caring the physical and psychological health of seamen.

The company established 65 nautical family l iaison stations to help nautical families with difficulties to solve the troubles back at home of seamen. These nautical family liaison stations have helped over 2,700 nautical families from 28 counties of 8 provinces keep in touch with each other, providing activity spots for enhancing the contact among the family members of the employees and enriching their amateur lives.

large-sized consolatory activity was launched for seamen and their family members. Total 125 consolatory teams with 148 persons have consoled 3128 nautical families in over 484 counties of 21 provinces since 1998.

Hiring 125 employees from the regions in poverty in 2003
Hiring 173 employees from the regions in poverty in 2004
Hiring 50 employees from the regions in poverty in 2005

 
Company leaders console nautical families
The company hires Tibetan employees

c) Social charity action

Our company actively participates in the social charity action. For example, 7007 employees were involved in the donation to the disaster areas caused by the Indian Ocean Tsunami with total RMB610K was donated. In addition, during the fundraising activities of helping poor regions in Yunnan & Jiangxi Provinces and the stricken regions in the Yangtz River area, and the activity of aiding Tibet , relieving poverty and contributing love, etc., total 11,011 employees donated several millions with 1703 persons contributing 4847 clothes and quilts to the people concerned.

The company also set up the system of one-day donation, that is, every employee donates one-day wage to the corporation foundation of relieving poverty to help the poor employees in the company.

Finally, our company actively takes part in the activity of social voluntary blood donation, with near 400 employees involved in the activity each year.

 
Donation to the disaster areas caused by the Indian Ocean tsunami

  d) Programs of poverty relief & student assistance

Programs of poverty relief & student assistance have been carried out to assist the students in some employees' families that are in poverty. Employees from 35 departments and units involved in the programs have taken active part in the programs. And a connecting system with appointed persons has been established and completed to deal with daily communication and connections between the grant-aided students and the company. More than120,000 yuan had been donated by the staff and was sent to 44 students in need of money in time. And we also care about their studies and daily life actively. Youth volunteers have been organized to help them with their homework and to communicate with them and their family members face to face or by letters. We also displayed the great initiative to help them and solve their troubles, and we encouraged them to study hard and to grow up to be skilled persons depending on their knowledge and abilities so as to serve the society and their families in the future. To help the students in some especially poor families in our company, an education fund was established. And records about those especially poor employees have also been established and are managed dynamically according to their different grades and types so that every child of the staff can get the help from the fund to continue their study. Meanwhile, another fund is set up for the dead employees' families to solve the financial problem in those families and the allowance is given to them at regular intervals. Every year 50 students from the poor employees' families can get financial aid from our company to go back to school. And the total amount has been up to RMB 200,000 since 2004.

In 2005, the trade union presented 172 books to the grant-aided students twice and convened a face-to-face meeting with these students as well as an informal discussion, which have helped the financial aid programs develop healthily on the basis of communicating, understanding and exchanging. 9 students out of those who get the help from the company have attended the colleges and universities by the end of 2005.

 
Program to help the poor and support the education
Program to help the poor and support the education

e) Volunteer services

The youth is the future of an enterprise and also the future of the society. And those who have the sense of responsibility to the society also have the strong sense of responsibility and mission to their companies. Therefore, a youth volunteer service group has been organized in our company. It provides opportunities for the young employees to do some meaningful work to the society, to take on some social responsibilities and to set good examples to the society. Good characters have been trained among the youngsters, and it also gives opportunities to the young men to know the society better and serve it. The youth have been aroused the enthusiasm to take care of others and help others after their attending the activities to serve others. They also learn to relieve others of worries and help solve others' problems. The volunteer service group also takes an active part in some useful community activities. And some volunteers are sent at regular times to help keep the traffic flowing in Shanghai as the traffic in Shanghai is too heavy.
 
Volunteers help to keep the traffic flowing

f) Internal communication

Exchanging Procedure of Information has been drawn up, which includes the ways and requirements of internal consultation and communication. As a result, an effective way to communicate between the companies in COSCO has been set up and two-way flow of messages has also realized.

n order to get a deeper understanding and enhance the communication between the employees working in branch companies and those working in headquarters, in 2005, our company carried out an activity, which was titled “Increasing the Cohesion and the Spirit of Hard Struggle”. Some excellent employees of cargo collection working in branch companies came to the headquarters to attend this activity. They are all extremely outstanding employees on the ground floor in their companies. They were brought to visit the headquarters of the group, COSCO Shanghai (the ship), the information center and the 5th office of COSFRESH (COSCO) in Waigaoqiao. And they also discussed with one another about such aspects as marketing, adjustment of shipping space, etc. After the activity, the employees coming from the branch companies have a better understanding of the headquarters and ships. Furthermore, it will help the employees to set up the idea of overall situation and thus can promote the company to carry out businesses more smoothly in later time.


 
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COSCO Group, October 2006