SUSTAINABILITY
SUSTAINABILITY
World’s most admired company, CJ Logistics is actively involved in global standard CRS and CSV activities.
Social
SOCIAL
Safety and Health Governance
CJ Logistics is establishing a comprehensive safety management system based on approximately 130 specialized personnel within the Safety Management Office directly under the CEO. Specifically, in accordance with the Industrial Safety and Health Act, we formulate annual plans for the safety and health of the entire company, gaining approval from the board of directors. Furthermore, to actualize safety management as a top priority core value in the management, we are in the process of amending and promulgating the safety management policy, which includes the safety and health of all employees, including customers and cooperative company employees.
Diagnosis on Safety and Health
CJ Logistics is engaging in a wide variety of activities to identify and improve hazardous factors in terms of occupational safety and health in business sites. Hazardous Risk Factors Identification & Proposal Program allows the Company to regularly perform risk assessment and identify potential factors that may trigger harm to business sites. We also set priorities of the actions needed to address and remove hazardous factors that have been identified, develop action plans and implement them. All executives and employees take medical check-up to stay in good health and are supported with medical expense for treatment.
Enhancement of Safety Awareness and Training
CJ Logistics works together with Road Traffic Authority to prevent traffic accidents of executives, employees and delivery men, and spread traffic safety culture. To this end, we provide traffic safety training and engage in various other initiatives to build the foundation for a safe traffic infrastructure. Professional instructors give customized training to delivery workers at delivery sub-terminals focusing on traffic safety contents like Road Traffic Act, cases of traffic accidents to help delivery workers enhance their awareness on traffic safety and create an environment conducive to safety.
Furthermore, all executives and employees are subject to mandatory legal safety and health training every quarter either via online or in field depending on their work status. New employees, workers whose job requires special training, workers whose work activities changed, workers handling MSDS substances and personnel in charge of safety and health management are given a separate safety and health training organized by their respective business site or Safety Management Team.
Efforts to Improve Work Environment
CJ Logistics improved the safety of electric·firefighting facilities by taking safety measures for intensity of illumination, earth leakage breaker and earthing, fire detector and business sites in general. Various safety equipment such as protective cover in shear points and emergency stopping device in conveyor, which is a major facility, has also been newly put in place, thereby contributing to a safer infrastructure. In addition, all business sites are subject to regular safety improvement construction and inspection in order to create a safer environment through facilities improvement. The Company is also committed to building a better work environment for workers in logistics centers and enhance their safety by establishing and distributing standard guidelines for facilities management, improving protective measures for forklifts, and procuring and distributing protective gears, etc.
| Category | Activity |
|---|---|
| Smart work environment |
|
| Healthy work environment | • No Parcel Delivery Day for three days from Aug. 14th every year → Create healthy work conditions |
| Safe work environment | • Support subscription cost for employment insurance and worker’s compensation insurance → Subscription rate to employment insurance and worker’s compensation insurance exceeded 90% |
Efforts for Higher Customer Satisfaction
Customer satisfaction is maximized only when customers are provided with the service they are looking for. For customer-oriented service, CJ Logistics conducts annual satisfaction survey to all corporate customers via customer’s portal system and individual customers via mobile. Proposals collected from the survey are then reported to the Company’s management, Board of Directors and reviewed in accordance with the Company-wide risk management system before improvement activities are launched for higher customer satisfaction.
Higher customer convenience, development of centralized mobile application For consistent design, user experience to customers, greater convenience to customers, executives and employees, and efficient business management, CJ Logistics launched ‘mobile app integrated management project’ that develops and centralizes 22 mobile applications including ‘CJ Logistics Delivery App’ and ‘CJ Logistics HELLO App’. CJ Logistics is also the first in the industry to introduce learning-based AI chatbot, which responds to customer inquiries 24x7 and make customer experience more convenient.
(unit : %)
| Category | 2022 | 2021 | 2020 |
|---|---|---|---|
| Customer satisfaction | 76 | 76 | 77 |
Information Security Promotion System
Advances in IT and smart logistics services based on Digital Transformation environment are bringing change in the information security paradigm. In response to this changing environment, CJ Logistics took quick actions to establish an organization dedicated to information security. The Company also operates information protection committee headed by Representative Director who is responsible for information security and attended by CISO(Chief Information Security Officer) and executives in charge of customer service. The quarterly Information Security Council opens up discussions on measures to strengthen security system by sharing related issues. CJ Logistics operates privacy guidelines as per Privacy Act and other regulations pertaining to information security and openly keeps customers updated on collection, use and disposal of their personal information.
Strengthening Information Security Risk Management
CJ Logistics acquired ISO27001(information security management system) and information security management system certificates with which the Company is operating a system to constantly improve and manage the Company-wide information security risks.
The Company established the system to monitor hacking attempts from third-parties and take early response actions via Security Control Center. Operation service based on collaboration with CJ Group’s Information Security Center and elimination of weak points in the network represent some of our efforts to improve IT service and ensure information security. We require suppliers to sign agreement on information security compliance. Bills with personal information are szz aved and personal information shredded via a shredding company to make sure it is kept from being exposed or leaked in the course of parcel pickup/delivery. System handling personal information such as centralized delivery system is subject to personal information encoding and technical protective measures that are stricter than what is required by the legal standards are in place.
CJ Logistics provides online training on information security to all executives and employees every year and invested roughly 6.8% of IT Division’s budget in 2022 to building information security compliance management system and suppliers’ e-mail security system, etc. These efforts contributed to zero incidents on information security and legal violations in the last three years.
ISO27001 certificate
ISMS certificatePrivacy Protection and Activities to Enhance Privacy Awareness
CJ Logistics thoroughly complies with ‘Principles on Privacy’ it established for privacy protection and better awareness on privacy by executives and employees. In 2022, 5,944 executives and employees participated in training for two hours each while preventive training was also provided to spread awareness on privacy. In addition to training programs, the Company uploads security-related newsletters and quiz regularly on its intranet as part of the activities to build up privacy awareness.
At the same time, CJ Group’s Information Security Center supports the Company by checking compliance with privacy policies every year and identifying weaknesses in the Company’s privacy management.
CJ Logistics’ privacy Policies
CJ Logistics’ personal information is handled in the following procedures.
- 1. How is personal information collected?
- 1) Collection of personal information
• Mandatory information : minimum amount of information needed to provide service(name, contact number, address, etc.)
• Optional information : extra personal information collected to provide differentiated service. Basic service is still accessible to customers who declined to provide optional personal information. - 2) Use of personal information
• Access to service : provide additional service or information for user convenience or when using service
• Participation in customer event programs and subscription to CJ Logistics newsletter : notify winning lucky draw, present gift, send CJ Logistics newsletter
• Others : log-on IP address, cookie, service use date, use records and other information collected in the course of using service are automatically produced.
- 2. To whom are collected personal information provided to?
- Outsourcing : outsource handling of personal information matters to a third party for smooth and efficient service.
- Overseas transfer of personal information : transfer personal information collected from 1:1 inquiry or others overseas for storage
- 3rd party : provide private information to a third party for CJ Logistics service, which is subject to customer consent as required by law
- 3. How is personal information protected?
- Privacy Officer appointed by CJ Logistics protects customers’ personal information.
- CJ Logistics put forth technical measures for security of personal information through separate security function, vaccine program and firewall.
- CJ Logistics makes sure that only minimum number of employees is authorized with privacy access and executes internal control plan, which includes related training and security pledge.
- 4. How is personal information discarded?
- CJ Logistics selects personal information whose disuse has validity and discards them upon approval by the Company’s Privacy Officer.
- Personal information selected for disuse is discarded in the following procedures.
- ① Shred personal information printed in paper with a shredder or burn it.
- ② Delete personal information saved in a digital file with a technical solution that disables restoration of records
- 5. How can consumers seek consulting on personal information or make reporting?
- Please dial 1588-1255 or e-mail to privacy_cjl@cj.net when you need consulting on personal information or need to report.
Human Rights Management System
‘Human rights management’ is rooted down in CJ Logistics with the objective to prevent infringement of human rights of all members and stakeholders of the Company that may arise from business management and make the culture of respecting human rights an integral part of the Company. By doing so, the Company can preempt risks of human rights infringement of members and stakeholders. The Company’s decision-making structure based on human rights is demonstrated by a case of human rights infringement, which is subject to review by the Board of Directors as per risk management system. At the same time, the Company launches crisis response task force to come up with an immediate relief measure for implementation.
Human rights declaration
CJ Logistics strives to protect human rights of not only the Company’s executives and employees but also those of suppliers based on Declaration of Human Rights. Equal efforts go into making sure there is no infringement of human rights. At the same time, we demand pledge on code of conduct, which reflects human rights protection, to all suppliers when they enter into a contract with the Company or renew it.
CJ LOGISTICS HUMAN RIGHTS MANAGEMENT DECLARATION
We should put human rights a top priority based on the principle of Respect in business management and prevent human rights violations proactively. In the event of human rights violation, we should actively provide remedies by establishing a remedy system and actively strive for stakeholder participation in the process of operating the system.
CJ Logistics is a global comprehensive logistics company with a mission of to become a successful strategic partner with customers by designing an optimized SCM’ and a vision of ‘a global SCM solution provider leading the CPG and e-commerce logistics market with data-based technology capabilities’.
CJ Logistics has the core values and principles of Integrity, Passion, Creativity and ‘Respect’. CJ Logistics firmly believes that respecting the human rights of not only employees, but also various stakeholders such as customers, partners and local communities in all business activities is the first step in realizing those principles.
CJ Logistics announced that it complies with global human rights standards by joining the United Nations Global Compact (UNGC) and signing the ‘Women’s Empowerment Principle (WEPs)’. In addition, CJ Logistics respects applicable domestic and international norms and standards related to human rights, such as the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the Human Rights Management Guidelines of the National Human Rights Commission of Korea. Furthermore, we strive to comply with human rights, labor, and environmental laws and guidelines in each country or region where we are running our business.
To this end, CJ Logistics declares and pledges to put into practice ‘human rights management that guarantees human dignity and values’ as the standard of conduct and value judgment that all executives and employees of CJ Logistics must abide by.
- We, should put human rights a top priority based on the principle of Respect in business management and prevent human rights violations proactively. In the event of human rights violation, we should actively provide remedies by establishing a remedy system and actively strive for stakeholder participation in the process of operating the system.
- We, should prohibit any discrimination in employment based on disability, gender, religion, nationality, region, status, educational background, age, occupation, etc., and provide an equal remuneration and a work environment of mutual respect and consideration.
- We, should treat our employees humanely in all working environments concerning wages, welfare benefits, maternity protection, and others, and should not allow forced or child labor and human trafficking in any form.
- We, should guarantee the freedom of association, union activities and the right to collective bargaining of all CJ Logistics employees, and form a labor-management culture of shared growth.
- We, should ensure a safe workplace and work-life balance for our employees and stakeholders.
- We, should actively support the human rights protection not only for our employees, but also for our partners and their employees of our partners to prevent any human rights violation.
- We, should strive to prevent human rights violations of local residents where CJ logistics has its presence, conduct social contribution activities and cooperate with each other to promote the human rights of members of society.
- We, should comply with domestic and foreign environmental laws and strive to create an eco-friendly logistics system to achieve carbon neutrality.
- We, should provide the best logistics service to safely deliver customers' valuable assets with convenience.
- We, should strictly manage the personal information of our employees and customers in accordance with relevant laws and regulations.
CJ Logistics strives to listen to opinions and solve problems via various communication channels including its website (integrated reporting system), groupware (Tong-Tong-Tong), phone counseling for customers and online VOC to prevent any potential human rights violations during business activities. In the future, based on the practice of the above principles, we will actively support our human rights management to be realized by domestic and foreign stakeholders as well.
March 2022
CEO of CJ Logistics
SHIN HO KANG
Stronger Human Rights Due Diligence Process
CJ Logistics built due diligence process aimed at protecting human rights of all executives and employees, suppliers and joint ventures into 150 indicators in 13 areas based on international guidelines. This serves as the basis for the Company to discern and prevent potentially adverse effects that may arise during operation in the Company and the supply chain. By proactively responding to issues discovered and identifying potential issues on an annual basis, we are improving human rights due diligence process.
In 2022, the Company performed human rights due diligence to 40 business sites and five suppliers. We also have in place a process aimed at addressing grievances related to human rights or their infringement identified from due diligence.
Supply Chain Management
CJ Logistics selects and manages key suppliers with overall consideration into trading amount, relevance with key business, and replaceability of technologies, etc. The Company requires suppliers to comply with code of conduct when entering into contract with the Company based on which all executives, employees and suppliers shall comply with ethical standards in performing their duties. At the same time, the Company strives to build a responsible supply chain with supply chain assessment process to ensure fair and sustainable activities.
Suppliers’ Compliance with Fair Trade and Improvement Activities
Our logistics division has established the ‘Fair Trade Win-Win Agreement Operation Regulations’ to establish a fair trade relationship between employees and partners and make efforts to enhance the importance of mutual cooperation. In addition, we thoroughly comply with the ‘Monopoly Regulation and Fair Trade Act’, ‘Fair Transactions in Subcontracting Act and ‘Three Guidelines for the Fair Trade Co-prosperity Agreement’. The construction sector is strengthening fair trade order by selecting new partners via open competition on a regular basis through its own and credit rating agency websites once a year and conducting screenings according to the ‘comprehensive partner evaluation checklist’.
In addition, by complying with the ‘Construction Industry Framework Act’ and the ‘Fair Transactions in Subcontracting Act’, we are promoting quality assurance and smooth construction based on a fair and transparent trade relationship.
Partner Sustainability Evaluation and Compensation Provision
CJ Logistics engages in evaluation and improvement of sustainability. Such activities include evaluating labor, environment, safety and business ethics of suppliers across their business sites in terms of sustainability, management and finance, and sharing the results to suppliers for their feedback as well as reflecting them in policy execution. Construction Division performs regular evaluation to suppliers who have had trade relations with the Company for a certain period twice a year and comes up with detailed results by constantly updating construction evaluation process. In doing so, the Company strives to take improvement activities into action. Outstanding suppliers are then offered such incentives as reward, more bid opportunities and discount in performance guarantee insurance while poor-performing ones are asked to take actions for improvement. In the event of repeated violations, they are reflected in regular assessment as one way to encourage suppliers’ sustainable activities and supply chain.
Recruitment of Talents
CJ Logistics recruits talents based on CJ Group's HR policies and gives priority to children of war veterans and the disabled who have competency that CJ Logistics is looking for in accordance with laws related to employment protection recipients. The Company selects talents based on meritocracy and strictly observes internal regulations on ethical behavior to ensure transparency and fair operation of all recruitment procedures. We have no tolerance for discrimination based on gender, academic achievement, age or origin as stipulated in human rights declaration and labor-management agreement.
Talent Cultivation
All new employees joining CJ Logistics join onboarding, which is part of the Company's efforts to support their growth into professionals in logistics, construction, resorts and other areas. Logistics Division provides tailored training process across three phrases from entry-level training based on learning needs to team placement and onboard to help new employees grow into key talents. Construction Division provides basic entry-level competency training to new employees and regular mentoring for five months one year after joining the Company as a way to enhance their engagement and loyalty to the Company.
Aimed at enhancing core competency, Logistics Division at CJ Logistics helps executives and employees advance their competency by providing professional training program. Specifically, Logistics Division offers phased job curriculum based on a professional training system to cultivate key talents. In particular, the Company's program has a learning structure set by competency level to enhance competency in TES, IT and e-commerce, which are the Company's key business competitiveness. Construction Division operates construction engineering academy for competency growth from which the Company nurtures engineers armed with expertise and competency. The Company also operates a course to develop PM with the goal to cultivate managers in charge of construction sites and competency enhancement raining, and promotes in-house instructor development program to share such competency. All training programs are subject to satisfaction check and review later on to analyze their effectiveness while the results are reflected in setting the direction for training programs in the following year.
Fair Performance Evaluation and Compensation System
CJ Logistics strives to create a culture that lets all generations break out of the box and challenge themselves by offering a work environment where any competent and committed employee regardless of age, years of service and grade can become a leader This direction led to a simplified grade system from seven grades to four grades, which is aimed at following performance-based compensation and switching to a flexible organization based on job, role and project, and the Company conducting performance evaluation and 360° evaluation to all employees and a fair compensation system. We will continue to compensate employees well beyond their expectations not seen anywhere else by offering various opportunities for employees to be compensated for their performance and role, and promoting fair competition.
Employee-friendly Organizational Culture
CJ Logistics regularly conducts ‘Sweet & Salty Survey’, which diagnoses organizational culture to explore improvement. ‘Sweet & Salty Survey’, which is made up of 14 items with ‘intensity’, ‘cohesion’ and ‘dynamism’ by team as the three keywords, contributes to practical diagnosis of the culture. CJ Logistics complies with all laws and regulations on labor in the work environment as demonstrated by the introduction of flexible workhours, selective workhours and legal compensation for overtime work. By diagnosing organizational culture where all members of the Company can freely share their ideas, CJ Logistics will continue its efforts to build an innovative organizational culture that can be felt by everyone in the Company across ranks and files.
[Table. Satisfaction level of executives and employees(participation level)]
| Category | Unit | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Ratio of active participants | % | 77.8 | 79.0 | 71.9 | 81.7 |
Improvement of Welfare Benefits
CJ Logistics exerts efforts to create an employee-friendly work environment and particularly for women. The Company runs a wide variety of programs conducive to supporting work & life balance by introducing childcare leave eligible for employees whose child enters 1st grade and reduced workhours for childcare. We also provide full support towards female employees’ healthy childbirth by reducing their workhours during critical pregnancy periods and granting leave to female employees undergoing infertility treatment. At the heart of work & life balance stands CJ Logistics, which is dedicated to introducing various welfare benefits for executives and employees to help them enjoy life full of health, joy and convenience.
| Category | Detailed welfare benefits |
|---|---|
| Monetary support for congratulations and condolences | • Monetary support for congratulatory occasions, condolences and granting of leave, wedding car rental(vehicle and chauffeur), etc. |
| Support for pregnancy/childbirth | • Birth leave, infertility treatment leave/leave of absence, fetus examination, reduced workhours during critical pregnancy period |
| Child care support | • Childcare leave, reduced workhours for newborn care, childcare leave for child entering 1st grade, child schooling expense support, reduced workhours for employees with child entering 1st grade or in need of urgent care |
| Health support | • Medical expense support, medical check-up support, leave for medical check-up |
| ‘Refresh’ support | • Creative week(leave after specific years of service), Global knock(unpaid leave program for self-driven global training), statutory retirement leave, etc. |
Social Contribution Promotion System
As per the Company’s strategies for job creation, win-win with local communities and eco-friendly policies aimed at shared growth and sustainable management driving win-win, CJ Logistics engages in social contribution activities that are properly structured to measure positive/negative impact the Company’s business operation has on the local communities based on which to reinforce positive impact and mitigate the negative one. Major risks arising from the local community and social contribution activities are reported to the Board of Directors for approval/review.
Job Creation for the Vulnerable Class
CJ Logistics takes social issues such as poverty among the elderly seriously and subsequently makes efforts to expand engaging opportunities as well as create jobs for the elderly, women with interrupted career and the disabled who are all vulnerable class.
Delivery workers aged over 60 deliver parcels in delivery hubs in apartment compounds to final destinations via eco-friendly electric carts. By creating jobs for the elderly and providing improved delivery service to consumers through this business model, we strive to share growth between the Company and the communities where we belong. Silver Parcel Delivery, which we launched in 2013, created 1,400 jobs for the elderly since then. Recently, the Company diversified this business model by introducing Blue Parcel Delivery aimed at creating jobs for the disabled with auditory disorder in Jul. 2020 and Orange Parcel Delivery targeting job creation for career-interrupted women.
Eco-friendly Urban Forestation
With response to climate change and preservation of biodiversity growing in importance, CJ Logistics launched ‘CJ Logistics Urban Forestation’, which is an eco-friendly social contribution activity, with executives, employees and approximately 20 members from Seoul Green Trust engaged in creating a pleasant urban environment. The Company, which has already been dedicating itself to creating an eco-friendly urban forest through ‘Green Map Campaign*’, engaged citizens to turn ‘CJ Logistics Urban Forestation’ into an ‘eco-friendly campaign engaging citizens’. The Company planted 61 trees on empty land in Hanbit Park located in Samgak-dong, Jung-gu, 67 trees on Traffic Island next to Hanbit Park and 755 herbaceous flowers from 21 species of trees together with citizens to reduce fine dust and carbon emissions. Eco-friendly social contribution activities will continue unabated to build a more pleasant and refreshing urban environment.
Activities for Local Win-Win
The Company installed ‘Yellow Footprints’ in 30 crosswalks in school zones where daycare centers and elementary schools are located in Gunpo. This is to help children maintain safe distance when waiting for red lights in crosswalks to turn green and develop a safe behavior, thereby prevent traffic accidents. For elementary school students in lower grades, CJ Logistics handed out 1,000 ‘safe schoolbag cover’, which is an item safe commute to and from school.
CJ Logistics distributed portable sterilizers, hand sanitizers and other quarantine items to senior centers in Yiwon-myeon together with Yiwon Young Adult Group to prevent COVID19 and create a safer living environment for those in need of better health. The Company went further by engaging in the warmhearted donation activities for residents in Goryeong-gun who are fighting cold in the winter season.
Faced with the persisting COVID-19 pandemic and the subsequent shortage of blood, CJ Logistics encouraged blood donation to executives and employees out of whom roughly 400 reached out and donated blood donation certificates to Korea Leukemia and Childhood Cancer Association. Aside from this, the Company encourages all members to join in the volunteering activities for blood donation every month to help leukemia and childhood cancer patients in need of blood. CJ Logistics has been delivering 1,000 goods used in Salvation Army’s fundraising for charity to more than 300 Salvation Army stores for free over the last eight years. In recognition of delivering Salvation Army’s bell of hope every end of the year, the Company was presented with plaque of appreciation from the Salvation Army.
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