World’s most admired company, CJ Logistics is actively involved in global standard CRS and CSV activities.
Our corporate-wide risk management organization is composed of the Heads of business divisions and business planning managers under the CEO.
In addition, we respond to risks by establishing a Task Force which includes the CEO, and consists of the Management Support Division, the Strategic Support Team, and the HR Support Team.
Risks that have a significant impact on our business operations are categorized and managed accordingly, and in case of any issues or incidents, we have established a process that enables immediate response through timely internal communication. In particular, we introduced a mobile reporting system that allows us to report immediately regardless of location and time. By doing so, we are able to receive notifications of risks that arise at overseas work sites and take prompt measures as necessary.
CJ Logistics Risk Response by Stage
CJ Logistics classifies risks into financial and non-financial categories in the course of its business management and conducts comprehensive monitoring.
|Classification||Risk Types||Risk Factors|
|Business||Operational Risk||Designing organizational process, etc.|
|Market Risk||Currency rates, interest rates, liquidity, etc.|
|Regulatory Risk||New systems and policy revisions, etc.|
|Employees||Labor Risks||Strikes, slowdowns, labor disputes, etc.|
|Compliance Risk||Unfair practices, embezzlement, bribery, sexual harassment, etc.|
|Safety & Environmental Risk||Personal injuries, equipment accidents, environmental pollution, natural disasters, etc.|
|Customers||Customer-relations Risk||Complaints, objections, etc.|
|Security Risk||Security breaches, system failures, etc.|
As a global total logistics solution provider, CJ Logistics strictly adheres to local tax laws and policies of each country in which the company operates its business. In addition, we make tax-related decisions in coordination with the business units in charge.
CJ Logistics defines risks that may have a significant impact on its business operations as mid- to longterm risks.
|Intensified competition in the global market||In the logistics industry where network-based transportation services are provided, competitive advantages are determined based on new bases, adoption of new technology and service innovation. As competition increases due to the growth of the global logistics service industry, a mid- to long-term approach needs to be followed.||We are focusing on differentiating our services through continuous R&D efforts while developing new markets and expanding our business areas based on new global bases through M&A. In addition, we are committed to improving quality and brand reputation to secure competitive edges in the market.|
|Response to climate change||Response to climate change emerged as a growing concern in the international community. While government regulations such as the GHG target management system and the emission trading system are evolving, the energy paradigm shift is accelerating. There is a growing need for logistics companies with various means of transportation to manage their financial activities in line with the environmental regulations.||In order to reduce our environmental impact in the course of our business operation, we applied the environmental management system(ISO140001) to all our work sites, and tested electric trucks as part of our commitment to environment protection. Going forward, we will continue to respond to climate change by implementing more effective strategies and developing advanced environmental management system.|
|Customer privacy protection||As the information society advances, social interest in privacy protection continues to grow. In particular, regulatory requirements for personal data protection are becoming more demanding. As a result, the level of information security has a significant impact on our relationship with customers.||We are increasing our efforts in maintaining the information security management (ISO 27001,ISMS) certification. The Information Strategy Team, a dedicated organization in charge of security, takes a proactive approach in response to security breaches through continuous monitoring and strengthening of access to information.|
CJ Logistics is seeking to realize even better customer service and customer communication. Under the three strategies of “customer response structure innovation, customer center role change, and service competency strengthening,” we seek and identify relevant core tasks for improved customer communication. In addition, we are stepping up communication with customers through a wide variety of communication channels. We are operating our online customer center and taking customer calls and managing a “customer portal system” for corporate customers.
To implement and improve customer-centered management (CCM), a Customer Satisfaction Team under the Chief Customer Officer (CCO) handles the planning and policy implementation of CMM. The team manages CCM operations and improvement activities on site and responds to customer complaints. When a customer submits a request, it is immediately forwarded to the relevant CCM-related group via the company intranet, and is swiftly responded to. In addition, CJ Logistics has developed an integrated management system (N-Plus) for VOC ‘Submit-Analysis-Use-Management’, to share and respond to information among relevant departments. We have also established a CCM advancement strategy and set goals (KPIs) that link them to performance management. Aside from this, we operate an online and offline customer center, which consists of expert advisory staff, to respond to the various inquiries we receive from customers.
After being certified in 2014 for customer-oriented management (CCM), supervised by the Korea Consumer Agency and certified by the Fair Trade Commission, CJ Logistics was re-certified in 2016 and 2018 thanks to its continuous customer-oriented management activities.
We always look for ways to improve customer satisfaction and manage customer satisfaction information through our corporate and individual customers’ satisfaction surveys. For corporate customers, we conduct an annual satisfaction survey using customer company portal systems. For individual customers, we conduct mobile service satisfaction surveys. The items found in the surveys are reflected in improvement activities.
CJ Logistics has been selected as the “Most Admired Company in Korea” in the Total Logistics Service segment by KMAC for seven consecutive years. Based on the spirit of sharing of the CJ Group as a total logistics provider, we have effectively utilized the characteristics of the logistics industry to contribute to the development of the national economy and industries, as well as the improvement of Koreans’ convenience in life. Going forward, we will strive to provide logistics services that are convenient and safe for our customers.
To enhance customer service and the service mindset of employees, we have implemented a “service certification” policy. Employees cited for excellence in service are paid additional incentives in addition to certification. To monitor service levels, we have devised 12 evaluation indicators related to customer satisfaction for the objective diagnosis of service quality. We then check the items needing improvement and steadily improve them.
With the advancement of IT and the expansion of mobile systems, privacy issues emerged as a growing concern in our society. At CJ Logistics, we take a proactive approach by organizing an information security system and establishing a dedicated team.
In order to expedite our process of responding to internal and external security issues, we are making continuous improvement through classification and risk assessment based on their importance. Suppliers are required to enter into agreements to comply with information security requirements, and waybills are destroyed by a specialized service provider to prevent security breaches and unwanted exposure. In the case of delivery data, information can be looked up only for the last 3 months through the work system and it is stored for 5 years before being deleted in accordance with the National Tax Act.
By obtaining the Information Security Certification, CJ Logistics is pursuing an information security system on a global standard and preventing risks associated with security. In 2009, we became the first Korean logistics company to acquire the International Information Security Management System Certification, ISO 27001, followed by the ISMS certification in 2017. For the future, we will continue to improve our security system and take a proactive approach in managing our customers' personal data while introducing security solutions and centralizing our documentation process.
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At CJ Logistics, we carry out security checks on a regular basis to prevent potential security breaches. In cooperation with the group's Safety Management Team, we identify and improve vulnerabilities in our network relating to the website, server and database. In addition, we monitor the suppliers' level of compliance with the Personal Information Protection Act if personal information is provided to them for delivery service.
Through employee training programs, we raise security awareness on a corporate-wide level and take a proactive approach in preventing and responding to breaches. In addition to employee training, we post newsletters and trivia quizzes on our intranet to promote compliance to security.
To keep our customers’ personal information safe, we apply secure encryption to any materials containing personal information on our integrated delivery system and shipping waybills.
|Password Encryption for Integrated Logistics System||Passwords are encrypted so that unauthorized login is impossible even if the system is hacked|
|Personal Information Encryption for Deliveries||Personal information collected over the course of the delivery process is encrypted|
|Protecting Personal Information on Waybills||Preempting the leak of personal information by replacing the last character of customers‘ names and the last 4 digits of customers' phone numbers with asterisks (*)|
At CJ Logistics, we respect the human rights of our stakeholders and employees. To this end, we prohibit any kind of discrimination within our recruitment and HR process, and encourage our employees to work freely according to their aptitude and level of competence. In addition, we regularly review and manage major human rights issues, such as child labor and gender discrimination.
We conduct employee training at least once a year to prevent harassment in the workplace. In addition, we post and share training content, and establish guidelines for prevention. Furthermore, a grievance handling organization and a process for relief has been established. We try our best to protect the identity of reporters to prevent any retaliatory disadvantages.
As human rights management issues gain significance in the global marketplace, CJ Logistics is enhancing our capacity to manage labor and human rights risks in order to operate businesses that comply with global guidelines. In establishing our basis for human rights management, we conducted due diligence on some of our domestic and overseas business sites (logistics and construction). This was conducted in accordance with global standards on due diligence, such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Moving forwards, we will strive to expand our human rights management by comprehensively considering human rights issues and business-related factors in our domestic and foreign businesses, as well as by establishing implementation and monitoring systems for this very purpose.
Groups that have a direct and indirect impact on our business operation and performance are defined as CJ Logistics’ stakeholders.
“Stakeholder engagement” is the foundation for us to develop and implement our business strategies.
By doing so, we listen to their feedback, predict changes in our business environment, and respond to risk factors.
At CJ Logistics, we are diversifying our communication channels to expand stakeholder engagement.
We listen to their inputs through stakeholder-specific channels, report them to the board of directors and reflect them in our decision-making process.
|Major Stakeholders||Communication Channels||Material Issues in 2019|
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