China Electronics Corporation - cec.com.cn · About This Report This is the fourth annual corporate...
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China Electronics Corporation Pragmatic & Efficient, Diligent & Frugal Credibility Performance Innovation Responsibility
Transcript of China Electronics Corporation - cec.com.cn · About This Report This is the fourth annual corporate...
China Electronics Corporation
Pragmatic & Efficient, Diligent & Frugal
Credibility PerformanceInnovation Responsibility
Complication�Reference
the international standard of social responsibility by International Standardization Organization (ISO26000)
Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 3.0)
Guidelines on Sustainability Report by Global Reporting Initiative (G4)
Data
Data and official documents of the year 2013 from CEC is the final count for this report. All data is collected from
China Electronics Corporation.
Reporting�Process
CEC identified the core content of this report by referring to local and international CSR standards, consultation
from CSR specialists, interviewing CEC headquarter executives and investigate subordinate companies. The
content covers CEC’s CSR practices and feedback from stakeholders on the topics of “Responsibility and
Sustainability”, “Responsibility Management”, “Creating Sustainable Value”, “Advancing Social Harmony”,
“Ecological Civilization”, “Developing Mutual Benefits” and “Cultural Development”.
More�Information
Readers are able to download the electronic version of this report and view more information about CEC’s CSR
performances through the following website:
CEC Home Page: www.cec.com.cn
Contact�Us
CSR Department of China Electronics Corporation
Address: the Electronics Tower, #27 Wanshou Road, Haidian District, Beijing China
Phone: (8610) 6820 7042
Email：[email protected]
About This Report
This is the fourth annual corporate social responsibility report of China Electronics Corporation (also referred to CEC, the Group or we on this report), covering economic, social and environmental performances of CEC and its subordinate companies. The reporting period is from January 1st 2013 to December 31st 2013. Selected information out of the abovementioned period is also provided, where relevant, to provide readers a complete understanding of the content.
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China E
lectronics Corporation
About This R
eport
Contents
About This ReportChairman InterviewCEC MilestonesSpecial: Responsibility and Sustainability1.Operation Performance
2.Remarkable Specialized Restructuring
3.Develop Responsible Corporate Culture
Responsibility Management1.Responsibility Strategy
2.Responsibility Governance
3.Responsibility Promotion
4.Responsibility Communication
Creating Sustainable Value1.Honesty & Compliance
2. Steady Development
3.Public Responsibility
Ecological Civilization1.Environment Management
2.Green Production
3.Green Office
Developing Mutual Benefits1.Industrial Chain Restructure
2.Promote Strategic Collaboration
3.Enhance Supplier Management
4.Taking Social Responsibility Overseas
Advancing Social Harmony1.Provide High Quality Goods and Services
2.Build a Happy Home for Employees
3.Participate in Community Development
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Future ProspectsAppendixAbout CEC
Key Performances in 2013
Index
Report Rating
Feedback & Suggestions
Cultural Development
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4850
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575858
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Chairman Interview
� What�does�corporate�social�responsibility�mean�to�CEC?�How�does�CEC�fulfill�its�social� responsibilities?
Mr. Rui: As an enterprise, the awareness of social responsibility is prerequisite. CEC tries its best to create a
harmonious ecosphere, which gives us the opportunity to achieve our target of mutual development.
Three years ago CEC decided to start our three major systematic projects. These three projects are closely related
to livelihood and society, and are aligning with “the Chinese Dream” raised by President Xi which is a path for
people to have a better life.
Xiaowu�RUI,�Chairman�of�CEC
CEC�persists�in�taking�‘developing�the�national�information�industry�and�maintain�national�information�security’�as�its�mission.�We�carry�the�concept�of�‘Leading�the�Future�of�Information’�while�pursuing�the�maximized�economic,�social�and�environmental�benefits�and�fulfilling�our�responsibilities.
Enormous sums have been invested in new-generation display. We applied
innovative technologies to produce high quality and inexpensive electronic
consuming products. This breaks the occupation of the monopoly positions from
foreign companies and provides people more and tangible benefits from the
informationalized society.
Information security is crucial to the stabilization and harmony of the society. “The
nation is never safe without a safe network.” CEC plays an important role in
protecting national security. We fulfill our social responsibility through developing the
information security industry and enhancing the capability of network security
maintenance.
Information services are closely related to people’s livelihood. CEC leverage its
advantages in information technology to provide more convenience for people’s daily
life. We work on medical services which we have already developed commendable
products to promote hospital services.
Question 1
Question2 As�the�“national�team”�of�the�information�security�industry,�what�do�you�think�the�biggest�social�responsibility�of�CEC�is?
Question3Under�the�modern�background�of�“Chinese�Dream”,�CEC�also�raised�its�“CEC�Dream”.�What�is�the�relationship�between�“CEC�Dream”�and�its�social�responsibility?�Is�there�any�intergration?
Mr. Rui: As the “national team” of the information security industry, we take greater
responsibilities than others. Being the “national team”, we realize the greater
responsibility is, the more dedicated we need to be. We focus on the major issues
to the nation, and try to resolve these issues by leveraging our advantages – this
is guiding us to implement our strategy and responsibilities.
Mr Rui: As a central enterprise, we consider CEC a model corporation on social
responsibility. This requires us integrate political, economic and social
responsibilities. None of these responsibilities can be taken into consideration
independently. Experience has proved that CEC would not decide to make the
strategic adjustment if social responsibility was not taken into account, thus we
would not be working on information security and information service businesses.
Now, as CEC has integrated economic and social responsibilities, we has acquired
more support and resources, which provides us more opportunities and capability
to contribute more for the society and the nation.
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lectronics Corporation
Chairm
an Interview
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hairm
an In
terv
iew
1953
1959
1975
1981
1989
CEC founded
1992
1995
1997
1999
2003
Worked with Tsinghua University and launched “Deep Ultra 21” super computer cluster server.
2006
2008
CEC became one of the first national innova-tion enterprises
2011
Developed the first high-generation LCD panel production line in ChinaAppeared in Fortune -- #425 with a $26.03 billion operating income
2013
1985
1990
1993
1996
1998
2002
20052007
2010
2012
Became #382 in Fortune 500 with a $31.52 billion operating incomeInvested in higher-generation LCD panel production line
Authorized by SASAC to pilot CEC Board of DirectorsCEC listed as national pilot unit of innova-tion enterprise
Launched the first 64x operating system COSIX64Launched the first domestic 8.6G portable diskLaunched the first digitally processing chips Pro-logic amplifier DH9063，and acquired U.S. Dolby Laboratories certification authorityLaunched the first digital cordless phone set in China
CEC appeared in Fortune 500 for the first time – #408 with a $23.76 billion operating incomeRestructured China Zhenhua Electronics Group Company
Became #395 in Fortune 500 with a $29.01billion operating incomeIRICO Group Merged into CEC
Launched the first propri-etary plasma TV set in ChinaShanghai IC R&D Center became the only national IC R&D CenterRestructured seven companies in Nanjing including Panda Electronics
Launched the world’s first secure hard disk – Gstor seriesRestructured China Great Wall Computer Group Corporation
Launched the first domestic radio set
Launched the first domestic computer – 0520CH
Launched the first satellite communication earth station in China
Launched the first automatic plug-in machine in China
Launched the first brand mobile phone in China
Developed the first computer hardware substrate production line in China
Launched the first HF SSB radio in China
Launched the first UPS power set
Developed the first domestic VCR production line
“PANDA” became the first famous trademark of the electronics industry in China
“PANDA IC CAD System” acquired the National Science and Technology Progress Award
Launched the first 100HZ digital TV set in China
Launched the first 60-inch rear projection LCD multimedia display
CEC Milestones
CE
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ilest
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CE
C M
ilestones
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The year of 2013 is the beginning of CEC implementing its comprehensive reforms. Facing both domestic and international economic pressures, CEC fully complete all annual economic targets and assessment tasks assigned by SASAC. The company has improved its corporate development quality and enlarged it benefits, and many performances have reached a new record high.
Following the national strategic planning and under the background of global economic recovery and domestic economic and industrial transformation, CEC continued to promote specialized restructuring. This is the only way to optimize corporate resources and consolidate corporate competence.
In 2013, CEC adapted to the needs of corporate restructuring and increased the speed of industrial
1. Operation Performance
2. Remarkable Specialized Restructuring
transformation. We focus on the adjustment and restructuring of internal industrial framework, product structure, property and corporate structure to further utilize the Group’s function of resources allocation and collaborative effectiveness.
12 secondary subordinate companies restructured
45 subordinate companies cleaned up and consolidated business
CEC pays great attention to developing corporate culture. “Credibility, performance, innovation and responsibility” is the common code of conduct throughout the whole organization. In 2013, CEC raised the “Pragmatic & Efficient, Diligent & Frugal” work style, which means the Group struggles against formism, bureaucracy, hedonism and extravagance. CEC constructed the corporate cultural atmosphere through initiating Mass Line Education Practice, conducting training to consolidate the management’s philosophy of responsibility, developing “CEC corporate culture construction evaluation indicators”, naming demonstration sub-companies and conducting corporate culture oratorical contest.
3. Develop Responsible Corporate Culture
CEC convened the mobilization meeting for the Mass Line Education Practice Initiative on July 4th 2013. The
meeting aimed to announce the corporate work style of “Pragmatic & Efficient, Diligent & Frugal”. Eight teams
were established to supervise sub-companies implementing the initiative. The initiative successfully promoted the
new work style as a common code of conduct throughout the whole organization. During the program, CEC held a
special meeting among the management team for troubleshooting. Everyone on the meeting committed to put
forth effort to solve the issues raised by employees.
Moblization meeting for the MLEP initiative
Total Assets (Unit：Billion)
2011
2012
2013
Technology Input
Parent Company Profit
State-owned Capital and Total Equity
Subject
Billion
Billion
Billion
Unit
4.5
1.3
14.8
2011
6.0
1.5
17.8
2012
5.7
1.7
21.1
2013
144.8
160.9
182.0
(Unit：Billion)
2011
2012
2013
Operating Income
168.2
183.0
193.8
(Unit：Billion)
2011
2012
2013
Actual Tax Paid
2.8
3.2
5.0
Special meeting during MLEP
Special: Responsibility and Sustainability
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orpo
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nR
espo
nsib
ility
and
Sus
tain
abili
tyR
esponsibility and Sustainability
CEC established a three-linkage structure to push CSR practices. All secondary and tertiary subordinate companies have their own CSR divisions to ensure the CSR system covers the entire headquarter and all sub-companies. Each secondary sub-company has a CSR leading team which is responsible for all CSR related affairs and set relative positions (full-time or part-time) and each tertiary sub-company has a CSR liaison.
2. Responsibility Governance
Headquarter�CSR�Leading�Team
2nd�Sub-company�CSR�Leading�Team
CEC developed “the Twelfth Five-year CSR Plan” and “CSR Management Approach” to integrate corporate social responsibility into its strategic management and promote CSR practices.
CEC’s current three-year CSR plan can be synthesized as “12345 Strategy” (as for One Philosophy, Two Improvements, Three Stages, Four Combinations and Five Focuses)
1. Responsibility Strategy
Responsibility Management
Res
pons
ibili
ty M
anag
emen
t Responsibility M
anagement
Improve�accountability
Improve�brand�image
OnePhilosophy
TwoImprovements
ThreeStages
CEC’s�leads�the�future�of�information�through�innovation
2013:�Design�from�executives,�philosophy�implantation
Combine�internal�management�with�external�brand�building
Combine�paces�with�sustainable�improvements
Combine�independent�innova-tion�with�external�experts
Combine�characteristics�with�collaboration
2014:�Establish�the�structure�and�carry�the�work�together
2015:�Develop�special�project�but�focus�on�integration
FourCombinations
Top�design
The�praise
Integration
Responsibility�communication
Capability�development
FiveFocuses
Responsibility Strategy
Informationization�development,�external�collaborations�and�emergency�management
General�Office�(Information�Center,�Foreign�Affair�
Strategic�collaborations,�scientific�innovations,�major�investments�and�projects
S&T�Planning�Department
Management�improvements,�health�and�safety�and�energy�efficiency
Operation�Department
Market�structuring,�brand�building�and�exhibitionsMarketing�Department
Full�budget�management,�KPI�assessment�and�internal�control
Finance�Department
Employment,�compensation,�training�and�career�development
HR�Department
Risk�management�and�complianceLegal�Affair�Department
Internal�audition�and�evaluationAudit�Department
CSR�administration,�donations,�publicity�and�corporate�cultureCSR�Department
Rules�of�procedure�and�corporate�governanceBoardroom
Business�restructuring,�capital�funding�and�board�management
Asset�Management�Department
Anti-corruption�and�efficiency�supervisionDisciplinary�Inspection�Department
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Special�Communication
Conduct electronics information exhibitions and forums.
Expectations from Stakeholders and Responses from CEC
Stakeholder Expectation Channels CEC�Responses
Legal compliance
implement requests
Economic development and informationization
More job creationGovernment
Protection of employees’ interests
Career development
Participation in management
Work-life balanceEmployees
Collaborators
Protection of shareholders' equity
Improve operating efficiency and achieve steady returensInvestors
Customers
Communities�&�Environment
In accordance with the standard of “to be stronger, excellent and world class”, CEC actively promote CSR practices. Beyond developing and publishing annual CSR reports and stakeholder engagement, internally CEC focus on consolidates CSR management and integrates CSR into corporate management, and externally builds a brand image as a responsible central enterprise. During 2013, CEC ceaselessly improve employees’ awareness of social responsibility by completing the research report of CEC corporate foundation, selecting best CSR performed sub-companies as model companies, encouraging sub-companies to develop CSR reports and conducted CSR trainings.
3. Responsibility Promotion
CEC uses multiple channels and modes to conduct responsibility communications and applies a “four dimension” communication mechanism. Simultaneously, CEC studies the issues those its stakeholders concern with, and responses with actual actions.
“Four Dimension” Mechanism
4. Responsibility Communication
da xn eo hib on nsiti
Instant�Communication
Develop CSR column on CEC website, panel discussion with stakeholders and keep close relationship with social media.
Regularly and systematically disclose CSR information by publishing Chinese and English CSR reports.
t atm sca d se SRl lodngsh n glese Enbl sh
Regular�Communication
Investigation
Visit the grass root and stakeholders and listen to them.
d eaks o rs dade
Investigation at Shenzhen Kaifa
Appreciation of assets
Standardized corporate governance
Hedge operating risks
Mutual respect and equality
Value creation and more collaborations
Common development
Lives of the poor
Energy efficiency and environmental protection
Improve quality
Ensure product safety
Provide good service
Protection of suppliers' interests
Protection of distributors' interests
Protection of business partners' interests
Adequate compensation mechanisms
Standardized employment mechanisms
More trainings
Follow industrial standards and ensure product safety
Operating legally
Improve corporate governance and conduct internal control
Improve energy efficiency
Focus on protecting the environment
Continue to participate in helping Xinjiang province and four fixed national poverty counties, also send one more aiding cadre to Tibet
Being public-spirited
Quality management
Product life-cycle management
Respond to complaints
Regular Debriefing
Daily communication
Investor meeting
Reports and visits
Satisfaction survey
Complain Channel
Customer relation management
Supplier management
Distributor management
Trainings and interchange
Conferences
Participate in meetings
Special debriefing
Participate in governmental projects
Reports and visits
Exchange activities
Community communication
Public service
Community construction
Workers’ Congress
Employee trainings
Taking advices
Research on corporate foundation Encouraging sub-companies to develop CSR reports
CEIEC and GWI awarded for model CSR performed
Specialist from CASS read out the evaluation report of CEC CSR report 2012 on Report Release Conference
Supplier Conference for Panda Electronics’ G108 project
Res
pons
ibili
ty M
anag
emen
t Responsibility M
anagement
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Creating�Sustainable�Value
Honesty�&�ComplianceSteady�DevelopmentPublic�Responsibility
1. Honesty & Compliance
Honesty and compliance is the basic code in CEC’s operation. We constantly work on and improve risk management, internal control and anti-corruption. CEC also provides legal training to improve employees’ awareness of compliance.
2. Steady Development
The year of 2013 is when CEC insisted to develop advance steadily. The construction of a new system of scientific development has been preliminarily completed.
According to developing needs, CEC raised a new scientific development train of thought in 2013. The new strategic plan guides the Group to become a “world-class electronics company” and develop as an integration of self-development and global view.
1.1Comprehensive Risk Management
CEC developed “CEC Guide of Legal Risk Management” in 2013 to further and effectively promote corporate risk management standardization and provide the Group a scientific guide for compliance.
CEC is committed to vigorously strengthen the rule of law and cultural DNA building. Legal quiz, publicity and training are conducted regularly throughout every year. CEC was named “the Advanced Group of Legal Popularity of 2013”.
Anti-corruption is one of the most issues CEC takes very seriously. Every year we provide numerous employee educations including case study learning, business honesty and theme trainings. We also develop anti-corruption informationization by leveraging the information platform of “central enterprise anti-corruption”.
Anti-corruption Performance
1.2 Internal Audit and Control
1.3 Anti-corruption
1.4 Legal Popularity
2.1 Strategic Plan
CEC started applying “Internal Control Development Implementation Plans” since 2012. During the past two years, CEC preliminarily completed the construction of internal control and audit framework, defined focus areas and conducted massive rectifications of mechanisms and processes.
In 2013, CEC issued its audit plan to promote innovative transformation of corporate audit. Throughout the year, CEC has audited 54 economic responsibilities, 518 special events and assets of 125 billion RMB. The auditing has made positive results. Over one thousand issues were identified and recommended to rectify. Corporate profit has increased by 8.28 million RMB and 30 new regulations were generated to better risk management.
Compliance Training Performance
Internal Audit Performance
2011 2012 2013
Number�of�Objects�Audited
19 21
54
2011 2012 2013
Asset�Audited
(Billion)
24.92
61.81
124.9
2011 2012 2013
Number�of�Issues�Identified
2011 2012 2013
Number�of�Recommendation�Raised
58 67
915
108
1323
64
Anti-CorruptionTraining Provided
2011 2012 2013
(Man-time）
72167724
12304
1152013
1172012
82 2011
Number of Training Conducted
250082013
250492012
270732011
People�Participated�in�Compliance�TrainingUnit:Man-time
Creating Sustainable Value
Legal training at CEC RIDACertificate of “the Advanced Group of Legal Popularity”
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Creating S
ustainable Value
“13520” Overall Strategy
Focus�on�Three�Major�Projects
Implement�20�major�initiatives
New-generation displayInformation securityIntegrated circuitsHigh-tech electronicsInformation services
To become a world-class electronics company.
To achieve industrial upgrade and transformationTo comprehensively improve core competence
New-generation display
Information security
Information services
“13520” Overall Strategy
Achieve�O
ne�Target
Five�Major�Business
According to corporate developing strategy, CEC further defined its focus industries including new-generation display, information security, integrated circuits and information services.
Facing severe external environment and heavy operating tasks in 2013, CEC applied management improvement methodologies, accelerated industrial transformation and it business performance has consistently improved, and was awarded for “Advanced Unit of the Year for Business Performance”.
The high-generation LCD production line operating by CEC Panda (Nanjing) is aimed to accelerate industrial restructuring and solve the national lack of chips and display screens, co-funded by CEC and the city of Nanjing in Jiangsu Province. The project imported advanced technology UV²A from Sharp and was named “No.1 Project” for both CEC and Nanjing.
2.2 Industrial Structure
2.3Appreciation of State-owned Assets
3.1 Development Promotion of New-generation Display
3. Public Responsibility
Under the circumstance of the 6th generation LCD production line become fully utilized, CEC initiated the ultra-high resolution LCD project (G108) to break the occupation of the monopoly positions from foreign companies and provides people more and tangible benefits.
2013
2012
2011
Unit
Average growth rate of core business revenue
Return on Equity (ROE)
Return on Assets
Debt-to-asset ratio
Appreciation Rate of State-owned Assets
%
%
%
%
%
6.3
9.4
3.7
70.6
112.1
8.9
9.1
4.0
70.9
108.9
5.7
8.9
3.8
71.9
107.2
th tSubject
the CF project has entered the installation and debugging phase; output has reached 15K.
acquired financial support from national authorities.
3,205.42013
2,973.02012
1,334.12011
Economic Value Added (Unit:Million)
Strategic Goals
Total Asset reaches 230 billion RMB; operating income reaches 230 billion RMB; Profit reaches 5 billion RMB
New-generation display, information security and IC with powerful motive force; information services with improved influence.
Profit reaches 10 billion RMB; science and technology input reaches 10 billion RMB; operating income, economic value added and employee per capita income become twice as much as 2010.
New-generation display, information security and IC with power motive force; information services with improved motive force.
CEC new scientific develop structure fully completed.
Significantly increase the rating of CEC in Fortune 500.
New-generation display and information security have powerful control; IC and information services have well control.
oals
Profit reaches 10 billion RMB; science and technology input
Beginning Stage：2013-2015 Accelerating Stage ：2015-2020 Peak Stage：2020-2030
StrategicEmergingIndustries
ModernizedServices
contribute for national major projectsInformation security
establish a information service platform and develop innovative service and business model.Information services
base on major systematic projects to promote industrial integration and restructuring; leverage the industrial influence and motive force.New-generation display
accelerate the specialized restructuring and become one of the best designing company in the industry in China.
Integrated circuits
apply IGZO which is a world’s leading technology and the expected production is 100 million pieces of ultra-high-definition display screens.
generation production line – display screens transformed to be smaller, product quality and profit has increased
InitiatedG108 ProjectDeveloped supporting projects
Strive for support from government
Completed the technical reconstruction of 6th
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Creating S
ustainable Value
The Metal Oxides TFT (IGZO) 8.5th-generation Ultra-high Resolution LDC Display Project (known as G108) was co-initiated in July 2013 by CEC, the city of Nanjing and Sharp Corporation from Japan. The project aimed to product 60,000 glass plate (2200mm x 2500mm) for large size panels of TVs and mid-small size panels of mobile carriers. This is a symbolic project for CEC and will significantly improve the competitive power for China’s electronics industry.
The G108 Project
In 2013, CEC took the “4106 layout” as a blueprint to carry its information security project forward.
Produce four kinds of information security basic products – “security chips, machines, basic software and applicable products”; implement 10 sub-projects; and develop six information security services – “management, integration, consultation, emergency, training and evaluation”.
“4106 Layout”
Accelerate Information Security Work Progress
CEC organizes information security exhibition of its achievements including strategic plan, technical innovation, products and services.
Significant improvement in CEC’s superiority in the information industry as the “national team”.
Develop the capability of supporting the whole information security industry.
Promote collaboration in R&D and make progress in key technology.
Coordinate industrial layout and market cultivation.
Initiate information security industrial basement construction.
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Creating S
ustainable Value
Nowadays, the network has already become the fifth space after territory lands, waters, sky and space. It is an extension national territory and a new battle for the competition of national strength. Being a part of the networking society, ensuring the safety of network and information communication technology and infrastructure is the urgent priority. As the “national team” of information industry, CEC takes maintaining national information security as its corporate mission.
3.2 Support National Information Security
CEC developed new business of E-business and mobile internet platform to transfer the industrial train from producing to providing services. In 2013, CEC restructured sub-companies in Beijing and Shenzhen and established IHQ in Shenzhen to coordinate the 3rd systematic project and develop information services with a target of 10 billion economies.
3.3 Establish Information Service Platform
Shenzhen IHQ gathers resources,
develop business and implement
critical projects.
Accelerate the construction of information security industry base
CEC’s Future Technology City phase one was completed in 2013. The city will be the R&D center to support national network security.
IC Easy webs i te is a one-s top e lec t ron ic
component E-business platform operated by CEC. It
provides services for the design chain and supply
chain of the electronic manufacturing industry. It is
known as the expert of electronic components online
services for meeting all kinds of needs from product
design to mass production.
Case IC Easy Website
Founded International Head-quarter in Shenzhen
Worked full stretch to support major
reconstruction projects.
Initiate “China Information Valley” Establishment
“IC Easy” website initiated test run as an
E-business platform for electronic
components distributors and has become
the pilot project of MIIT
Explore E-business and intellectual city
Initiate business integration of logistics and
supply chain and lead relevant
sub-companies and major projects to a
global perspective.
Encourage Business Collaboration
Pudong Software Park is one of the first national authorized software basements. There are so far 562 companies settled in the park and 829 additional registered virtual enterprises with 38,000 labors. The main business in the park is chip design, mobile internet, software outsourcing, E-business and applications. Pudong Software Park reached a operating income of 55.2 billion RMB, paid 2.94 billion RMB taxes and export 7,60 million worth of software in 2013.
Dongguan Industrial Park is one of the 20 major initiatives of CEC’s five-year strategy. The park will be the most important industrial basement in southern China with integration of R&D, design, production and sales.
CEC is the leading enterprise of the information industry in China with strong motive and leading power. We cultivate new business, aggregate innovative resources and promote local economic development by establishing industrial development platform in industrial parks.
Hainan Ecological Park is an important component of the provincial development strategy and is named as “National New Industrialization Pilot Base” by MIIT and Science & Technology. The park covers 3,000 acres and had a 9.33 billion RMB output in 2013.
3.4 Industrial Area
Beihai Industrial Park covers 3,000 acres. The park had a 27 billion RMB output, paid 70.75 million RMB of taxes and reached a total import and export of 1,300 million USD in 2013.
1
4
5
3
2
There are 310 companies settled in Changsha Software Park. Which made about 3.4 billion RMB output in 2013. The companies are mostly from mobile internet, E-business, intellectual machines and modern services.
HainanEcologicalPark
PudongSoftwarePark
BeihaiIndustrialPark
ChangshaSoftwarePark
DongguanIndustrialPark
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Creating S
ustainable Value
Advancing�Social�Harmony
Provide�High�Quality�Goods�and�ServicesBuild�a�Happy�Home�for�EmployeesParticipate�in�Community�Development
1. Provide High Quality Goods and Services
CEC keeps promoting scientific innovation to keep its lead in technology. We strive for improving product quality and services for better customer satisfaction.
1.1 Promote Innovation
CEC developed five new regulations including “Innovation Implementation Plan”, “Science and Technology Management Practices” in 2013 to better manage innovative sciences, and established a sound science and technology management structure.
National ScientificProgress AwardScience and technology innovation management system
The construction of technological innovation platform
CEC has made extraordinary science and technology achievements in 2013: 1520 patent applications received including 759 invention patents; 1163 patents authorized including 326 invention patents; registered 337 software works and 126 integrated circuit designs; 41 sub-companies received the National/Provincial Scientific Progress Award and 53 achievement recognitions were approved.
Scientific Innovation Achievements
So far, CEC has 14 national research organizations – including seven national engineering technology centers and seven national authorized corporate technology centers, eight regional research organizations, 54 provincial research organizations and 12 postdoctoral workstation.
The third phase of Golden Tax Project is one of the “National Golden Twelve” Projects. It is an important component of the national electronic government affair construction. The Golden Tax Project integrated tax collection reform and technology innovation. It helped
Case The Third Phase of Golden Tax Project
standardize tax enforcement, and improved the compliance and satisfaction for taxpayers.
The third phase of Golden Tax Project was officially enabled on 22nd February 2013 and has so far been applied as pilots in Guangdong, Shandong, Henan, Shanxi, Neimenggu Provinces and Chongqing City.
Advancing Social Harmony
Adv
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y Advancing S
ocial Harm
ony
CEC Scientific Innovation Performance（2011-2013）
Total S&T Expense (Unit:Billion)
4.6
12,028 13,499 14,9465.95.7
2011 2012 2013 2011 2012 2013 2013
R&D Personnel(Unit:%)
2011 2012
9.510.4
12.0
The Ratio of R&D Personnel Accounted for All Employees
26
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n
27
China E
lectronics Corporation
1.2 Ensure Product Quality
CEC strictly obeys relative regulations and quality standards in the country. We apply comprehensive quality management systems, establish quality documents, keep track records and fulfill our obligations of assuring product quality, false product recall and compensation for damages.
CEC Panda has initiated a series of activities to proactively improve product quality. 100% pass rate is the only pursuit.
Reinforce internal quality advocacy to strengthen their code of conduct. CEC Panda conducts multiple training every
year including laws and regulations, quality management, product inspection and troubleshooting to improve
employees’ awareness of product quality and responsibility.
Enhance quality management structure. CEC Panda has been certified by many standards and organization including
ISO9001 (also the extended term) and the national 3C certification
Increase investment in science and technology. CEC Panda continues to develop new products (from 18.5-inch to
64.5-inch display screens). The product quality has been improving and the pass rate has been increasing. They also
apply supporting equipments such as surveillance to avoid substandard product from entering the next procedure.
There has been 1510 time of sampling in 2013 and the pass rate was 98.74% with no quality issues.
Case Pursuit for 100% Pass Rate
Mr. Dejiang Zhang, Chairman of NPC Standing Committee visiting CEC Panda
CESC is one of CEC’s sub-companies with the best customer service management. It not only consistently
improve product quality, but also focus on services segments.
Develop “Guidebook for Post-sale Services” and “Guidebook for Customer Complaint Handling”.
1.3 Improve Customer Services
CEC takes customers’ needs seriously. We consistently strengthen our customer service management and optimize service process to provide first-class customers and build a good brand image.
Case Post-sale Service Management Improves Customer Satisfaction
Optimize service progress, reduce the processing time for customer complaints and identify clear responsibilities for each department.
Marketing Department collects customer complaints and then delivers them to Technical Quality Department
Marketing respond to customer with solution, and then follow up the status of the issue
Executives confirm the 8D report and its content, and make sure Technical Quality Department delivers the solution to Marketing within 36 hours
Technical Quality Department organizes a team to work on each complaint and find out the source and respond in 24 hours, then summarize in 8D report.
Qu
Te
Exd
so
Ma
de
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lectronics Corporation
One of CEC’s valuable assets is its employees. We protect employees’ rights and support them with their career development. Every year we organize different activities including building career development platform, conducting professional and healthcare trainings and promote work-life balance.
2.1Protect Basic Rights of Employees
CEC is opposed against discrimination. We observes the “Labor Law” and the “Labor Contract Law”, provide same employment, training and inspiring opportunities for all people with different races, genders, regions and physical status, sign labor contracts with employees, provide competitive compensation and social insurance for retirements, unemployment, injuries and maternities, respect employees’ privacy, and ensure that part-time, temporary workers and employees from subcontractors receive fair treatments as CEC employees.
CEC carries out the labor union and safeguards employees’ rights and interests. The labor union has rights of representation, maintenance, participation, negotiation and supervision. In addition, the Group founded the Labor Dispute Committee to coordinate the relationship between employees and companies. 100% of CEC employees are in the work union for the past three years.
Statistics of Employees in CEC（2011-2013）
2. Build a Happy Home for Employees
University RecruitmentsNumber of New EmploymentTotal Number of Employees
2011 2012 2013
126,539
�129,948
�124,304
2011 2012 2013 2011 2012 2013
�47,909
69,902 68,000
7
9 9
99.5%
99.5% 92.3%
95.5% 90.0%99.6%
Labor Contract Rate Social Insurance Coverage2011 2012 2013
2013 年2012 年2011 年单位Subject
Average Annual Paid Time-off
Proportion of Female Managers
Number of Disabled Employed
day
%
11.7
12.6
316
9.1
17.7
366
10.0
18.0
400
(Unit:time)
Employees are CEC’s most valuable asset. We maintain our corporate vitality exuberant only when our employees have a health and safety work place.
2.2 Protect Employees’ Health and Safety
There is 0 major production accident in 2013. We also conducted many safety trainings to raise employees’ awareness of safety; launched safety inspection to key companies and issued rectification request to 6 companies with safety risks. Throughout the year, 961 risks were found and 98% of them were eliminated.
Production Safety Flowchart
Production Safety
The Group Level:
“Production Safety Management Practices”“Production Safety Management Approach”“Production Safety Management Approach (HQ)”Sub-company Level:
Several production safety regulations“Operational Processes for Production Safety”
“Production safety Liability Statement”Production safety trainingsProduction safety investmentProduction safety inspectionsEmergency responsesAccident investigations
Production safety objective assessmentsProduction safety standardization assessmentsProduction safety assessment organization
Production�Safety�Office
Mechanisms Approaches Emergency�Responses Assessment
1 emergency preplans for the Group627 emergency preplans for sub-companies112 compositive emergency preplans515 special emergency preplans
EAM A
Fire drills at Shenzhen Kaifa TechnologyScene of Nanjing Sanle Electronic conducting production safety assessment
CECProduction�Safety�Committee
Emergency�Leading�Team
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lectronics Corporation
201320122011UnitSubject
Production�Safety�Investment
Production�Safety�Training�Provided
Production�Safety�Training�Coverage
Number�of�Production�Accidents
Number�of�Injuries
Number�of�Deaths
Production S
afety Perform
ance
Million
Man-time
%
123.0
92,000
96
0
0
0
106.1
92,000
96
0
0
0
163.2
76,000
98�
0
0
0
Production Safety Performance
Employees’ profession health regulatory is another focus of CEC to make sure all sub-companies to have a consummate professional health management. We provide health examination for all front-line workers; conduct training on women’s health, psychological health and first aid; and create health files for all employees. There has been zero occupational disease reported in 2013.
Professional Health
Health Examination and Health File Coverage
2011
100%1000%0%
2012
100%1000%0%
2013
100%1000%0%
2.3 Facilitate Career Development
CEC keeps improving its post system and provide variable career paths for all kinds of talents. The Group has completed many talent relative initiatives including financing studying abroad, importing foreign experts, 3rd scientific talent training class, occupational skill tests, occupational skill contests, and the general of senior engineer jury, etc.
CEC imported a lot of technical experts from the U.S. and Japan, and profession personnel from Taiwan in 2013, to further push our “new-generation display” project. We provide the best work environment as we can for the foreign talents.
Case Import Foreign Senior Talents
CEC successfully held the national contest – occupational skill contest on electronic device installation in 2013. The event was awarded by the State Department for the “Outstanding Unit of 2013 for Organizing Employee Occupational Skill Contest”. Five employees from sub-companies (one from Wuhan Zhongyuan Electronic Information Corporation, two from CEC Panda and two from CEC GWT) were awarded as “Skill Expert in Central Enterprises”.
Case Occupational Skill Contest
CEC further improved its training mechanism in 2013 and developed “Training Plan of 2013” which emphasizes the integration of full-time training and occupational training and the integration of self-learning and training by instructors.
CEC organized trainings for executives and young cadres from sub-companies
Training Performance（2011-2013）
Training Input per capita(Unit:RMB/Year)Investment in Training (Unit:Million)
2011 2012 2013
34.830.9
23.1
2011 2012 2013
343279
507
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lectronics Corporation
Training Coverage (Unit:%)Training Time per capita (Unit:hour)
2011 2012 2013
8 8 8
2011 2012 2013
48.2
31.4
40.9
2.4 Caring for Employees
CEC encourages employees to form different kinds of associations and interest groups to enrich their leisure life and consolidate their sense of identity and belonging to CEC. The Group won the “Five-four Youth Medal” and was awarded for well-organizing “Chinese Dream Photography Contest” and “Micro-film Contest”.
On the other hand, CEC considers caring for and helping employees as a long-term and systematic work. We strive for putting effort into normalizing, standardizing and institutionalizing the caring and helping tasks. We established multiple platforms to facilitate these tasks, such as “Staff’s Home” and the Helping Found for Employees with Difficulties.
Case Steady Arrangement for Strapped Employees
IRICO who was merged into CEC in 2013 was facing a severe situation with a lot of challenges and difficulties. There were more than 3,400 employees waiting for relocation. The company took various measures to set appropriate arrangements for them while maintaining its daily operation and production. Employees’ legal rights were finally protected.
In the beginning of 2013, IRICO granted 1.06 million RMB of 2012 annual supplementary medical insurance to over 900 employees.
The executives and management team visited over 800 families. They raised a fund of over one million RMB from work union, administration office and employees. Furthermore, 30 thousand worth of living supplies were granted to strapped employees.
Founded “IRICO Helping Foundation” and raised donations of 1.55 million RMB.
Provide substitutive opportunities for strapped employees by restoring and expanding production and ask brother companies for spare positions.
By the end of 2013, 2,700 strapped employees had been steadily and appropriately arranged.
While developing our business, CEC contributes to the local community by leveraging our resources to support local development. We share our innovative information services and solutions with local resident and encourage our employees to participate in our volunteer activities.
CEC and its sub-companies work closely with local communities. We apply local employment and purchasing policies to support local economic development. We also participate in community development and support disadvantage areas. The Group paid over five billion RMB taxes to central and local government in 2013.
3.1Support Local Economic Development
3. Participate in Community Development
In respond to the national “Plan for Poverty”, CEC has sent 11 cadres to four national poverty-stricken counties/cities, and paid over 1.5 million RMB to support the areas and 100 thousand RMB to support local pupils. We also donated over 30 thousand books and managed to carry about 300 million RMB national funds.
Case Support Poverty-stricken Areas
CEC Cadre in Lingao County, Hainan Province
CEC has strived for leverage its own advantage in technology to develop information services network for urban and rural areas. We believe that electronic information services can contribute to community development by sharing achievements with the public.
By the end of 2013, the medical debit card developed and by Greatwall Medical Technology Corporation has been popularized for over 400 hospitals and 340 communities in the country. With the innovative process of seeing a doctor, it takes only 50% of the time patients used to spend in standing in the queue. The medical debit card project successfully reduced the governmental cost and improved livelihoods. Greatwall Medical Technology Corporation was named as “Advanced Unit of Central Enterprises” by Human Resources and Social Security Division and State-owned Assets Supervision and Administration Commission
Case Medical Debit Card for Real Convenience
The year of 2013 is the 50th anniversary of “Learning from Comrade Lei Feng”. CEC initiate caring for migrant children, subway volunteers, accompanying the elderly and appliance maintenance activities in communities.
Case Love for New Hope
The radio and TV coverage project is a long term project currently running the second stage. A professional team from CEC Panda completed the installation of the ground receiving equipments in three cities and five counties in Guangdong Province. This project provides the people in rural areas with easier access to information services.
Case Radio and TV Coverage in Rural Areas
3.2Information Services in Life
3.3Participate in Philanthropy
CEC was won the “China Outstanding Organization for Youth Volunteers Award”. The number of volunteers has reached 1500 in 2013.
3.4Volunteers
The level 7.0 earthquate in Yaan, Sichuan has caused uncountable damages to the area. CEC lost no time in raising a fund of 2.1million RMB to support the area through China Youth Volunteer Association. The donation were used to build electrochemical classroom for local primary and secondary schools and purchase equipments for CEC colorful huts. So far seven electrochemical classrooms and 23 colorful huts has been built.
Case Caring for Yaan, Support the Disaster Area
Patients at Beijing 301 Hospital
We create corporate assets come from the society, so repaying the society is our corporate responsibility. CEC strives for sharing development achievements with the society. We support the earthquake relief, care for disadvantages and give donations. We also encourage employees to participate in community development and poor student caring activities.
CEC Greatwall Computer branch in Shaoguan China Zhenhua’s caring for elderly activity Volunteer from RIDA playing with migrant children
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lectronics Corporation
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Environment�ManagementGreen�ProductionGreen�Office
Ecological�Civilization
Initiate�emergency�plan�and�unit�leaders�arrive�at�the�scene
China Software conducted multiple publicity activities to spread the low-carbon life theories. The company introduce to the employees more than 20 ways of low-carbon life such as the source and damage of CO2 emission and PM10. This further pushed the company’s energy efficiency.
1. Environment Management
CEC promotes ecological civilization by optimizing environment management, conducting environmental training and initiating environment protection activities.
CEC developed “CEC Environmental Protection Management Structure” in 2013 to guide our green operation. A leading team was established to unify the environment protection management and supervision.
CEC encourages employees to participate in environmental philanthropy and contribute to the green China construction.
1.1 Environment Management Structure
1.3 Environment Philanthropy
Energy efficiency popularity is another important work at CEC. We Initiate various activities to spread environmental protection culture and improve employees’ awareness.
1.2 Environmental Protection Popularity
Case Low-carbon Publicity
Cadre participating tree planting in Xinjiang Zhongyuan Electronics tree planting activityCEC Environmental Pollution Treatment Flowchart CEC Environmental Management Structure
Unit of pollution
Environment�department�from�the�Group
Accident�analysis,�find�out�the�sourece�of�the�accident�develop�retification�
plan�and�report�to�the�Group
The�Group�raise�treatment�advice�and�report�to�executives
Local�environment�authorities
Operation�Department�
Environmental�Protection�Office
Environmental�Protection�Leading�TeamLeader:�Xiaowu�RuiExecutive�Deputy�Leader:�Liehong�LiuDeputy�Leader:�Weide�Lai
Ecological Civilization
Eco
logi
cal C
ivili
zatio
n Ecological C
ivilization
Report within one hour
Feedback�of�treatment�advice
Adm
inistration�Office
Finance�Departm
ent
Operation�D
epartment
Syetem�Equipm
entD
epartment
Science�and�TechnologyPlanning�D
epartment
CSR�Departm
ent
Secondary�sub-company�environmental�protection�leading�team
Tertiary�sub-company�environmental�protection�leading�team
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lectronics Corporation
CEC takes energy efficiency seriously, the leading team leads and supervises the implementation of energy efficiency. We use low environmental load energy and resources, invest in energy efficiency, push sub-companies to develop energy efficiency innovation and import advanced equipments and facilities. The input CEC has paid in energy efficiency in 2013 was 5.2 million RMB
2.1 Energy Efficiency
2. Green Production
CEC proposes the theory of green production. We minimize the environmental damages caused during production by applying energy efficiency technologies, promote green consumption, develop circular economy, and product green products.
As the global energy situation becoming increasingly tense, CEC realize to further utilize renewable energy is an effective way to ease the tension and improve the ecological environment. As a pilot unit, Shenzhen Kaifa Technology developed solar photovoltaic technology. The company invested 1.5 million RMB in building a solar power project. The generator applies polycrystalline silicon solar cells and is able to generate 1,5 million kWh of electricity.
Case Solar Power to Increase Renewable Energy Utilization
The solar power project at Shenzhen Kaifa Technology
CEC cherishes resources and uses resources rationally. In addition, we develop circular economy and resources reuse to reduce energy consumption.
2.2 Circular Economy
CEC delivers its theory of green operation to the entire industrial chain through green consumption. We strive for building a green industrial chain.
2.3 Green Consumption
IRICO develop the “edging with recycled water” process to achieve water reuse. The company invested 109 thousand RMB in the reconstruction and now the daily water save is 650 tons, and the water reuse rate is 81.3%. Approximately a cost 92 thousand RMB is saved every month on water consumption.
Case Edging with Recycled Water
Eco
logi
cal C
ivili
zatio
n Ecological C
ivilization
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lectronics Corporation
CEC focuses on reducing environmental damages through product design, develop, production and usage. We strive for maximum resource utilization.
2.4 Green Products
The 6th Research Institution of CEC developed an excellent green consumption management practice which provides relevant requirement of green consumption:
Take priority in purchasing environment-friendly products to reduce environmental and physical damages.
Support green products and green industry, promote green industry and clean technology.
Develop the habit of “green consumption”, contribute in forming a green market.
Case Green Consumption Management
CEC collaborates with Shenhua Group to develop the first high-power microwave drying and upgrading equipment production line in China. The production line was delivered to Shenhua Group in November 2013. This is a milestone of the coal industry.
The production line will not only bring huge economic benefits, but solve the
Case Microwave Equipment for Coal Drying and Upgrading
CEC promotes green life and green office. All CEC employees are required to pay attention to daily details such as water, electricity and paper saving. We also conduct video conferences to reduce unnecessary travelling.
CEC collaborates with Philip to develop green lighting lamps and lanterns. These products support the city with energy efficiency. For example, changing all 150,000 400W traditional lights for a prefecture level city can save electricity consumption of 13.5 million kWh every year, which is equal to 20,250 tons of standard coal, or 37,500 tons of CO2 emission
Case Green Lighting Products
Number of lights
150,000
Power of a traditional light
400W
Total power of traditional lights
60,000,000W
The lighting time
4,015 hours/year
(11 hours/day)
Power of a new light
180W
Total power of new lights
27,000,000W
Power price
1 RMB/kWh (approximately)
Annual electricity cost before replacement
240,900,000 RMB
Annual electricity cost after replacement
108,405,000 RMB
Electricity cost saved every year
132,495,000 RMB
3. Green Office
Electricity Saving Try to reduce lighting usage while working.Use power saving mode on equipments if possible.
Water Saving Encourage employees to save water
Officesupplies Saving
Enhance conference management, unify the purchase and simplify conference logistics.Recycle cartons, envelopes, express boxes and printed papers.
Enhancement ofCorporate Vehicles
Try to combine usage of vehicles, reduce empty returns, and reduce the usage of corporate vehicles.
Promote paperless office, try to use emails, telephones and internet instead.Use double sided printing.Reduce paper usage by reducing font and using smaller margins.
Paper Saving
environmental issues caused by lignite and slime. Every 50 million tons of lignite can be reduced by about 30 million tons of CO2 emission after upgrading; every 40 million tons of slime can be reduced by about 20 million tons of CO2 emission after treatment.
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Developing Mutual BenefitsIndustrial Chain RestructurePromote Strategic CollaborationEnhance Supplier ManagementTaking Social Responsibility Overseas
Developing Mutual Benefits
Dev
elop
ing
Mut
ual B
enef
itsD
eveloping Mutual B
enefits
1. Industrial Chain Restructure
CEC vigorously pushes business restructure to overcome the major corporate development obstacles in 2013. Throughout the year 12 secondary subordinate companies restructured.
2. Promote Strategic Collaboration
CEC and its sub-companies promote strategic collaboration with local governments, research institutions and corporate. We take multi-direction collaborations with honesty, integrity, and fairness as a sustainability measure.
3. Enhance Supplier Management
IRICO was merge into CEC on 31st December 2012 and become a CEC wholly-owned company. This recombination is a milestone of CEC’s development as this is an extension of CEC’s display screen business chain.
Upon the recombination, CEC established IRICO’s board of directors and relocated its headquarter back to Xianyang, which is closer to the front line of production. The personnel were streamlined, with a new mechanism of competition for positions. 21% personnel have been downsized and 53 unit organizations were streamlined. A three-year strategy was developed. The strategy identified electronic glass, color filter, electronic material, LED and modern services as the five major corporate businesses.
IRICO also imported international experts for R&D and made breakthrough.
To further reform corporate structure and optimize resources distribution, CEC combined three sub-companies and establish China RIDA in 2013
China RIDA Investment and Development Co. was officially founded on 24th July 2013. Its core business is property development, management and asset management.
To integrate resources on the trade and business sector, CEC combined four secondary sub-companies and established the Shenzhen International Headquarter on 28th August 2013.
The international headquarter will support CEC’s products, technology, services and solutions spread abroad of China.
The international headquarter supports the industrial development.
The international headquarter will be under entity operation after restructuring.
The international headquarter promotes industrial process and business development for its sub-companies.
Four Major Business Sectors
Corporate sustainability is not an independent corporate behavior. It requires the entire supply chain to take social responsibilities. CEC promotes responsibilities of its suppliers by carefully choosing, certifying, assessing and supporting its supplier, while pursuing its own development.
1.1 The Restructure of IRICO
1.3 Founded China RIDA Investment and Development Co.
1.2 Founded International Headquarter
CEC-IRICO Recombination Conference
In 2013, CEC has developed collaborations with China Telecom, China TravelSky, ZTE, Fudan University, HUST, and the Bureau of Surveying and Mapping on information security projects.
Case Collaborations for Sustainable Development
Modern services based on intellectual electronic products.
Major inforamtionized projects relying on integrated innovation.
International business pulled by marketing capabilities and channels.
Conferences and exhibitions united with international high-end resources.
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CEIEC initiated the Dewy Valley Integrated Agricultural Development Project in Venezuela in May 2012. The project aimed to develop a minor livestock processing production chain of dairy products including dairy and feed processing plants, milking units, steer ranch and irrigation areas. CEIEC focused on constructing the diary processing plants in 2013 and overcame the weather and financial obstacles to finished the construction in seven months. Currently the plant is able to provide 35,000 liters of milk every day for 170 thousand of local people. It also provides more than 100 local employment.
4.Taking Social Responsibility Overseas
CEC takes its overseas CSR work as important as its local CSR. We strive for building a good brand image of international social civilian through promoting the coordinative development of local economy, society and environment.
Shenzhen Tairisheng Industrial Co. uses a series of measures to push its supplier to take social responsibilities. The company regularly assesses its suppliers on their social responsibility performance. Additionally, they encourage the suppliers to develop their own CSR structure, thus to promote CSR awareness and performance through the whole supply chain.
Case Pushes Supplier to Take Responsibilities
Case Support Local Economic Development
Case Support Local Industrial Development
Shenzhen Kaifa Technology Corporation follows a series of principles to manage its suppliers, whilst provides relative training to improve suppliers’ professional skills for better development.
Shenzhen Kaifa regularly invites suppliers of key components to take their training and discuss relevant technology and product quality issues with them.
Case Managing and Supporting Suppliers
Better public praise
First-hand manufactures
Local suppliers first
Suppliers with good services
Principles of Choosing Suppliers
Assessment and Supervision to Supplies
Supporting Suppliers
Cost performance over price
Paper certificates On-site assessment regular�assessment
CPK SPC 3A
The cement factory in Najran is the CEC’s first construction project in Saudi Arabia. With the effort of all CEC staff, the construction completed four months ahead of schedule. The factory was launched on 28th June 2013.
Vice president Yuan Chao Li of China visited the farm President Nicolás Maduro Moros of Venezuela spoke highly for the CEIEC’s contribution to the country
Dev
elop
ing
Mut
ual B
enef
itsD
eveloping Mutual B
enefits
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Cultural Development
As one of the major power of the national information industry, CEC takes protecting national information security, providing the country and society with advance and applicative electronic technology and products as its corporate mission, for which we are guided by our corporate culture. We strive for align corporate social responsibility with corporate culture development.
Future Prospects
Future Prospects
Strive for innovation
Be honest
Scientific and regulated
Collaborative and efficient
Duty is only
Reward the goods
Obey the law
Be an example
Operating Philosophy Managing Philosophy Talent PhilosophyAnti-corruptionPhilosophyOs
The year of 2013 is the beginning of CEC implementing the spirit of the
18th People’s Congress Conference and developing new scientific
structure. During 2013, CEC has made impressive success.
Looking into 2014, facing the severe external environment, CEC will
seize each and every opportunity to align corporate development and
corporate social responsibility and continue to strive for being a
world-class electronic enterprise with international influence and
competence. We will continue to optimize responsibility management,
improve core business capabilities, contribute to livelihoods, enhance
green operation and further push collaborative development.
Cultural Development
Cul
tura
l Dev
elop
men
t
CEC Corporate Culture
Culture Topic：Creative CEC leads the future of information.
Work Style：Pragmatic & efficient, diligent & frugal
Responsibility Theories：
Mission：Provide the country and society with advance, secured and applicative electronic technology and products; provide the employees a platform to accomplish their dreams.
Responsibility decides the success and failure, and creates the future.Compliance is foundation of success.Be honest to the country, society and employees to win respect and support from government, public, shareholders, customers and employees.Advocate morality, be pragmatic and efficient, be proud of being clean and shame of corruptionInnovation is the soul of national progress, the motive power of the prosperity of the country and the source of CEC’s sustainable development.Pursue efficient and effective work.Be honest, be doers, no empty talk, respond quickly, decide quickly, implement quickly and be thrifty.Pay attentions to employees’ needs, respect employees’ personal value, provide fair opportunities.
Vision：Become a vigorous, reliable, respected world-class enterprise with international influence and competence.
Value Proposition：Credibility, performance, innovation and responsibility
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Appendix
App
endi
x Appendix
China Electronics Corporation (CEC) is one of the key enterprises managed by the central government, founded in May 1989. It provides electronic information technology, products and services including new-generation display, information security, integrated circuits and information services. CEC is the biggest comprehensive IT corporation group which is closely related to the national economic development. It sits at No. 382 of the Fortune 500 in 2013. This is the fourth time CEC appears in the list.
About CECCEC follows the “Company Law” and requests raised by SASAC. The Group has board of directors, supervisory board and a well structured management team, and established a number of corporate mechanisms to ensure the organization operate as harmonious, effective, efficient and standardized as possible.
Currently, CEC has five external and four internal board members. They all play very important roles in carrying the implementation of corporate strategy, promoting scientific innovations, improving corporate governance and enhancing subordinate companies.
Corporate Profile
Organizational Structure
16 Wholly-owned Companies 6 Joint-stock Companies
Supervisory Board
Corporation Board of Directors
Management Team
Science and Technology Commission
审计部
Boardroom
Science and Technology P
lanning D
epartment (S
&T C
omm
ission Office)
Asset M
anagement D
epartment
(Directors and S
upervisors Office)
Operation D
epartment
Marketing D
epartment
Finance Departm
ent
Hum
an Resource D
epartment
Legal Affair D
epartment
Corporate S
ocial Responsibility
Departm
ent
Retirees S
ervice Center
Disciplinary Inspection D
epartment
(Patrol O
ffice)
Audit D
epartment
General O
ffice (Information C
enter, Foreign A
ffair Office)
16 Proprietary Companies
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Economic Indicators
Environmental Indicators
Total Assets (Unit:Billion)
(Unit:Billion)
(Unit:Billion)
(Unit:Billion)
Total Profit
Parent Company Profit
144.8
168.2183.0
193.8
160.9182.0
2011 2012 2013 2011 2012 2013
Operating Income
Million
%
%
Billion USD
Million
%
%
Billion
%
1,334.1
112.1
6.34
10.3
3,253.5
9.40
70.55
3.9
3.70
2,973.0
108.82
8.87
15.8
2,557.9
9.09
70.98
3.2
3.98
3,205.4
108.04
5.69
10.4
3,314.6
8.91
71.85
5.0
3.81
Economic Indicators Unit 2011 2012 2013
Total Investment inEnvironmental Protection（Unit：Million） （Unit：Million） （Unit：Million）
（Unit：Tons of Standard Coal）
2011
2012
2013
2.2
157.3
277.2
25.7
31.0
51.9
2011
2012
2013
Total Investment inEnergy Efficiency
Energy Consumption/10,000 RMB Value Added
Water Consumption/10,000 RMB Value Added
Emission of SO2
Emission of CO2
Emission of Chemical
Oxygen Demand
Tons of Standard Coal
Ton
Ton
Ton
Ton
0.0647
7.78
28.4
58.44
0.0643
6.51
26.04
620782.6
53.95
0.0981
9.50
23.57
994479.7
258.59
Environmental Indicators Unit 2011 2012 2013
104,000 154,000100,000
University Recruitments
（Unit：%）
The Ratio of R&D PersonnelAccounted for All Employees
79 9
2011 2012 2013 2011 2012 2013
R&D Personnel
Investment in Training
Training Input per capita
Training Time per capita
Production Safety Investment
Million
RMB/Year
Hour/Year
Million
37.4
343
8
123.0
30.9
279
8
106.1
23.1
507
8
163.2
2011 2012 2013
Labor Contract Rate
Employee Training Coverage
%
%
99.5
48.2
99.6
31.4
99.5
40.9
Social Indicators Unit 2011 2012 2013
12,02813,499
14,946
Total Number of Employees
Social Indicators
Total Energy Consumption
Investment in Energy EfficiencyTechnology Reconstruction
25.7 38.923.0
4.02013
3.82012
3.72011
12.0112013
10.412012
9.52011
124,3042013
129,9482012
126,5392011
2012 20132011
2012 20132011
1.72013
1.52012
1.32011
Key Performances in 2013
Economic Value AddedAppreciation Rate of State-owned AssetsAverage growth rate of core business revenue
Total Export
Total Investment Overseas
Return on Equity
Debt-to-asset ratio
Total Taxes Paid
Return on Assets
Social Indicators Unit
Key
Performances
in 2013
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Index Report Rating
Content Pages
About this Report
Chairman Interview
CEC Milestones
Special: Responsibility and Sustainability
Responsibility Management
Creating Sustainable Value
Advancing Social Harmony
Ecological Civilization
Developing Mutual Benefits
Cultural Development
Future Prostpcts
Appendix
Outstanding Performance
Remarkable Specialized ReconstructionDevelop Responsible Corporate Culture
Responsibility Strategy
Responsibility governance
Responsibility Promotion
Responsibility Communication
Honesty & Compliance
Steady Development
Public Responsibility
Provide High Quality Products and Services
Build a Happy Home for Employees
Participate in Community Development
Environment Management
Green Production
Green Office
Industrial Chain ReconstructionPromote Strategic CollaborationEnhance Supplier ManagementTaking Social Responsibility Overseas
About CEC
Key Performances in 2013
Index
Report Rating
Feedback & Suggestions
P1.1-P1.5，P2.1，P2.3
P3.1，P3.2
P5.1，P5.3
M1.4-M1.6
P4.7
G6.4
G1.1，G1.4，G2.5
G2.1，G2.3-G2.4
G3.1，G6.1，G6.4
G5.1，G5.3-G5.6
S1.1-S1.2，S1.4
P4.2，M1.4-M1.6
P4.2
M2.1，M2.4-M2.10，M2.12
S2.1-S2.4,S2.7，S2.9，S2.11，S2.13，
S2.15，S2.17-S2.22，S2.24-S2.29
S4.4-S4.5，S4.8-S4.9，S4.12-S4.14
E1.1-E1.2，E1.4,E1.6-E1.7，E4.5
E2.2，E2.5，E2.7-E2.13,E2.15，E3.4，
EEE2.5，EEE2.7，EEE2.8
E1.10，E1.12
P4.7
M3.1-M3.3
G3.2，M3.6-M3.7，M3.9
S4.11
A1
P4.1-P4.2
E1.5，E2.3-E2.4，P5.2
A3
A2
A4
P1
P4-P5
P6-P7
P8
P8
P9
P10
P11
P12
P12-P13
P16-P17
P17-P19
P19-P25
P28-P31
P32-P37
P37-P39
P42-43
P44-P47
P47
P50-P51
P51
P51-P53
P53
P56
P57
P58-P59
P60-P61
P62
P63
P64
CASS-CSR3.0 + Industrial Indicators
Research Center for Corporate Social Responsibility Chinese Academy of Social Sciences
企业社会责任研究中心中国社会科学院经济学部
The Research Center for Corporate Social Responsibility at Chinese Academy of Social Sciences (also known as the CSR Center) was entrusted by China Electronics Corporation to form a report rating team from “China CSR Report Rating Expert Committee”, and conduct the report rating for “China Electrics Corporation Corporate Social Responsibility Report 2013”.1. Rating Standard
“Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 3.0) and “Rating Standards for China Corporate Social Responsibility Report (2014)2. Rating Processa) The rating team for report process conducted interviews with members from CEC CSR department b) The rating team for report process investigated files and documents CEC and its sub-companies provide for report writing.c) The report rating team assessed the report management and information disclosed in the report.3. Rating ResultsProcess Management（★★★★）
The CSR Department of CEC leads the reporting with the participation of the corporate executives in initiating, developing and authorization of the report. The reporting team identified and prioritized stakeholders and gathered information by on-site investigations; defined materiality of topics over stakeholder feedbacks, corporate major events, national policies and industry benchmarking. CEC plans to conduct embedded report releasing conference and will publish the report with printed and electronic versions (multiple languages). The process management is outstanding.Materiality（★★★★☆）
The report discloses key topics of the Electronics Industry such as “product quality management”, “product technology innovation”, “supply chain CSR management”, “occupational health management”, “production safety” and “R&D in Eco-friendly products”. It has a leading materiality.Integrity（★★★★）
The report discloses 78% of core indicators for the Electronics Industry from the perspectives of “responsibility management”, “creating sustainable value”, “advancing social harmony”, “ecological civilization”, “developing mutual benefits” and “cultural development”. It has an outstanding integrity. Balance（★★★★★）
The report discloses negative information such as “number of production accidents”, “number of injuries”, “number of death”, and “major environmental pollution incidents”. It also discloses “production safety risks” and “number of issue identified by internal auditing”
and the rectification. The report’s balance is excellent.Comparability（★★★★★）
The report discloses 61 key indicators with a continuous three-year information such as “operating income”, “Investment in R&D”, “employee training coverage” and “investment in production safety”. Its comparability is excellent.Readability（★★★★☆）
The report has a clear framework and a appropriate length, with rich variety of pictures and charts. The layout design is beautifully illustrated. Some of the pictures are made up of numbers which represents the characteristic of the industry. The report has a leading readability.Creativity（★★★★☆）
The report starts with “CEC Milestones” which synthesizes all of its “firsts” in the past 60 years and clearly describes the path of CEC’s path of CSR; followed by a special chapter of “responsibility and sustainability” which concludes CEC’s CSR development in 2013. The structure is in favor of providing the readers with its performance. The report has a leading creativity.Overall Rating（★★★★☆）
After the assessment by the rating team, “China Electrics Corporation Corporate Social Responsibility Report 2013” is rated as four and a half stars which is a leading corporate social responsibility report.4. Recommendations for Improvementa) Focus on reporting process management and stakeholder participation.b) Add more key indicator information disclosure to further improve the report’s integrity.The Rating TeamTeam Leader: Duosheng Cheng, Director of China Enterprise Confederation Enterprise Innovation Work DepartmentTeam Members: Yi Guo, Associate Professor, School of Economics, Beijing Technology and Business UniversityMinghui Hou, Editor from "Business Observer"Process Management Rating Team from CSR Center: Lifeng Zhai Mengjuan Wang
评级专家委员会主席中心常务副理事长
评级小组组长中心副理事长
Rating for “China Electronics Corporation Corporate SocialResponsibility Report 2013”
App
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Dear Reader:
We are thankful for you reading “China Electrics Corporation Corporate Social Responsibility Report 2013”. To improve our
work, we sincerely welcome your suggestions and proposals by filling the below table.
China Electronics Corporation
July 2013
Please rate 5 as the highest score, and 1 as the lowest score.
You may email the above table to [email protected], or fax it to 0086 10 68213745. We will consider your suggestion
seriously and we promise to protect your personal information from any third party.
Feedback & Suggestions
Name
Contact
Rating�for�Report
Fore�page
Sustainable�Value
Social�Harmony
Ecology
Mutual�Benefits
Culture
Apendix
Overall�Rating
Other�Suggestions
Phone�
Integrity Readability Materiality Credibility
App
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