Cosco hoists sustainability sails
Chinese shipping giant Cosco is putting corporate social responsibility into practice. Last year, it released its first Annual Sustainability Development Report, the first in China to comply with the UN Global Compact Initiative.
Cosco (China Ocean Shipping Group Company) is one of China's flagship enterprises. Its shipping capacity is the largest in China and the fifth biggest in the world. But Cosco is not only big - it is also a recognised leader in sustainable development.
This shipping and logistics giant has released its first Annual Sustainability Development Report under the United Nations' Global Compact Initiative. The report, verified by DNV, covers the three critical aspects of sustainability - economic performance, environmental protection performance and social impact.
"After two years of efforts, Cosco established its Global Compact Social Responsibilities Management System and issued the sustainability development report," says Ma Xin Ying, manager of Cosco's strategic planning division.
First in China
"As the first Chinese enterprise to implement the Global Compact, Cosco is also the first state-owned company to compile such a report according to the requirements of the Global Reporting Initiative," she says proudly.
According to ms Ma, the main driver behind the work is Cosco's president and CEO, Captain Wei Jiafu, who has set his company's vision for establishing a socially responsible culture across the company. The programme covers the 10 core principles of the United Nations Global Compact Initiative, which was established by the former UN Secretary-General Kofi Annan in 1999.
The agreement to provide services to support Cosco's sustainable business development was signed in May last year, after DNV awarded three certificates recognising Coscos modern enterprise management system. The three certificates are for:
ISO 9001 quality management system
ISO 14001 environmental management system
OHSAS 18000 occupational health and safety management system
The company is the first state-owned enterprise in China to receive all three certificates at the same time.
"President and CEO Captain Wei and his senior management team are dedicated to building an innovative management system and are keen to implement new concepts to take an international lead in shipping," says ms Ma. She firmly believes the external audits are one of the most important factors contributing to Cosco's success.
Fully integrated
"Cosco's senior management's commitment is key to the company's success," adds Sangem Hsu, DNV's business development director for Asia and Australia. "DNV's role is to ensure that our certification services help Cosco to build a management framework which integrates expertise risk management and sustainable development into the ISO-based management system."
Highlighting the importance of being a Global Compact member, ms Ma says that whatever goals a company pledges to reach or standards it promises to comply with, there must be a specific, practical application. Without this, codes will set only the overall ground rules for corporate conduct.
Commercial benefits
"Good corporate practices bring commercial benefits. They help companies achieve a variety of goals: protect their corporate reputation, improve employee morale, enhance client loyalty, just to name a few. On the other hand, companies that do not practice what they pledge risk adverse publicity and customer loss," says ms Ma.
As it turns 46 years old, Cosco has made the transition from a small shipowner to one of the world's leaders. However, its core values remain the same: a commitment to leadership, innovation and financial strength.
"Maintaining these values will ensure that the Group continues to lead, to grow and to contribute to the sustainable development of global economic trade" concludes ms Ma.
