Corporate Social Responsibility

In 2014, Sinopharm Group was guided by its development principle of “System Innovation, Efficiency Enhancement and Steady Development” to promote management enhancement, marketing transformation and industry upgrade, hereby achieving healthy and sustainable development. The slogan “Optimized Strategy, Speed and Efficiency” was adhered to in pursuit of enhancing operating efficiency, thus maintaining constant increase in economic benefit and decrease in operating costs.

Corporate object: Let our customers feel our efforts; Let our employees realize their values; Let our shareholders get their returns

Philosophy of corporate social responsibility: Good compliance; People-oriented; Health and satisfaction; Constant improvement.

Corporate vision: To become a pharmaceutical and healthcare service provider with international competitiveness.

PERFORMANCE OF CORPORATE SOCIAL RESPONSIBILITY

Sinopharm Group has developed into the largest distributor of pharmaceutical and healthcare products and a leading supply-chain service provider in the PRC, and owns and operates the largest pharmaceutical distribution and delivery network in the PRC, thus having established an integrated industry chain developing related segments such as distribution and delivery of pharmaceutical and healthcare products, pharmaceutical and healthcare product retail chain, pharmaceutical manufacturing, chemical reagents, medical equipment and healthcare service with synergy. Sinopharm Group strives to become a pharmaceutical and healthcare service provider with international competitiveness to constantly contribute to human health and good life.

It has been Sinopharm Group’s persistent philosophy that an enterprise, as a member of the society, should have frank talks with its stakeholders to establish mutual reliable relationships to satisfy their various needs in terms of economy, environment and society, etc. Meanwhile, an enterprise should make contributions to the sustainable development of the society and play a role in the progress and development of the society, through equitable and transparent corporate activities. In 2014, Sinopharm Group held diverse activities to perform its corporate social responsibility in the following aspects:

• Social responsibility training programs: The Company has held “SA8000 Social Responsibility Management System” training program for all cadres and staff each year. The program has also been included in the induction courses for new employees.
• Propaganda on anti-corruption practices in workplace: The Company held report meetings and set up bulletin boards on anti-corruption practices in workplace to disseminate and educate on prevention of enterprise’s legal risks and job-related crimes, etc. The “April Breeze – Month of Anti-corruption Practices in the Workplace” campaign was held to further implement the “Eight Rules” and promote anti-corruption and integrity to a greater extent. General training and discussion on “Operation compliant with laws, anti-corruption practices in workplace and healthy development” was held to appeal cadres and staff to comply with laws and regulations and exercise self-restraint.
• Environmental protection, energy saving and emission reduction activities. Sinopharm Group has informed its subsidiaries of its energy saving and emission reduction indicators each year and entered into letters of responsibility with them. The Company strictly complied with environmental protection laws and regulations such as “Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution”, “Water Pollution Prevention and Control Law of the People’s Republic of China”, “Law of the People’s Republic of China on Prevention and Control of Pollution from Environmental Noise” and the laws regarding industrial waste disposal. Industrial enterprises subordinated to the Company actively pursued ISO 14001 certification. The Company has made greater investments in environmental protection, sewage treatment and equipment technological upgrade of environmental protection equipment each year. In addition, the enterprises of Sinopharm Group actively pursued green purchase and socially responsible purchase, and promoted energy saving campaigns on, among other things, raw materials, water, electricity and printing paper.
• Corporate socially responsible purchase. Sinopharm Group has increased the proportion of socially responsible purchase in its operation each year. Corporate socially responsible terms such as “Prohibition of Using Child Labor”, “Prohibition of Unreasonable Salary”, “Restriction of Use of Hazardous Chemicals” and “Greater Environmental Protection Awareness” were included in sales and purchase contracts with suppliers.
• Corporate citizenship activities. Adhering to the philosophy of “Caring for Life; Attending to Health”, Sinopharm Group has proactively returned the society. The headquarters and subsidiaries of Sinopharm Group actively held socially responsible practice activities such as “One-to-one Support”, “Education Support”, “Help the Poor and the Old”, “Go Green”, “Disaster and Emergency Relief” and “Volunteer Service” to seriously perform the responsibilities of a corporate citizen.
• Enhanced corporate democratic management to safeguard staff’s legitimate interests. The Company had placed emphasis on safeguarding the staff’s legitimate interests by adherence to holding a dialogue meeting between the senior management and its staff and a staff representative meeting on an annual basis, thus further strengthening and improving the democratic management progress.
• The Company strengthened its guidance for the establishment of grassroots labor unions. It published the Operation Guide to Labor Union Establishment in Subsidiaries within the System of Sinopharm Group to practically facilitate second-level subsidiaries to establish labor unions for their subsidiaries. The latest round of resolutions such as Collective Contracts, Special Contract on Protection of Female Employees’ Interests and Headquarters Caring Fund Administrative Measures was passed, and the democratic dialogue meeting system was established. In addition, the labor union of Sinopharm Group promoted and held caring activities such as “New Year’s Day and Chinese New Year Heart-warming Visits”, “One-day Donation”, and “Heart-warming Family Talks by Telephone” for peasant labor, and organized a period of rest and recuperation for advanced employees and blood donor employees to protect the staff’s physical and mental health.
• The Company has actively organized various cultural activities through communities of i-TAICHING, yoga, badminton, table tennis, football and chorus to enrich the cultural life for its staff. All levels of organizations – the Party, the Management, Labor Union, and the Youth League, have stayed close to reality of the enterprise and life of staff and held various activities such as book reading and sharing, health forums, speech contests, visits and studies, aiming at building a harmonious Sinopharm Group.

Adhering to the philosophy of “Caring for Life; Attending to Health”, Sinopharm Group continues to improve its social responsibility management system and seriously fulfills various social responsibilities and commitments. Cherishing the “Benevolence, love, and responsibility” as its core value, it strives to bring long-lasting and stable value to its shareholders, clients, environment, and the society, and stands out to take the leadership as a pharmaceutical enterprise with strong sense of social responsibility.