CJ物流

Board of Directors

CJ Logistics’ Board of Directors is composed of seven directors. Among them, three are inside directors including Representative Director and four are outside directors. CJ Logistics targets 51% of BOD members to be represented by outside directors so as to ensure check-and-balance and oversight by the BOD. On this basis, outside directors are appointed from among candidates recommended by Outside Director Candidate Recommendation Committee. In appointing a director, the Company does not tolerate discrimination based on gender, nationality, age, religion, ethnicity, origin, academic achievement and disability and strives to secure diversity and balance. As of March 2022, CJ Logistics’ Board of Directors has one female director.

Operation of Board of Directors

CJ Logistics’ Board of Directors upholds the principle of convening Board of Directors every month and extraordinary BOD when needed. BOD resolves matters stipulated in the laws and Articles of Incorporation, matters delegated by General Meeting of Shareholders and other major matters, and operates sub-committees to observe independent decision-making. Directors’ attendance rate in 2022 was 95.8%, which exceeded the lowest attendance rate of 80% as required by the BOD. Major resolution items and directors’ attendance are disclosed in the Company’s quarterly/half-year report, business report and Company website.

BOD Evaluation and Compensation

Activities of outside directors are evaluated with overall consideration into their attendance rate at Board of Directors and sub-committees, independence and contribution, and the evaluation results are reflected in their compensation and recommendation for re-appointment at Outside Director Candidate Recommendation Committee. Management’s activities are evaluated based on such quantitative indicators as sales revenue and operating income, etc. along with their key competency and contribution to the Company in an objective manner. Compensation policy for key management is designed to be aligned with the long-term interests of shareholders, and their compensation is transparently disclosed to the public. CEO is subject to variable compensation whose long-term incentive is calculated on the basis of actual sales revenue and operating income of the past two years vs. target and KPI. The incentive is then paid over a two-year period.

Risk Management System

CJ Logistics has built and managed risk-response organization led by the head of each business division under the CEO and the person in charge of business planning. In addition, we actively respond to risks by forming a crisis response TF consisting of the Management Support Office, Strategic Support Office, Legal/CR Office, and Human Resources Support Office, including the CEO.

Risk types and Factors

Definition of Stakeholders

Stakeholders are defined as entities who influence and are influenced by the Company’s business activities and performance directly and indirectly. Major stakeholders can be grouped into customers, suppliers, shareholder, local community and executives and employees. At CJ Logistics, ‘stakeholder engagement’ is the foundation on which the Company establishes and implements business strategies. This enables the Company to take stakeholders’ diverse opinions, forecast changes in the business environment and identify risk factors in advance for response.

Communication with Stakeholders

CJ Logistics is diversifying communication channels with stakeholders to widen their engagement to the Company’s business. Their voices and ideas are collected via communication channels tailored to key stakeholder groups and major issues are reflected in the Company’s business decision-making after report to the Board of Directors.

Compliance System

Compliance is ethical norms that should be pursued as core value of top priority to root down transparent and fair trade practices and build a culture on compliance management. To achieve the goal on building and bolstering compliance, CJ Logistics introduced compliance program on fair trade in 2017. Since then, the company has been identifying and improving compliance risks from business perspectives at home and abroad, and carrying out practical activities to internalize commitment to compliance by all executives and employees. In addition, the Company selects compliance leaders assigned with feasible roles and responsibilities, provides regular training and operates Compliance Management Committee to contribute to rooting down culture around compliance management. Going forward, CJ Logistics will uphold good behavior and make good decisions in its relations with customers, shareholders, executives and employees and the global community, and play a key role in advancing society and the economy by observing the compliance framework. To this end, we will commit to ethics management, thereby become an admired and respected company that drives sustainable growth.

Improvement of Compliance Activities

CJ Logistics is making every effort to strengthen compliance activities by conducting various activities every year to provide specific directions and principles for desirable behavior to all employees. Accordingly, the Company started to share work guidelines, enactment and revision of related laws, reports on regulatory updates and CP letter* with all executives and employees since Mar. 2021. The legal and CR office keeps all members of the Company updated on information related to fair trade via e-mail and in-house bulletin board. Also, Compliance Management Committee is convened annually and regular compliance training and check is performed to identify regulatory risks in advance and make proper response, which are all part of the continuous efforts to bolster compliance management.

Regular publication on compliance-related information including relevant laws, regulations, news, press release from Fair Trade Commission, Q&A, etc.

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