CJ Logistics

CJ Logistics seeks x-objective decision making by recruiting over half of its board of directors members with non-executive directors so that we can properly examine and decide independently on major issues related to Company management. The composition of the board of directors is decided based on expertise considering the management situation at that time. Moreover, CJ Logistics has no bias toward education, gender, religion and place of birth for promoting diversity among executive staff.

CJ Logistics has included major matters including the term and appointment standards for non-executive directors in the articles of its board of directors so that they can perform their duties independently. The term for either an executive and non-executive director on the board is limited to three years; for securing independence of non-executive directors considering the purpose of the system, a one-time reappointment is allowed to extend the term up to six years. This rule allows non-executive directors to utilize their expertise and play a supervisory role.

CJ Logistics appoints non-executive directors with expertise in law, accounting and business necessary for operating the business through a fair appointment procedure by separately running the committee for nomination of non-executive directors under the board of directors for securing professionalism and transparency of the latter. In examining candidates for non-executive directors, we also check qualifications, fairness of duties and ethics including professionalism. Based on these, members are finally appointed to the board of directors and the general meeting of shareholders. Non-executive directors appointed by our company, per relevant regulations of commercial law, may concurrently be non-executive directors of other companies. If this arrangement is judged to be troublesome in the aspect of social common notion, he/she must resign for a fair and transparent system of non-executive directors.

For transparently performing auditing, a separate organization in charge of auditing directly under the CEO is legally run, which minimizes influence from stakeholders in and out of the company. When issues like employee corruption or unjustifiable requests by taking advantage of one’s position occur, and for cooperative companies or employees to always inform us of related facts confidentially, the Company has a cyber audit office and whistleblower system.

CJ Logistics promotes communication within the board of directors to perform its responsibility and play its role of collecting and reflecting opinions of various stakeholders as the top decision-making body. We periodically provide non-executive directors with information on Company management performance and plans so that they can submit varied opinions and policies based on their expertise; these can be reflected in management activities.