Our Social Responsibility Policy
Build a safe, healthy and friendly work environment
Haitian International continues to pay attention to the health and safety, development and training of employees, establish a comprehensive employee compensation and benefits system, and provide diversified communication channels. At the same time, we always keep in mind to give back to the community and actively participate in various public welfare activities and charity events to promote sustainable development of the community. In addition to caring for the underprivileged, we have also taken action to support culture and sports in recent years to do our part for the community through feedback.
Development and Training
Health and Safety
Staff Care
Social Contributions
Social Contributions
We regard our employees as the most valuable assets of the Group. Adhering to “people-oriented” management philosophy, we are committed to creating a working environment of harmonious development, practicality, creativity, solidarity and progress. In addition, insisting on the values of “pragmatism, pioneer, innovation and persistence”, we gradually transform from “human-based system” into “institutionalized human-centric management”. In strict accordance with the Labour Law of the People’s Republic of China, the Labour Contract Law of the People’s Republic of China and other relevant laws and regulations, we have formulated the Employee Manual and other rules and regulations on employee benefits, career development, employee training, production safety, occupational health etc., to protect the legitimate rights and interests of employees in an all-round manner.
We attach great importance to collaboration between labour and capital and advocate the freedom of association and the collective bargaining right of employees. The labour union signed a collective contract with the Chairman on behalf of whole employee to protect rights and interests of each employee.
Remuneration and Benefits
Remuneration and Benefits Policy
Sticking to the principle of “fairness and timely adjustment”, and in accordance with the regulations such as the Statement of Haitian International on Human Rights Policy and the Social Responsibility Management Manual, we are committed to the reasonable arrangement of the work-rest cycle for employees, and the provision of competitive salaries and benefits. Therefore, we offer competitive salaries to attract and retain employees internally, while collecting industrycompensation data in the labor market externally, to establish a fair, reasonable, and competitive compensation system.
Employee Stock Ownership Plan
We have established an employee stock ownership plan, covering the mid-level and senior management and core technicians, in order to motivate and retain high-quality talents and core employees, and achieve a win-win situation in terms of employee accomplishments and corporate development.
Variable Compensation Based on Performance
To fully motivate working enthusiasm, and create a performance-driven reward system based on ability, performance, and dedication, We established a strong performance-based incentive pay framework, which covers all employees (including office staff, non-office staff, management, senior management), and Board of Directors. The payment of variable compensation will be linked to the results of performance evaluation and the achievement of corporate goals, as follows:
All front-line employees (including both office and non-office staff) will have their monthly performance bonuses calculated based on their monthly performance rating and the number of work shifts. Additionally, the year-end bonuses for front-line employees are determined based on their individual performance throughout the year. The specific amount fluctuates within a range of 20% to 300% of the company’s year-end bonus benchmark. Performance-based incentive compensation increases with higher position levels and reflects the impact of position levels on both short-term and long-term company performance.
The performance bonuses for non-front-line and managerial staff are calculated based on their salary grade and monthly performance rating. Similarly, the year-end bonuses are determined based on individual performance and range from 20% to 250% of the company’s base year-end bonus benchmark.
The compensation for the Board of Directors and senior management is linked to their performance, company performance, profitability, and their value add to the company. This compensation structure also takes into account factors such as workload, responsibilities, job complexity, company mission, and goals.
Furthermore, the company has implemented a Value Sharing Bonus Scheme, in which the net profit increment resulting from the company’s performance improvement is distributed as bonuses. The distribution of bonuses is allocated to organizations and positions that have made higher contributions.
Non-Compensation Benefits
In terms of employee benefits, we offer a wide range of non-compensation benefits to all employees in accordance with the laws and regulations. All employees are entitled to statutory holidays, comprehensive pension and others benefits, such as five major social insurance programs and housing provident fund. In addition, we provide additional benefits to our employees, such as paid annual leave, working meals, working uniforms, shuttle buses, dormitories for single employees, affordable housing, public rental housing, monthly sanitation fee, financial aids from the labour union, regular health check-ups, etc. We also present gifts and benefits to our employees during traditional holidays, especially to those who stay on their posts during the holidays.
Development and Training
We highlight the cultivation and development of diversified talents and has established a scientific career development mechanism of employee skill training, job rotation development, competency assessment and fair promotion. We, based on job responsibilities of each post, have established a career development system providing a balanced and sustainable career development path and growth platform for our employees in different posts.
Haitian Academy
Cooperated with Ningbo Polytechnic
Haitian Engineers Program
Cooperated with NingboTech University
Master of Engineering Program
Cooperated with Beijing University of Chemical Technology and Tongji University
“Cloud Classroom” online learning platform
Health and Safety
With the occupational health and safety of employees as our top priority, we have kept strict compliance with the Work Safety Law of the People’s Republic of China, the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases and other laws and regulations, and have formulated and adopted safety management related policies in accordance with relevant laws and regulations. We have also established an organizational structure for work safety management, under which management and employees at each level clearly understand their safety ranks and responsibilities and strictly perform their duties in compliance with relevant work safety policies.
Obtained ISO 45001 Occupational Health and Safety
Management System Certification Certificate
Staff Care
We maintain smooth communication and close contact with our employees. We have established various communication channels according to the Employee Complaint Management System to help employees solve practical difficulties in a timely manner. At the same time, we take care of our employees by enhancing their welfare and helping them to balance work and life.
As of 31 December 2022, we provided nearly 6,300 units of welfare housing for our employees, including: employee apartments and public rental housing
Social Contributions
To make contributions to society, we set up Zhejiang Haitian Charity Foundation in 2013 and keep it operating ever since. The foundation makes donations and carries out public welfare projects every year to help vulnerable groups such as the poor, uneducated children, orphans, widows, the sick and the disabled, as well as employees in difficulty. Zhejiang Haitian Charity Foundation was rated as a “4A” Chinese social organization by Zhejiang Civil Affairs Bureau, strongly proving that we attach great importance to making contributions to society and we have achieved fruitful results in fulfilling social responsibilities.
Established Zhejiang Haitian Charity Foundation in 2013
Haitian Culture and Sports Centre opened, with a total donation of approximately RMB 140 million
Haitian Charity Day
Staff Volunteer Activities
Endeavour Scholarships for Colleges and Universities
Help families and children in need
AAAA Chinese Social Organization
Excellent in Corporate Social Responsibilities in Ningbo
Sustainable Supply Chain
A stable and sustainable supply chain is the basis for the Group to provide quality products and services for our customers. To this end, we have not only formulated relevant management systems, including the New Supplier Entry Rules and the Supplier Evaluation and Assessment Methods, but also defined the responsibilities of internal procurement staff, in an effort to reduce supply chain risks. For processes outsourced to third party contractors which involve potential pollution to the environment, we request the contractors to obtain relevant license from the environmental protection bureau of the local government to ensure they are qualified to perform the relevant work.
We use high quality components produced by Haitian Group industries and selected international suppliers, using a high quality and flexible supply chain system, and assembly in Haitian International’s factoriesSustainable Supply Chain
A stable and sustainable supply chain is the basis for the Group to provide quality products and services for our customers. To this end, we have not only formulated relevant management systems, including the New Supplier Entry Rules and the Supplier Evaluation and Assessment Methods, but also defined the responsibilities of internal procurement staff, in an effort to reduce supply chain risks. For processes outsourced to third party contractors which involve potential pollution to the environment, we request the contractors to obtain relevant license from the environmental protection bureau of the local government to ensure they are qualified to perform the relevant work.
Anti-Fraud
Business Ethics and Anti-Fraud Policy
Strictly following the laws and regulations related to anti-corruption and business ethics, such as the Anti-Unfair Competition Law of the People’s Republic of China, and the Anti-Money Laundering Law of the People’s Republic of China, Haitian International has set up a series of regulations to standardize the Group’s management mechanism. In addition, all employees, suppliers and partners are required to strictly abide by the integrity and ethical standards and work together for the Group’s sustainable development. In daily management, the Group incorporates business ethics matters (e.g., anti-corruption) into corporate risk management and takes it as the guidance to conduct business audits. All business sectors are audited by the Internal Control Department at least once every three years.
Each year, we audit targeted entities which are selected from every business sector through on-site or remote auditing. The process of selection is combined with random and risk-driven according to professional advices of senior auditors and approval of auditor leader. The annual audit work plan and resources are reviewed and agreed with the Audit Committee. Besides annual plan, ad-hoc projects and investigative work are conducted as may be needed.
Our audit scope covers risks identified from annual risk assessment. For instance, to monitor risks of interested party transaction and procurement, we audit identification of interested parties (suppliers included), management of interested parties, process of procurement and etc.
For any finding or concluded issue, our internal auditors report directly to the Audit Committee without the need to consult with management, and via the Audit Committee to the Board. Our internal auditors have unrestricted access to all areas of the Company’s business units, assets, records and personnel in the course of conducting its work.
BUSINESS ETHICS AND ANTI-FRAUD TRAINING
The Group provides regular integrity education and training to employees and directors every year. We organize online anti-corruption training, which includes the dissemination of laws and regulations on anti-corruption and operational compliance, interpretation of the latest Corporate Governance Code and relevant listing regulations, clarification of the responsibilities of personnel at all levels in anti-corruption efforts, and case analysis. An E-Learning platform has also been set up to provide exercises and tests for employees and track their completion rate of the training.
In 2022, a total of 7,159 employees completed online training with a focus on business ethics and anti-corruption, covering 100% of full-time and part-time employees for the financial year. All members of the Board of Directors and senior management also participated in the training on anti-corruption.
Additionally, we provide business ethics and anti-corruption training to all suppliers and contractors. It is stated in the supply agreement that our suppliers and contractors must be informed of our business ethics and anti-corruption policies. They are prohibited from engaging in any form of commercial bribery in their business activities with us. They are also required to establish anti-corruption rules and regulations and take corresponding measures to regulate their employees’ business behaviors. All suppliers and contractors are required to sign the Supplier Integrity Letter to confirm their full understanding of our policies and the consequences for violation. We will immediately terminate the business relationship with any supplier that breaches such integrity clauses. In 2022, we provided business ethics and anti-corruption training to 100% of our suppliers and contractors.
Introduction of the Internal Control Department of Haitian International
The Internal Control Department of Haitian International has established for thirteen years and plays a crucial role in monitoring corporate governance. The department has more than ten professional auditors who conduct audits for the company.
The Board of Directors is responsible for the leadership and supervision of the audit process, and conducts research and processing of more complex and substantial audit projects involving finance, infrastructure, engineering and technology. The Internal Control Department carries out audit supervision of the company’s financial income and expenditure and various economic activities in accordance with relevant policies. In performing its duties, it has unrestricted access to all categories of business entities, assets, records and employees.
The Internal Control Department conducts audits of business segments to evaluate and improve the effectiveness of risk management, internal controls and corporate governance processes, helping the company to achieve its objectives, and carries out ad hoc projects and investigations as requested by management or the Board of Directors. The frequency of audits is determined by factors including identified risks, structural changes, the overall materiality of each entity, the results of previous internal audits, the opinion of the external auditor, management’s opinion, etc. Each business segment is audited at least once every three years.
The Internal Control Department shall consult the audited entity before issuing the audit report, and if the audited entity disagrees with the audit report, it shall further verify, investigate and confirm. The audited entity shall formulate a rectification plan based on recommendations made due to serious internal control deficiencies, and the Internal Control Department shall follow up on the rectification plan.
BUSINESS ETHICS AUDIT
The Internal Control Department of Haitian International is responsible for reviewing and improving the effectiveness and compliance of internal control functions. It conducts internal audits and invites third-party institutions to conduct external audits to prevent and timely detect any bribery and corruption risks. At the end of each year, it formulates the internal audit work plan for the following year. The scope of the audit includes: compliance and effectiveness of internal business ethics standards and anti-corruption policy, the adherence of all departments and units to relevant laws, regulations, and internal standards, and opportunities for improvement in internal controls and operational management. The Internal Control Department conducts internal audits of all domestic operating bases annually and conducts one internal audit of operating bases in four different countries overseas each year, ensuring coverage of all overseas operating bases every two years. Based on the results of internal audit inspections, it reports relevant risks, violations, and countermeasures to the management, thereby continuously promoting the improvement of the anti-corruption and business ethics system and policies. In 2022, Haitian International conducted 17 internal audits.
