Anti-Corruption, CSR and Sustainability

1.CSR/ Sustainability Message from the Founder- Mr. John Lau

Dear my colleagues and stakeholders,

I have no doubt all of you would agree with me that our business must come from proper channels, through our hard work, our dedication, our creativity and our passion for services.
You have all seen how Cargo Services Group has developed in the last 26 years. We have invested in the Infrastructure of our services. We have invested in Processes. We have invested in Technology. We have invested in Our People. We have invested in Building a unique Culture for the Company — an relenting Pursuit for Excellence in our services.

Whilst we are obsessed with LEAN Management, we loathe short-cut to results.

All these have given the right habitat to our business to grow, and to all of you to develop your career with us. We have always observed the highest ethical business standards in the countries we operate, starting from Hong Kong (China) and China. We promote clean commercial practices, free from any malpractice of Corruption and Bribery.

To put money where our mouth lies, we have set up a senior position in the Company responsible for Anti-bribery & Anti-Corruption, Corporate Social Responsibility, and Sustainability. We are pleased to have this role coming on board for over a year. A number of initiatives have been rolled out for all of you to be aware of the pitfalls in bribery through eTraining. All of you have been obliged to take part in this process, and have been encouraged to identify opportunities within our processes which may open the door for corruption and bribery.

There will be more programs coming out in the course of the year and years, and I would like all of you to continue with this commitment of support. We have all to stay vigilant on this matter and shall not be tempted to go astray, to the impairment of your integrity and the integrity of Cargo Services. .

For Anti-Bribery & Anti-Corruption, we will be issuing soon a Group Anti-Bribery and Anti-Corruption Manual for all of you to comply with, and we will continue with the development of this Manual to enrich its contents and our measures against Bribery and Corruption. To support this drive for absolute cleanliness in our business practices, I have given all of you my personal WeChat contact for the implementation of our whistleblowing policy, enabling all of you to come to me directly when you see any symptoms of bribery and corruption among any of our colleagues, contractors and customers.

John Lau

Group Managing Director,

Cargo Services Far East Ltd

2.Anti-bribery & Anti-Corruption

Anti-Bribery and Anti-Corruption: Navigating the Global Risks suggests there is no one-size-fits-all anti-corruption compliance solution. Bribery and corruption are commonly viewed as significant problems and a barrier to economic and social stability in any nation.

Cargo Services Group views Anti-Corruption topic very seriously. An Anti-Corruption and Ethics Policy has been reviewed and released recently to strengthen our anti-corruption commitment.

Our view on facilitation payment

Though our policy has listed out all of our Anti-Corruption key messages, we would still emphasise our view on facilitation payment as many customers put a strong focus in particular this aspect.

Anti-Corruption and Ethics Policy (Page 3)

“The making of facilitation or “grease” payments to public officials is prohibited. Facilitation payments tend to be small unofficial taxes which are requested by foreign local officials. These payments are illegal unless they are specifically authorised by local written law. If the official cannot satisfy you that the request for payment is lawful, you must refuse to pay.”

Public disclosure procedure (WHISTLEBLOWING)

Our employees or stakeholders need to feel able to come forward with serious concerns about any symptoms of corruption, bribery or any illegal action that can harm Cargo Services Group at any scale. That is why we implement a public disclosure procedure (Whistleblowing).

It is important for any stakeholder to realise from the outset that if anyone raises a serious concern or suspicion, an appropriate person will follow this up, and keep informed as to the progress of the investigation.

We encourage our employees as well as our stakeholders to raise concern to Cargo Services Group companies’ HR Manager, the Senior Manager- Group CSR & Sustainability, or directly to Group Managing Director.

Group Anti-Bribery & Anti-Corruption Manual

An internal Manual on Anti-Bribery & Anti-Corruption has been released since 2017. It enables Cargo Services to manage Anti-Bribery & Anti-Corruption effectively. The Manual covers the following key topics

  • Anti-bribery & Anti-Corruption Policy
  • Whistleblowing policy
  • Anti-Bribery & Anti-Corruption in Recruitment Management
  • Awareness Raising and Staff Engagement
  • Customs Broker Management
  • Communication
  • Finance control in Anti-Bribery & Anti-Corruption
  • Self-assessment & Internal control

Group Internal control

Our Group internal audit team performs internal assessment to identify symptoms of Corruption and Bribery on a regular basis. This provides us a better assurance in our business operation.

Country office/ Origin offices shall use this Anti-Bribery & Anti-Corruption self-assessment questionnaire to benchmark themselves about their ABC program implementation.

Internal audit department will carry random announced audit at different country/ origin.

E-learning education platform- Cargo University

A web-based E-learning platform called Cargo University has been primarily used to deliver standardised Anti-Corruption training as well as other in-house training across our Group company employees. This training also welcomes our business partners as well as our stakeholders to take. We hope to keep the anti-corruption knowledge not only to ourselves but also our stakeholders.


3.Sustainability

Our belief in sustainability helps us to make a better decision with greater results. We are trying best to embed sustainability in our decision-making mechanism because our senior executive team truly believe that:

  1. Business growth should be profitable and sustainable.
  2. Sustainable growth benefits positively to all stakeholders, including employees, customers, the environment and others.
  3. Sustainability initiatives strengthen the platform, i.e., core values, pride and process, enabling long-term competitive advantage.

To embed sustainability into our business, we have launched our Group Sustainability Policy in 2016.

In addition, a sustainability framework has also been developed to guide ourselves what we need to focus by prioritising the opportunities after a stakeholder engagement process.

Cargo Services Group developed the framework based on a triple-bottom-line approached on three aspects, economic aspect, social aspect and environment aspect.

1. Economic aspect: This focuses on our long-term profitability and risk management. Here are few examples of opportunities:

1.1 Assurance of safety compliance to reduce injury claims, legal claims, high insurance premiums, fines, loss of business

1.2 Strengthening security control to improve customers’ cargo security

1.3 Process standardisation and lean implementation

2. Social aspect: We value our people and the community in which we operate. Here are few examples of opportunities:

2.1 Implementation of Group E-learning platform

2.2 Anti-corruption & Anti-Bribery program

2.3 Employees development & retention program

3. Environmental aspect: We support tackling environmental issues in the area we operate. Here are few examples of opportunities:

3.1 Energy saving by adopting greener technology in operation

3.2 WWF- Low Carbon Office Operation Program (LOOP)

3.3 Implementation of ISO 14001 at warehouses


4.Environment

Since our natural environment keeps changing, mostly in a challenging way. Global warming, overuse of natural resources like fuel, paper and energy create negative environmental impact in modern logistic industry. We believe Cargo Services Group can do something about it by launching Group environmental programs.

We would like to provide specific highlights of this topic by elaboration what we have done so far.

Environmental Management Policy

Our environmental management policy is our extension of sustainable development in all business units, whilst at the same time endeavouring to:

  • Use international recognised system and standard to proactively improve our warehouse environmental management
  • Lessen the consumption of national resourced by re-use, recycling or reduced use of materials and using products that are recyclable or come from sustainable sources;
  • Apply environment-friendly practices in all our offices and facilities particularly in our warehouse and our fleet of trucks; and

Our 4 key areas of Green Practices are:

A.Green Office

We have launched several initiatives and examples include

  • using recycle and FSC certified paper,
  • promoting duplex printing,
  • installing energy efficient light sources.

B.Green Traveller

Since 2011 we have adopted a green travel and carbon reduction program:

We strongly promote the use of video & teleconference to replace the non-essential face-to-face meetings so as to replace the long or short distance air travel to reduce our indirect carbon emission from our business activities.

High-speed railway is the preferred way of travelling for our executives in China.

C.Greener Equipment

3/4 of our fleets of tractors and trucks are up to the EU Eco standards, with the balance to be complied with by 2015. And our trucking company are certified with TAPA-TSR which enables us to track our truck driver’s driving behaviour in order to enhance driving skills as well as reducing fuel consumption. In addition, we control our drivers to switch off the engine during waiting loading and unloading goods.

D.Green Merchant

Our core procurement strategy of “centralised purchase of service, decentralised purchase of product” has effectively reduced the energy used for transferring products to different offices within the country.

Cargo Services Far East is committed to, develop a new tool that calculates CO2 emissions from our daily operations. In order to closely monitor the carbon footprint, the tool will be linked to our own operational data. The output is a concise report that shows our total CO2 emissions by an office or by each business unit.

Furthermore, we will develop targets for the reduction of carbon and keep identifying opportunities where they can reduce carbon emissions.

Our group has been granted a “Class of Excellence on Wastewi$e Award” in Hong Kong Awards for Environmental Excellence since 2002 which is organised by Environmental Protection Department.


5.Ethical Trading

Cargo Services Group is committed to a safe, fair and socially responsible working environment. Our fully owned Allport Cargo Services Ltd is also the first company in our sector to join the Ethical Trading Initiative(ETI) – a groundbreaking alliance of retailers, trade unions and voluntary organisations representing 160 million workers worldwide.

Having adopted the ETI base code, a programme of independent audits has been introduced to measure Ethical and Social compliance within our global network.

Our customers, colleagues and the experience we can draw from within the ETI will determine how our program evolves. We hope this pro-active approach will encourage and inspire our competitors to adopt similar values and in time help increase the logistics industries representation within the ETI.

Our Commitment

  1. Employment is freely chosen
  2. Freedom of association and the right to collective bargaining are respected
  3. Working conditions are safe and hygienic
  4. Child labour shall not be used
  5. Living wages are paid
  6. Working hours are not excessive
  7. No discrimination is practised
  8. Regular employment is provided
  9. No harsh or inhumane treatment is allowed

A Lighthouse system created by ediTRACK, our software subsidiary, to support our ethical strategy are now available externally. Web-based solutions that help build a trusted supplier network; with audit profiles, results and corrective actions on a platform that enables collaboration and sharing best-practice.


6.Policies

1.CS ABC policy Cargo Services Chi_Web version

2.CS ABC policy Cargo Services Eng_Web Version

3.CS Whistleblower Policy Chi_web version

4.CS Whistleblower Policy Eng_Web version

5.Cargo Services Group Sustainable Development Policy

6.Cargo Services Group Environmental Policy

7.Cargo Services Group Safety Policy

Cargo Service Far East Ltd. © 2021