SOCIAL RESPONSIBILITY REPORT - 2015 / 2016 ALIBABA GROUP
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Only the corporate social responsibility that is rooted in a company’s business model can achieve sustainable development. All of the companies can find combination points of their business models and social responsibilities. Every person has the right to participate in public welfare undertakings. Facilitating by the Internet-based convenient environment, each and every one of us has the capability to perform social responsibilities.
2015 /2016 ALIBABA GROUP Catalogue SOCIAL RESPONSIBILITY REPORT 01 19 27 65 Message from CEO Social Responsibility Rooted Conducting Business with Appendix in Business Model a Public Welfare Mind Driven by Mission 21 Symbiotic Layer 29 Future Prospect 65 05 Led by Cultural Guided by Strategy 22 23 Customers Employees 29 41 Major Honors & Awards of Alibaba (2015-2016) Key Performance Indicators 65 66 Globalization 23 Shareholders 46 GRI 4.0 / CASS-CSR 3.0 Index 67 Annual Focus Rural E-Commerce 24 4IBSFE-BZFS 47 About Alibaba 69 Economy: 7 Big Data & Cloud Computing 24 Market 47 Reporting Specifications 71 New Business, New Ecology – Starting from 3 Trillion yuan Management Integration 25 Government 52 Suggestions & Opinions 72 Rural Areas: 9 E-Commerce Based Poverty Alleviation – Integrity and Compliance 25 Society 56 New Idea of Poverty Alleviation Internal Audit & Internal Control 26 Environment 60 Urban Areas: 11 Amap Saves Cities with Traffic Jam Platform Governance 26 Mass Entrepreneurship and Innovation: 13 Large Platform, Multi-Mode and Rich Ecology – Alibaba’s Practice Work: 15 DingTalk – a Way of Work
Adhere to “public good mindset, business methods,” undertake more social respon- sibilities In the fiscal year of 2016, Alibaba Group, continuing to adhere to the idea of “public good mindset, business methods,” was more than ever committed to integrating the solving of social problems into its business model while helping the society through Alibaba Foundation. It created an inclusive ecosystem, and encouraged involvement of the people, so as to undertake more social responsibilities. In March 2016, Alibaba witnessed an important milestone – the annual gross mer- chandise volume (GMV) reached over three trillion yuan, making it to become the largest retail platform in the world. The three trillion yuan volume was jointly achieved by merchants, service providers, logistics partners, and other parties of the Alibaba ecosystem. It also showed the ever increasing prosperity of the new economy that is driven by science and technology. Alibaba has made more contributions to the development of the society. Only in 2015, the retail ecosystem of Alibaba created 15 million job opportunities, helped establish hundreds of industrial clusters and served tens of thousands of small- and medium-sized enterprises. The rural strategy of Alibaba has achieved rapid development in the fiscal year of 2016, beginning to use the power of science and technology and ecosystem to change the rural area conditions and realize the goal of e-commerce based poverty allevia- tion. As of March 2016, the rural Taobao has had covered 14 thousand villages in nearly 300 counties of 27 provinces (municipalities and autonomous regions). By relying on e-commerce, we have effectively helped the people in vast rural areas enjoy high-quality products, and facilitated the transfer of agricultural products from rural areas to cities. We have also carried out e-commerce based new precision poverty alleviation programs, helped build e-commerce infrastructure and service system in rural areas, fostered e-commerce ecosystem and cultivated talents. In the fiscal year of 2016, there were more than 800 national-level poverty-stricken counties on the retail platforms of Alibaba, and the sales volume reached over 20 billion yuan. As a global data-based logistics platform, the Cainiao Network of Alibaba has made “green and environment protection” as its important development direction in the future. To develop green and environmentally-friendly logistics is helpful to the development of business, the improvement of efficiency and the reduction of costs; it also promotes the industry to make contribution to the whole society. In this process, we will develop new products, new materials, and new methods and means, truly achieving the goal of green and environmentally-friendly logistics. In an era of full integration of digital economy and real economy, Alibaba, in nature, is a digital company, possessing three core businesses of commerce, cloud computing and digital entertainment. In the fiscal year of 2016, Alibaba continued to build cloud computing and big data-based future business infrastructure. We have always believed that data is the energy of future new economy and the core resource of Alibaba ecosystem. We will continue to explore the power of big data, use Internet technology and mindset to reconstruct various industry chains, improve cost efficiency and create chemical reaction. We have believed strongly that using business methods to promote social efficiency is the best way to undertake social responsibility. “To make it easy to do business anywhere” is our mission, driving us to move forward. It is also our source of inspiration for all of the products and innovations. Looking into the future, the development of technologies will be accelerated, and we are in a transitional period from the deep end of mobile Internet to Internet of Everything. Alibaba will continue to give full play to the reachability of future physical terminals and the power of cloud computing and big data, exert the strength of ecosystem, promote platform-based empowerment, and support social development. ——Daniel Zhang, CEO of Alibaba Group
02. Economy: Annual Focus New Business, New Ecology – Starting from 3 Trillion yuan Rural Areas: E-Commerce Based Poverty Alleviation – New Idea of Poverty Alleviation Urban Areas: Amap Saves Cities with Traffic Jam Mass Innovation and Entrepreneurship: Large Platform, Multi-Mode and Rich Ecology – Alibaba’s Practice Work: DingTalk – a Way of Work The fast-growing Alibaba is creating value and changing the society with its own way. In this year, Alibaba has continued to hold fast to its mission, focus on social demand, and exert its advantages, achieving fruitful results in terms of value creation. In this year, the “three trillion yuan,” “e-commerce based poverty alleviation,” “smart transport,” “mass entrepreneurship and innovation” and “DingTalk” have become keywords of Alibaba in changing the society. 2015/2016 ALIBABA GROUP SOCIAL RESPONSIBILITY REPORT
Annual New Business, New Ecology – Economic This is only the beginning Focus Starting from 3 Trillion yuan With the increasingly improvement 3 Trillion RMB of new ecology, Alibaba thinks more about of assuming social responsibilities of promoting domestic demand, creating job opportunities and boosting rural economy. The three trillion yuan is only a new starting point of Alibaba in the data technology era. Three trillion yuan Integration of Busi- Behind the ness Ecology and On March 21, 2016, the gross merchan- Internet Ecology 3 Trillion dise volume (GMV) of Alibaba Group in the fiscal year of 2016 reached over three The development of Internet technology 71 million Hundreds Hundreds of New industries trillion yuan. continuously expands the industry bound- units of of thousands of With the promotion of Internet technology, smart manufac- industrial small- and ary. The new agriculture represented by industry findings take on new situation and turing products clusters medium-sized traditional business models are changing. “rural Taobao,” “Taobao villages” and enterprises 91.2 billion yuan e-commerce of rural products, the The transaction volume on the day of advanced manufacturing industry repre- New job opportunities November 11, 2015 amounted to 91.2 15 million 30 million sented by smart manufacturing, large of of The development of e-commerce plays an billion yuan. scale mass production and flexible important role in promoting social retail jobs indirect job opportunities employment. production, and the tertiary industry In business history, the retail platform of represented by Internet of Things, big data Alibaba used 13 years to reach three and cloud computing forms a new busi- New governance trillion yuan, while that of Walmart is 54 ness ecosystem. The new technologies Credit assessment More than 400 million consumers, years. The three trillion yuan is not only and new ideas generated under this system one billion-odd commodities, business achievement, but also the backdrop of new business and new 24 million plus of packages per day ecology fully mobilizes the resources of and over ten million merchants are driving force for new technologies and creating new governance mode – emerging industries. It creates new job the whole society, aiming to realize total platform governance. participation and common prosperity of Platform opportunities, forms new momentum, governance and breeds new organizations and new the people. The three trillion yuan is governance modes. achieved under this new ecosystem. Information Commodity protection management mechanism system
Annual COUNTRY E-Commerce Based Poverty Alleviation – Rural Areas Focus New Idea of Poverty Alleviation Alleviation Poverty The low- and middle-quality and low efficient E-Commerce Based poverty alleviation is a common issue in Poverty Alleviation Break out of Taobao China for a long time. Plus the system defects, the traditional poverty alleviation Mr. Ren Qingyong in Dinglou Village, 69 years Dinglou Village is a remote village in Daji Town, Caoxian County of east approach can hardly play its role. The old now, was poor. The small store he ran China’ s Shandong Province. Since 2009, villagers have started to run online “precision poverty alleviation” requires made less than 10000 yuan every year. His stores selling costumes for kids one after another, finding a niche market more than 280 where their supply meets huge clients online. Online stores have changed run Taobao stores enterprises to solve the poverty issue son and daughter-in-law had been working the villagers’ lifestyle, and everyone is full of passion and vitality for their through more effective approach. The outside for years, and his sick wife took startups. Now, it is hard to see villagers gathering to play cards or mahjong. e-commerce is changing the traditional medicine all the year round. Since 2012, his industrial poverty alleviation approach, son and daughter-in-law began to use The population of the village is 1107. There are more than 300 households in bringing new idea for poverty alleviation in the village, among which more than 280, accounting for over 95 percent, run over 95 percent computers and sell costumes online, and Mr. Taobao stores selling mainly costumes, dance dresses and props. In 2013, in the village rural areas. By relying on the “rural Taobao” Ren began to help his son and daugh- there were approximately 30 households manufacturing apparel with annual strategy and starting from the technological ter-in-law send goods out while running his sales of more than one million yuan each, in which seven manufacturers empowerment of “teaching to fish,” Alibaba store. As orders kept growing, his son and realized sales of more than five million yuan each and hired more than one has established rural area-based e-com- daughter-in-law returned home to make thousand villagers from neighboring villages. Seven logistics companies have set up offices in the village and receive and deliver goods at fixed times. merce service system, fostered e-commerce clothes, and Mr. Ren began to learn how to ecology, improved e-commerce infrastruc- use computers. At his senior age, Mr. Ren 27 million yuan As the development of Dinglou Village promotes the online store business in ture, and promoted poor masses to access to first learned Pinyin and then how to type neighboring villages, a costumes industry cluster covering Daji Town and the sales of the online e-commerce, lifting more people out of Chinese characters. After learning how to other neighboring towns is formed. There are 2336 households with Internet in 2012 access in Daji Town, in which nearly 2000 households run online businesses. poverty in both aspects of material life and use the computer, Mr. Ren began to help his In 2012, the sales of the online costumes business in Daji Town reached spiritual life. son to run an online store. In 2013 and 2014, about 27 million yuan, accounting for 9.5 percent of the gross output of the he earned about 100 thousand yuan each town, and in 2013, the sales reached about 100 million yuan with about three 100 million yuan year. million of taxes paid. Taobao stores have become one of the main industries the sales of the online in Daji Town. At the 2nd Taobao Village Summit Forum held at the end of 2014, Daji Town was awarded the title of “Taobao Town.” in 2013
Annual Urban Areas Amap Saves Cities with Traffic Jam Focus Big Data Era Traffic jam not only increases travel time It Builds New Travel In cooperating with the “Shujia” (big data computing platform) of Aliyun, the Zhejiang Provincial Transport and costs of residents, but also leads to a Capability of Big Data Era Department has integrated the historical data, real-time data and road network conditions of express ways series of issues such as environmental and used the “Shujia” platform to conduct processing and analysis, forecasting the speed of the next hour pollution, waste of resources and traffic at various road sections. The forecast accuracy is at more than 91 percent. The project has been opened to AutoNavi Co. has established complete the public in the spring festival of 2016, covering a nearly 1300-kilometer-long road sections. accidents. There are 50 cities in China that face the issue of traffic jam, among which competitiveness that integrates products 25 face normalization of traffic jam, influ- and data and includes two ecologies of encing 150 million people. Solving traffic users and enterprises. By establishing The provincial-level traffic big data could platform – the “traffic police cloud” launched by the Guizhou jam needs smarter transport. For the past cooperative relations with local traffic Provincial Public Security Department is the first of its kind that operates in the internal network of public authorities, it builds new travel capability security authorities. The cloud platform has provided effective support for public service, traffic manage- 14 years, AutoNavi Co. has built an ecologi- of big data era. ment and actual combat training. Since establishing cooperative relations in 2015, the traffic police cal and dynamic map that centers on travel authorities of Guizhou Province have investigated and prosecuted 221 thousand illegal acts in traffic and location information service, which not violation on the site and 648 thousand illegal acts off-site, up 77.4 percent and 162.4 percent respectively only meets the demands of ordinary users, from a year earlier. The number of traffic accidents and traffic death toll on the expressways has reduced but also implements open empowerment to by 83.72 percent and 78.26 percent respectively, creating a record in terms of traffic accident prevention industries. It has gradually established a since the operation of the expressways. smart transport system, aiming at solving the livelihood issue resulted from traffic jam. Through in-depth cooperation with AutoNavi Co. and Alipay, the Wuhan Traffic Management Bureau has improved accuracy of road conditions in the aspects of electronic map guiding, smart parking and connec- tivity of traffic data. Since establishing cooperative relations, the accuracy of road conditions has improved from the original 80 percent to 95 percent; the coverage has expanded from several main roads, bridges and road tunnels to urban areas and the road network outside the “third ring” road of Wuhan; and the release frequency of road conditions has shortened from the original 15 minutes to two minutes. With the real-time information push of Amap and Alipay, the coverage of real-time road conditions has increased from 410 thousand people to two million people.
Annual Mass Entrepreneurship Large Platform, Multi-Mode and Focus and Innovation Rich Ecology – Alibaba’s Practice In the fiscal year of 2016, the business platforms of Alibaba supported more than ten million entrepreneurial people, including millions of college students and young people. Through the upstream and down- Innovation stream linkage, the platforms have significantly promoted the develop- ment of e-commerce service industry, which includes the logistics, marketing, operation, information technology, and customer service, and so on. Entrepreneurship In the future, Alibaba will continue to support mass entrepreneurship and innovation: China has accelerated the implementation Building Full-link Alibaba is constantly on the move, holds fast to its Support Mass Entrepreneurship Service System mission and supports mass entrepreneurship of strategy of innovation-driven develop- and innovation. and Innovation ment, taken initiative to adapt and lead the “new normal” of economic development, For the past 17 years, Alibaba has been and promoted the initiative of mass entre- sticking to its mission, providing multi-dimen- Alibaba Entrepreneurial Base “Qian Xian Wan Cun”Plan sional empowerment for entrepreneurs Alibaba has planned to operate 100 Alibaba has planned to invest ten billion yuan preneurship and innovation across the entrepreneurial bases in the next two in the next three to five years, establishing one through building full-link service system; country. The mass entrepreneurship and years, directly fostering 30 thousand thousand county-level service centers and ten continuously upgrading innovation mode innovation can not only create job opportu- entrepreneurs. According to the “Maker thousand village-level service stations. At the through the two ecological driving forces of Plus” support plan, the number of same time, it would launch a related talent nities and increase income of residents, but technology and business; jointly promoting directly empowered entrepreneurs would cultivation plan with an investment of one also promote vertical mobility of the society mass entrepreneurship and innovation and reach more than 100 thousand people, billion yuan, aiming at cultivating 100 and maintain social fairness and justice. sharing its fruitful results through mass and that of the benefited would amount thousand rural e-commerce leaders and one to over one million people. million rural e-commerce practitioners and Just as the winner of the 2006 Nobel Prize collaboration; and gradually forming a distinc- developing the 100 thousand village-level tive mode of “large platform + multi-mode + in Economics Edmund S. Phelps put it, the stations to ecological service centers, public rich ecology” in the aspect of supporting mass welfare centers and entrepreneurial centers. mass entrepreneurship and innovation entrepreneurship and innovation though would bring “non-material benefits” to institutional guarantee and establishment of a China. In the document of the “Implement- scalable business ecosystem. Influential Industrial Clusters City Partner – “1st.1688.com” ing Opinions of the General Office of the Alibaba has planned to help transform Alibaba has planned to recruit 20 thousand city State Council on Building Mass Entrepre- and upgrade 100 industrial clusters partners in 2016, which covers 100 prefec- neurship and Innovation Demonstration across the country and establish 200 ture-level cities and 300 county-level cities, Bases,” Alibaba is the only Internet compa- industrial cluster demonstration zones, aiming at promoting one million community encouraging local young people to stores and small supermarkets. By empower- ny that has been selected into the first participate in entrepreneurship and get ing city partners, Alibaba would provide batch of 28 mass entrepreneurship and job opportunities. It would directly platform for returned young people to start innovation bases. promote 100 thousand college students business, offer systematic and specialized to start business in their hometowns and trainings and cultivate their entrepreneurial create more than one million job skills of “Internet + circulation,” achieving opportunities. sustainable development of entrepreneurship.
Annual Focus Work DingTalk – a Way of Work Efficiency The high costs and low efficient communica- Amber Communications: Offcn Future Education: DingTalk tion as well as the failing of communication Efficient communications Work efficiency improved in time have brought lots of negative impacts enhances work efficiency unimaginable to corporate management and operation for “‘Ding’ important messages and notices to alert “Now one employee can finish the work which a long time. DingTalk is a free multi-termi- recipients via phone calls! Get suggestions from took five employees six hours to finish in five nal communication and coordination our bosses and feedback from our clients as minutes. Our efficiency is increased by tens of platform launched by Alibaba for Chinese soon as possible and get off work on time.” times”. enterprises. Through systematic solution, As advertising men, we work as hard as dogs. Our bosses Our company is dedicated to civil servant training. Once, as over DingTalk could improve coordination and often said the company should protect animals and care about 100 people more than the usual registered to participate in one of us. But, the reality was that we “saw dustmen working at four our programs, the location of the class had to be changed. We communication efficiency of enterprises. o’ clock every morning,” which made us work overtime in sent mass text messages to the participants through our The data showed by the end of March 31, tears. The main reason why we suffered was the communica- background system and asked them to confirm that they have tions between people. received the message. As the system did not support direct 2016, about 1.5 million enterprises and receipt of their replies, they had to send their replies to a organizations in China have chosen DingTalk Every idea, every sentence of a text or every picture needs to designated cell phone number, and we had to check their names be confirmed, confirmed and confirmed by our bosses and recorded in our ERP system against the names of those who had as their internal coordination software. clients. As the time we used to do something which really replied, in case any participant who had not received the mattered was limited, we started to do it with cigarette in our message or read the message received would miss the class. We hands while dozing off from time to time only at night. After asked five customer service representatives to work overtime to the draft was worked out, the client hesitated and modified call every participant who had not replied and keep the record. again and again. After changing many times, they found the They worked till 11 o’ clock that night. It took these five repre- best was the first. After our company began to use DingTalk, sentatives 6 hours to identify the participants who had not replied our client can be informed of every important message or and call them one by one. notice with ‘Ding’ via a phone call! Immediate acquisition of suggestions from our bosses and feedback from the client But now, the only thing we need to do is to input the phone reduces the time to wait for communication greatly. numbers of participants into the back office system of DingTalk and ‘Ding’ the mass messages out. All the participants will Getting off work on time is not a daydream any longer. We receive the message, and we can see who have read the message advertising men at Amber Communications are full of and who have not. We ‘DING’ the message again to those who happiness now. We are so delighted that we are blushing. have not read the message. Now, one employee can do the work which took five employees six hours to finish in five minutes. Our efficiency is increased by tens of times. Understanding the DingTalk
Responsibility Model: Alibaba Compass Environmental value Shared layer Strategy t En ke vi ar r M on me Em Symbiotic layer rs nt plo me ye sto e To make it easy s Cu to do business anywhere Ma Core of the compass: ltu re na ge me Cu To make it easy to do business anywhere Shareholders nt So t cia en “To make it easy to do business anywhere” is the mission of Alibaba and the foundation of Alibaba’ s ic S e oc om lv Ec valu nm iet social responsibility system that is rooted in business model. er y alu Gov o n e Framework of the compass: Culture, strategy and management Stakeholders Economic value Social value Environmental value Culture and management are highly integrated and mutually supported at Alibaba. As the foundation for High-quality products and services Employees’ rights and interests protection Green choice Alibaba to implement strategies, culture, management and the “three major strategies” provide strong Customers Science and technology innovation Customer satisfaction Green transaction support for Alibaba’ s social responsibility system. Only the highly integration of culture, management Inclusive finance service Information security and strategy can provide full guarantee for social responsibility practice of Alibaba. Competitive compensation Equal employment Employees diversified benefits Basic rights and interests protection Healthy work environment Training and career development Employee care Inner circle of the compass: Minority shareholders’ rights Symbiotic layer and shared layer Shareholders Economic returns and interests protection Green investment Information disclosure Considering the relations between stakeholders and Alibaba, the customers, employees and sharehold- Supply chain growth Responsibility procurement Green supply chain ers form the symbiotic layer, while the market, society, government and environment form the shared Promoting industry development cultivating industry talents Green logistics layer. And all of those form the social responsibility ecosystem of Alibaba. The relations between Alibaba Market boosting economic development Building industry platform Green initiative and stakeholders are interdependent and mutually influenced. Alibaba needs support of stakeholders to Environmental protection exchange achieve healthy development and creates values for stakeholders. Paying taxes in full Legal compliance Supporting environmental protection Promoting economic transformation and E-government affairs Promoting emission reduction Government upgrading Judicial sale by smart transport Dynamic compass Fair competition Alibaba performs economic, social and environmental responsibilities and creates economic, social and Promoting social employment Platform-based public welfare Environmental protection Society environmental values. The issues under the three values are attributed to various stakeholders (as Employee engagement in public welfare public welfare shown in the following table). The outer triangular structure includes various issues of the three values, Reducing waste of resources Awakening awareness of Green building and the symbiotic layer and shared layer rotate with one another to match the corresponding issues and energy environmental protection Green office Environment under those three values. Reduction of waste gas, waste water and waste residue
Social Responsibility 03. Driven by Mission Led by Cultural Guided by Strategy Globalization / Rooted in Rural E-Commerce / Big Data & Cloud Computing Business Model Management Integration Integrity and Compliance / Internal Audit & Internal Control / Platform Governance 2015/2016 ALIBABA GROUP SOCIAL RESPONSIBILITY REPORT
ALIBABA SOCIAL RESPONSIBILITY REPORT 2015/2016 Driven by Mission / Led by Cultural Alibaba has carried the gene of social responsibility since its establish- SOCIAL RESPONSIBILITY ment. We not only adhere to the social responsibility-driven mission, but ROOTED IN BUSINESS MODEL also integrate social responsibility idea into our culture and management, achieving the cultural guidance and management integration of social responsibility. In 2015, Alibaba put forward three major strategies of globalization, rural e-commerce and big data & cloud computing, which also carries the gene of social responsibility. Customer First Integrity The interests of our We expect our people to Driven by Mission Led by Cultural community of buyers uphold the highest and sellers must be standards of honesty and Meet @ Alibaba our first priority to deliver on their commitments “To make it easy to do business anywhere” is both the We enable hundreds of millions of commercial Founded in the early stage of China’ s Internet develop- mission of Alibaba and the reflection of inherent social and social interactions among our users, ment, Alibaba has put the Internet spirit of openness, Teamwork Passion between consumers and merchants, and responsibility of Alibaba. To build an open, coordinated and transparency, sharing and responsibility into its day-to-day We believe teamwork We expect our people to among businesses every day. enables ordinary approach everything with prosperous business ecosystem to let customers meet, operation. We not only use Internet culture to promote our people to achieve fire in their belly and extraordinary things never give up on doing work and live at Alibaba is the business vision rooted in its own development and progress, but also are committed to what they believe is right mission. And to achieve this vision, we have formulated Work @ Alibaba broadcasting Internet culture in the whole ecosystem, so transparent and fair rules, and built infrastructure for We empower our customers with the as to promote the development and progress of all Embrace Change Commitment business ecosystem, so as to guarantee the health and fundamental infrastructure for commerce and participants. Employees who data technology, so that they can build In this fast-changing demonstrate persever- prosperity of the ecosystem and maintain the persistence world, we must be businesses and create value that can be flexible, innovative ance and excellence are and diversity of the ecology. shared among our ecosystem participants. Openness and ready to adapt to richly rewarded. Nothing new business should be taken lightly as We are committed to building open, coordinated and win-win we encourage our people conditions in order to business ecosystem, offering services to hundreds of millions of to “work happily, and live By establishing social responsibility that is rooted in survive ecosystem participants. seriously” Live @ Alibaba business model and creating values for stakeholders, Transparency Alibaba promotes social development and progress, and Alibaba has established distinctive common values in the process We strive to expand our products and services We fully leverage the advantages of the Internet in information of development, which not only reflects our consistent pursuits of then achieves the goal of making the company to last at to become central to the everyday lives of our communication and transparent information to empower the mission, but also our fundamental rules of doing things and customers. customers to compete and obtain all information in a fair manner. least 102 years. being ourselves. The values have become important component of performance evaluation indicators for employees and crucial Sharing guarantee for us to maintain the persistent corporate culture and 102 Years Adhering to the idea of sharing, we actively build sharing cohesion. At Alibaba, culture is highly integrated into manage- platforms and create the best places for all the platform ment, forming our distinctive culture-driven management system. For a company that was founded in 1999, participants to bring into full play to their knowledge and lasting at least 102 years means we will have experience. Alibaba’ s persistence to culture is related to the interests of spanned three centuries, an achievement that stakeholders. In the business ecosystem of Alibaba, all of the few companies can claim. Our culture, Responsibility participants including consumers, merchants, suppliers and other business models and systems are built to last, While taking initiative to assume responsibilities, we are devoted people enjoy opportunities of growth and achieving benefits. We so that we can achieve sustainability in the to promoting all of the ecosystem participants to actively assume respect entrepreneurship and innovation spirit and always pay long run. responsibilities and be responsible for themselves and others. attention to and satisfy the demand of stakeholders, so as to achieve business success and fast growth.
ALIBABA SOCIAL RESPONSIBILITY REPORT 2015/2016 Guided by Strategy SOCIAL RESPONSIBILITY ROOTED IN BUSINESS MODEL Guided by Strategy Globalization 1 Rural E-Commerce 2 Big Data Cloud Computing 3 The globalization strategy of Alibaba is “to bring the best of the As for the rural e-commerce strategy, Alibaba has planned to Alibaba holds that the human society has entered the era of data Alibaba has always believed that to achieve sustainable world to China and to bring the best of China to the world.” Alibaba invest ten billion yuan, building a new online and offline e-com- technology from the era of Internet technology. In this era, big data development we must establish a social responsibility provides payment system, logistics distribution system and other merce platform, which covers 100 thousand administrative would become new energy and cloud computing would become strategy that is rooted in business model and could convenient facilities for small- and medium-sized enterprises and villages in one thousand counties. The strategy aims at changing new engine; data would become key resource and computing consumers, letting them conduct business efficiently and the rural economy, injecting positive factors into rural society. It is would become core competitiveness. Alibaba is building important integrate with corporate development strategy. Only by conveniently at anywhere in the world, so as to realize the not only the requirements of Alibaba’ s growth and business economic facilities for China’ s future business, which is based on making social responsibility idea to become the gene of the strategic vision of globalization of “buy anywhere, sell anywhere.” strategy, but also can create huge value for rural development, its big data & cloud computing platform of Aliyun, making the big Currently, the globalization strategy of Alibaba includes three letting the rural people enjoy urban life, the excellent talents data & cloud computing strategy to become the strong pillar of company, can we maintain innovation and vitality and major components: global export, global import and global return to rural areas to start business, and the farmers buy means future business ecosystem. achieve persistence and sustainability. business infrastructure that can be connected freely. The global of production from manufacturers directly (thus reduces export connects Chinese merchants and global buyers, and is the production costs) and promote products to the whole world. More Aliyun has become China’ s largest and world’ s third largest first step to realize cross-border trade. Global import means importantly, the returned excellent talents bring both the cloud computing service platform. In July 2015, Alibaba declared At present, globalization, rural e-commerce and big data expanding importing business, making all of the global enterpris- knowledge and technology and the urban culture and lifestyle to to invest another six billion yuan to Aliyun strategy, using for the are the three major strategies of Alibaba. In a certain es to sell its products and services to China through Alibaba’ s rural areas, changing the spiritual outlook there. expanding of international business, building of big data & cloud platforms. Alibaba has always kept close relations with overseas computing infrastructure, R&D of forward-looking technologies period of time, we will take the three strategies as the brands, governments of foreign countries and business organiza- In the past one year or so, rural Taobao fully leveraged its and construction of data technology ecosystem. By now, Aliyun has basis and hold fast to the mission and responsibility, so as tions, committing to shaping a brand-new global business e-commerce advantages, overcame the obstacles in the aspects of opened eight data centers including those in Silicon Valley of the to create greater social values. ecosystem. logistics and information flow by building county- and village-level United States, Hong Kong Special Administrative Region of China service networks, and realized the two-way flow function of and Singapore, providing services for more than one million In the next ten years or even twenty years, Alibaba, adhering to the “selling online products to rural areas and agricultural products to customers around the globe. In the future, Aliyun would set up globalization goal of “serving two billion consumers and ten urban areas,” which are of helpful to the building of smart village new data centers in Japan, European countries and countries in million small- and medium-sized enterprises around the globe,” and the promotion of rural urbanization process. Middle East, and so on. Globalization 1 will finally realize the effective connection between global consumers and merchants. Rural E-Commerce 2 e-Commerce based poverty alleviation big data-based crackdown on counterfeit goods rural economic development Shujia platform, smart transport eWTP Initiative Cainiao Network Big Data Cloud Computing 3 county-level e-commerce talent cultivation “Jun Xian Tu Zhi” big data-based environmental protection
ALIBABA SOCIAL RESPONSIBILITY REPORT 2015/2016 Management Integration SOCIAL RESPONSIBILITY ROOTED IN BUSINESS MODEL Management Integration Integrity and Compliance 1 Integrity and Compliance 1 Internal Audit & Internal Control 2 The internal control system of Alibaba guarantees the company to Alibaba conducts businesses with customers, partners, share- As an international company, Alibaba, based on the abide by the applicable laws and regulations, so as to achieve holders and other stakeholders in accordance with the require- Connecting to public welfare sustainable and healthy development. The management of Alibaba structure that fits to the characteristics of international ments of relevant laws and regulations and the “Code of Business is responsible for the formulation and implementation of internal Conduct of Alibaba Group,” committing to following the highest Connecting to public welfare company and guided by the strong corporate culture and institutions, and empowers the internal control department to fully standard of code of business conduct. In principle, no Alibaba employee is allowed to receive any strengthen the internal control system relating to financial common values, has gradually established strict and gift from any client. However, if the gift is in compliance statements and compliance, so as to help the management Alibaba requires its employees and external partners to adhere to distinctive management mode: conducting management with the business practices, it not only is unpractical to improve existing business processes, achieving higher operation the values of integrity in conducting business and can never refuse it or return it to the client face to face, but also on employees in accordance with dual evaluation stan- efficiency and better results. Through the good control environ- tolerate any wrong conduct or illegal acts. It also conducts the makes the situation embarrassing. In this case, the ment, effective risk assessment system, diversified control dards of “performance + values” and creating a relatively certification of the “Code of Business Conduct of Alibaba Group” employee can receive the gift on behalf of the Company at activities, smooth communication mechanism and responding for all employees every year. Meanwhile, Alibaba delivers the first, and then declare and submit the gift received to the stress-free work environment. Adhering to guidance of supervision mechanism, the employees of Alibaba can fully integrity culture to the enterprises that engage in business with it. administration department of the Company. understand and abide by the internal control system, guaranteeing rules and the cultivation of integration and compliance The partners could get the business compliance guidelines of the overall integrity. Alibaba at any time from its integrity and compliance department, awareness of employees, we are committed to promoting The integrity and compliance department, together with or report any suspicious events relating to wrong conduct or the administration department, donates fresh food the stability of Alibaba’ s operation and development, truly illegal acts of Alibaba’ s employees. received as gifts to those in need, sell other articles Platform Governance 3 integrating the responsibility idea into the day-to-day work received as gifts through “Buy42” which is the first charity To avoid negative influence of malpractices of employees, Alibaba online shop in China run by the disabled or within the of employees and the lines of business, so as to achieve With the continuous enlarging of Alibaba’ s platforms, the number has set up the integrity and compliance department, which is Company for charity, and donates cash received to charity of participants is growing and the diversification is increasing. the goal of sustainable development. committed to the investigation of internal corruption cases. The bank accounts. All the proceeds obtained from selling the Difficult problems relating to the platforms such as counterfeit customer service workers and merchants who are involved in articles are used for charitable purposes. We wish to turn goods and credit speculation among large amounts of transac- corruption will be punished in accordance with the employee the gifts which our partners give us out of goodwill into tions have got wide attention from the government and the public, discipline system and the member regulations. Through the power to help the vulnerable groups and make them feel and Alibaba has attached great importance to those problems. It is adjustment of mechanism and improvement of businesses, more care and warmth. imperative to introduce a new governance mechanism to resolve Alibaba encourages platform merchants to conduct honest Integrity and Compliance 1 the problems, to establish an honest and transparent platform and operation and provides fair and transparent business environment to promote the healthy development of e-commerce platforms. In for tens of millions of merchants to start and develop businesses. Internal Audit & Internal Control 2 December 2015, Alibaba set up the platform governance department for the first time, being responsible for maintenance The anti-corruption work of the integrity and compliance of e-commerce platform rules, protection of intellectual property Platform Governance 3 department of Alibaba follows strict and transparent investigation rights, crackdown on counterfeit goods and credit speculation, and and handling principles, disclosing the cases in detail to all of its other management issues. The department has selected employees. professional talents and integrated necessary internal resources, conducting systematic management on credit speculation. And the search department of Alibaba, through algorithm models and manual inspection, has carried out monitoring on the whole transaction chain of various fake transactions of bad merchants.
Conducting Business 04. Smbiotic Layer Customers Integrity Crackdown on Credit Speculation / Crackdown on Counterfeit Goods Security Service with a Public Building Infrastructure for Ecosystem / Improving Customer Service System Growth Employees Basic Rights and Interests Training and Development Welfare Mind Building Happy Work Environment Employee Care Shareholders Shared Layer Market Responsible Supply Chain Promoting Industrial Development Ali Research Institute / Taobao University Boosting Economic Development Increasing Domestic Demand / Promoting Transformation of Traditional Economy to Internet Economy / Boosting Development of Sharing Economy / Supporting Economic Development of Rural Areas Government Typhoon path analysis Jun Xian Tu Zhi Judicial Sale Society Promoting Employment Offering Entrepreneurship Stage through Platform Support / Realizing Value of Life through Empowerment Public Welfare Employee Engagement in Public Welfare / Platform Public Welfare Environment Green Parks and Buildings Big data supports environmental protection Green Office Environmental protection and public welfare Cleaning Action / Nature Education / Environment Cloud Char / Global Public Welfare Programs on Environmental Protection 2015/2016 ALIBABA GROUP SOCIAL RESPONSIBILITY REPORT
ALIBABA SOCIAL RESPONSIBILITY REPORT 2015/2016 Symbiotic Layer “Conducting business with a public welfare mind” is the core reflection CONDUCTING BUSINESS WITH of Alibaba’s mode of action on social responsibility. The growth of A PUBLIC WELFARE MIND Alibaba is closely related to the development of stakeholders. We have integrated public welfare culture into the day-to-day work of employ- ees and our business models and attached importance to the demand of stakeholders. Through social responsibility practice, we promote the development and progress of stakeholders, aiming at achieving win-win results. Symbiotic Layer Customers 1 Integrity Alibaba is committed to becoming the global leader in fighting Alibaba has begun to integrate credit speculation and other fake Customer, employees and shareholders are the closest Customers’ demand Our actions counterfeit and infringed goods and protecting intellectual transactions into the online credit reference system of merchants stakeholders to Alibaba. We hold that only adhering to the Honest and fair transactions Crackdown on infringement of property rights, strives to maintain healthy e-commerce environ- and individuals. Any kind of fake transactions would be recorded principle of “customer first” and creating enduring values intellectual property rights ment and promotes sound development of business ecosystem. and it would influence both the online and offline credit standing. Transaction security guarantee Building and improving security system We formulate platform rules and supervise the implementation of for customers can we have the possibility to create values High-quality service the rules, take a strong stance against counterfeit and forged for shareholders. In the era of new economy, the most Capability improvement of Improving customer service system goods, make consumers to enjoy secure shopping, create fair and Cases of crackdown on merchants Platform tool support and resource CASE sharing honest transaction environment for all customers, and protect the credit speculation in 2015 importance factor to make customers to satisfy is our Boosting growth of merchants rights and interest of consumers based on the commitment of employees. If there were no industrious, happy, passionate sellers, service supervision, transaction information recording and In April, Cainiao Smart Logistics Network Co. launched and talented employees, there would be no values can we process guarantee, and so on. Meanwhile, we are dedicated to the big data-based anti-credit speculation system to The existence and development of Alibaba is not because the using technological advantages to improve the reliability and conduct whole process monitoring of the transfer data of deliver to customers. If there were no satisfied employees, ambitious strategy and perfect execution at all. It is because the accuracy of online transaction information, creating healthy logistics orders; the system can automatically identify the there would be no satisfied customers, and if there were no persistence to the mission and the values of “customer first.” transaction environment. package delivery numbers relating to credit speculation, and then conduct online interception satisfied customers, there would be no satisfied share- Alibaba’ s mission determines that we would not become a business empire. As an operator and service provider of a Crackdown on Credit Speculation In September, with the support of communications holders. ecosystem, we achieve success by creating values for customers Credit speculation harms the rights and interests of consumers, administrations, Alibaba took centralized control and promoting their success. At Alibaba, the customers not only measures on “credit speculation self-media organiza- destroys the impartial market traffic distribution system, and include extensive small- and medium-sized enterprises and tions” hinders the building of social integrity system and the develop- Customers 1 entrepreneurs but also hundreds of millions of consumers. We ment of e-commerce. Alihaba has constantly strengthened the provide the platforms for them to exchange and interact and the Helped the public security authorities destroy China’ s Integrity crackdown on credit speculation, and the main measures are as largest R&D team of password hacking software and the fair competitive environment and technical services for them to Security follows: largest illegally mobile phone verification code platform conduct commerce and trade activities. We constantly carry out Service innovation in products, improve customer experience, help the Growth “Setting up rules” – establishing internal institutions Terminated contracts with 12 logistics companies with customers to grow and protect their rights and nterests, jointly serious empty package speculation issues, and signed building heathy business ecosystem. “Strengthening team building” – setting up professional team anti-credit speculation agreements with other logistics Employee 2 “Focusing on special cases” – improving focus level companies Basic Rights and Interests “Enhancing offline investigation” – promoting joint social governance Transferred 54 big data-based investigation clues to Training and Development “Utilizing Big data” – strengthening capability means market supervision authorities of Yuhang District in Building Happy Work Environment Zhejiang Province and 45 clues have been investigated and dealt with Employee Care Connected the platform-based e-commerce transaction data and Internet finance data of Ant Financial Co., and Shareholder 3 promoted the inclusion of credit speculation records into credit reference system, which greatly increased the violation costs of credit speculators
ALIBABA SOCIAL RESPONSIBILITY REPORT 2015/2016 Symbiotic Layer CONDUCTING BUSINESS WITH A PUBLIC WELFARE MIND Integrity Integrity Crackdown on Counterfeit Goods Public reviewAs for the large amounts of management rules of Alibaba’s offline crackdown on counterfeit goods We have strived to build the Alibaba team into a national team to Taobao.com, some have been expired and some are unreasonable, Say no to imitation products, remove “Shanzhai $PNQBSJTPOPGCBUDIPGDMVFT and the customer service deparment is incompetent to deal with fight counterfeit goods. Alibaba not only fights counterfeit goods in CASE brands” through big data + public review its own business ecosystem but also in the whole industry and the 0OMJOFCFIBWJPSBOBMZTJT all of them. To achieve timely updating and management, we have established the public review system, mobilizing members to whole society; not only fights online counterfeits goods on its own %BUBCBTFEQVSTVJOH Imitation products (Shanzhai products) refer to the goods which platforms but also offline counterfeit goods and counterfeit goods optimize customer service. Taking the checkout of commodity are close to those goods of famous brands in trademarks, 7JSUVBMJEFOUJUZDPOSNBUJPO on other platforms; not only throws counterfeit goods out of management rules as the point of penetration, the public review appearances, and so on. Once an imitation is concerned, $POEVDUJOHKPJOUPQFSBUJPOXJUIWBSJPVTQBSUJFT system has gradually developed into such aspects as punishment extremely complicated legal issues are likely to arise. As most Alibaba but also strives to cut off the sales channels, making the appeal, counterfeit goods appeal, transaction dispute judgement of the imitation products have quality problems to a certain makers and sellers of counterfeit goods to be unprofitable. $PMMF BUJPO extent, more refunds occur than other goods. DU JOH and “Tao girls” selection. With the growing of influnce, the public SN DM P O VF reviewl department began to focus on the platform building, D T P DU Crackdown on counterfeit goods with big data In September 2015, Alibaba launched the “big data + public MB committing to creating a social platform for solving disputes and We have set up a 2000-odd people team to fight counterfeit goods. G review” mechanism, through which every trademark (product) controversies. For example, the platform can be used to solve suspected of being an imitation screened with big data In 2015, the real-time data operation speed of Alibaba’ s HB JMM those issues that are diffcult to define or need more people’ s FH MMF prevention and control system reached 100 million times per technologies is pushed to at least 800-1000 public reviewers for BMJ * opnions to judge. Meanwhile, the paltform began to undertake the assessment. If a certain percentage of reviewers regard the UZ second in terms of data analysis, successfully preventing 120 work of other platforms such as clearing up imitation and trademark (product) makes them confused, Tmall launches the million pieces of information relating to counterfeit goods to administration mechanism on a timely manner to address the trademark infringing brands, and unreasonable assessment *O HDMVFTPGDBTF release on Taobao.com. Through the analysis, refining, induction issue accordingly based on the specific situation. Nearly 200 judgement (abuse, leak of information, and so on). In 2016, the EJWJEVBMDPOSN and modeling of large amounts of data, the system can deal with imitation brands have been identified and dealt with through the public review platform will focus on rule review (general rules) the counterfeiting directly or transfer the information to law mechanism. and unreasonable rules checkout, find solutions and promote the enforcement authorities and help them conduct offline crackdown effective implementatin of revised rules. operation. In the future, the mechanism will be made regular to cover all STVJO categories and brands on the Tmall platform. As of the end of 2015, more than 800 thousand people have In 2015, Alibaba, through big data analysis and routine counterfeit 1V participated in public review work, and the number of partcipants BU goods monitoring mechanism, intercepted counterfeit goods in JPO has reached over 40 million persons/times. A total of 1.71 million cross-border transactions. It also set up professional team to As the lack of joint operation mechanism among e-commerce HS PJO QT pieces of appraisl work have been completed in the past three O PV + conduct in kind group sampling. The preliminary sampling showed F platforms, sellers of counterfeit goods take Alibaba as escrow JP UJ XJU M JD S years. The number of donations through the platorm was 548908 BU that 11 groups of sellers were suspected to sell counterfeit goods, OW I QP QF transaction tool only, and the exhibition, promotion and price FT JMMFHB IF P persons/times, and the amount of money involved was over 8.4 U JH M JUIU OU involving in over 40 accounts and 5431 orders, and the amount of BUJP JUZX KPJ bargaining of counterfeit good are completed through social OPO UJ OH million yuan. money involved reached 48 thousand U.S. dollars. $POE V D software. Some stores that have been shut down by Alibaba continue to sell counterfeit goods on other platforms openly, while the illegal industry chain participants such as click farming Connecting to public welfare practitioners and credit speculators help promote the sales of Crackdown on fake good in Foshan CASE counterfeit goods. To solve those issues, Alibaba has called on As of June 2015, the accumulated public welfare fund rights holders, government, platforms and industry associations In July, 2015, Foshan Public Security Bureau, together with Alibaba, contributed by the public reviewers through case review to participate in joint social governance. Currently, Alibaba is initiated a special action to crack down fake goods. They started from has reached 720 thousand yuan. By using the fund, developing a “rights holder joint building system,” which is drugs, foods and other categories of goods which concern the health forecasted to be launched in the third quarter of 2016, and at that of the consumers. They cracked a series of influential cases such as Taobao.com purchased one-year term critical illness insurance for nearly 15 thousand orphans, provided free time, the rights holders of system can use the function of the red date & weight-reducing plum case, the QMShou detox launch for nearly 200 thousand pupils in poverty-stricken “complaint with on click.” Also, Alibaba will provide clarified capsule case, the fake Cartier case and the fake Head-Shoulders case. By the end of November 2015, the campaign cracked down 32 areas and saved 3.6-million-hour-long life for pneumoco- complaint data for rights holders of the system, making the rights gangs and detained 65 criminal suspects in relation to fake goods, niosis patients. protection results to be clear at a glance. recovering more than 700 million yuan of financial losses.
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