Page created by Jessie Porter
2015 / 2016
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


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 



                                                                                                                                                              Major Honors & Awards of Alibaba (2015-2016)

                                                                                                                                                              Key Performance Indicators


                                                                            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
Message from   01.

                          ALIBABA GROUP

Adhere to “public good mindset, business methods,” undertake more social respon-

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

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
                                                                                         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

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.

                                                                                                                                  ALIBABA GROUP

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,
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

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
                 Urban Areas                 Amap Saves Cities with Traffic Jam

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
                                                                                                     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 – “”
 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.
                Work         DingTalk – a Way of Work


The high costs and low efficient communica-                Amber Communications:                                             Offcn Future Education:
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

                                                                                                                                                               t                                     En
                                                                                                                                                             ke                                        vi
                                                                                                                                                           ar                                            r






                                                                                                                                                                         To make it easy

                                                                                                                                                                         to do business
Core of the compass:                                                                                                                                        ltu
                                                                                                                                                                re                                  na
To make it easy to do business anywhere                                                                                                                                   Shareholders


“To make it easy to do business anywhere” is the mission of Alibaba and the foundation of Alibaba’ s




                                                                                                                            Ec valu
                                                                                                                                                                nm                                iet
social responsibility system that is rooted in business model.                                                                                                er                                     y


                                                                                                                              o n

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
                                                                                                                              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
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
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

                                                                                  ALIBABA GROUP

ALIBABA SOCIAL RESPONSIBILITY REPORT 2015/2016                                                                                                                                                    Driven by Mission / Led by Cultural

                                                                                                                                                          Alibaba has carried the gene of social responsibility since its establish-
                                                                                                                                                          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
“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,
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
                                                                                                                                                                                      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


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


 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
                                                                                                                                                                                                         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

with a Public
                                                           Building Infrastructure for Ecosystem /
                                                           Improving Customer Service System

                            Employees   Basic Rights and Interests
                                              Training and Development

Welfare Mind                                  Building Happy Work Environment
                                              Employee Care


                            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

                                        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

                                                                                        ALIBABA GROUP

ALIBABA SOCIAL RESPONSIBILITY REPORT 2015/2016                                                                                                                                                                                                           Symbiotic Layer

                                                                                                                                                                                         “Conducting business with a public welfare mind” is the core reflection
                                                                                                                                                                                         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
                                                                                                 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
                                                              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


 Integrity                                                                                                                                                                                                                      Integrity

   Crackdown on Counterfeit Goods                                                                                                                                                                                              Public reviewAs 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                                                                                                                                                    , 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,
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.
                                                                                                                                                                                                                                                                                                      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
Crackdown on counterfeit goods with big data                                                                                                                                                                                                                                                         In September 2015, Alibaba launched the “big data + public
                                                                                                                                                                                                                               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

                                                                                                                                                                                                                               those issues that are diffcult to define or need more people’ s


prevention and control system reached 100 million times per                                                                                                                                                                                                                                           technologies is pushed to at least 800-1000 public reviewers for


                                                                                                                                                                                                                               opnions to judge. Meanwhile, the paltform began to undertake the       assessment. If a certain percentage of reviewers regard the

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


release on 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

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

                                                                                                                                                                                                                                                                                                      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

                                                                                                                                                                                                                               participated in public review work, and the number of partcipants
goods monitoring mechanism, intercepted counterfeit goods in

                                                                                                                                                                                                                               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


conduct in kind group sampling. The preliminary sampling showed                                                                                                         F                                                                                                                            platforms, sellers of counterfeit goods take Alibaba as escrow

                                                                                                                  UJ XJU                                         M JD S                                                      years. The number of donations through the platorm was 548908

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                                                                         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.
You can also read