Material Issue 4.
Respect for Diversity, Equity, and Inclusion
HOW WE MANAGE
Due to rapid changes in the market environment, ESG agenda, and unexpected global issues, we are in a situation where sustainability for the future cannot be guaranteed using the existing methods. Therefore, a company needs a collection of the best talent as well as a culture where achievements can be recognized through routine challenges and competition. Especially, when people from various generations with diverse ideas can relate, understand, and cooperate, the synergy will be maximized. CJ CheilJedang strives to establish a culture and a system in which any member of the company can develop into top talent, freely create results regardless of age and experience, and fairly receive recognition for their performance. To this end, we want to build a creative and flexible culture by strengthening diversity, equity and inclusion. In addition, we would like to pursue human rights management that not only includes our business sites but also the global supply chain, and become a company that all employees, partners, local communities, and customers would gladly collaborate with.
Open communication culture
CJ CheilJedang aims to be an organization that respects the diversity of employees and allows them to demonstrate their capabilities by providing equal opportunities. An environment where everyone’s daily life is full of health and happiness is a future that CheilJedang is working towards.
The ‘Nim Culture’ and practicing respect
CJ CheilJedang practices the behavioral principles of integrity, passion, creativity and ‘respect’. In order to practice the behavioral principle of respect and to communicate freely, we adopted the ‘Nim Culture’ as the first for a large company in Korea. With the culture that allows our employees to call each other with equal titles, we were able to listen to the diverse opinions of our colleagues and think from the other person’s point of view, thereby building a culture of understanding and consideration for one another. As a global company, we are making efforts to establish inclusiveness and fairness for the diverse group of employees into our culture. We will continue to implement respect for diversity among our employees based on our culture of respect, CJ’s unique cultural asset.
for the diverse group of employees
CJ CheilJedang has established diversity, equity, and inclusion as the key values for human resources system. In order to make our key values to become the company’s defining culture, we focused on communication with our employees in 2021. In particular, we scheduled sessions that allowed direct communication between the CEO and the employees so that they could communicate and empathize on the establishment of a culture of change and innovation, leadership, and fostering of global talents. Further communication was facilitated by utilizing channels such as education, workshops, and conversations with various generations, positions, and job groups. In recognition of these efforts, we were selected as a company with Excellent Labor-management Culture by the Ministry of Employment and Labor in 2021.
Company-wide communication activities
with the CEO
Supporting work-family balance
CJ CheilJedang is working hard to revitalize various vacation programs to support the work-life balance of employees. To make sure that our executives and employees can use their annual leave without any concern, we eliminated the section requiring a reason for the leave, and we are also recommending the use of bridge leaves between holidays. Starting from 2022, we are transitioning the system for approval of leaves to a self-approving system to create a more liberal atmosphere for vacations. Not only that, we renamed the existing long-employment vacation called ‘Creative Challenge’ to ‘Creative Week’ and we added opportunities for creative development of 2 weeks for every employee at their 3rd, 5th, 7th, and 10th year of service.
Changing the way we work
CJ CheilJedang strives to build a first-class culture of challenge and innovation for all employees to achieve the vision of becoming No. 1 global Food & BIO company. In order to innovate the way we work, we established an open work-from-home system, and promoted an environment for collaboration and effective communication using an online tool. The management is also actively participating in the transition efforts. In addition, in order to create a flexible and efficient working environment, we improved the system so that employees can autonomously design their office hours and locations as part of our effort to proactively support our employees’ enhanced focus and higher performance.
Self-led planning of office hours
Self-led planning of office locations
CJ CheilJedang operates various support systems for maternity protection as well as easy child and family care. For pregnant employees, we provide a separate employee ID card to encourage an environment that puts pregnant women first. For women that are breastfeeding, we allow them to use our lactation rooms with assurance in privacy and comfort. As another part of supporting work-family balance, we operate CJ Kidsville, a daycare center at our offices to help employees commute to work with their children and allow them to concentrate on their duties.
ONLY CJ Maternity protection system
HR System that respects DEI
CJ CheilJedang aims to build a HR system that allows the company and employees to grow together through daily challenges and fair competition. To this end, we have completely reorganized the HR system and created a healthy environment where employees can fully realize their capabilities through open opportunities and receive rewards that match of their performance. Moving forward, CJ CheilJedang plans to construct HR system that promotes development of employees through continuous innovation in our human resources system.
Diverse opportunities and fair competition
CJ CheilJedang has a variety of plans and systems that will help stabilize a culture of challenges and fair competition. By operating an inhouse venture system that allows us to develop ideas on new businesses into running businesses, we create an environment for future innovation. In addition, we established Career Pathfinder, a job posting program and system that assists with self-led career development, providing an arena of opportunities for our employees to pursue a wide range of projects and jobs within the group.
Composition of Career Pathfinder
Striking rewards for outstanding performance
Improve performance evaluation system PMDS+1)ㅣ CJ CheilJedang restructured its performance management system in 2021 to prepare for a new future and to guide its employees towards innovative growth. Through the upgraded PMDS+ system, we adopted an ongoing performance managing procedure, building a culture of self-directed growth. We also applied eased relative evaluation standards and increased fairness, and strengthened the authority and responsibility of leaders. In addition, we adopted a multi-faceted feedback system that weighs peer reviews focused on strengths and points of improvement that can help with competency development and growth.
Improving the employee compensation policy ㅣ By reorganizing the system, CJ CheilJedang is operating compensation policy based on market value, magnifying organization leaders’ rights to compensation adjustment, and strengthening striking rewards based on performance. In particular, we granted the authority to adjust compensation to the organization’s leaders so that each individual’s level of competence and performance can be reflected in his/her compensation. We also built a customized policy focused on market-value that also reflects the characteristics of industries and established a differentiated compensation system.
Nurturing Talents of the Future
CJ CheilJedang strives to build a self-directed development model that encourages active participation of employees. For this, we have established an open development system that allows our employees to establish and follow their own development plans. Through questionnaires, we identify career-related developmental needs and provide career development programs that are customized according to their career paths of choice and growth visions. By operating a training system for the employees’ autonomous learning opportunities and our support for their career development, we are fostering the group’s management philosophy. We are also developing professional, leadership,global, digital competencies by rank and job in stages so that we can support them to develop into future global leaders.
Strengthening Female Leadership
Following the pursuit of talent management that respects diversity, the percentage of female executives and management personnel is continuously rising at CJ CheilJedang. As a result, the percentage of our female executives, excluding independent directors, was 25.3% as of the end of last year, which is the highest in the industry. By nurturing female management personnel, we will strive to further stabilize a culture that respects diversity, equity, and inclusion.
Ratio of female executives in 2021*
Communication activities for work-family balance
For family month of May, our company carried out communication activities where female leaders with children communicate with the CEO. It was an arena where they could freely converse on work-related concerns as leaders and requirements needed for work-family balance. Following our pursuit of talent management that respects diversity, we will work towards creating an open work environment where we can instill a vision of growth for the female leaders.
Establishment of the human rights management system
CJ CheilJedang’s human rights management not only respects and protects the human rights of employees but also all internal and external stakeholders, such as partner companies, consumers, and local residents, etc. By marking 2021 as the first year of human rights management, we established governance for implementation of human rights management, revised the Declaration for human rights management, and conducted human rights assessments at domestic manufacturing sites including family companies. Furthermore, we established a system where we can manage potential risks that may arise in the field of human rights by carrying out improvement derived from the results of the assessments.
Human rights management policy
CJ CheilJedang strives to respect human rights of all by preemptively identifying various human rights violations that may occur in management activities and trying to improve them. In 2021, we fully revised the Declaration of Human Rights Management to clarify the content and the direction of human rights management, and conducted activities to self-diagnose potential human rights risks that may occur at our domestic business sites. Starting with internal employees, we will further advertise and offer training activities to increase the understanding of human rights management, conduct human rights impact assessments for our partners and overseas business sites, and strengthen relief procedures and processes in the event of violations.
Governance of Human Rights Management ㅣ The Corporate Sustainability Committee under the Board of Directors deliberates and resolves agenda related to ESG including Human Rights, and promotes items related to human rights management through a dedicated department.
Human Rights Management System ㅣ CJ CheilJedang established and operates the Human Rights Management System for the purpose of achieving ‘Zero human rights risk’ through systematic management of human rights risks.
Human Rights Impact Assessment
We conducted human rights impact assessments targeted to 15 domestic sites of CJ CheilJedang and its affiliates’ manufacturing sites to selfassess human rights risks. The assessment was conducted to diagnose areas in employment discrimination (gender/non-regular employment), bullying/sexual harassment, forced labor(foreign workers), child labor(students/minors), humane treatment(working hours/breaks/wages/maternity protection, etc.), freedom of association(labor councils), and protection of local residents, etc., by interviewing employees and checking relevant documents. As a result of the human rights impact assessments conducted in 2021, we saw that there needs to be stricter guidance on response procedures in the event of harassment in the workplace, continued improvement of the breaktime environment at the sites, more systematic management of protection programs for pregnant employees, and active efforts to break down intergenerational communication. We plan to continuously pursue improvement efforts in such areas.
Improvement plans for 2022
Overview of human rights impact assessment(human rights assessment)
Declaration of Human Rights
As a document that publicly declares the company’s pledge toward respect for human rights and assessments for human rights risks, and the adoption of relief measures, CJ CheilJedang revised the Declaration of Human Rights Management to include the company’s key human rights principles, the core contents of human rights management, human rights assessments and relief measures. In particular, we have presented specific measures for employees, business partners, customers, and local communities regarding human rights risk management. CJ CheilJedang respects human rights that are universally recognized throughout the whole value chain regardless of women, children, natives, migrant workers, and third-party contract workers. We will also check and manage the human rights management system when we expand new businesses such as mergers and acquisitions.
Efforts to spread a human rights culture
Through the revision of the employment rules in 2021, we strengthened procedures regarding workplace harassment by establishing the company’s obligation for objective investigation as well as to maintain confidentiality in the investigation process in the occurrence of such case. In addition, we are raising awareness of human rights protection by including topics on appropriate management of employees’ working hours and vacations, precautions for maternity protection, the role of managers when responding to bullying/sexual harassment in the workplace, the importance of employee grievance handling as well as the required attitude of managers when training new managers. In addition, we are running campaigns to prevent long hours of work and to support family care in order to achieve zero human rights risks, thereby spreading a human rights culture.
Reorganizing the Open Council to strengthen communication & encourage participation
We are continuously pursuing better communication and resolution of grievances by running the Open Council, a consultative body between employee representatives and management representatives every quarter. Also, in order to expand the participation of employees in various positions across the country, we built a council on a level of the Food Production Division and the Food Sales Division. With this, there has been an expansion in the number of outlets for employees in the production and sales sectors that allows them to overcome business-site and regional differences and communicate with management with one voice.
Operating various communication channels and enhancing the feedback system
We operate a variety of online/mobile communication channels that allow employees to freely express suggestions, grievances, etc. by each business site. In the case of the Jincheon Blossom Campus, the VOC management system allows management of employees’ inquiries and grievances in real time, improving the efficiency of business execution in comparison to the existing system. At the Nonsan Plant, we operate an anonymous VOC channel that is more familiar and convenient for the employees to use, so that they can communicate and receive feedback more effectively.