2013 Social Responsibility Report Shanghai Fosun Pharmaceutical (Group) Co., Ltd. 02 Our Mission To become a leading provider of healthcare products and services by continuously improving the capabilities for innovation, service, integration and international operations that efficiently operates, manages and invests in outstanding enterprises in the industry. 03 About the Report This is the 2013 corporate social responsibility (CSR) report This report is prepared and printed in simplified Chinese and English. published by Shanghai Fosun Pharmaceutical (Group) Co., Ltd. The traditional Chinese version of the report is available for downloading from Fosun Pharma's website. In the event of discrepancy between the Chinese and English versions, the simplified Chinese version shall prevail. This report aims to truthfully present the CSR development and To facilitate reading and understanding of the report by stakeholders, a practice of Shanghai Fosun Pharmaceutical (Group) in 2013 and inform glossary of terms referred to in the report is provided on the last page of our shareholders, employees, government agencies, customers and the report. consumers, partners, local communities and other stakeholders of our CSR activities in 2013. We have published a CSR report every year since March 2009. This is our sixth CSR report. The report is available in both hardcopy and electronic versions. The latter may be downloaded from the website of Fosun Pharma (http://www. fosunpharma.com/responsibility/report_down). To promote the use of This report covers the period from January 1, 2013 to December 31, wood and paper products conducive to sustainable forest management 2013, and is released together with our 2013 Annual Report. The financial and to raise environmental awareness, the report is printed with PEFC- information contained in this report and its scope of coverage is consistent certified papers. with those presented in the 2013 Annual Report of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. This report releases data, measures and actual cases to the stakeholders about the performance of Shanghai An independent external institution with no conflict of interest in Fosun Pharmaceutical (Group) in the aspects of strategic development, connection with the Company has been commissioned to perform third- corporate governance, economic responsibility, environmental protection, party verification of the Chinese CSR report and issued a Chinese and product and service quality, occupational health and safety, employee English CSR Assurance Statement. The 2013 Assurance Statement covers development and community charity, and also measures taken and the site examinations of Fosun Pharma headquarters as well as two examples with actual cases. The next report will be published in 2015. subsidiaries of Fosun Pharma, Jiangsu Wanbang Biopharmaceuticals and Shanghai Fosun Long March Medical Science. In comparison with the 2012 CSR report, the 2013 report reveals more detailed information on environment, health, safety, and product and Please visit the website (www.fosunpharma.com) or contact the service quality relating to our operations. department (shown on the back cover) of the report for more information on how the Company implements the concepts and strategy of social responsibility and related practices. This report is prepared in accordance with the B+ requirements of the Sustainability Reporting Guidelines G3.1 released by the Global Reporting Initiative (GRI). For the convenience of expression and reading, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. may be referred to, according to the context, as “the Company” “Fosun Pharma” or “the Listed Company” in the report; Shanghai Fosun Pharmaceutical (Group) Co., Ltd. and its subsidiaries included in the consolidated report may be referred to as “Fosun Pharma Group”, or “the Group”; Shanghai Fosun Pharmaceutical Industrial Development Limited may be referred to as “the Industrial Company” or “Fosun Pharmaceutical Industrial”; the subsidiaries of Fosun Pharma may be referred to as “subordinate enterprises”, “member enterprises”, “subsidiaries” or “sub-subsidiaries”; and shareholding enterprises may be referred to as “partner enterprises.” 04 Table of Contents P14 P32 P40 Strategy and Management Economics Product and Service Quality Internationalization\Optimal Product Innovation\Pharmaceutical Supply of High-quality Medical Management\Corporate Governance\ Manufacturing\Product Distribution Products\Retail Sales of Drugs\ Internal Controls\Stakeholder and Retailing\Healthcare Services\ Handling of Complaints\Sales Engagement Medical Devices and Medical Compliance\Recycling and Handling Diagnostics \Return to Shareholders\ of Expired Drugs\Quality and Safety Tax Compliance\Salary and Benefit Training\Supplier Management\ Systems Quality of Health Service P56 P78 P90 Environmental Protection, Employees Society Health & Safety Construction of EHS System\ Sustainable Development of Talent\ Per Share Contribution to Society\ Environmental Protection\ Talent Introduction\Talent Cultivation\ Corporate Citizen Commitment\ Occupational Health\EHS Education Employee Development\ Employee Community Charity\Community Incentives\Employee Benefits\Labor Service\Aid to Africa in the Fight Union\Employee Activities against Malaria 04 About the Report 101 Rewards and Recognitions 109 Third-party Comments 06 Greetings from 104 Performance Indicators 110 Global Report Initiation (GRI) Organization Management 105 Social Indicators Target Index 08 Highlights of 2013 106 Terminologies 116 SGS Assurance Statement 10 Company Overview 108 Feedback Form 118 Forward-looking Statement The people shown in the photo inserts of this year’s report are the instructors and trainees who participated in the “Seminar on Malaria Prevention and Control for Asian and African Countries” and “Seminar on Pharmaceutical Quality Management for Developing Countries” organized by Fosun Pharma and the “FOSUN Love to Children Rehabilitation Program” of the United Family China Healthcare Foundation.. The “FOSUN Love to Children Rehabilitation Program” is dedicated to providing free medical services to orphaned and impoverished children in need. Committed to the development of healthcare industry in China, Fosun Pharma has been actively supporting the Chinese government in foreign aid programs. As of 2013, Fosun Pharma has conducted annual malaria prevention and control training program sponsored by the Ministry of Commerce (MOFCOM) for eight years and MOFCOM’s quality management training program for four years. In the process, we have built a professional project team with profound understanding of foreign aid training and fluency in foreign languages that is highly lauded by recipient governments and trainees. 05 Greetings from Management To provide safe, affordable and high-quality products and services to more people is an important social responsibility of ours. Chairman Chen Qiyu Dear friends, In the sustainable development of products and services, we regard product quality and environmental protection as keys assuring the While the global economy was set for slow recovery and China’s economy sustainable development of the company and even society as a whole. had sustained steady growth in 2013, the Chinese government continued We operate with an uncompromising stance on quality and safety. From healthcare reform with a myriad of new policies and the domestic new drug development, raw material procurement, and drug and medical healthcare market became increasingly competitive. device manufacturing to sales and marketing, Fosun Pharma provides the public with safe, affordable and effective drugs and services. We endeavor Facing the opportunities and challenges brought about by the macro- to make our services widely accessible by continuously improving our economic environment, Fosun Pharma, guided by the mission of “promoting technology and production processes. health and wellbeing of mankind” and the belief of “innovation for good health”, vigorously develops its healthcare business to provide equal access We also pay close attention to workplace environment, health and to high-quality healthcare products and premier services for all citizens. safety (EHS). In 2013, through our EHS Management Office, we actively embarked on five EHS projects in the pharmaceutical industry, healthcare Fosun Pharma attaches great importance to corporate social responsibility. services, medical devices, medical diagnostics, and pharmaceutical By incorporating corporate social responsibility into our overall business commerce and consumer products. Each of our member enterprises strategy and establishing longstanding CSR mechanisms, we gradually further reduces the discharge of pollutants, optimizes their energy incorporate sustainability strategies into our corporate operations. consumption, enhances process safety management capabilities and strengthens training and monitoring of occupational health and With focus on the core pharmaceutical business, we are committed to safety. All member enterprises made considerable improvement in EHS delivering innovative products and improving our management skills and performance. knowhow. By leveraging corporate and product life cycles, we continue to develop strategies for sustainable products, services and talent. 06 Fosun Pharma has every intention to maintain continuous, honest and open communication with society and incorporate the company’s sustainability concepts and decisions in its business operations to