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Social Responsibility Report 2017

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Social Responsibility Report 2017 STAY TRUE TO ORIGINAL INTENTIONS, AND KEEP THE MISSION IN MIND – Building an Air Power in the New Era Modern enterprises are the cells of a society, while society is the matrix within which enterprises grow. Therefore, while developing, an enterprise should act as a good “corporate citizen”, be grateful for favors received, and repay society, which is the social responsibility of an enterprise, and also an important factor in building a harmonious society. The majority of enterprises need to maintain self-discipline and self-respect, establish a scientific operation philosophy, rationalize internal and external relations, and strive to become responsible “corporate citizens” to guide the enterprise to develop and grow stronger and put it on the track of harmony and health. —— Quotations from President Xi CONTENTS 04 About Us 06 Address from the Chairman PROMOTE RESPONSIBLE MANAGEMENT 10 The Concept and Model of Responsibility 11 Corporate Governance Optimization 12 Communication Methods of Stakeholders 16 Practice of Responsible Management Serving the Country • Aviation 22 Serving the Country through Industry 26 Making the Armed Forces Powerful and Serving the Country Responsibility • Aviation [•••] Managing Enterprises According to Law, Legislating Responsibility [•••] Green Aviation, Environmental Responsibility [•••] Health Quality, Safety Responsibility Innovation • Aviation 48 Independent Efforts, Technological Innovation 50 Deepening Reform, Management Innovation Finesse • Aviation 56 Aviation Glory, Employee Finesse 62 Help Those in Need and Distress, Finesse in Public Welfare 68 Global Citizen, Finesse Overseas About Us Aviation Industry Corporation of China,Ltd (hereinafter referred to as “Aviation Industry”) is a large state-owned enterprise managed by the central government as well as a state authorized investment institution, and was established through restructuring integration of the original AVIC I and AVIC II on November 6, 2008. The Group Company mainly engages in such industries as aviation weapons equipment, military transport aircraft, helicopters, AVIC Industry airborne systems, auto components and parts, general aviation, aviation research, flight testing, the aviation supply chain, asset management, finance, engineering construction and automobiles. It oversees more than 100 member units and 27 listed companies and is home to over 450,000 employees. The Group Company has entered The Fortune Global 500 list for 9 consecutive years, ranked the 162nd in 2017, in the forefront of aeronautics and astronautics and defense sectors, and was selected for Fortune’s 2017 Most Admirable Chinese Company Industry Star List. The Group Company has appeared on The Fortune Global 500 list for 9 consecutive years Ranked 162nd in 2017 2017’s Most Admirable Chinese Company Industry In the field of military aviation, Aviation Industry serially develops military aircraft, including fighter planes, fighter bombers, bombers, transport aircraft, training planes, reconnaissance planes, helicopters, attack aircraft and unmanned aerial vehicles, comprehensively researches and develops the air-to-air, air- to-surface and ground-to-air missiles and carries out the airborne system development and aviation technology research and testing which provides advanced aviation weapon equipment for national defense security. In the civil aviation field, Aviation Industry independently develops the “MA” series regional aircraft, AC series civilian helicopters, AG series aircraft, Y-12 series aircraft and Eaglet 500, Seagull 300 and SF50 light business jets, Cirrus series general aircraft and “Sparrow Hawk” civilian unmanned aerial vehicles, and carries out the aviation subcontracting production business which provides advanced civil aviation products for domestic and international customers, while also devoting ourselves to the development of the general aviation industry. In the non-aeronautical civilian products and modern service fields, Aviation Industry adheres to uniformity in technical expertise, centralized industrial organization and synchronized values in its vision for military-civilian integration, in its advancement of an “informationization and industrialization merger,” in its integration of high-tech aviation high-tech with the civil field, development of smart devices, auto components, LCD and electronic components and other industries, and of such modern service industries as financial investment, engineering construction, aviation creative economy and Internet applications, which provide society with high-end equipment and the impetus for innovation, promote national smart manufacturing, support the development of aviation industry and serve the social masses. 04 Aviation Industry Corporation of China, Ltd. 05 Direct Function Units (6 units) Retirees Management Center Direct Business Units (10) Defense Affairs Engineering Department Direct Controlled Unit (1) Social Responsibility Report The Board of Supervisors Industry Development Department AVIC Technology Import and Export 2017 The Management Committee Limited Liability Company Civil Aircraft Industrial Department China Aviation Planning and Design Special Entity Research General Institute Co., Ltd. Disciplinary Inspection and AVIC Capital Holding Company Limited Supervision Department by Shares Party Construction, Ideology and China Aviation Technology International Political Policy Department Holding Co., Ltd. Audit and Legal Department AVIC Assets Management Co., Ltd. The Board of Directors China Flight Test Research Institute The Middle Management Personnel International Affairs Department Aviation Industry Aviation Corporation of China China Aviation Manufacturing Technology Scientific and Technological Quality Research Institute Department China Aviation Research Institute Human Resources Department AVIC General Aircraft Limited Liability Capital Management Department Company AVIC Mechanical and Electrical Systems Planning and Accounting Department Co., Ltd. AVIC Avionics System Company Committee Planning and Development Department Limited by Shares AVIC Helicopter Limited Liability Company Strategy and Investment Committee Integrated Management Department Nomination and Corporate Governance Audit and Risk Management Committee Remuneration and Appraisal Committee AviChina Industry & Technology Company Limited (H) Industry AviChina & Technology ORGANIZATIONAL STRUCTURE ORGANIZATIONAL AVIC Aircraft Limited Liability Company Leadership Speech 06 Aviation Industry Corporation of China, Ltd. In 2017, the construction of uniquely Chinese socialism While practicing the primary responsibility of serving the entered a new stage of transformation and upgrading. With country and “making the armed forces powerful” through the successful convening of the 19th National Congress aviation, we advocate weight reduction and physical of the CPC, Xi Jinping Thought on Socialism with Chinese fitness, insist on innovation and surpassing, and have taken Characteristics for a New Era established its guiding position economic responsibility for preservation and appreciation. We in the Party, which pointed out the direction for the Party and realized a full-year profit of RMB16.55 billion, outperforming the state cause development. Under the solid leadership the assessment indicator of SASAC of the State Council. of the Party Central Committee led by Xi Jinping, Aviation We insist on the development philosophy of military-civilian Industry deeply learns and practices Xi Jinping Thought on integration, achieve remarkable results in scientific research Socialism with Chinese Characteristics for a New Era and the and production of civil aircraft, and produce marked effects spirit of the 19th National Congress of the CPC, and actively in industry expansion and international development. While fulfills its political, economic and social responsibilities, which guaranteeing political responsibility and executing economic manifests the important role of the “six strengths” of state- responsibility, we actively fulfill responsibilities, work owned enterprises and makes great contributions to the diligently, providing aid within the company to employees realizing of the dreams of aviation dream and a powerful during emergencies and financial hardship, and organizing nation. The Group Company has appeared on the Fortune voluntary activities and public welfare campaigns externally. Global 500 list for 9 consecutive years and the Most We vigorously carry out poverty alleviation actions, and truly Admirable Chinese Company Industry Star List. take on social responsibility appropriate for a large state- owned enterprise managed by the central government. Being absolutely loyal to the Party, bearing the original Responsibility leads to growth, and vision creates the future! intention of serving the country in mind, and keeping in mind The year 2018 marks the inauguration of the spirit of the 19th the mission of making armed forces powerful have been the National Congress of the CPC as well as the 40th anniversary political responsibilities that we have consistently upheld. We of “reform and opening up”. steadfastly safeguard the authority, and centralized, unified leadership of the Party Central Committee led by Xi Jinping to Keep ready, and forge ahead towards a new journey! Let’s enhance the Party’s leadership over this company. We further closely unite around the Party Central Committee led by Xi implement Xi Jinping’s idea of making armed forces powerful Jinping, comprehensively implement the
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