Harmonious Development and Win-win Future —Corporate Social Responsibility Report China Unicom 2011 March 2012 Contents Company Overview .................................................................................................4 Management Team ...................................................................................................6 Organization Structure .............................................................................................7 Corporate Governance .............................................................................................7 Carry out the Responsibility ...................................................................................10 Fight Corruption and Build Clean Governance .....................................................13 Ensure Legal Operations ........................................................................................15 Improve Auditing ...................................................................................................17 Innovate Finance Management ..............................................................................18 Strengthen Publicity ...............................................................................................18 Carry out Safety Production ...................................................................................21 Strengthen the Duration Management ...................................................................22 Safeguard Employees’ Rights and Interests ...........................................................25 Encourage the Growth of Employees ....................................................................27 Showing Care to Employees’ Lives .......................................................................31 Adjust Product Structure ........................................................................................33 Buid High-quality Networks ..................................................................................34 Increase Innovation Capacity .................................................................................36 Maintain Smooth Communication .........................................................................39 In-Focus:Carry out Overseas Responsibility and Enhance Interntaional Operation Capacity ................................................................................................................46 Benefit Public with Information Technology .........................................................49 Push Forward the Information Industry .................................................................54 Boot Rural Development ........................................................................................58 Purify Network Environment .................................................................................62 Provide High-Quality Service ................................................................................64 Promote Energy Conservation and Emission Reduction .......................................76 Implement Joint Construction and Resource Sharing ............................................80 Poverty Alleviation and Aid to Tibet ......................................................................83 Donate Money for Education .................................................................................85 Volunteer Service ...................................................................................................89 Chairman’s Statements As the turning point for China Unicom’s 3G communication from the start to the rapid growth, 2011 is also the key year for the innovative development. Upholding the principle of ―innovation changes the world‖, China Unicom thoroughly implements the ―3G leadership and integrated innovation strategy‖, and takes the opportunity of 3G and mobile internet to promote the upgrade of the company. Through the establishment of differentiated competitive advantages, we have enhanced our comprehensive strength with our own characteristics. As the formal member of the UN Global Compact, China Unicom fully recognizes and follows the ten principles of the Global Compact in human rights, labor, environment, and anti-corruption. With sustainable development as the core, China Unicom has further promoted our work in corporate social responsibility, and made effective efforts in information service, cooperation, operation management, staff care, and society feedback. In 2011, we have speeded up the transformation of the 1 growth pattern making 3G becoming the first driving force for the company. Currently, our business structure continues to be optimized and revenues from major businesses rank first in the domestic industries, demonstrating a sound development trend and good market and customer recognition. Holding up the principle of ―livelihood most and service first‖ , we continues to innovate new products and applications, promote new mobile internet products, enrich industry information applications, serve urban information, increase service quality, push forward innovations of the industry chain, and benefit the livelihood through information service. We will strengthen the Group control, actively explore the professional, flat, and integrated management, promote the professional and integrated operation in network construction and maintenance, upgrade and double the capacity of the mobile communication network, and increase the share of broadband fiber network; actively explore the green development pattern and control the increase of energy consumption; initially set up the centralized and integrated IT support architecture, establish the transparent financial system throughout the Group, and constantly raise operation efficiency. We have carried out the responsibility of staff development, protected the legal interest of our employees, advanced open competition for management personnel and internal human resource exchanges, improved the career development mechanism, and optimize the human resource 2 structure to unleash the new vitality. China Unicom is trying to become an outstanding corporate citizen, care the society, carry out poverty alleviation and provide aid to Tibet and Xinjiang. We will establish a sound social image through the participation of social welfare undertakings and the spread of information civilization. Looking ahead, the information communication industry will inject more power to social economic development with rising upgrade speed. China Unicom will apply the scientific outlook on development to firmly hold the opportunities and accelerate innovations. We will improve the integrated operation management system in the new situation by building leading information communication facilities and enhancing the service capacity. China Unicom is determined to build better information life and make new contributions to social economic development with all parties. Chang Xiaobing Chairman China United Network Communications Group Company Limited March 2012 3 About us Company Overview China United Network Communications Group Company Limited ("China Unicom") was established on January 6th, 2009 based on former China Unicom and former China Netcom, with branches located in 31 provinces (autonomous regions and municipalities) across China, and a number of countries and regions overseas. It is the only Chinese telecom operator listed on the stock exchanges in New York, Hong Kong and Shanghai. China Unicom has been among the World’s Top 500 Enterprises for successive years. China Unicom has the world’s send largest fixed network, mobile network, and internet network, focusing on fixed communication, mobile communication, domestic and international communication facility service, international satellite private line, data communication, network access, telecom value-added businesses, and communication-related system integration. By the end of 2011, China Unicom has had 350 million users with 529.3 billion yuan corporate assets. 4 With a modern communications network characterized by nationwide coverage and global reach, China Unicom has been actively promoting the broadband-based development of its fixed and mobile network, expanding its international network coverage and improving the layout of its marketing outlets, so as to provide the comprehensive and high-quality information and communications services for the subscribers. By the end of 2011, China Unicom has completed the construction of 239,000 3G base stations, 375,000 2G base stations and 85.92 million broadband access ports. Our international roaming business has covered 548 operators in 246 countries and regions. Facing the global telecom innovative transformation and the opportunities and challenges brought by China’s integration of information and industry, China Unicom will give full play to the unique advantages of the restructuring. With the full-business operation and 3G as the engine, we will center on the users and meet users’ information needs with rising communication guarantee and service level. We are committed to become the leader of innovative information life and play important role in the national economy and social informatization. 5 Management Team Chang Xiaobing Lu Yimin Chairman General Manager Secretary of Party Committee Deputy Chairman Deputy Secretary of Party Committee Tong Jilu Director Li Jianguo Deputy General Manager Member of Party Committee Member of Party Committee Team Leader of the Discipline Inspection Commission Li Fushen Li Gang Director Deputy