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Accomplishing Century Enterprise needs what kind of outlook on social responsibility
ReleaseDate: 2012-11-29

November 29, 2012 Chen Shanshan, China Business News

“JuneYao Group is not only a company providing modern services, but also a corporate citizen based in China for development; each day, nearly 200,000 consumers enjoy super value services offered by JuneYao.”

Speaking of JuneYao Group’s outlook on corporate social responsibility, JuneYao Group Vice President Chen Li began his talk with this remark; in his view JuneYao Group’s corporate social responsibility had been incorporated into the company’s target and operation.

China Business News: Which aspects can best reflect JuneYao Group’s corporate social responsibility, and what are the special features?

Chen Li: JuneYao Group’s sense of social responsibility can all be supported by actual deeds, we let the society share our resources and ability through multiple dimensions.

Specifically, the aim is to achieve four satisfactions: Customer satisfaction, employee satisfaction, shareholder satisfaction, and social satisfaction. Judging from the sequence, the four “satisfactions” are supplementary to each other, the four satisfactions form a complete whole, and not a single one of them can be omitted.

Firstly, for an enterprise to survive, it must have performance, and it needs to have both scale and satisfactory profit manifestation. This is a prerequisite, a necessary condition for survival and long-term development.

Secondly, employees represent the most important productivity; it is necessary to guide employees to develop initiative, so as to provide differentiated, comfortable service products to customers.

Thirdly, making the society feel satisfied, it means paying more tax, and trying its best to provide jobs, and actively participate in poverty assistance.

China Business News: You just now mentioned “Century Enterprise”, it must ensure sustainable development, how does JuneYao Group control risks?

Chen Li: The administrators of JuneYao Group have adopted a variety of measures and methods to eliminate or minimize the possibility of risk incident occurrence, or keep possible damage within certain scope, so as to avoid bringing unacceptable damages at the time of risk incident occurrence.

For instance, the Group set up the Group’s Board of Directors Audit Committee, the Group’s Audit Committee ensures combination of prior, in-progress, and afterward audits for any one internal audit item, ensures they are visible throughout the whole process of operation management; the Group’s internal audit gradually extended from finance audit to workflow audit, business audit, and will gradually penetrate to each enterprise, each level and each link of the Group.

The Group’s Audit Committee also vigorously carry out special item audit investigation, through which it aims to provide evidences for decision-making for the Group’s Board of Directors, and provide verification in policy and economics for operation decisions; conduct risk evaluation for key businesses and project investment in order to prevent decision mistakes, avoid economic loss; reflect widespread and tendency-signaling problems in economic activities, and put forward actual, targeted and feasible improvement advices and suggestions; evaluate operation results after the execution of decisions in the enterprise, enable the Group’s Board of Directors to quickly understand whether or not the reform measures are effective, whether or not the decision making behavior is sound in judgment, and whether or not enterprise resources have been fully utilized, so as to facilitate the Group’s Board of Directors to promptly adjust decisions, ensure the enterprise to minimize waste, reduce cost, and improve enterprise economic benefits.

Meanwhile, as market economy becomes increasingly developed, business risk to a great extent is increasingly manifested in the form of legal risk. In view of this point, the Group began to attach increasing importance to the unfolding of legal work: It established and improved a work team of legal personnel, and established legal work guideline dominated by prior prevention, supported by in-progress control, and supplemented by afterward rescue at each level in the entire Group; it established and improved contract countersign system; established and improved file management system for contract related documents. Legal personnel assumed the role of guardian and protector for the Group, in order to control risks in management and operation.

Furthermore, in order to strengthen standardization of daily work, the Group also introduced procedure management in departments at all levels. Procedure management is like human blood, procedures transmit relevant information data from one person (department) to other personnel (department) based on certain requirements to receive corresponding results before returning to corresponding person (department). Different departments, different personnel in the Group and different suppliers all follow corresponding procedure to carry out coordinated operation.

China Business News: Speaking of controlling risks, safety problems have been frequently discovered in the food and beverage sector, since JuneYao Group is also involved in relevant businesses, how does it manage to prevent and control risks?

Chen Li: Food safety relates to an enterprise’s conscience; according to inspection results, all products of JuneYao Dairy contain no melamine, in the recent several years there was no group incident or health-related incident.

For food products, the first important thing is source control; source control is raw material control, which involves whether or not raw materials should be added and need to be added, and we would rather keep down business size or have no profit than doing things harmful to consumers.

JuneYao Dairy once discovered some falsified milk from some individual farms, we traced the source to confirm it’s a milk source problem; consequently we controlled the scale of supply in this area, and only accepted milk from milk stations, which would be directly shipped to factory. Later we didn’t expand business in this area, the reason is that milk source is very important, because for some milk sources falsifying can bring higher gross profit, which would prompt some small farms and suppliers to think otherwise; therefore, we feel food safety is the bottom line, we would prefer to control this area rather than having profit.

After that incident, we implemented stringent control on all milk sources, and refused to accept milk which was directly shipped to workshop. The milk must pass through fixed pasture milking station, from where they would be directly shipped away. In this way there is no channel falsification, because the procedure prevents any chances of falsification.

China Business News: In the aspect of social public welfare activity, what praiseworthy actions have you contributed?

Chen Li: While seeking stable growth, the Group also has invested over 100 million yuan to support public welfare activities and charity undertakings.

In the “5•12” Wenchuan Earthquake in 2008, the Group’s subordinate JuneYao Airlines joined hands with enterprises, media and social public welfare organizations including Fosun Group, Jet Li One Foundation, Chinese Federation for Corporate Social Responsibility, Oriental Morning Post, to voluntarily deliver urgently needed materials such as lifting jacks, drugs, tents, and food for the disaster zone, which built a rescue battle line in the air, so to speak, the donated materials totaled up to 6.50 million yuan.

In the “8•8” Taiwan Typhoon Disaster in 2009, it donated 1 million yuan.

In the “4•14” Qinghai Yushu Earthquake in 2010, it donated 20,000 boxes of milk valued at 1.26 million yuan, and donated 1 million yuan.

In 2011, in the “Thanking Tour in Jinggang Mountain, the Revolutionary Old Areas” activity, it donated 1 million yuan.

In 2011, it donated 20 million yuan to the Shanghai Society for the Promotion of Guangcai Program, which was mainly used to support education undertakings in Kashi Xinjiang and other regions and the Sino-US Outstanding Youth Training Program.

In 2012, it donated 1 million yuan to the Hubei Province Society for the Promotion of Guangcai Program “Supporting Agriculture Action”.

In 2012, in the Guangcai Undertaking Ningxia Tour, it donated 1 million yuan.

Aside from charity donation, since 2000, JuneYao Group began to make serial investments under Guangcai Program in the Three Gorges Reservoir Area, and implement “100,000 Household Dairy Cow Breeding Program”; through the approach of company plus farmer, the group helped migrants of the Three Gorges Reservoir Area to find jobs, afterwards it also invested to construct Yichang JuneYao International Plaza, a landmark building including a 5-star hotel, in the local area, which greatly improved local tourism industrial chain, and also cultivated and delivered a large number of management talents for the local market.

Over the past 10 years, total investment from JuneYao Group in the Three Gorges Reservoir Zone has topped 1 billion yuan, which brought direct job opportunities to 1,000 migrants, benefited 5,000 persons in indirectly employment in the industrial chain, solved the challenging employment difficulty for a large number of migrants in along term and stable manner, which became a classical case in China’s Guangcai Program undertaking. Subsequently, the company was invited to share experience at the United Nations [Microblog] Global Compact Conference.

Furthermore, JuneYao Airlines under the JuneYao Group also initiated “JuneYao Journey” public welfare activities for many consecutive years, for instance Qingdao Hand-in-hand Charity Activity, Shanghai–Hubei Loving Heart Activity, Dujiangyan Joining-hands Activity, Saving Sichuan Disaster Zone Children “Small Moon” Activity etc. The Group also carried out pair-up assistance work for Zhanglian Village, Liantang Town, Qingpu District, Shanghai, for many years, and each year it regularly delivers grants and consolation money to several dozen impoverished families and widower seniors from Zhangjiabang, and Zhangdong Residential Committee in Xuhui District.

JuneYao: Service continues to create new value

Release time: 2012-11-29 November 29, 2012 Chen Shanshan, China Business News

Among the existing major business divisions of JuneYao Group, Wang Junjin, as Chairman of the JuneYao Group, has dedicated the greatest attention to JuneYao Airlines than others, and even is concerned with some trivial details.

A number of years ago, JuneYao Group still appeared in front of the public in the image of “letting more people drink JuneYao’s milk”; today, its business divisions have undergone tremendous changes, as it was marching in big stride forward in the transition toward the modern service industry.

“In order to let people enjoy more healthy and comfortable life, we are dedicated to creating value that surpasses people’s imagination, and become a superior, globalized Century Enterprise in the modern service industry.” Vice President of JuneYao Group Chen Li told the reporter, this is JuneYao Group’s corporate mission, and also the target to which each JuneYao employee is making contribution. Centering on this corporate mission, all business divisions under the Group are trying their best to provide differentiated services to customers, in order to meet customer needs.

JuneYao Airlines: Constantly introduce value-added services

Opening JuneYao Group’s website, one can find that in the company’s introduction of business division, its businesses have evolved from a diversified range of industries covering aviation, aviation service, dairy, logistics, hotel, real estate, taxi, and retail at Wang JuneYao’s age to two major business divisions of aviation transport and marketing service, wherein, JuneYao Airlines is a major pillar in the aviation transport division.

Ever since the day of its maiden flight in September 2006, Wang Junjin did not give a “low-cost airline” title to JuneYao Airlines like other private airlines; instead, he boldly put forward the slogan of “Attracting mid to high end passengers with value-added services”. Compared with other airlines in China, aside from pursuit of safety and punctuality, the differentiation route pursued by JuneYao Airlines places its emphasis on service, rather than merely price.

For instance, the seat distance in aircrafts of JuneYao Airlines is wider than the same model aircrafts of other airlines; each seat is attached with back cushion, and also adjustable head pillow, which cannot be found on the aircrafts of other airlines. Furthermore, regardless of leased or purchased aircrafts, JuneYao insists on introducing brand-new aircrafts, and accepts no secondhand aircrafts. Up till now, JuneYao Airlines’ fleet has grown to 30 aircrafts; it is the airline with the lowest average aircraft age in China.

“Although new aircraft needs high cost of purchase, it has better safety, passengers will also obtain the impression of high cost performance, and the future repair cost is low.” Wang Junjin said.

Such services obviously will increase JuneYao Airlines’ cost, but Wang Junjin has no intention of saving costs in these aspects. He has even developed such demanding attitude as to look for dust in the corners of an aircraft each time he takes a flight, and even check the corners in the toilet. He is also preparing to send the stewardesses to receive training in a mature service industry, “it’s no use examining airline from an airline’s position. We must adopt higher service standard to discipline our crew. If we could duplicate 5-star services into the aircraft, we will be successful in the first step.”

Because of the establishment of its positioning targeted at mid to high end business travelers, the Business Department of JuneYao Airlines is required to introduce a new service after a certain interval. For instance, confirming itinerary and contacting drivers, guests, family members via telecommunication means such as SMS for business travelers, helping business travelers contact meeting venue at the destination of business travel, satisfying additional needs and so on.

These “tough” requirements also received real “reward”. Recently the website published the survey results of passenger overall evaluation of airlines services for the third quarter of 2012. The results of this survey came from continual evaluation by real passengers, JuneYao ranked third in overall service. Meanwhile, in five single service items of stewardess service, broadcasting, cabin facility, in-flight food, and entertainment, JuneYao ranked top in stewardess service (including stewardess service attitude, stewardess appearance, response time when summoning stewardess, catering service attitude, passenger mood pacification standard at the time of delay), in-flight broadcasting (including captain broadcasting standard, normal flight info briefing, info briefing for delayed flight), and cabin facility (including cabin cleanness and neatness, completeness of cabin facilities, seat comfort, and toilet facilities).

According to JuneYao Group’s “Twelfth Five Year Plan”, JuneYao Airlines will further speed up development, growing from the existing 30 aircrafts to 50 aircrafts fleet size by opening more flight routes, and attracting customers with differentiated services and products with high cost performance.

All business divisions: Continually create new value

In addition to JuneYao Airlines, JuneYao Group also practices “service brings beautiful life” concept in all other business divisions.

For instance is among the earliest agencies to accomplish direct linkage with China Civil Aviation’s computer seat-booking system in China, it also established cooperation with multiple international GDS (Global Distribution System), to provide timely and authoritative flight ticket information, to facilitate users to make online real-time inquiry on flight arrival & departure time, ticket price and seat info. Meanwhile, based on JuneYao Airlines’ price advantage, it opened JuneYao flights’ tourist lines; operating international tourism routes to Southeast Asia, Hong Kong, Macau, and Taiwan, which earned widespread popularity among young consumers.

Wuxi Commercial Mansion spent nearly a dozen years to develop from a traditional business and trade enterprise with single body operation and single business mode marketing into a business and trade enterprise group in new business mode brimming with vitality by centering on Grand Orient (600327) Co., Ltd, and following the “one body two wings” operation strategy supported by department store retailing, automobile sales and service, food and catering, covering departments store retailing, automobile distribution, household electrical appliance chain stores, supermarkets, import/export trade, catering service, e-commerce etc to provide local Wuxi residents with one-stop shopping service.

JuneYao’s traditional business division dairy business is the first in the nation to develop and manufacture plastic bottle long shelf life sterilized milk. Its emphasis is not on production, instead it focuses efforts on R&D and marketing, which enabled it to develop dairy beverage products with self-owned intellectual property rights such as “Werdery, Milka, Ultraman”.

The cultural creativity business, which belongs to the marketing service division, is expected to become the business with the highest profit ratio in JuneYao Group in the future. Through building theme retail and vertical integration of brand value chain, it connects cultural activity brands of international top-class match events (meetings) (e.g. Beijing Olympic Games, World Expo Shanghai, Xi’an International Horticultural Expo, NBA etc) with the consumer field, and brings easily accessible theme culture experience to consumers.

“Constantly offering customers new products, creating new markets, providing them with new value, those are our corporate missions.” Chen Li told the reporter, “Today, building globalized century enterprise in modern service industry has become a real target familiar to employees.”