Hebei Donghai Special Steel Group Co., Ltd.

2016 Social Responsibility Report

Along with the continuation of the international financial crisis, the Chinese economy is facing unprecedented challenge. Internationalized development trend of corporate social responsibility is increasingly apparent. Corporate social responsibility tends to be enlarged and complicated. All sectors of society increasingly deepen their awareness of social responsibility. The enterprises also deepen their awareness of social responsibility constantly. Corporate practice will be innovated constantly.
Premier WEN Jiabao indicated in 2010 Government Work Report: “guide the enterprises, with the focus of brand, standards, service and benefit, to improve Quality Management System and enhance social responsibility”.
In such report, premier WEN Jiabao stressed on corporate social responsibility. What is corporate social responsibility?
Corporate social responsibility means that the enterprises shall make profits and bear legal liability to shareholders, and also shall bear some responsibilities for employees, consumers, society and environment. Corporate social responsibility requires that the enterprises shall develop and make profits, and also shall pay attention to human value in the process of operation, and stress on corporate contributions to consumers, environment and society.
Practice has proven that: an excellent enterprise is certain to be an enterprise responsible for the society, a sustainable enterprise, as well as an enterprise which can make more profits and give back to society positively. Only through realizing harmony and unity of society and environment can the enterprise realize its sustainable and everlasting development.
Through the baptism of global financial crisis, Hebei Donghai Special Steel Group Co., Ltd. has ushered in her seventh birthday. Over the past seven years, with the tenet of “creating wealth and benefiting society”, Donghai Special Steel strives to be stronger, larger and longer. Moreover, to bear social responsibility actively, it is Donghai Special Steel’s everlasting pursuit.
Donghai Special Steel’s social responsibility is derived from our core values of “making benefit and contribution”, and is developed from some specific actions of social responsibility. It includes our responsibilities for such interested parties as nation, consumers, partners, employees, environment, etc. Practice has proven that we have realized harmony and unity of self-development and responsibility.
Next, we make an introduction to Donghai Special Steel’s 2016 Social Responsibility Report:
1. Company Profile
Donghai Special Steel, founded in 2009, has formed a complete industry chain of circular economy, including coking, sintering, liming, pelletizing, iron-making, steel-making, steel rolling, oxygen-making, coal gas and waste heat power generation, integrated utilization of slag, fume control, sewage treatment, recycling utilization, etc., with a floor area of more than 4,000 mu and more than 10,000 employees. The company mainly produces hot rolled ribbed steel bar and carbon structural steel for reinforced concrete, high-quality carbon structural steel, low-alloy high-strength steel, medium-width strip steel and hot-rolled coiled plate for cold-rolling and stamping, etc. Our products are available not only in some main provinces and cities in North China, Central China, East China, South China, Northeast China, etc., but also in Japan, South Korea, Southeast Asia, Europe, America, Africa, etc.
Adhering to the road of “variety, quality and benefit”, the company has established a technical center, brand cultivation and management system and quality control system, and formed an independent innovation system integrating industry, university, research and marketing. Currently, the company has passed the certifications of ISO9001Quality Management System and ISO10012 Measurement Management System. “DONGGANG” hot rolled ribbed steel bar and coiled products have been obtained National Industrial Product Production License; awarded “Golden Cup Award” by China Iron and Steel Association, rated “High-quality Famous-brand Product” by Hebei Provincial Administration of Quality and Technical Supervision, passed the brand registration of Shanghai Futures Exchange, and awarded such honors as “National Metallurgical Industry Quality Leading Brand”, “National Quality Inspection Stable Qualified Product”, “National Product And Service Quality Credit Demonstration Enterprise”, etc.
Safe production is the cornerstone for corporate survival and development. The company has passed the certification of OHSAS18001, established the safety management network and realized well-defined power and responsibility, clear responsibility and effective control, which provide organizational guarantee for safe production.
The company has established a feasible environmental protection emission supervision and control system and waste gas, wastewater, waste solid recycling utilization system in accordance with Environmental Protection Law of the People's Republic of China, and made great efforts in the plant’ hardening, lightening, greening and landscaping to create a green steel enterprise. The company has passed the certification of ISO14001 Environment Management System and implemented “7S” Management and Cleaner Production in an all-round way. The pollutant emission has reached national standard and local threshold. The company has established a modern sewage treatment center. The deeply-treated sewage has reached the standard and recycled, and has realized zero emission of wastewater.
Energy Management Center has been built to perform unified dispatch and command of secondary energy and dynamic media, thereby optimizing the energy utilization. The company has passed the certification of ISO50001 energy management system, implemented supporting cogeneration project, utilized coal gas, vapour, waste heat and top-pressure in power generation, and built a steel slag treatment production line to enhance energy utilization level and create circular economy.
The company will adhere to new industrialized development road, adjust product mix, extend industrial chain, gradually develop such projects as cold-rolled thin plate, color-coated plate, tin plate, iron printing, etc., enhance added value of products, and strengthen enterprise competitiveness.
The company has become a competitive bar production base in Tangshan region, and a member of China Iron and Steel Association. Corporate honors are as follows:
“AAA” Credit Unit by Hebei Province Agricultural Bank;
“Advanced Spiritual Civilization Unit” by Tangshan Municipal Party Committee and Municipal Government;
Advanced unit of “contract performance and credit” by municipal government;
Advanced unit of “powerful county and rich people” by county party committee and county government by six consecutive years;
Advanced “safety production” unit by municipal and county safety supervision bureau for every year;
“Outstanding Contribution Award” by county party committee and county government;
Advanced “environmental protection” unit by municipal environmental protection bureau;
“Advanced energy-saving enterprise” by municipal industry and information bureau.
President Mr. Lin Guojing won the title of “Outstanding Private Entrepreneur” and “Entrepreneurial Hero” of Hebei Province and “Model Worker” of Tangshan.
II. Build image and create corporate culture
The company adhered to taking corporate culture as a guide, combining with the needs of the time, integrating with corporate development strategy, in order to create the corporate culture soft power. The company’s “win-win culture system has been highly recognized by employees, forming great cohesion and centripetal force, and widely accepted by the society, making relatively large influence and image brand.
Corporate vision: Create a century-old iron and steel company and serve the country worthily with iron and steel business
Corporate spirit: Unity and harmony, dedication, benefit making and devotion
Corporate tenet: Wealth creating, contribution to the society, return to shareholders, benefits to employees
Business concept: take benefits as the center, market as the theme, management as the base, quality as the guarantee and employees as the essence
Corporate image: Create Donghai Special Steel’s style, carry forward Donghai Special Steel’s character and form Donghai Special Steel’s brilliance
Brand strategy: Create Donghai Special Steel’s future based on good faith;
Create Donghai Special Steel’s brand based on top service
Human resource strategy: Build employee growth platform, strengthen learning and training system, implement post star talent plan, achieve employee value of life. As long as you are a talent, Donghai will make you show your ability.
Corporate management strategy: corporate management according to law, scientific and innovative development; corporate management with systems, strict and fine management; costs-based corporate management, benefit first; corporate management with good faith, Advocacy of moral obligation
III. Take people first and pay attention to employees’ benefits
(I) The company constantly improves career training system and focuses on employee training.
Since its establishment, the company has always paid great attention to employee training. Focus on employee training in professional ethics, team building, business skills, management knowledge and other aspects, carry out post practice and skill contest for production operators and systematically carry out employee training in a way combining “coming in” with “going out”. Strive to a operation and management talent team with new thoughts and ideas and strong leadership; strive to create a professional technician team with professional skills and dedication; strive to cultivate operator team with dedication to work and operation-inspection conformance , give full play to its human resources advantages and provide talent guarantee and intellectual support for long-term development of the company.
(II) Improve safety management level and strengthen employee safety quality
According to elimination of outdated production facilities, structure adjustment and integration of the company, organize and sort out safety management system and management system, give priority to management, effectively protect employees’ safety interests, strengthen the pre-job safety training and education for employees, with training rate of 100%, improve employees’ safety awareness and safe operation capacity, so as to provide strong guarantee for safety production and operation of the company. At the same time, make tight deployment, carefully carry out safety production month activity to strengthen safety production publicity and education and strive to improve employees’ safety quality. Do safety protections according to the principle of “three simultaneities”, so as to effectively control all kinds of accidents, continuously enhance safety management performance to make employees feel safe and secure in work.
On the basis of post-salary system, apply flexible and diverse forms of salary distribution, develop the salary distribution plan consistent with actual situation of the unit, maximize employees’ enthusiasm, gradually establish a performance management-based salary distribution system by developing a scientific internal post value system and taking marketization as a guide, effectively promote the reform of internal distribution system. Since 2015, affected by industry factors, overall benefits of the company have declined. The company has endeavored to overcome the unfavorable factors, such as high raw material price and low selling price of products, stabilized the total amount of salaries and ensured steady increase of the salaries of employees. In accordance with policies and regulations, make full payment of various statutory social insurances and welfares for on-post employees that establish a labor relation with the company, mainly including basic endowment insurance, basic medical insurance and industrial injury insurance, etc., in order to protect the legitimate rights and interests of employees. Provide employee health plan, physical examination, labor insurance products, paid annual leave and other benefits, so as to make workers fully devote themselves into work, with the rear secure.
(IV) Improve the services facilities embodying humanistic care
In this regard, the company has done a lot, in order to enrich the amateur cultural life of employees and make them feel secure and comfortable in life. Firstly, construct "employee home" activity room, equipped with basketball, billiard, table tennis, fitness equipment and other fitness and entertainment facilities; secondly, set up shopping mall to facilitate employees to buy daily necessities; thirdly, open a number of commuter routes to solve commuting problems of nearby employees; fourthly, make heavy investment in afforestation, hardening, lighting and beautifying company environment; fifthly, equip employee quarters with digital televisions to enable employees to watch the news at home and abroad and a variety of entertainment programs; sixthly, install fans, wardrobe and other facilities, to make the employees who leave home to have a feeling of home; seventhly, carry out employee cultural activities, such as basketball, table tennis, billiard, chess and other sports contests and knowledge contests, speech contests, themed essay contest and other cultural activities, in order to relax the hearts and minds of employees, show employees’ skills and talents and make them feel comfortable and happy after work.
IV. Make integrity management and focus on customer rights and interests
(I) Vigorously develop new products and promote the upgrading of product structure
On the basis of current situation and future development, the company builds an efficient team taking market as the guide, users as the center and production-sale-research integration as the platform. The company actively explores and promotes the marketing mode of “products + service” and pays attention to the research and development of key products. In term of billet steel, the company can independently research and develop various high-quality carbon structural steel and concrete steel for high-strength reinforced concrete; in term of rolled steel, the company has developed hot rolled ribbed steel bar and anti-seismic ribbed bar of a high strength of 400MPa.
(II) Develop the concept of creating values for users and grasp market demands
Through the brand building project, pay close attention to product quality and service quality, overcome product quality defects, strengthen process technology supervision, reduce quality losses and maintain corporate brand image; strengthen quality management and improve product quality from strengthening customer demand identification, inspection control, process control, system operation, quality accountability investigation and other aspects. Take overall implementation of the control system of marketing management goal as the main line of marketing, increase targeted market share, selling price per ton, quantity of resources in the province, proportion of direct sales and other indicators, reduce sales cost per ton and improve product sales revenue. In the research and development of products, research user application technology, especially in process optimization and other aspects that create value for users; pay attention to the requirements of users' processing and manufacturing processes for the performance of materials, and study how our materials adapt to the needs of users, adapt to users’ future development and make products better meet the individual needs of users by improving product strength and enhancing special performance of products.
In the face of unprecedented difficulties and challenges, the company has always taken the quality principle of "creating value for customers with the highest quality and the lowest costs" as the guide, strictly implemented ISO9001 International Quality Management System and built a customer-based and quality-centered production mode through strengthening basic quality management and quality assurance system and improving long-term mechanism, in order to strengthen the process discipline inspection throughout the whole process in a strict and meticulous way, enhance quality awareness, improve quality control capability and significantly reduce quality losses. "Donggang" hot-rolled ribbed bar and coil products have won national industrial production permit; been awarded “Gold Cup Award” by China Iron and Steel Association, High-quality Well-known Product by Hebei Provincial Administration of Quality and Technical Supervision, registered at SHFE and awarded “Leading High-quality Brand in National Metallurgical Industry”, “Products with Stable Quality in National Quality Inspection”, “National Model Enterprise of High Product and Service Quality” and other honors.
(IV) Strengthen the protection of the rights and interests of suppliers, customers and consumers
The company follows the mission of “to provide customers with satisfying products and service” and adheres to the core value of “co-creation, co-development and win-win” and tries to provide suppliers with convenience and maintain the interests of both demanders and suppliers. In the process of procurement, the company strictly abides by national laws and regulations, creates open, fair and just competition environment to make the company become an arena for suppliers to show their own strength. It also actively cultivates strategic partners and closely cooperates with outstanding suppliers about bulky cargoes to jointly fulfill their social responsibilities, by signing strategic cooperation agreement, occupying resources and stabilizing quality. Marketing of the company focuses on the harmonious development with clients and other relevant parties and the service and support for the harmonious development with clients and other relevant parties from marketing idea, strategy, rules and other aspects.
V. Increase investment and pay attention to environmental protection, energy conservation and emission reduction
The company has always taken strengthening environmental protection, greatly promoting energy conservation and emission reduction and deepening circular economy as the main contents of corporate social responsibility and an important symbol of its fulfillment of social responsibilities, integrated the undertaking social responsibilities with corporate development organically and converted the external stress of energy conservation, consumption reduction and environmental protection into the power and capacity to improve corporate quality , so as to constantly improve the company’s adaptability and competiveness.
(I) Environmental protection principle, annual goal and effect of environmental protection
Environment principle of the company: follow the way of low carbon and energy conservation and be an environment-friendly enterprise. The company adheres to continuous environment improvement system, constructs sintering and desulfurization engineering, comprehensive sewage treatment center and other pollutants discharge reduction projects, in order to reduce new water consumption, realize wastewater zero discharging and ensure the goal of water saving.
(II) Environmental protection investment and environment technology development by the company
In 2016, the company continued to increase the investment in environmental protection, adhered to environment improvement and the development of environmental protection technologies. The company mainly researched and developed the desulfurization technology for sintering machine flue gas and strengthened environmental pollution management in term of environmental protection technology development.
(III) Construction and operation of environmental protection facilities
The company strengthens the operation, maintenance and overhaul management of environmental protection facilities to ensure stable operation of environmental protection facilities.
(IV) Disposal of the wastes arising in production process
Recycling and comprehensive application of abandoned products. The company strengthens environmental protection disposal of wastes, solid wastes resources mainly include iron-containing slime, oxidized scale, steel slag, blast furnace slag, etc. Iron-containing slime, after re-sintering process, will be used as raw materials; some oxidized scales are used as ingredients after re-sintering process and some are used as iron powder raw material; steel slag and granulating slag are used to produce superfine slag powders, all for comprehensive use.
(V) Environmental management, greening, hardening and beautifying
Keep duties and mission in mind, always adhere to the simultaneous advancement of economic construction and environment greening and beautifying, explore a new way of harmonious development of enterprise and environment, increase investment, strengthen management, improve functions, improve grades, dramatically improve environment quality and preliminarily be on a road of sustainable development, featuring mutual promotion of environmental greening and beautifying with economy and harmonious coexistence of human and nature. Constantly enhance employees’ awareness of “green construction, love for green green-protecting and green cherishing”.
VI. Show helping hand and pay attention to public welfare undertakings
The company, as a corporate citizen, actively gives back to the society, devotes itself into public welfare, pays attention to vulnerable groups, participates in national poverty alleviation plans, supports the development of poor areas and conscientiously fulfills its social responsibilities.
(I) Actively pay attention to vulnerable groups and show helping hand
Donghai Steel president Mr. Lin Guojing has accumulatively contributed 8 million yuan to charity associations and contributed 5 million yuan to earthquake relief work; more than 3 million yuan to poverty relief work and 22.50 million yuan to public welfare undertakings of Luan County accumulatively. He has been awarded “Charity Star” by County Charity Association for six consecutive years.
(II) Make earnest efforts for public welfare undertakings and community construction
Pay attention to social responsibility and be friendly with environment. Give full play to its own advantages and provide the society with public service. The company invested 3 million yuan in the surrounding village roads, 1.5 million yuan in tap water supply and 2 million yuan in bridge construction; and it denoted 1.80 million yuan to the construction of Yanshan Tower in Luan County, 3.69 million yuan to the construction of Dajue Temple and accumulatively 9.60 million yuan to Glory programs in Luan County; in 2010, the company was awarded “Outstanding Contribution Award” by County Party Committee and County Government.
(III) Dare to undertake social responsibilities
Now domestic iron and steel industry has come to a slump. To go through the difficult period, many steel enterprises are forced to lay off employees. However, Donghai Special Steel dares to face the challenge and overcome the difficulties and refuses to lay off its employees, push any employees to the society and make any dedicated employees laid off and out of work. All employees willing to stay in the company sign a labor contract.

Seven, Social Responsibility Outlook
With the increasing attention of China's implementation of Scientific Outlook on Development and the construction of socialist harmonious society and further promote the global climate and environmental issues, environmental protection and energy saving and emission reduction of iron and steel enterprises facing the increasingly stringent requirements, to further promote the corporate social responsibility has become an important issue of domestic and international attention, become an important part of the competitiveness of enterprises. To strengthen the social responsibility of the enterprise, the company has become an important measure to implement Scientific Outlook on Development to accelerate the transformation of the mode of development, the company will actively explore the practice, and strive to improve the social responsibility management level, strengthen the social responsibility.