As an experienced businesswoman, Liu Fengzhen clearly understands the complexity of the business world and the complicated relation between different stakeholders that need to be handled carefully. However, the cooperation with CR is totally different. “Simple and efficient” is the best description of the relation between Dalian Construction Group.
To establish a simple and highly-effective partnership, CR Group launched the Sunshine Declaration in 2011. It not only promoted good business ethics based on “transparent procurement” inside the Group, guiding employees to stick to the principle of “being clean, honest and responsible” to improve corporate profit and unleash the potential of every employee in a transparent way. At the same time, CR invited all suppliers to jointly carry out transparent and efficient competition in an effort to incorporate social responsibility into procurement management concept to realize transparent information publication, fair process and win-win result, which will further promote the comprehensive development and progress of all industries and safeguard a good market order.
When Dalian Construction Engineering Group was invited to bid for the project of CR Land for the first time, it was required to sign on the Sunshine Declaration and the Honest Cooperation Agreement to get the bidder qualification. Those supplierswhocouldnoteffectivelycarryouttheir commitment were subject to rigid system and are included into the List of Unqualified Suppliers and are not allowed to bid for any other project as potential project undertakers should be selected from the List. Before the bidding process began, CR Land visited Dalian Construction Engineering Group for further research on the financial status, operation condition, technical and operation skills and project experience as well as the management of the construction team.
Liu Fengzhen was a little upset at first, as it was the first time for her to cooperate with such a partner and was still suspicious as for whether CR can carry out the Sunshine Declaration.
After the first project, Liu Fengzhen was convinced. Gradually, with the second and the third project, there were more and more opportunities for cooperation between CR and Dalian Construction Engineering Group. In this process, Liu Fengzhen also had renewed understanding of the word “honesty”. The Chinese has always been regarding business people as valuing only profit and stereotyping business people as dishonest and mean. Some extreme ideas even take the existence of “hidden rules” for granted, thinking that the Chinese society is based on interpersonal relations and that bribery decides the efficiency of project implementation. However, CR has been sticking to the principle of valuing honesty instead of profit to pursue business expansion in a transparent way. The implementation of the Sunshine Declaration helped Dalian Construction Engineering Group to avoid unfair industrial competition so that the Group can focus only on improving the quality of construction projects, build green and sustainable houses and make life better for the public. With the contract in place, workers’ salary was able to be paid on time. This not only ensured the quality of CR Land projects, but also led Dalian Construction Engineering Group on to a path of highly-efficient commercial development, realizing the maximization of profit in a transparent and honest manner.
The Sunshine Declaration launched by CR inspired Dalian Construction Engineering Group to introduce the concept into the process of procurement and construction to promote sound industrial development. The Procurement Financial Statement of Dalian Construction Engineering Group was very clear with a detailed comparison of suppliers to ensure that material of the best quality be used in doors, windows and power and water supply systems. Before starting project construction, Dalian Construction Engineering Group made comprehensive and detailed plans and prototypes. The construction site is open to all as has been promised.
“With the endorsement of these high-quality projects build through our cooperation with CR, we are able to be increasingly trusted by our industrypeensscreening”,saidLiuFengzhen,Vice President of Dalian Construction Engineering Group. After six years of cooperation, Dalian Construction Engineering Group was able to constantly make new progresses. Just slightly more than ten days ago, Dalian Construction Engineering Group won the bid for for the Third Phase of the 24th Project of CR Land in Shenyang.
CR has integrated the concept of transparent procurement into all sectors of the industrial chain to construct a sound and transparent cooperation system for suppliers on multiple levels including codes, contracts, concept and behavior and establish an anti-corruption mechanism along the supply chain that guide partners to better carry out social responsibility, significantly improve the quality and competitiveness of suppliers, realize win-win cooperation with the suppliers and effectively build a sound and green biosphere of supply chains.
By the end of 2016, a total of 6,340 suppliers participated in the “Sunshine Declaration” Campaign with all contracts following the Sunshine Declaration and the Clean Cooperation Code. The implementation of the Sunshine Declaration created a win-win situation. It not only helped with the promotion and implementation of the concept of fair competition in and out of CR, provided opportunities for fair competition for quality suppliers and created a favorable environment for development, but also helped CR to choose more quality cooperation partners like Dalian Construction Engineering Group to effectively improve the stability of cooperation partners, reduce the risk of contract fulfillment and ensure the implementation of quality CR Land projects.
“Sacrificing profit for the fulfillment of corporate responsibility, pursuing win-win cooperation with great wisdom”. CR is committed to promoting the concept of “transparent procurement” to all sectors of business cooperation under the principle of honesty and fairness. Benefiting all is better than benefiting only oneself. The spirit of CR will be carried on.
Tremendous Responsibility Behind a Simple Story
CR has been attaching great importance to improving business performance while emphasizing the creation of a favorable environment by sticking to the core value of honest operation. Subsidiary companies of all levels have been committed to integrating corporate responsibility into the management of supply chains to establish an anti-corruption mechanism along the supply chain and guide supplier partners to carry out their social responsibility. On the one hand, this can effectively promote fair completion in the industry, thus realizing win-win cooperation in positive competition; on the other hand, this helped CR to select a series of quality suppliers that ensured the implementation of projects. All CR operations are faced with fierce market competition. To ensure long-term joint development with CR, we need to stand out in the competitive market and achieve more fruitful results and at the same time, carry out the social responsibility that needs to be taken by central enterprises to coordinate with partners to improve their own ability and create a mutually beneficial and win-win biosphere.
Every day, our supply chain is filled with unlimited opportunities and possibilities. We require suppliers and partners with the most strict standard, cooperate with them to develop strategy sharing mechanisms and platform and promote fair competition to realize sustained growth and industrial progress and development, so as to jointly build a mutually-beneficial and win-win biosphere and become a respected, trusted and popular enterprise.
The ratio of responsible procurement of the profit center
Cr Double Crane Pharmaceutical
CR Pharmaceutical Commercial Company Limited
Economic contract fulfillment rate
In inviting tenders, CR Power put quality management system certification, environment management system certification, professional health and safety management system certification as rigid indicators. Those who fail to reach the standard will be excluded from the list of candidates. This effectively helped tenders to better carry out their social responsibility. In 2016, 95% of all tenders being invited passed the certification of the three systems
CR Cement is committed to promoting the sustainable development of suppliers to carry out regular performance appraisal to cooperating suppliers to implement differentiated management through evaluating and grading prices, quality, product delivery and services (outstanding, qualified, to be revised and being knocked out) to identify problems and correction methods.
To improve the awareness of environmental responsibility throughout the supply chain, CR Land launched rigid requirements on energy conservation and environmental protection technologies or suppliers. Take the procurement of the central air conditioning system in commercial properties as an example, we require the energy conservation technology of procured equipment to each level one. It is also required that the standard of manufacturing company management reach the requirement of ISO9000 Management System standard and that environmental protection should reach the standard of ISO 14000 Environmental System Certification.