May 24, 2022|
JD ESG Report: “Compliance Represents Development”
by Vivian Yang
JD.com released its 2021 ESG Report on May 24th in which the company specified its compliance management mechanism guided by the concept of “achieving success the right way,” and the principle of “compliance represents development”.
JD.com “complies with laws and regulations, builds a culture of integrity and anti-corruption, enables effective compliance management driven by technology and data, and establishes a forward-looking, flexible, and efficient compliance system,” said the report.
Five key actions are outlined to ensure the company’s all-around compliance management, they are 1) laws and regulations compliance, 2) anti-corruption and integrity compliance, 3) information security compliance, 4) auditing compliance and 5) transaction risk control.
The management of these areas is effectively protected through three “defensive lines”, which are composed of 1) every employee of the company; 2) risk management teams including legal, finance, information, security and risk control; and 3) independent supervisory and audit teams.
Multiple enforcement mechanisms are in place including continuous public promotion and education, a joint accountability principle with collateral penalties in major compliance issues, rewards for employees who contribute to the compliance work and more.
JD.com adopts a “zero tolerance” attitude towards corruption. It has established sound anti-corruption management regulations and systems, including the JD.com Business Conduct and Ethics Code, JD.com Anti-Corruption Regulations, JD.com Whistleblower Protection and Reward System, etc. Additionally, all JD employees (including outsourced employees) receive annual compliance trainings including anti-corruption and information security tranings, and are required to pass examinations. All new hires must take online courses and pass the examination before their probation period has been completed. JD also provides regular information security technical trainings for R&D employees (including outsourced employees).
JD.com also attaches great importance to its supplier management and promotes measures for greater social and environmental good through business cooperation. JD formulated its regulations on green procurement management in 2020, integrating environmental protection requirements and also formulating a negative list to guide its suppliers’ practice. Meanwhile, JD strictly forbids its suppliers to engage in behaviors including illegal employment, breaching of labor laws and other violations.
Read the full text of JD’s 2021 ESG Report here.