Guidelines of Shenzhen Stock Exchange for Social Responsibilities of Listed Companies (17/04/2007)

(17/04/2007)

1. What is the general guideline?

The Guidelines include eight chapters and thirty-eight articles. They encourage listed companies (i) to comply with applicable laws, rules, regulations and their articles of association, (ii) to make efforts to protect the legal rights and interests of shareholders, creditors and employees, (iii) to be loyal and committed to suppliers, clients and consumers, (iv) to engage in more environmental protection, social construction and other public welfare schemes, (v) to develop the company in harmony with the whole of society, and (vi) to establish a social responsibility system, and to disclose a social responsibility report to the public with the annual report.

2. How does it aim to protect the legal rights and interests of the shareholders and creditors?

In order to help protect the legal rights and interests of shareholders and creditors, the Guidelines prescribe that a listed company should seek to (i) improve its corporate governance arrangements, (ii) treat all shareholders equitably, (iii) make effort to give returns to shareholders, and (iv) voluntarily disclose relevant information. At the same time, the listed company should not unduly compromise creditor’s rights when acting in the interest of shareholders.

3. How does it aim to protect the legal rights and interests of the employees?

With the aim of protecting the legal rights and interests of employees, the Guidelines prescribe that a listed company must strictly comply with the Labor Law, must protect the legal rights and interests of employees, must not ill-treat or discriminate employees, must establish a safety and a health system, and must maintain stable and harmonious labor relations.

4. How does it aim to protect the legal rights and interests of the suppliers, clients and consumers?

In respect of protecting the legal rights and interests of suppliers, clients and consumers, the Guidelines prescribe that a listed company should (i) act in good faith, (ii) monitor and prevent commercial bribery, (iii) hold personal information on suppliers, clients and consumers responsibly, and (iv) improve after-sales service. At the same time, the listed company should supervise its suppliers and clients in their performance of social responsibilities.

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