Global CSR of a Korean Company The CJ

Global CSR of a Korean Company 『The CJ Case』 Heekyung Min, CJ Corporation

About CJ CJ Group now operates in 23 countries worldwide with $26 billion in total sales (2015) Vision Create a New Culture For Healthy, Happy and Convenient Lifestyles Mission Contribute to the global community By providing the best value to our customers with ONLYONE products and services Founding Philosophy Contribute to the economy through business People First Rational Management 70, 000 Employees 2

CJ’s Sharing Philosophy Founding Philosophy Contribute to the national economy through business 事業報國 Management Principle Coexistence and Co-prosperity 共存共榮 Spirit of Sharing (Philanthropy) Sustainability Business Relevance Employee Engagement 3

What CSR means to us CJ’s CSR History Contribute to the national economy through business Philanthropic foundations to spread CJ’s Sharing Culture Strengthen CJ’s social value for a sustainable future • • 1953 Establishment of the Cheil. Jedang Company Samsung’s First Manufacturing Group 1995 Establishment of the Cheil. Jedang Group • 1999 Established Korea’s 1 st CSR Department • 1999 Started “Food Bank” program • 2005 Founded CJ Welfare Foundation & CJ Donors Camp • 2006 Founded CJ Culture Foundation • 2013 Established Korea’s 1 st CSV(Creating Shared Value) Department • 2016 Reorganized CSV Department to CJ Social Value Team (사회 공헌추진단) 4

CJ Welfare Foundation Established in 2005, CJ Welfare Foundation provides direct support to underprivileged youths and childcare centers, promoting a culture of donating and volunteerism amongst CJ’s employees and across Korea Dream Building (꿈키움 Ggumkium) Programs Online Donating Platform to select program for donation “Matching Fund” program 140, 000 Children 300, 000 Donors 1, 000 Childcare Centers $ 17. 5 Million USD (As of 2014 Dec. ) Providing Food for supporting nutrition of the underprivileged $ 3. 6 Million USD (Annually provided food) $ 27 Million USD (Fund raised since 1999) Educational programs for holistic development of children and youth CJ Dream Building Class (Grade K-6) CJ Dream Building Camp (Grade 7 -9) 5

CJ Culture Foundation MOVIE MUSIC Supporting Young Musicians 1158 Teams THEATER 27 Teams Creator Mentoring Program Applied Selected (As of 2014 Dec. ) 607 Entries 32 Selected Storyteller Mentoring Program 2848 Entries 77 Selected (As of 2014 Dec. ) Performance Hall for New Artists Gwangheungchang CJ Azit Daehak-ro CJ Azit Opened in June 2009 Opened in April 2016 6

CJ’s Social Value Principle 1. Job Creation for vulnerable social group 2. Culture & Education for youth • Returnship • Senior Parcel Delivery • Senior CGV Crew (CGV 시니어 도움지기) • Mutual Growth Academy 3. Mutual Growth through a sustainable business ecosystem • Donor’s Camp (Afterschool Centers) Doing Good for the society by Doing Well • Toto’s Film-making Class • Dream-building Creative School (꿈키움 창의학교) 4. Contribute to local communities and society • CJ-KOICA Saemaul CSV Project • CJ Baking Academy • KCON/MAMA • CJ K-Pop Class • 1 Village, 1 Product • Joy of Growing together • Season’s Table • Special ‘Het bahn (햇반)’ for patients with rare disease 7

Senior Parcel Delivery • Korea is rapidly shifting towards aging society • Population over age of 65 has reached 7% in 2000, and is expected to surpass 14% before 2020, leading Korea to ‘Superaged’ society in 2026. Opportunity Social Opportunity • Senior citizens’ social isolation and loneliness, economic hardships • Environmental pollution Business Opportunity • Shortage of delivery workers • Difficult accessibility, distant and secluded areas Solution Senior Parcel Delivery Social Value • Local community development by creating jobs for seniors • Eco-friendly logistics Business Value • Solves shortage of delivery workers • Improved delivery effectiveness and increased collection of cargo • Created business results of cost reduction: $200 K (2013) 8

Sustainable Agricultural Development in Rural Vietnam • Rural Development PPP with the public sector (KOICA, K-Water), private sector (CJ, Syngenta), government (Vietnam, Ninh Thuan Province) , and academia (Yeungnam University) → Maximizing collective impact • Contract-cultivation and procurement of Red Chili Peppers • Improving the quality of life for Ninh Thuan villagers through CJ Saemaul CSV Opportunity Social Opportunity • Poverty in rural areas • Lack of well-established agricultural development • Lack of motivation and education Business Opportunity • Need to trace the origins of agricultural ingredients • Limited supply sources • Needs for Globalization of Korean food Solution CJ-KOICA Saemaul CSV Project Social Value • Increasing income • Transfer of technical skills and increasing agricultural productivity • Motivating and training farmers with the “New Village Movement (Saemaul)” Business Value • Securing high quality agricultural products • Vietnam as an important emerging strategic partner • Development of localized products 9

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