Corporate Social Responsibility

In 2015, China Unicom established and implemented the development philosophy of "innovation, coordination, greenness, openness, and sharing", and defined a corporate strategy of "Implement Focus Strategies and Develop through Innovation and Cooperation". During the course of production and operation management, the Company held itself accountable to stakeholders. It placed more emphasis on innovation and transformation, quality and efficiency, synergetic operation and coordinated development, resource conservation and environmental friendliness, open cooperation and win-win, as well as staff development and harmonious sharing. The Company further enhanced its ability to fulfill responsibilities.

1. Innovative Development and Quality and Efficiency Enhancement

Innovation serves as the core propeller for society to develop, and China Unicom is dedicated to building an innovative company. In 2015, the Company fully expedited the construction of 4G and fully fibre-connected broadband network, launched "WO 4G+", and successfully built six provinces with full fibre connection. It reduced the average unit price of mobile data by 27%, and the average price per unit of bandwidth for fixed-line broadband by 50%. The Company developed capabilities in Internet of Things, cloud computing, Big Data and other key areas, innovated new industry applications, undertook a series of key projects to support the construction of smart cities, to bring people easier access to information, and to facilitate transformation and upgrade in various industries. The Company adopted new ways in service delivery, improved service capability and strengthened enforcement of the real-name policy and tariff management, making new progress in the improvement of its service quality. The Company upgraded its emergency support system and successfully provided emergency communications support for a number of critical, urgent and difficult missions. It also strengthened technological innovation to spur corporate growth.

2. Coordinated Development and Synergetic Operation

China Unicom is committed to promoting synchronous development of the whole society by advocating universal access of information services and integration of "industrialisation and informatisation". In an effort to align the development of its domestic and overseas businesses, the Company established a company focusing on international business to provide its customers with cross-border, integrated and end-to-end services. To drive coordinated regional development, the Company followed the national "Western Development" strategy, and introduced favourable policies and provided key support to western regions in terms of business development, network construction, financial support and customer service. The Company strived to bridge the digital divide between urban and rural areas by implementing the "Ten-Thousand Towns Plan" to boost fibre broadband network penetration in towns and villages. Through nurturing a green Internet environment and promoting online "charity and civilisation", the Company provided its customers with more reliable and convenient services and protected the rights of consumers.

3. Green Development and Environmental Friendliness

China Unicom strives to be conscious in resources conservation and be a environmental friendly company. Through technical and managerial means, the Company continued to make progress in energy conservation and emission reduction. It engaged in promotion activities to raise the awareness of energy conservation and emission reduction among employees, cultivating an environmental friendly corporate culture with strong self-awareness. A total of 587,400 tonnes of coal equivalent was saved during the year. Specific environmental measures include continuing to promote green procurement system, expediting fibre network upgrade and the retirement of obsolete equipment, promoting the applications of technical energy conservation, strengthening the benchmarking management of energy consumption, enhancing recycling of resources, promoting e-procurement and paperless operations, reinforcing the management of electromagnetic radiation and saving resources in building communications facilities, etc. In 2015, due to the optimisation of wireless network deployment and conduct of environmental impact assessment of electromagnetic radiation, the electromagnetic radiation level of the Company's operation was lower than national standards. In order to increase the level upon which telecommunications infrastructure facilities are being jointly constructed and shared, enhance investment efficiency, and promote resources conservation and environment protection, the Company strengthened the cooperation with Tower Company. During the year, Tower Company delivered approximately 164,000 towers to the Company.

4. Open Development and Cooperation for Win-win

China Unicom is committed to building an extensive cooperation platform and a win-win value chain. The Company started in-depth cooperation with China Telecom, and launched a "Customer Service Improvement Programme" with a theme of "Resources Co-building and Co-sharing and Customer Service Improvement". The Company actively promoted in-depth cooperation of various value chain partners in equipment, services, technologies, brands and businesses, leading to development synergies and a healthy industry ecosystem. The Company signed Internet+ related strategic agreements with the government and companies in various industries such as education, healthcare, transportation, logistics, finance, and manufacturing, etc. It also established Merchants Unicom Consumer Finance Co., Ltd. to offer "Internet+Finance" services. The Company opened up platform resources, enriched its business model and provided support services to create more room for cooperation with its partners, leading to synergetic development and mutual growth.

5. Shared Achievement, Fairness and Harmony

China Unicom is committed to sharing corporate achievements with its staff and the society at large. The Company put in place a comprehensive promotion and incentive system covering every staff. During the year, 15% were promoted and 24% were given a raise in pay ranking. The Company cares about the career development of its staff. It organised leadership trainings, professional skill trainings and various competitions to enhance the overall competencies of its staff. The Company values staff feedback and cares about their physical and mental health. It overhauled the support mechanism for staff in need. By continuing to support Tibet and rolling out targeted poverty support programmes, the Company kept giving back to the society in the past year. The Company also showed its care for the society through organising volunteering activities, providing student aids, and preserving the environment.

In 2016, China Unicom will tie the fulfillment of social responsibilities with its production and operation management. It will drive supply-side structural reforms in network, platform, and terminals, etc. The Company will join forces with related parties to spur growth potential, and strive for improvements in its innovation capability, global competitiveness, and value-creating capability, so as to drive sustainable, rapid and sound corporate development.