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CJ Group fosters innovative corporate culture

By Kim Yon-se
Published : July 10, 2012 - 19:45
Conglomerate allows speedy promotion to executives, grills workers to quit smoking


CJ Group recently introduced a package of unconventional systems as part of its move to set up a unique corporate culture.

A new eye-catching system is “fast-track promotion,” which gives employees opportunities to become an executive within 10 years of being hired.

Under the unprecedented personnel benefit, more CJ employees in their 30s may be promoted to executives.

Formerly, as in the case of other conglomerates, it took at least 20 years for a CJ staffer to hold an executive-level post.

“While employees used to have to serve five positions in four years to become executives, they are allowed to go through the five posts in only two years,” the group said in a statement.

CJ Group’s headquarters in central Seoul


A spokesman said the fast-track system reflected the business policy of group chairman Lee Jay-hyun who prioritizes performance and capability regardless of working years.

“Though it might be different in the business units, many young, talented figures in the entertainment sector will benefit from the system,” he said.

CJ Group also adopted an unprecedented rule against smoking early this month.

Employees are banned from smoking cigarettes within a 1-kilometer radius of the group’s headquarters in central Seoul on top of its non-smoking rule in the office building.

The new non-smoking rule also applies to the staff working at office buildings of food business units, such as CJ Cheil Jedang Corp., CJ Foodville and CJ Fresh Way.

The conglomerate has conducted an anti-smoking campaign over the past few years.

Apart from expansion of the no-smoking areas, the group instructed employees to moderate their drinking. Instead, employees are told to enjoy cultural activities and exercise.

The group has been active in investing in human resource enhancement.

Last year, CJ made a 2.09 trillion won ($1.9 billion) investment and hired 4,650 employees. It marked the largest investment and employment drive in its history.

Investment and employment grew 58 percent and 51 percent, respectively, compared to the previous year.

The group underlined the importance of investing in the content and restaurant businesses to solve the youth unemployment problem. In that regard they can achieve job creation effects double that of the manufacturing business, and young job seekers also prefer jobs associated with those two fields.

As part of accelerated efforts to create a Chinese version of CJ, 550 billion won was allocated for finding business opportunities in Southeast Asia, India and China last year.

This year, chairman Lee reiterated the significance of the emerging Vietnamese market for the leading food and entertainment conglomerate to expand its global presence.

According to the group, executive officials ― including the chairman, his elder sister and vice chairman Lee Mi-kyung plus CEOs of affiliates ― gathered in April in Ho Chi Minh to discuss strategies for Vietnam.

During their gathering, the chairman picked Vietnam as one of the most attractive markets, along with China, considering its young population and the growth potential of its retail sector.

CJ Group chairman Lee Jay-hyun


“While continuing efforts to create a healthier business environment domestically through shared growth with smaller firms, we need to focus more on overseas markets,” Lee said.

“In Vietnam, we will build the ‘third CJ’ (following the previous pledge made in China).”

In addition to its own market potential, Vietnam presents a geographical advantage as it connects other Asian countries such as Cambodia, Laos and Myanmar, he added.

CJ has already entered the Vietnamese market by operating businesses in diverse sectors, including bakeries, home shopping, multiplex movie theaters, logistics, animal feed and agricultural products.

Since opening its first Vietnam office in 1996, the group established a production line for animal feed in 2001 and entered the bakery market with its flagship brand Tous les Jours in 2007.

Last year it acquired Vietnam’s largest multiplex chain and film distribution company Megastar and started the home shopping channel SCJ through a joint venture with the No. 1 Vietnamese cable TV operator SCTV.

Vietnam, where those in their 30s or younger make up almost half the population, much of which enjoys K-pop, seems to be the perfect place for the chairman’s business experiment.

In March, Vietnamese Prime Minister Nguyen Tan Dung visited a CJ human resource development center in central Seoul following the Seoul Nuclear Security Summit on March 26-27.

“The prime minister’s visit shows the Vietnamese government’s interest in CJ Group, indicating the importance of the group’s status and cooperation in the market,” said a CJ executive.

CJ also plans to increase investment in the bio-engineering sector.

By Kim Yon-se (kys@heraldcorp.com)

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