Since June 2021, EOS’s engagement with Alibaba, a leader in global retail commerce and China’s premier e-commerce entity, has centred on human capital management. Recognising the pivotal role of employee engagement, well-being, and work/life balance in driving high performance, the initial discussions aimed to understand the company’s strategies for nurturing its workforce. Through continued dialogue, including a formal communication in 2022, EOS pressed for the articulation of a clear human capital management strategy within Alibaba’s forthcoming reports, emphasising the need for definitive metrics and targets. This emphasis on enhanced disclosure was reiterated in May 2023, reflecting EOS’s persistent advocacy for transparency in how Alibaba manages and values its human capital, a factor critical to its operational success and investor confidence, especially given the industry’s notorious challenge of excessive and inhumane working hours.
The company’s 2022 ESG report unveiled the WeCare Programme’s expanded benefits, including various leaves and flexible work options, which they introduced in 2021 to bolster employee welfare. More significantly, the 2023 ESG report marked a leap in transparency, offering detailed breakdowns of employee turnover rates and training hours by demographic segments, thereby indicating a more equitable and extensive investment in employee development. These disclosures signal Alibaba’s evolving approach to human capital management, aligning with broader industry standards and expectations.
Looking ahead, the imperative for Alibaba extends beyond the publication of metrics; it encompasses the harmonisation and efficacy of human capital management practices across its diverse conglomerate, particularly in light of the ongoing group restructuring. EOS will continue to ensure that these practices are consistently applied and will monitor how effectively these contribute to the well-being and development of all employees. As Alibaba navigates this restructuring, EOS’s engagement will continue to focus on the robustness of its human capital management framework, advocating for a strategy that not only retains talent but also fosters an inclusive, supportive, and dynamic work environment conducive to innovation and sustained growth.
At the time of publication (May 2024) Alibaba were held in our Emerging Markets Equity and High Alpha portfolios.