Yum China firmly believes that respecting and protecting human rights form the foundation for a sustainable business. We comply with relevant laws, regulations and standards. We endorse the United Nations Universal Declaration of Human Rights and relevant international human rights conventions, including but not limited to the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work. We strive to create a workplace and a community that respect and protect human rights. We proactively identify, prevent and mitigate human rights risks in the Company and throughout the value chain. We also take an active role in understanding stakeholders' concerns and expectations on human rights issues.
In 2022, we introduced the Yum China Human Rights Policy, pledging to work with communities and stakeholders to create workplaces and communities that respect and protect human rights.
In 2023, we released our Yum China Zero Tolerance: Anti-Discrimination and Anti-Harassment Policy to further emphasize the Company's firm commitment to workplace diversity, equality, and mutual respect.
Employees who fail to comply with the 'Yum China Code of Conduct' may face disciplinary actions, including but not limited to dismissal. Violations of the Code will be considered a breach of the individual labor contract between the employee and Yum China. In addition, violations of the Code are included in the individual performance evaluations and can negatively impact the remuneration of the relevant employees.
Yum China Code of Conduct
Yum China Zero Tolerance: Anti-Discrimination and Anti-Harassment
Policy
At Yum China, we believe that employees with diverse backgrounds stimulate organizational vitality and offer new perspectives to innovative thinking. In our workplace, differences are understood, appreciated, and encouraged. We are committed to fostering a diverse, inclusive, and non-discriminatory working environment and providing every employee with equal opportunities to achieve their personal best regardless of their race, religion, color, age, gender or gender identity, disability, sexual orientation, citizenship, or nationality.
Learn More About Diversity and Inclusion at Yum China
With a large frontline workforce, Yum China has significant potential to scale the use of digital tools. Our
operational
strategy drives us to actively explore technology innovation opportunities to empower employees, by swiftly
addressing
frontline needs, streamlining RGMs' workflows, and reducing the burden of certain tedious tasks.
To better equip our employees in the AI era, we customized AI-related learning courses, providing 15
dedicated training sessions, which, in 2024, enabled over 30,000 participants to learn and apply AI
tools effectively, continually enhancing their employability and supporting the Company to more
effectively harness the benefits of our digital transformation.
Yum China is committed to prioritizing the growth and development of our employees, and we support
each individual in pursuing their career aspirations. We continuously invest in capability-building
initiatives, adopting a forward-looking approach to establish a comprehensive talent development
system that spans the entire career lifecycle.
This empowers employees to enhance their professional competitiveness, contributing to both personal
success and the Company's sustainable growth. In 2024, we developed and launched the Yum China
Full-Career-Cycle Development System as part of our latest talent strategy. This program is designed
to encourage employees to take a proactive approach in planning their career paths, enhance their
employability, and accelerate the development of high-potential talent.
We cultivate industry-leading talent by leveraging a comprehensive training system and performance
management.
When senior positions are available, we prioritize internal promotions — 100% of our RGMs, District
Managers,
Area Managers, and Market General Managers are from internal promotion. We provide clear career paths for
our
employees. Employees at different functions and levels have access to clear promotion paths through tiered
training programs. For example, we have developed "Bench Planning" talent development program for our
operations
team and developed tailored two-to-three-year accelerated management trainee programs for our marketing and
supply
chain teams. These initiatives have cultivated numerous outstanding industry leaders.
Yum China is dedicated to enhancing employee welfare by offering comprehensive benefits and supports.
The "YUMC Care" welfare program provides holistic employee support. In 2024, the program continues to
focus on four major areas: personal health, family health, financial health, and social health. A series
of new initiatives have been launched to provide employees with multi-level and all-around benefits
protection. We are fully aware that ensuring the occupational health and safety of our employees
is the fundamental responsibility of the Company. We are consistently committed to creating a
healthy and safe work environment, ensuring the safety and well-being of our staff through comprehensive
protective measures.
We uphold the philosophy of "paying for performance and business impact," striving to provide our employees
with competitive compensation and benefits to fairly recognize and reward their hard work and outstanding
achievements. Our Restaurant General Managers (RGMs) and office staff are eligible for variable performance-based pay.
Learn More About Well-being
We offer diverse and open communication channels for our employees. Every two years, we conduct an Employee Engagement Survey and regularly gather employee feedback through various channels, activity listening to voices and taking their inputs into consideration to improve decision-making processes. In 2024, the Company frequently engaged with employee representatives through our Employee Representative Conference to review suggestions and refine specific human resource management policies. Additionally, Yum China's Employee Union plays an important role in voicing employee concerns, with over 90% of our employees voluntarily joining by the end of 2024. The Company also creates a variety of formats for employees to voice their suggestions with management. During the reporting period, we engaged employees in upgrading Yum China's core values and actively listened to their recommendations for the Company's development
Learn More About Employee Engagement
RGMs are key frontline leaders whose work has a direct impact on customer experience and offers
valuable insights into customer
preferences and market trends. At Yum China, we steadfastly adhere to our "RGM No.1" principle,
prioritizing our RGMs' needs,
addressing their challenges, and fostering a strong sense of belonging. By actively listening to our
RGMs and implementing
initiatives based on their feedback, we can better respond to market demands and continuously
improve customer experience.
Yum China have implemented a systematictraining roadmap to provide a career progression path for
RGMs. In addition, we offer
stockownership programs to all gualifed RGMs.By the end of 2024, more than 14,700 RGMs were granted
company shares. We upgraded
the medical insurance benefits for our restaurant management teams. This enhancement provides RGMs
with up to RMB 1 million in
medical coverage and extends this benefit to their parents, including critical illness insurance.
Furthermore, we successfully launched the centralized recruitment process for our store crew
members. This strategic initiative
consolidates previously fragmented recruitment activities from individual stores into a unified
system, thereby significantly
reducing the administrative burden on RGMs. Concurrently, we integrated advanced digital tools into
the centralized recruitment
platform, including AI-enabled resume screening, AI chatbots, and AIGC-empowered interviews. These
enhancements have substantially
elevated the overall recruitment efficiency. During the reporting period, nearly 80% of our
restaurants' recruitment needs were
fulfilled through this centralized platform. Moreover, we have further expanded the functionality of
the centralized recruitment
platform and the application of AI to provide comprehensive support throughout the entire employee
lifecycle management, from onboarding
to training. This AI-driven centralization has not only improved the efficiency of interview process
but also continuously alleviated
the workload of frontline employees. As a result, RGMs can now focus more intently on core
restaurant operations and enhancing customer experience.
Yum China is dedicated to enhancing employee welfare by offering comprehensive benefits and
supports. The "YUMC Care" welfare program
provides holistic employee support. In 2024, the program continues to focus on four major areas:
personal health, family health,
financial health, and social health. A series of new initiatives have been launched to provide
employees with multi-level
and all-around benefits protection.
We are committed to continuously enhancing our care for frontline employees, striving to provide
them and their families with
higher-quality benefits. We upgraded the medical insurance benefits for our restaurant management
teams. This enhancement provides
RGMs with up to RMB 1 million in medical coverage and extends this benefit to their parents,
including critical illness insurance.
In addition, we are constantly expanding the scope of our benefits. In early 2025, we launched a new
program offering over 20,000
restaurant crew members comprehensive, accessible, and affordable health coverage options. At the
same time, we remain dedicated to
exploring broader benefits coverage, ensuring that every frontline employee is well taken care of.
Through the YUMC College program, the Company provides employees with opportunities for further
education, supporting them in attaining
higher academic qualifications and awarding scholarships to eligible employees, helping them achieve
their aspirations.
By the end of 2024, YUMC College program expanded to about 20 markets nationwide, with over 3,800
employees obtaining professional certifications,
and more than 3,000 employees receiving continuing education grants and higher education diplomas.
We are consistently committed to providing equal employment and development opportunities for people with special needs, ensuring an accessible, welcoming, and inclusive work environment. Yum China launched its first 'Angel Restaurant' in Shenzhen in 2012 with the aim to offer equal employment opportunities for people with special needs across China. By the end of 2024, Yum China supports the employment of over 1,700 people with special needs. Furthermore, "Angel College" provides a range of support policies to help "Angel Employees" enhance their professional skills and pursue higher education.
