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Shu is the God of Vengeance, though he can also be associated with protection. He is a very wise and kind god, though his fury (and his ax) can shake mountains.
His role is to ensure that humans remain fair to each other. If they're not, and those who were wronged pray to him for help, he steps in to avenge the unlucky party. His vengeance is swift and can come in any form. The phrase "eye for an eye" came from him.
Fortunately, he does not avenge just anyone - just those he finds favor with. Mainly those who are kind, loyal, and brave to their comrades. If he dueled out vengeance for everyone that prayed to him, a lot of bad people would have their way while innocents suffered.
That cape is made from the fur of a beast he slayed in revenge for Heaven itself.
That scar was given to him by another god, Lui. More on him in the next chapter