Content Group Content
We will earn trust through
ethical business practices.
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Compliance with Laws
and Regulations -
Customer-
respecting Management -
Shareholder-
oriented
Management -
Employee-
respecting Management - Employees' Ethical Management
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Suppliers'
Shared
Growth
Management -
Social
Responsibility
Management
Hyosung has enacted the "Code of Ethics" for transparent business practices that uphold integrity, and it provides all employees with guidelines for making ethical decisions. Through ongoing efforts, we will establish an ethical corporate culture and become a global corporate citizen who continues to fulfill its social roles and responsibilities.
This Code of Ethics is the standard for the ethical value judgment and behavior of all Hyosung Group employees, as well as the standard for corporate decision-making and behavioral judgment for transparent and continuous ethical management.
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I. Compliance with Laws and Regulations
“We strictly comply with laws and company regulations. ”
1. We respect national policies and abide by all applicable laws and ethical standards.
2. We comply with the management policies and regulations of the Company and fulfill our responsibilities and obligations.
3. We adhere to all applicable laws and regulations and respect the market economy order and trading customs in all regions in which we conduct business, both domestically and internally.
4. We do not engage in illegal insider trading or money laundering.
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II. Customer-respecting Management
“A company exists to offer the value that can satisfy customers. ”
1. Customer trust is our top priority.
2. We provide our customers with products and services of differentiated quality to ensure satisfaction.
3. We strive to establish a culture of openness and fairness in our dealings with customers and to form solid partnerships.
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III. Responsibilities to Shareholders
"We fulfill our responsibilities to become a company in which our shareholders can have confidence.”
1. We increase shareholder and investor profits by enhancing management performance via value creation.
2. We conduct rational and open management to gain the trust of shareholders and investors.
3. We respect the rights of shareholders and investors and provide timely information in order to generate profitable returns.
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IV. Employee-respecting Management
“Each of the employees is the most important asset of the company.”
1. We respect individuality and establish a rational and effective corporate culture based on mutual trust and understanding.
2. We create a work environment in which individuals can freely express their creativity, as well as ensure a pleasant and secure workplace.
3. We do not tolerate discrimination based on such factors as gender, religion, disability, age, social status, national origin, ethnicity, physical conditions such as appearance, marital status, family type or status, race, color, ideology or political opinion, sexual orientation, or medical history.
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V. Employees' Ethical Management
“All employees aim to perform their tasks in a transparent and fair manner by complying with ethical management.”
1. Employees within the organization do not force, direct, or respond to unfair or unethical instructions.
2. Employees are prohibited from accepting, providing, or promising cash or valuables in exchange for work or entertainment.
3. When giving and receiving gifts from stakeholders in the course of their duties, employees comply with country-specific laws and regulations and follow the relevant company policies.
4. Employees strive to avoid conflicts of interest between the company and customers and between customers, and in the event of a conflict, the interests of the company and customers take precedence.
5. Employees strictly manage and protect company and customer information obtained in the course of their employment and do not use it for their own purposes.
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VI. Suppliers' Shared Growth Management
"Suppliers are a source of competitive edge for the company, and we aim for shared growth based on transparent and fair trading with suppliers.”
1. We evaluate whether Hyosung's human rights and environmental and social values align with the selection of and transactions with partners.
2. We trade on a level playing field and do not engage in unfair business practices leveraging our superior position.
3. We establish a basis for mutual growth through a variety of activities promoting partner sustainability.
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VII. Social Responsibility Management
"A company is a member of society and must achieve harmony with society to grow.”
1. We fulfill our societal obligations and responsibilities and strive for the common good and development through social contribution activities.
2. We strive to be an environmentally conscious business and to earn the respect of society.
3. In order to form a sustainable supply chain, our purchasing criteria reflect the long-term viability of partners and products, as well as the integrity of the manufacturing process.
- Announced: June 1, 2018
- Revised: August 30, 2019, December 13, 2022
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I. Compliance with Laws and Regulations
Observance of National Policies and Laws
1. We respect national policies and avoid illegal or unlawful conduct.
2. In our business activities, we compete on the basis of products and services with competitors in good faith and do not engage in unfair competition.
2. In our business activities, we compete on the basis of products and services with competitors in good faith and do not engage in unfair competition.
4. Employees working abroad comply with the laws and social order of the host country so as not to impede the company's operations.
5. We respect and comply with domestic and international market economy order, transaction customs, and laws in order to conduct legal and fair business with partners.
6. As citizens and members of the community, we abide by the laws and regulations pertaining to the prevention of corruption, bribery, and money laundering, and we report suspicious transactions in accordance with the law.
7. Employees are strictly prohibited from engaging in any act of embezzlement or betrayal of confidence. Employees are prohibited from engaging in acts that result in the loss of company assets, such as embezzlement of public funds, misappropriation of public funds, property leakage, or use for other purposes.
Compliance with Company Regulations and Fundamental Business Ethics
1. We adhere to the company's management policies and regulations and concentrate our capabilities based on a sense of ownership and responsibility to complete assigned tasks promptly and accurately.
2. When performing duties, we prioritize the company's interests over our own, and we are objective and logical in our approach.
3. We do not work for others or other companies with a stake in the company, nor do we form any special relationships with them.
4. We safeguard the privacy and confidentiality of the company's private and vital information, deliver vital information to those who require it for work, and do not distort or spread false information.
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II. Customer-respecting Management
Transactions with Customers
1. With customer satisfaction and trust as our top priority, we strive to provide products and services of the highest quality and adhere strictly to our promises to customers.
2. We strive to treat customers with mutual regard and conduct reasonable and equitable transactions on an equal footing.
3. We do not demand any form of compensation or unreasonable terms from our customers using our superior position.
4. We do not engage in deceptive or exaggerated advertising, claims, or concealment of information, and we disclose truthfully all information that customers need to know.
5. We take responsibility for the entire product life cycle in consideration of customer safety, beginning with the procurement of non-hazardous raw materials, components, and packaging materials, and continuing through product development, manufacturing, distribution, use, and disposal.
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III. Shareholder-oriented Management
Protection of Shareholder and Investor Interests
1. We make every effort to generate solid profits through effective management and to increase the investment value of our shareholders through prudent investments.
2. In accordance with accounting standards, we record and manage our financial position with honesty and precision, and we make our accounting public.
3. We do not engage in unfair acts such as securities transactions for our own benefit or the benefit of third parties using the company's internal information.
Protection of Shareholders’ Right to Know
1. We provide shareholders and investors with timely, accurate, and useful information regarding the company's overall management.
2. Through active PR and IR, we work to ensure that the value of our company is accurately assessed.
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IV. Employee-respecting Management
Respect for Employees
1. We respect the uniqueness of each employee, foster creativity and independence, and provide active assistance and educational opportunities for competency development.
2. We provide our employees with equal opportunities and evaluate them fairly based on their achievements and abilities.
3. Regarding employment, work, promotion, wages, welfare, and other forms of treatment, we do not favor or discriminate against certain employees on the basis of factors such as regional ties, family ties, school ties, gender, religion, disability, age, social status, national origin, ethnicity, physical conditions such as appearance, marital status, family type or status, race, color, ideology or political opinion, sexual orientation, or medical history.
Creating a Sound Organizational Culture
1. We do not engage in unethical behavior such as employee gambling, nor do we accept inappropriate money or valuables, borrow money, or offer joint guarantees.
2. We do not engage in offensive verbal, physical, sexual, or visual conduct, and we respect the privacy of individuals.
3. The company and its employees cultivate an active, innovative, and collaborative organizational culture in order to achieve common goals, and do not engage in actions that promote selfishness or unnecessary departmental conflict.
4. The company endeavors to promote safety and health awareness among its employees. The company takes proactive measures to ensure the safety of employees and maintain a workplace free of accidents, injuries, natural disasters, illnesses, and contagious diseases.
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V. Employees' Ethical Management
Compliance with Ethical Management
1. Employees do not engage in arrangements or solicitations that impede the fair performance of duties by other employees for the purpose of unfairly profiting themselves or others, and they do not accept, offer, or promise money or valuables, bribes, or entertainment.
2. Employees do not use their superior position and personal interests to prevent conflicts of interest between the company and customers or between customers, and if they do occur, they seek to minimize the damage to interested parties and attempt to resolve them.
3. Employees strictly manage and protect customer data, including company data acquired through work, in accordance with applicable laws and internal security regulations, and do not disclose or use it for their own benefit.
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VI. Suppliers' Shared Growth Management
Pursuit of Shared Growth
1. We maintain an attitude of mutual trust and respect with our partners in pursuit of mutually beneficial growth.
2. We maintain productive relationships by identifying and cultivating exceptional partners.
3. When selecting a partner and initiating and continuing a transaction, we evaluate whether it complies with the company's human rights and environmental and social values.
4. We provide various development and growth support activities to achieve sustainable transactions with our partners, thereby laying the groundwork for mutually beneficial growth.
5. We actively support companies in the supply chain for sustainability management and evaluate partners based on their sustainability management activities.
Relationship with Partners
1. We ensure that transactions with partners are conducted fairly through mutual respect and equal relationships, and we do not engage in unfair transactions that take advantage of our superior position by adequately discussing transaction conditions and procedures.
2. We provide partners with equal opportunities in areas such as bidding and contracting, and we conduct business by signing contracts on an equal footing.
3. We protect the physical and intellectual property rights of partners, as well as their confidential information
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VII. Social Responsibility Management
Contribution to Social Development
1. We respect the values of the local community at home and abroad where we operate our business and business activities, create jobs continuously, and fulfill our basic social responsibilities with integrity.
2. As exemplary members of society, we respond to and support social needs, such as through social contribution activities.
3. We strive to protect the environment and participate in environmental protection activities within communities.
Social Responsibility Management
1. We actively promote purchasing eco-friendly products in accordance with the specifics of the Green Procurement Policy.
2. In the production process, we do not purchase raw and subsidiary materials that have issues like human rights violations and political disputes, such as conflict minerals, and we apply this principle when making a purchase from suppliers.
Management Organization System
Hyosung consistently creates a powerful organization for promoting ethical management centered on the CEO. The CEO strives to ensure that the ethical management philosophy is naturally reflected in management activities.
Major ethical management activities are supervised by the Legal Compliance Team, whose members have an in-depth understanding of the organization, thereby laying the groundwork for the efficient implementation of ethical management activities.
In addition, a person responsible for ethical management activities has been assigned to each field department to assist the Legal Compliance Team with ethical management activities, and we have developed a system to effectively manage performance.
We appoint an independent and unaffiliated internal auditor so as to ensure comprehensive oversight of the company's overall management, from field work to office work.
The CEOs of Hyosung, Hyosung TNC, Hyosung Heavy Industries, Hyosung Heavy Industries, and Hyosung Chemical participated in the "Ethical Management CEO Pledge Ceremony" hosted by the BEST ESG Forum for three consecutive years beginning in 2020 and pledged their compliance with ethical management both internally and externally.
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Legal Compliance Team
- Comprised of personnel with extensive knowledge of the company
- Forms a basis for the efficient execution of ethical management activities
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Manager of ethical management activities within each department
- Assists in the ethical management activities of the Legal Compliance Team
- Establishes a system to manage performance effectively
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Audit Team
- Appointed with a person with no stake in the company
- Supervises all management activities
Hyosung operates an HR counseling center and grievance handling room where employees can report unethical behavior and grievances, such as sexual harassment, corruption, and workplace bullying, and receive ethics counseling.
In addition to basic in-person counseling, we also provide anonymous online counseling to protect our employees' identities. We also operate a variety of communication channels, including e-mail and postal mail.
We have also established a reporting channel on our website where we receive reports of unethical supply-chain related behavior, such as providing money or valuables, improper solicitation, or unfair trade.
communication channels at Hyosung
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Grievance
handling - Report
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HR
consultation
center
The Compliance Program (CP) is a series of internally administered programs and systems, such as monitoring, training, and supervisory sanctions, for the company to voluntarily comply with fair trade laws and regulations.
We aim to realize responsible management by preventing losses resulting from law violations in advance, fostering a desirable culture of competition and fair trade, and adhering to our responsibilities in the area of business ethics. Hyosung launched the CP in September 2006 and annually revises the Compliance Program Handbook, allowing employees to review the program's operational guidelines.
By instilling compliance and ethical management among employees, we operate the CP with the goal of preventing risks associated with legal violations in advance and becoming a model business that complies with fair trade.
The Legal Compliance Team is responsible for the daily operation of the CP and strives to minimize related risks through activities such as familiarizing all employees with the program's operating guidelines, fair trade training, and monitoring.
The compliance assistants appointed by the Board of Directors operates the CP, directly reports significant issues to the board and top management, and reports on a regular basis to the board and top management.
- ESG Management
Promotion Committee - CEO
- BoD
- CP Manager
- Legal Compliance Team
- Audit, HR, Training
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Risk management
- Monitoring
- Internal/ external whistleblowing
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CP training
- Periodic training and revision of the Compliance Program Handbook
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Reward and punishment system
- CP-related rewards and disciplinary action
- Enactment and revision of CP regulations
- Top management's commitment for compliance
ethical management
All executives and employees, including contract workers at Hyosung, are familiar with the ethics management philosophy, code of ethics, and guidelines for the practice of the code of ethics when entering the company, and pledge to ethics and compliance management practice.
Employees receive ethical management training on an annual basis for the purpose of promoting ethical management practices and awareness. Ethical management training is mandatory for newly hired and promoted employees, and high-risk departments in direct relationships with partners are selected for regular training on the Fair Transactions in Subcontracting Act and contract violations. By conducting training on trade secret protection and infringement cases, embezzlement, bribery, and document forgery, as well as the Monopoly Regulation and Fair Trade Act and the Fair Agency Transactions Act, we provide business departments with information on the procedures and standards required by law. Hyosung also provides ethics training materials and training venues for partner employees.
From fieldwork to various information investigations and business diagnosis, Hyosung conducts audits for management as a whole. In particular, we carry out audits together in the areas of technology and quality. We ensure that audit activities are independent, that auditees and informants are not treated unfairly, and that disadvantages are minimized. Regular audits are conducted in accordance with internal audit regulations, and special audits take place when particular issues or topics arise.
Depending on the severity of incidents uncovered through audits, actions such as cautions, disciplinary action, and compensation are taken. The results of conducted audits are reported to the CEO, and the personnel subject to audit who are notified of the audit results are immediately instructed to correct the issues identified. In addition, the Audit Team conducts periodic re-inspections to prevent future occurrences of similar problems.