Based on Jeong-Do management, LGE fosters win-win growth by supporting its suppliers in building CSR management systems and helping them to succeed in global competition. To provide a systematized support program, LGE joined Electronic Industry Citizenship Coalition(EICC), a CSR consultative group founded in 2004 with global electronic companies. LGE has since actively participated in EICC’s regular meeting and its 6 working groups from 2010. In the future, we plan to conduct suppliers CSR risk management based on EICC Code, along with a training program to enhance supplier ability to conduct autonomous CSR risk management. Suppliers will be encouraged to conduct self-improvement programs to enhance their performance. We expect to improve and expand the overall supply chain’s CSR throughout the activity.
Based on EICC Code, LGE established and declared its Supplier Code of Conduct in 2010 to assist its suppliers in fulfilling social responsibilities. We are providing Supplier Code of Conduct training programs to the suppliers in Korea as the initial step to obtain voluntary agreement on compliance with the Code of Conduct, and consequently expand CSR from LGE’s internal activity to overall supply chain management. Eventually, we plan to expand our activity globally to help every supplier fulfill its social responsibility and achieve long term competence.
LGE plans to launch a comprehensive supply chain (production facility) risk management program based on the EICC process in 2011, and strengthen CSR competence of the suppliers located in Korea and in potential risk countries. The CSR risk management program to be conducted for around 4,000 manufacturing suppliers consists of four steps. The program (i) will be promoted in order to reach LGE’s all production sites and suppliers, and obtain consent on compliance with the Supplier Code of Conduct, (ii) evaluates the suppliers’ CSR risk, (iii) conducts diagnosis to the high-risk classified suppliers, and encourages improvement, and (iv) keeps monitoring to verify if the improvement is maintained at constant level, and support the suppliers to fulfill their social responsibilities.
LGE’s onsite consulting service helped its suppliers identify their CSR risks and drive for improvement. The followings are the actual cases where LGE’s onsite consulting service made practical improvement on suppliers’ CSR risks.