UNGC (United Nations Global Compact)
In December 2009, LG Electronics became the first Korean corporation in the electronics industry to join the UN Global Compact. As a leading global corporation with social responsibilities, LG Electronics has announced its will to actively participate in solving global societal problems such as labor, human rights, environment, and anti-corruption.
The ten principals of UN Global Compact – established to call upon corporations worldwide to support and carry out social responsibilities – can be categorized into human rights, labor, environment, and anti-corruption. The main point is to protect international human rights and make efforts not to violate those rights, uphold freedom of association, guarantee the right to collective bargaining, and abolish all forms of forced labor, child labor, and labor discriminations. It also contains responsibilities of making efforts to prevent various environmental problems, develop green technology, and abolish all forms of corrupt activities such as extortion and bribery.
LG Electronics, which has already been carrying out various social contributions in the areas of human rights, labor, environment, and anti-corruption, has taken this opportunity of joining the UNGC to internalize corporate responsibilities in conducting business operations and at the same time, is planning to accelerate the establishment of a CSR (Corporate Social Responsibility) Change Management System. And to this end, LG Electronics is planning and implementing programs to organize internal procedures based on global CSR standards, establish a CSR risk management system, create a corporate-wide CSR Council, declare a charter for USR(Jan. 2010), enact a Global Labor Policy(Jul. 2010), create an agenda for CSR related tasks, and encourage employees to donate and participate in volunteer works.
EICC (Electronic Industry Citizenship Coalition)
In August 2010, LG Electronics joined the Electronic Industry Citizenship Coalition (EICC), which has high standards regarding working conditions, ethics of the business, safe and health of workers, and the environment that can be implemented across whole supply chain.
LG Electronics has already implemented a range of measures to improve its CSR management systems at home and abroad in order to bring its global practices in line with the EICC Code of Conduct which focuses significantly on issues related to labor, health and safety, environment, management systems and ethics.
However, EICC involvement is another example of LG Electronics putting into practice its philosophy of Jeong-do Management, our unique code-of-conduct system for conducting business in a transparent and honest manner
For the purpose, LG Electronics introduced a Supplier Code of Conduct consistent with EICC standards for its suppliers to follow if they wish to continue their business relationship with LG Electronics in September 2010. In 2011, LG Electronics will also offer its contractors training and consulting as they move to adopt management practices consistent with EICC guidelines. As part of EICC recommendations, LG Electronics will play an even greater role in the operations of its suppliers by sharing best practices, promoting CSR initiatives and helping to develop social responsibility strategies.
< LG Electronics’ Supplier Code of Conduct >
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1. Labor and Human Rights
- Humane treatment
- Freely chosen employment
- Avoidance of child labor
- Working hours
- Wages and benefits
- Freedom of association
3. Environmental Impact
- Environmental permits and reporting
- Hazardous substances
- Solid waste and wastewater
- Air emissions
- Pollution prevention and resource reduction
- Product content restrictions
5. Materials not obtained through illegal and unethical ways
Suppliers shall evaluate the origin or source of their materials throughout their supply chains to verify that they have not been obtained through any illegal and unethical ways. (e.g., materials obtained from mining in the Democratic Republic of Congo or an adjoining country,fibres obtained from logging in high conservation value forest areas or prohibited areas).
2. Health and Safety
- Occupational Safety
- Industrial Hygiene
- Emergency preparedness
- Occupational injury and illness
- Sanitation, Food, and Housing
- Physically demanding work
- Maintaining machine safety
- Business integrity
- Disclosure of information
- Protection of identity
- Protection of intellectual property
6. Management System
- Company commitment
- Management accountability and responsibility
- Legal and Customer Requirements
- Risk assessment and management
- Improvement objectives
- Training and communication
- Worker feedback and participation
- Audits and assessments
- Corrective action process
- Documentation and records