CSR Risk Management
CSR Risk Self-Assessment
LG Electronics assesses all of its production sites for their compliance with CSR requirements such as the EICC Code of Conduct on a semiannual basis. In 2015, we conducted the EICC self-assessment at all of our 39 production sites (Eight in Korea and 31 overseas). In this year’s assessment, our production sites averaged 92.76 points, up 3.58 point from 2014 (89.18 points), with all of them rated as “low risk” (33 low-risk sites in 2014). Since we have achieved our initial goal of improving self-assessment performance across our production sites, we plan to implement an in-depth self-assessment with stronger requirements. In 2015, we made extensive management efforts in the Middle East and Africa region, where our production sites showed a relatively high risk level in the 2014 assessment. As a result, none of the regions showed elevated risk levels in the assessment conducted in the second half of 2015.
A total of 78 issues were identified as requiring improvement efforts in our 2015 assessment, and of the 78 issues identified, 60 (77%) have been addressed (as of year-end 2015). In 2016, we plan to manage the rest of the issues together with newly emerging CSR issues, such as placement or recruitment fees.
Third-party CSR Audit
In addition to the EICC Self-Assessment, we are improving our working conditions through third-party audits. In 2015, a total of three production sites (Mexicali, Mexico; Pune, India; and Nanjing, China) participated in the EICC VAP (Validated Audit Program: Third Party Audit), through which a total of 53 non-conformances were identified. We are making ongoing efforts to address the issues. The bulk of non-conformances were from “Health & Safety” and “Labor” (74%). As part of our efforts to improve working conditions for our employees, we plan to overhaul our self-assessment questionnaire in 2016 to incorporate strengthened audit requirements and to address the issues identified through the assessment in a more timely manner.