CSR Risk Management Program
In accordance with the CSR Risk Management Program introduced in 2010, LG Electronics assesses its production sites for their compliance with the Global Labor Policy. In 2014, we conducted the self-assessment at all of our 37 production sites (seven in Korea and 30 overseas), excluding the three sites that have closed (Shanghai, China; and Haiphong and Hung Yen, Vietnam). In the assessment, our production sites averaged 89.18 points, up 0.93 point from 2013 (88.25 points). The percentage of production sites rated to be at low risk also increased to 89.2 percent, up 6.7 percent from 2013 (82.5%).
The assessment also showed that our production sites in Middle East and Africa have a relatively high risk level. As such, we are going to place this region under extensive management. Some of the labor/human rights issues identified in the 2013 assessment have been addressed, as shown in the right. However, we have concluded that production subsidiaries' effort towards addressing forced labor and child labor issues at their supplier sites still requires much improvement.
In addition to the EICC Self-Assessment, we are improving our working conditions through third party audits. In 2014, a total of six production sites (Gumi, Changwon 1, 2, Taizhou, Nanjing, and Turkey) participated in the EICC VAP (Validated Audit Program: Third Party Audit), through which a total of 88 non-conformances were identified. Of the 88 non-conformances cited, 76 of them had been addressed (86%, as of March 20, 2015). The bulk of non-conformances were from "Health & Safety" and "Labor" (78%). We plan to take a mid-to long-term approach to the issues that are difficult to address in the short term, such as "compliance with international standards on working hours".
LGE CSR Risk Management Process
Risk Level by Country/Region
Risk Level by Country/Region based on Risk Type