In accordance with the agreement with the Ministry of Employment and Labor and the Ministry of Environment in Korea, LG Electronics provides support to social enterprises in the environment sector, which applies commercial strategies to maximize improvements in human and environmental well-being
To support their cause and establishment, LG Electronics provides financial support, management advice and productivity improvement know how. In 2012, an advisory board specifically organized for this purpose provided support to 14 start-up social enterprises, supporting initial investment costs and providing consulting on business strategy. As a result, the 14 enterprises recorded a 14% of sales increase on average and created 27 jobs. In 2013, we plan to expand the beneficiaries to social cooperatives in the environmental area and support a total of 20 companies.
LG Electronics also operate education/training programs for underprivileged youth from countries in which we operate, including Kenya and Brazil. Through the program, we provide vocational training and internship opportunities to create jobs.
As part of its consulting program for start-up social enterprise, the LGE Labor Union provided productivity management consulting to the organic produce retailer “Heuksalim” for approximately five months. Consultants form the LGE Labor Union installed a conveyor belt and performed consulting on ways to improve Heuksalim’s production environment and
distribution process. As a result, the company’s productivity improved by 46%*, achieved annual cost savings of about KRW 38 million from reduced overtime and unessential manpower, and created 10 new jobs. Based on the production volume (up 20% from the previous year) from its business plan for 2013, the company is expected to save about KRW 59.7 million in costs.
* Based on daily processing volume of small-size packages