LGE’S PRINCIPLES FOR SOCIAL CONTRIBUTION
Established in the year 2000 with the commitment of 191 world leaders as the international pledge for the eradication of world poverty and hunger, the United Nations Millennium Development Goals (MDGs) have entered the final year of their 15-year timeframe (2000-2015). The international community is now working together on the future development framework, the Post-2015 Development Agenda and Sustainable Development Goals (SDGs), a set of proposed targets covering a broad range of sustainable development issues, including inclusive economic growth, social advancement, and environmental protection.
Achieving these ambitious international development goals will certainly require a global response from all groups of stakeholders, including government, civil society as well as private sector. As a responsible member of the international community, LG Electronics is fully aware of global issues that require a global response and strives to contribute to the inclusive growth and sustainable development. To this end, we put great energy into social contribution initiatives, especially stressing efforts to protect the environment and expand access to education by leveraging our core business competences. In order to effectively respond to global issues, we established three principles that govern the operations of our social contribution initiatives. First, we will strive to gain trust and encourage participation of stakeholders through social contribution programs designed to address local issues. Second, we will expand the impact and range of our contribution by utilizing our products and technologies. Third, we will engage with communities and bring about change at the local level by promoting employee participation in the forms of time, talent, and monetary donations.
LGE’S SOCIAL CONTRIBUTION ACHIEVEMENTS IN 2014
Throughout the year 2014, LG Electronics engaged in awide range of initiatives to give back to communities in which we operate with active involvement of more than 220,000 employees (cumulative) from both Korea (14 sites) and overseas (76 subsidiaries from 55 countries). In 2014, LG Electronics made a total of KRW 10.4 billion in donations (parent) and administered approximately KRW 79.5 billion for social contribution programs and related areas in overseas locations. The size of direct donations by the parent company in 2014 decreased from the previous year due to a considerable increase in direct donations and social contribution initiatives by our overseas subsidiaries. This also resulted in an overall increase in employee participation by 80,000 individuals. Every year, LG Electronics assesses the impact of individual social contribution initiatives on its business operations and society in general with our own detailed checklist. Based on the results, we continuously search for ways in which we can contribute to society by leveraging our core competences and strengths.
In 2014, social investment made by LG Electronics (parent company) went to: CSR marketing programs organized in conjunction with business projects (12%), charitable donation (11%), and community investment (77%). By program category, our contributions were directed to: environmental protection (44%), cultural programs (19%), and poverty eradication (16%). Community investment made up the largest share because our social contribution initiatives in Korea are mostly designed to address the issues affecting the communities that host our business sites. In 2014, 71 percent of our overseas spending on social contribution programs was directed to CSR marketing. A bulk of this spending (61%) was allocated to cultural programs since such projects often require relatively large budget per program.