CSR Management

CSR(Corporate Social Responsibility) Management

For a more systematic approach to CSR, which is fast taking root as a global standard in business, LG Electronics has established Corporate Social Responsibility Committee (CSR Committee) as top decision-making body. The quarterly CSR Committee consists of CEO as chairman, each president of company/region, and C-Level executives. The CSR Committee is responsible for approving corporate CSR strategy and policy such as joining the UN Global Compact and operates sub committees including Jeong-do management and supply chain sustainability.

The Global CSR Council and HQ CSR Group are implementation body to carry out strategic tasks, which are decided by CSR Committee. The Global CSR Council consists of managers in headquarter and each company/region to discuss and perform corporate-wide tasks including corporate strategy, human resources, labor-management, environment & safety, social contribution, ethics, fair trade, corporate communication, and IR. The HQ CSR Group is responsible for promoting in-house understanding of the importance of CSR activities, coordinating and supporting of tasks, building up networking ties, and publishing sustainability report, among its responsibilities.

Based on these CSR governance, LG Electronics has been focusing on formulating CSR strategies and the implementation of roadmaps, strengthening stakeholder communication, integrating the management of CSR risks and performance evaluation, building up internal competencies, and linking CSR activities with brand management and marketing. LG Electronics will make every effort to carry out corporate-wide CSR activities as well as reflect multiple stakeholders’ opinion into business.

< LG Electronics’ CSR Management >

LG Electronics’ CSR Risks & Projects by sector

Functional Issues	Potential Risks	Sector Projects
Human Rights/ Labor Practices	CSR risks related to overseas sites and supply chains require better management	Reinforce corporate policy on human rights/labor practices Manage corporate sustainability/CSR risks
Purchasing/ Ethics	CSR factors (concerning transactions with partners, and diagnosis and support of partner companies) need to be incorporated	Make it compulsory to link purchase-diagnosis and set regulations Supply chain sustainability/CSR risk management
Climate Change	Carbon risks related to process/products Focused on compliance	Establish a global response system to UNFCCC Participate in Carbon Disclosure Project (CDP) Secure carbon emission credit (mid-, long-term goal)
Establishment of Global Collection/Disposal System of Old Home Appliances	Collect/dispose of old home appliances across Korea Respond to Waste Electrical and Electronic Equipment (WEEE) Directive Global environmental management system required	Establish a global system of collecting and disposing of old home appliances (in cooperation with federal/local governments, and telecommunications carriers) Promote campaigns to collect old home appliances
Differentiate Green/ Social Brands	One-time promotion of results Low recognition of environmentally-friendly brands Poor external reviews (at present middle of the pack)	Build sustainable/environmentally-friendly brands (Global Communication) Link CSR to marketing
CSR Risk Management	Insufficient CSR risk management strategies/goals in social and environmental sectors Systematic approach to CSR performance (data) management needed	Expand corporate CSR risk evaluation/ diagnosis Monitor risks/performances by division
Publication Sustainability Reports	Limited to domestic business sites and headquarters Insufficiently reflects the needs of stakeholders Better reflect stakeholders’ needs	Publish reports based on the Global Reporting Initiative’s (GRI) sustainability reporting guidelines criteria and which are authorized by a third party Have the Global CSR Council play a greater role
Communication with Stakeholders	Improve management performances in CSR(social and environmental) sectors Insufficient disclosure of CSR performances	Communicate more CSR information and performances to external stakeholders Selected as a leading CSR corporation