Policy & Vision

CSR(Corporate Social Responsibility) Vision & Strategy

Our CSR activities are an inseparable part of our strategies for sustainable growth and the accomplishment of our vision: “World Best at Enriching Lives through Innovation”. To this end, LGE has laid out the following strategic imperatives: Ensure that every management activity is carried out with a CSR-oriented mindset; Create differentiated value for stakeholders through innovation; Nurture win-win partnerships with all stakeholders in a spirit of mutual trust.

- CSR Governance

2009 was a year of great progress in LGE’s CSR operations. We created the top-decision-making body, CSR Committee, comprised of C-level officers, presidents of company/region, and chaired by the CEO. The Committee’s mandate is to deliberate on and set corporate-wide CSR strategies and policies, such as the decision to join the UN Global Compact. Below the CSR Committee, the working-level CSR Forum of the corporate’s Head Office was expanded to form the CSR Council, which comprises CSR managers of each company and region. In the near future, we will expand CSR Councils for each subsidiary and empower them to instill a CSR mindset in their organizations and respond to related issues within the scope of their operations and local communities. To further raise employee awareness of CSR issues, we will include a “CSR Understanding” module in the training programs of all new recruits, and launch online education programs in 2010.

- CSR Risk Management

As LGE has grown in stature to become a world-class corporate, the expectations of our business partners, customers, investors and external stakeholders – such as NGOs – are also growing. In particular, they are not interested merely in our CSR achievements, but in our internal CSR management and processes. The global community is increasingly vocal in its demands that large multinationals play an active role in solving international issues. In 2009, LGE carried out self-assessments of the labor, ethics and EHS (Environment, Health & Safety) status of factories including our overseas businesses, so as to effectively manage the corporate’s comprehensive CSR risk. No serious risks were found as a result of these surveys, but needs for supplemental policies were uncovered. We will therefore draft corporate-wide labor policy, and release them in the first half of 2010. Also, in accordance with our obligations under the UN Global Compact, we will ensure that the Ten Principles are implemented and enforced throughout our value chain. To manage CSR risks systematically, LGE is adopting ETASC, an internationally-recognized CSR online assessment tool that can be extended to eventually include our business partners.

- Stakeholder Engagement

LGE recognizes the importance of providing a variety of channels through which to engage our various stakeholders. In 2009 we responded to queries and interview requests from more than twenty institutions, clients and NGOs. In September, LGE visited foreign-based clients such as Vodafone, O2 to conduct dialogues on CSR and introduce the corporate’s CSR programs and philosophies. In November, we participated in a workshop that was offered as a follow-up to British Telecom’s CSR audit in August. Beginning in 2010, LGE will launch a program of forming various stakeholder panels to increase the corporate’s engagement with internal and external stakeholders.

- Global Contribution

In the past year, LGE’s overseas revenues accounted for 87% of the corporate’s total sales. As such, we feel a strong obligation to be actively involved with solving international issues in such areas as environmental protection, famine and disease. In recognition of our wide-ranging efforts on these fronts, LGE was honored with the Woodrow Wilson Award for Corporate Citizenship in September of 2009. More detailed information about our global contribution can be found on page 48-53.

CSR(Corporate Social Responsibility) Principles

LG Electronics established its CSR principles in order to fulfill its social responsibility in a systematic way. A global leader in the electronics industry, priority is always placed on stakeholders and on innovation, thereby providing the highest value to the company’s stakeholders.

• 1. LG Electronics’ (LGE) CSR management principles have become the standard against which company-wide management values are judged.
• 2. LGE enhances our customers' quality of life by offering innovative products.
• 3. LGE continues to create revenue for stakeholders and investors by means of technological developments and innovative management. egular updates, both inland and overseas.
• 4. LGE encourages self-realization and offer rewards to acknowledge the creativity and individuality of our employees.
• 5. LGE is constantly evolving, together with our business partners, through fair trade and collaborative relationships.
• 6. Based on our broad perspective that takes every process into consideration, LGE contributes to the creation of a pleasant environment by minimizing the environmental impact created during production.
• 7. In our role as a corporate citizen, LGE performs social contribution activities to fulfill our social responsibilities.
• 8. LGE takes both the opinions of our stakeholders and social impact into consideration when establishing strategies and launching new enterprises.
• 9. LGE evaluates the success of our CSR management principles and provide regular updates, both inland and overseas.