Fair Trade

As a global company, we fulfill our social obligations, comply with the principles of fair trade, and continuously operate related compliance programs aimed at win-win growth through mutual cooperation with our suppliers. We actively monitor and manage fair trade risks and ensure fairness in competition through promotional and educational activities aimed at preventing unfair trade practices.

  • Promoting an Awareness of Fair Trade

    • We create customer value by developing a strong sense of trust with customers and suppliers around the world through fair competition and transactions.
    • A commitment to practicing fair trade is not only our duty to society, as prescribed by our stakeholders, but also a basis for our competitiveness as we pursue the implementation of Jeong-Do Management.
    • We prevent monetary and non-monetary losses, such as reputational damage and a decrease in corporate credit rating, through the promotion of fair trade.

  • Fair Trade Compliance Program

    • We continuously operate the ‘Fair Trade Compliance Program’ in order to fulfill our responsibilities in terms of fair trade and build trust with our stakeholders.
    • In accordance with this program, we undertake periodic activities aimed at raising the awareness of our employees in terms of cartels, unfair trade practices, unfair labeling and advertising, and unfair subcontracting practices.
    • We look out for legal risks via follow-up monitoring.

| Inspection and Management of Fair Trade Risks |
Select Risks / Unfair trade, labeling & advertising / Unfair subcontracting practices / Cartels Evaluate Risks / Identify fair trade violations / Identify key risk factors / Evaluate violations by category Establish a Risk Management Plan / Summarize risk assessment results / Select key risks / Establish a risk management plan Implement Measures to Mitigate Risks / Analyze causes and results of violations / Identify and prioritize improvement measures / Perform and monitor improvement activities Select Risks / Unfair trade, labeling & advertising / Unfair subcontracting practices / Cartels Evaluate Risks / Identify fair trade violations / Identify key risk factors / Evaluate violations by category Establish a Risk Management Plan / Summarize risk assessment results / Select key risks / Establish a risk management plan Implement Measures to Mitigate Risks / Analyze causes and results of violations / Identify and prioritize improvement measures / Perform and monitor improvement activities
  • Eradication of Unfair Trade and Unfair Labeling & Advertising

    • Execute business activities following a preliminary review by the relevant departments in accordance with the enactment and amendment of laws and changes in the business environment.
    • Examine corporate systems in accordance with the guidelines of the relevant departments in an effort to prevent unfair trade practices.
    • thoroughly review labelling and advertising when advertising is exposed to the general public through our legal system and by working in cooperation with the relevant departments including legal affairs, R&D, product planning team.
    • conduct improvement activities with a view to identifying if there is anything that consumers may mistake as unfair labelling or advertising.

  • Cartel Prevention

    • Under our ‘Anti-Cartel Principles’, contact with competitors is prohibited in order to prevent the formation of cartels.
    • In unavoidable cases, employees are permitted to contact competitors after a prior report is submitted and provided .
    • Training according to changes in the business environment and amendment of laws
    • Conduct self-administered surveys by heads of organizations prone to cartel formation
    • on-site inspections without prior notice, etc.

  • Fair Trade Compliance Newsletter

    • To enhance awareness in terms of fair trade by distributing the monthly Fair Trade Compliance Newsletter to all employees
    • At least once a year, the newsletter carries a message from top management including the CEO

  • Pursuit of Fair Subcontracting Practices

    • In order to ensure fairness and transparency in subcontracting transactions, we provide education on related laws and regulations, check the status of and improve subcontracting practices, and implement new measures to relevant systems, etc.
    • In order to protect the technologies of our suppliers, we engage in improvement activities such as implementing a supplier data request system and enacting joint development contracts.