Sustainable Workplace for All

• Reduce high-risks with supplier self-assessments 1.5% to 0.5% by 2030


  • Supplier Code of Conduct

  • We created a Supplier Code of Conduct based on the RBA Code of Conduct and we require all of our suppliers to comply with it. In order to encourage the voluntary compliance of our suppliers with our Code of Conduct, we ensure it is reflected in our purchase contracts and provide suppliers with a guide.


  • Supply Chain Risk Management

  • CSR Risk Management Process for Suppliers

Stage 1: Select / • Selection of assessment targets (1st-tier suppliers with over KRW 100 million (about USD 84,710) of purchases in the previous year) Stage 2: Assess / • Risk assessment (RBA self assessment) / • Voluntary improvement activities Stage 3: Verify / • On-site inspection and consulting carried out by LGE / • Third-party audit (if necessary) Stage 4: Improve / • Improvement activities / • Monitoring / • Select suppliers to reflect assessment results Stage 1: Select / • Selection of assessment targets (1st-tier suppliers with over KRW 100 million (about USD 84,710) of purchases in the previous year) Stage 2: Assess / • Risk assessment (RBA self assessment) / • Voluntary improvement activities Stage 3: Verify / • On-site inspection and consulting carried out by LGE / • Third-party audit (if necessary) Stage 4: Improve / • Improvement activities / • Monitoring / • Select suppliers to reflect assessment results
  • Supplier Self-Assessment

    LGE conducts supplier self-assessments once a year. An in-depth evaluation sheet that we developed by applying the RBA guide is used during the assessments. We conduct assessments based on the CSR self-assessment system we established in order to enhance the convenience of our suppliers in conducting self-assessments and to enhance the fidelity of improvement activities aimed at addressing nonconformities. Potential issues with suppliers such as issues related to labor, human rights, safety, health, environment, and ethics are identified accordingly. Also, improvement tasks that are derived for nonconformities are registered in the CSR management system. Starting in 2021, we plan to pursue on-site assessments of suppliers, provide consultation on improvement tasks and provide training for the employees of our suppliers in partnership with an RBA-certified institution so that we can enhance the objectivity of the assessments. Moreover, we will continue to reduce the proportion of high-risk suppliers by improving and applying the risk-assessment process for our suppliers. In the future, we have plans to support suppliers so that they can autonomously carry out assessments.

Results of Suppliers’ CSR Self-Assessments (Unit: Suppliers)
Horizontal Table
Classification Number of suppliers that
performed self-inspection
2018 1,684
2019 1,665
2020 1,416
Classification Number of high-risk suppliers
2018 103
2019 40
2020 26
Classification Proportion of high-risk suppliers
2018 6.1%
2019 2.4%
2020 1.8%
Details of CSR Self-Assessments of Suppliers (by region) (Unit: Suppliers, as of 2020)
Horizontal Table
Region Korea
High-Risk 1
Unstable 202
Low-Risk 317
Completed 520
Region China
High-Risk 7
Unstable 69
Low-Risk 342
Completed 418
Region Southeast Asia
High-Risk 10
Unstable 97
Low-Risk 170
Completed 277
Region Central and South America/North America
High-Risk 6
Unstable 40
Low-Risk 76
Completed 122
Region Europe/CIS
High-Risk 1
Unstable 21
Low-Risk 36
Completed 58
Region Central Asia
High-Risk 1
Unstable 11
Low-Risk 9
Completed 21
Region Total
High-Risk 26
Unstable 440
Low-Risk 950
Completed 1,416
  • We seek to enhance user convenience in terms of self-inspection and enhance the fidelity of improvement activities through the constant improvement of our CSR self-assessment system.

    • Suppliers: Attach evidence document for key management items / Differentiate the areas of assessment by the scale of suppliers / Provide the CSR manual and best practice to suppliers
    • Internal Managers: Support multiple languages for self-assessment(11 languages)

  • CSR Risk Assessment and Audit for Suppliers

    LGE manages the suppliers’ CSR risks by having all suppliers conduct self-assessments for risks and conduct on-site assessments for high-risk suppliers. We also carry out audits for subjects with potential CSR risks in the sectors of labor, human rights, safety, health, and the environment that may occur at production sites. In the mid-to long-term, we plan to expand self-assessments for CSR risks for our 1st-tier suppliers from once a year to twice a year. Also, by reviewing their compliance with the Supplier Code of Conduct as well as the results of self-assessments for CSR risks and on-site audits in purchase evaluations, we are strengthening the obligation of our suppliers to comply with CSR principles. Going forward, we will continue to strive to manage the CSR risk assessment process of our suppliers with the aim of reducing the proportion of high-risk suppliers to less than 0.5%

Results of Suppliers’ On-site Assessments (Unit: Suppliers, as of 2020)
Horizontal Table
Classification On-site Assessment of Suppliers
Korea 8
Overseas 12
Total 20
Types of Non-conformities in On-site Assessments (Unit: %, as of 2020)
Horizontal Table
Classification Labor/Human Rights
Description of Non-conformities Prohibition of forced labor and contract details (No forced labor practice)
Percentage 9
Classification Labor/Human Rights
Description of Non-conformities Prohibition of child labor and age verification procedure (No serious violation of child labor)
Percentage 5
Classification Labor/Human Rights
Description of Non-conformities Grievance handling process
Percentage 5
Classification Safety/Health
Description of Non-conformities Firefighting facilities/emergency evacuation guidance/emergency evacuation drills
Percentage 13
Classification Safety/Health
Description of Non-conformities Control procedure, record and MSDS management of chemical substances
Percentage 9
*The above supplier’s non-conformance types have been improved through task implementation (improvement rate: 100%)

  • Support for Suppliers CSR Mgmt.

  • Support for Improving the CSR management Capabilities of Suppliers and Overseas Subsidiaries

    By providing education to our suppliers, we help them identify and mitigate their own supply chain risks. Every year, CSR management education is provided for purchasing managers at our overseas subsidiaries. In 2020, we conducted this education online in light of the current environment brought about by the COVID-19 crisis. We also conduct safety and health education twice a year for suppliers in Korea. Since 2021, we have been working to enhance our management of the working environment in the supply chain through the addition of labor rights education in partnership with an RBA accredited agency.