Ethical Management

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Hyosung Heavy Industries has enacted the "Code of Ethics" for transparent business practices that uphold integrity, and it provides all employees with guidelines for
making ethical decisions. Through ongoing efforts, we will establish an ethical corporate culture and become a global corporate citizen who
continues to fulfill its social roles and responsibilities.

Ethical Management

  • Compliance with Laws and Regulations
  • Customer-respecting Management
  • Shareholder-oriented Management
  • Employee-respecting Management
  • Employees' Ethical Management
  • Suppliers' Shared Growth Management
  • Social Responsibility Management

Ethical management reinforcement process

Code of Ethics
and guidelines for practice

  • Ethical management practice system
    1. Organizational structure
    2. Communication
      network operation
  • Ethics management process
    1. Input
    2. Output
    3. Results

Ethical Management Organization System

Hyosung consistently creates a powerful organization for promoting ethical management centered on the CEO. The CEO strives to ensure that the ethical management philosophy is naturally reflected in management activities. Major ethical management activities are supervised by the Legal Compliance Team, whose members have an in-depth understanding of the organization, thereby laying the groundwork for the efficient implementation of ethical management activities. In addition, a person responsible for ethical management activities has been assigned to each field department to assist the Legal Compliance Team with ethical management activities, and we have developed a system to effectively manage performance. We appoint an independent and unaffiliated internal auditor so as to ensure comprehensive oversight of the company's overall management, from field work to office work. The CEOs of Hyosung, Hyosung TNC, Hyosung Heavy Industries, and Hyosung Chemical participated in the "Ethical Management CEO Pledge Ceremony" hosted by the BEST ESG Forum for three consecutive years beginning in 2020 and pledged their compliance with ethical management both internally and externally.

  • CEO
    Strives to incorporate the ethical management philosophy into management activities
  • Legal Compliance Team
    • Comprised of personnel with extensive knowledge of the company
    • Forms a basis for the efficient execution of ethical management activities
    Manager of ethical management
    activities within each department
    • Assists in the ethical management activities of the Legal Compliance Team
    • Establishes a system to manage performance effectively
    Audit Team
    • Appointed with a person with no stake in the company
    • Supervises all management activities
Code of Ethics and its Guidelines

Ethical Management Communication Channels

Hyosung Heavy Industries operates an HR counseling center and grievance handling room where employees can report unethical behavior and grievances, such as sexual harassment, corruption, and workplace bullying, and receive ethics counseling. In addition to basic in-person counseling, we also provide anonymous online counseling to protect our employees' identities. We also operate a variety of communication channels, including e-mail and postal mail. We have also established a reporting channel on our website where we receive reports of unethical supply-chain related behavior, such as providing money or valuables, improper solicitation, or unfair trade.

Ethical Management Communication Channels

  • Grievance handling
  • HR Counseling Center
  • Report

Compliance Program

Description and goal

The Compliance Program (CP) is a series of internally administered programs and systems, such as monitoring, training, and supervisory sanctions, for the company to voluntarily comply with fair trade laws and regulations. We aim to realize responsible management by preventing losses resulting from law violations in advance, fostering a desirable culture of competition and fair trade, and adhering to our responsibilities in the area of business ethics. Hyosung Heavy Industries inherited and implemented the CP introduced by Hyosung in September 2006 at the time of the spin-off in June 2018, and the Compliance Program Handbook, which enables employees to review the program's operation guidelines, is updated and distributed every year. By instilling compliance and ethical management among employees, we operate the CP with the goal of preventing risks associated with legal violations in advance and becoming a model business that complies with fair trade.

CP organization and CP manager

The Legal Compliance Team is responsible for the daily operation of the CP and strives to minimize related risks through activities such as familiarizing all employees with the program's operating guidelines, fair trade training, and monitoring. The compliance assistants appointed by the Board of Directors operates the CP, directly reports significant issues to the board and top management, and reports on a regular basis to the board and top management.

ESG 경영 추진위원회, 대표 이사, 이사회

  • 자율 compliance 관리자
  • 준법지원팀
  • 감사, 인사, 교육
  • Risk Management
    • Monitoring
    • Internal/external whistleblowing
  • CP training
    • Periodic training and revision of the Compliance Program Handbook
    • Reward and punishment system
  • Enactment and revision of CP regulations
  • Top management's commitment for compliance

Ethical Management Activities

Increasing awareness of ethical management

Employees familiarize themselves with the ethical management philosophy, the Code of Ethics, and the guidelines for applying the Code of Ethics upon joining Hyosung Heavy Industries. We also sign a pledge to practice ethical management and prohibit improper solicitation and bribery. In addition, Hyosung Heavy Industries produces and distributes promotional videos and materials resembling magazines via internal groupware in an effort to effectively raise ethics awareness. We receive the "Pledge of Compliance with the Hyosung Partner Code of Conduct" from our partners in order to ensure the practice of ethical management, such as anti-corruption. We increase awareness of supply chain-related ethical management through support in the way of ESG management consulting

Ethical management training

Employees receive ethical management training on an annual basis for the purpose of promoting ethical management practices and awareness. Ethical management training is mandatory for newly hired and promoted employees, and high-risk departments in direct relationships with partners are selected for regular training on the Fair Transactions in Subcontracting Act and contract violations. By conducting training on trade secret protection and infringement cases, embezzlement, bribery, and document forgery, as well as the Monopoly Regulation and Fair Trade Act and the Fair Agency Transactions Act, we provide business departments with information on the procedures and standards required by law. Hyosung Heavy Industries also provides ethics training materials and training venues for partner employees.

Enhancing internal monitoring and follow-up management

From fieldwork to various information investigations and business diagnosis, Hyosung Heavy Industries conducts audits for management as a whole. In particular, we carry out audits together in the areas of technology and quality. We ensure that audit activities are independent, that auditees and informants are not treated unfairly, and that disadvantages are minimized. Regular audits are conducted in accordance with internal audit regulations, and special audits take place when particular issues or topics arise. Depending on the severity of incidents uncovered through audits, actions such as cautions, disciplinary action, and compensation are taken. The results of conducted audits are reported to the CEO, and the personnel subject to audit who are notified of the audit results are immediately instructed to correct the issues identified. In addition, the Audit Team conducts periodic re-inspections to prevent future occurrences of similar problems.