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

Code of Ethics

In order to comply with laws and ethical standards, respect our customers and employees, and fulfill our corporate roles and social responsibilities, Hyosung Heavy Industries has established the Code of Ethics, which serves as the standard of conduct for and commitment of Hyosung Heavy Industries.

This Code of Ethics is the standard for the ethical value judgment and behavior of all Hyosung Heavy Industries employees, as well as the standard for corporate decision-making and behavioral judgment for transparent and continuous ethical management.

1. Compliance with Laws and Regulations

"We strictly comply with laws and company regulations."

  • 1.1We respect national policies and abide by all applicable laws and ethical standards.
  • 1.2We comply with the management policies and regulations of the Company and fulfill our responsibilities and obligations.
  • 1.3We adhere to all applicable laws and regulations and respects the market economy order and trading customs in all regions in which it conducts business, both domestically and internationally.
  • 1.4We do not engage in illegal insider trading or money laundering.

2. Customer-respecting Management

“A company exists to offer the value that can satisfy customers.”

  • 2.1Customer trust is our top priority.
  • 2.2We provide its customers with products and services of differentiated quality to ensure satisfaction.
  • 2.3We strive to establish a culture of openness and fairness in our dealings with customers and to form solid partnerships.

3. Responsibilities to Shareholders

"We fulfill our responsibilities to become a company in which our shareholders can have confidence."

  • 3.1We increase shareholder and investor profits by enhancing management performance via continuous value creation.
  • 3.2We conduct rational and open management to gain the trust of shareholders and investors.
  • 3.3We respect the rights of shareholders and investors and provide timely information in order to generate profitable returns.

4. Employee-respecting Management

“Each of the employees is the most important asset of the company.”

  • 4.1We respect individuality and establish a rational and effective corporate culture based on mutual trust and understanding.
  • 4.2We create a work environment in which individuals can freely express their creativity, as well as ensure a pleasant and secure workplace.
  • 4.3We do not tolerate discrimination based on such factors as gender, religion, disability, age, social status, national origin, ethnicity, physical conditions such as appearance, marital status, family type or status, race, color, ideology or political opinion, sexual orientation, or medical history.

5. Employees' Ethical Management

“All employees aim to perform their tasks in transparent and fair manner by complying with ethical management.”

  • 5.1Employees within the organization do not force, direct, or respond to unfair or unethical instructions.
  • 5.2Employees are prohibited from accepting, providing, or promising cash or valuables in exchange for work or entertainment.
  • 5.3When giving and receiving gifts from stakeholders in the course of their duties, employees comply with country-specific laws and regulations and follow the relevant company policies.
  • 5.4Employees strive to avoid conflicts of interest between the company and customers and between customers, and in the event of a conflict, the interests of the company and customers take precedence.
  • 5.5Employees strictly manage and protect company and customer information obtained in the course of their employment and do not use it for their own purposes.

6. Suppliers' Mutual Growth Management

“Suppliers are a source of competitive edge for the company, and we aim for mutual growth based on transparent and fair trading with suppliers.”

  • 6.1We evaluate whether Hyosung Heavy Industries’ human rights and environmental and social values align with the selection of and transactions with partners.
  • 6.2We trade on a level playing field and does not engage in unfair business practices leveraging our superior position.
  • 6.3We establish a basis for mutual growth through a variety of activities promoting partner sustainability.

7. Social Responsibility Management

“A company is a member of society and must achieve harmony with society to grow.”

  • 7.1We fulfill our societal obligations and responsibilities and strive for the common good and development through social contribution activities.
  • 7.2We strive to be an environmentally conscious business and to earn the respect of society.
  • 7.3In order to form a sustainable supply chain, our purchasing criteria reflect the long-term viability of partners and products, as well as the integrity of the manufacturing process.

Code of Ethics and its Guidelines

1. Compliance with Laws and Regulations

1.1 Observance of National Policies and Laws

  • 01We respect national policies and avoid illegal or unlawful conduct.
  • 02In our business activities, we compete on the basis of products and services with competitors in good faith and do not engage in unfair competition.
  • 03We do not violate relevant laws or acquire information unethically.
  • 04Employees working abroad comply with the laws and social order of the host country so as not to impede the company's operations.
  • 05We respect and comply with domestic and international market economy order, transaction customs, and laws in order to conduct legal and fair business with partners.
  • 06As citizens and members of the community, we abide by the laws and regulations pertaining to the prevention of corruption, bribery, and money laundering, and we report suspicious transactions in accordance with the law.
  • 07Employees are strictly prohibited from engaging in any act of embezzlement or betrayal of confidence. Employees are prohibited from engaging in acts that result in the loss of company assets, such as embezzlement of public funds, misappropriation of public funds, property leakage, or use for other purposes.

1.2 Compliance with Company Regulations and Fundamental Business Ethics

  • 01We adhere to the company's management policies and regulations and concentrate our capabilities based on a sense of ownership and responsibility to complete assigned tasks promptly and accurately.
  • 02When performing duties, we prioritize the company's interests over our own, and we are objective and logical in our approach.
  • 03We do not work for others or other companies with a stake in the company, nor do we form any special relationships with them.
  • 04We safeguard the privacy and confidentiality of the company's private and vital information, deliver vital information to those who require it for work, and do not distort or spread false information.

2. Customer-respecting Management

2.1 Transactions with Customers

  • 01With customer satisfaction and trust as the top priority, we strive to provide products and services of the highest quality and adhere strictly to its promises to customers.
  • 02We strive to treat customers with mutual regard and conduct reasonable and equitable transactions on an equal footing.
  • 03We do not demand any form of compensation or unreasonable terms from our customers using our superior position.
  • 04We do not engage in deceptive or exaggerated advertising, claims, or concealment of information, and Hyosung Heavy Industries discloses truthfully all information that customers need to know.
  • 05We take responsibility for the entire product life cycle in consideration of customer safety, beginning with the procurement of non-hazardous raw materials, components, and packaging materials, and continuing through product development, manufacturing, distribution, use, and disposal.

3. Responsibilities to Shareholders

3.1 Protection of Shareholder and Investor Interests

  • 01We make every effort to generate solid profits through effective management and to increase the investment value of our shareholders through prudent investments.
  • 02In accordance with accounting standards, we record and manage our financial position with honesty and precision, and we make our accounting public.
  • 03We do not engage in unfair acts such as securities transactions for our own benefit or the benefit of third parties using the company's internal information.

3.2 Protection of Shareholders' Right to Know

  • 01We provide shareholders and investors with timely, accurate, and useful information regarding the company's overall management.
  • 02Through active PR and IR, we work to ensure that the value of our company is accurately assessed.

4. Employee-respecting Management

4.1 Respect for Employees

  • 01We respect the uniqueness of each employee, foster creativity and independence, and provide active assistance and educational opportunities for competency development.
  • 02We provide our employees with equal opportunities and evaluate them fairly based on their achievements and abilities.
  • 03Regarding employment, work, promotion, wages, welfare, and other forms of treatment, we do not favor or discriminate against certain employees on the basis of factors such as regional ties, family ties, school ties, gender, religion, disability, age, social status, national origin, ethnicity, physical conditions such as appearance, marital status, family type or status, race, color, ideology or political opinion, sexual orientation, or medical history.

4.2 Creating a Sound Organizational Culture

  • 01We do not engage in unethical behavior such as employee gambling, nor do we accept inappropriate money or valuables, borrow money, or offer joint guarantees.
  • 02We do not engage in offensive verbal, physical, sexual, or visual conduct, and we respect the privacy of individuals.
  • 03The Company and its employees cultivate an active, innovative, and collaborative organizational culture in order to achieve common goals, and do not engage in actions that promote selfishness or unnecessary departmental conflict.
  • 04The Company endeavors to promote safety and health awareness among its employees. The Company takes proactive measures to ensure the safety of employees and maintain a workplace free of accidents, injuries, natural disasters, illnesses, and contagious diseases.

5. Employees' Ethical Management

5.1 Compliance with Ethical Management

  • 01Superiors may not provide subordinates with unreasonable work instructions that violate the law and company policies, and subordinates may refuse to perform such duties.
  • 02The Company safeguards whistleblowers by protecting their identity and taking the necessary measures to ensure that they are not subjected to unfair treatment, discrimination, or retaliation for their actions.

5.2 Transparent and Honest Business Conduct

  • 01Employees do not engage in arrangements or solicitations that impede the fair performance of duties by other employees for the purpose of unfairly profiting themselves or others, and they do not accept, offer, or promise money or valuables, bribes, or entertainment.
  • 02Employees do not use their superior position and personal interests to prevent conflicts of interest between the Company and customers or between customers, and if so, they seek to minimize the damage to interested parties and attempt to resolve them. 03 Employees strictly manage and protect customer data, including company data acquired through work, in accordance with applicable laws and
    internal security regulations, and do not disclose or use it for their own benefit.
  • 03Employees strictly manage and protect customer data, including company data acquired through work, in accordance with applicable laws and
    internal security regulations, and do not disclose or use it for their own benefit.

6. Suppliers' Mutual Growth Management

6.1 Pursuit of Mutual Growth

  • 01We maintain an attitude of mutual trust and respect with our partners in pursuit of mutually beneficial growth.
  • 02We maintain productive relationships by identifying and cultivating exceptional partners.
  • 03When selecting a partner and initiating and continuing a transaction, we evaluate whether it complies with the company's human rights and environmental and social values.
  • 04We provide various development and growth support activities to achieve sustainable transactions with our partners, thereby laying the groundwork for mutually beneficial growth.
  • 05We actively support companies in the supply chain for sustainability management and evaluate partners based on their sustainability management activities.

6.2 Relationship with Suppliers

  • 01We ensure that transactions with partners are conducted fairly through mutual respect and equal relationships, and we do not engage in unfair transactions that take advantage of our superior position by adequately discussing transaction conditions and procedures.
  • 02We provide partners with equal opportunities in areas such as bidding and contracting, and Hyosung Heavy Industries conducts business by signing contracts on an equal footing.
  • 03We protect the physical and intellectual property rights of partners, as well as their confidential information.

7. Social Responsibility Management

7.1 Contribution to Social Development

  • 01We respect the values of the local community at home and abroad where we operate our business and business activities, create jobs continuously, and fulfill our basic social responsibilities with integrity.
  • 02As exemplary members of society, we respond to and support social needs, such as through social contribution activities.
  • 03We strive to protect the environment and participate in environmental protection activities within communities.

7.2 Social Responsibility Management

  • 01We actively promote purchasing eco-friendly products in accordance with the Green Procurement Policy.
  • 02In the production process, we do not purchase raw and subsidiary materials that have issues like human rights violations and political disputes, such as conflict minerals, and Hyosung Heavy Industries applies this principle when making a purchase from partners.

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

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.