1. Recognize suppliers as important companions and conduct activities to reinforce their capacity, build trust, and produce outcomes together. 2. Conduct supplier support activities in areas such as finance, technology, education, and management to help reinforce the capacity of suppliers and their employees. 3. Present to suppliers matters to comply with at the time of signing a contract with them and print and preserve related documents to build a rational and fair-trade culture. 4. Enhance transparency and fairness regarding the selection and management of suppliers to build a fair-trade order. 5. Actively carry out activities to help suppliers produce outcomes and protect their technologies and share the results with suppliers through a benefit sharing system.
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LG Innotek has established the supplier code of conduct and responsibility standards based on the Responsible Business Alliance (RBA) Code of Conduct and continued the support activities to develop the sustainable business system for partners. LG Innotek is reflecting the code of conduct in the Master purchasing agreement with partner companies. Through the code of conduct, the company support our partners to develop a safe work environment and operate eco-friendly and ethical corporation business by ensuring the dignity of their employees and executives. The code of conduct consists of labor human rights, health and safety, environment, ethics, responsible sourcing, and management system.
LG Innotek’s suppliers perform the annual ‘ESG self-assessments’, as part of our efforts to improve the sustainable competitiveness of our suppliers. The suppliers are recommended to perform self-initiated assessments and make improvements on their operational status in the areas of labor & human rights, ethics, health & safety, and the environment. This comes in tandem with continued support by way of on- site visits and relevant consulting in order to extend the scope of our ESG risk management along the entire supply chain.
LG Innotek is proactively joining hands with the global community to ban the use of any unethically mined tantalum (Ta), tin (Sn), tungsten (W), or gold (Au) within the 10 covered countries including the Democratic Republic of the Congo in Africa and its adjoining countries. The company have established our conflict mineral policy and relevant management standards and procedures while examining suppliers who use these minerals as well as the smelters and refiners in the supply chain by using the CMRT (Conflict Minerals Reporting Template). We also assist suppliers to source minerals used for products from smelters and refiners fully conformant with the RMAP (Responsible Minerals Assurance Process).
In keeping pace with the expanded scope of conflict minerals, we also manage the use of cobalt and mica in addition to the 3TG. Going forward, we will keep a close eye on the related trends through various communication channels including customers, professional institutes, and consultative bodies of subsidiaries, and continue cooperating with our suppliers for regulatory compliance.
LG Innotek provides ESG training curriculum designed for the CEOs, executives and employees of the suppliers to disseminate sustainable management. With the training programs on Jeong-Do Management and compliance management, the company emphasizes the importance of integrity in business prohibition of illicit gains, and compliance with fair trade regulations so that our suppliers contribute to the civility of our society as an ethical company.
In the environmental sector, the company shares global regulatory trends, along with any incidents that occurred concerning environmentally harmful substances that go into components and conflict minerals, while presenting appropriate responses to these issues. Our Green Program is underway to promote the green growth of suppliers and grant certificates by evaluating suppliers for their fulfillment of environmental management system requirements. We are extending the scope of our win-win partnerships to second-tier suppliers signing fair trade and shared growth agreements.