컨테이너 영역
Social
Supply
Chain
-
Collaborative Partnership with Suppliers
Hyosung TNC has established the supplier code of conduct to facilitate sustainable supply chain. Annually, when engaging in fair trade agreements, we secure a commitment from suppliers to adhere to the code of conduct. We perform regular evaluation of the suppliers and check their compliance through assessments by experts. To address adverse impacts found through the assessment and remove risk factors, Hyosung establishes plans and reviews them through the Collaborative Partnership Deliberation Committee prior to their implementation. We conduct site inspection to check the improvement and manage follow-up actions.
-
Supply Chain Governance
Hyosung TNC Supply Chain Management Committee(SCMC) was established with the Chief Procurement Officer as the chairperson.
Purchasing managers from headquarters and each overseas business sites discuss important issues regarding global supply chain twice a year.
-
Process of Establishing a Supply Chain ESG System
In 2022, Hyosung TNC established a Supplier Code of Conduct that incorporates ESG (environmental, social, and governance) elements. The company has demanded its suppliers commit to this code, contributing to awareness and improvement regarding the human rights, child and forced labor, governance compliance, and sustainable supply chain practices among. Furthermore, since 2022, Hyosung TNC has requested its suppliers respond to self-assessment questionnaires or assessments from reputable external evaluation organizations related to ESG elements. The responses are used as foundational data for Hyosung T&C's sustainable supply chain risk assessment. For small- and medium-sized suppliers, the company offers support to enhance their ESG capabilities in coordination with the Win-Win Growth Program.
Hyosung TNC has established scenario training and response manuals to systematically address emergencies that may impact the delivery schedules of all products supplied to our customers. Based on these preparations, we conduct drills to assess the impact and scale of emergencies, identify their causes, and implement recovery and mitigation measures. These drills also help us identify issues and improvement areas at each response stage and validate the effectiveness of our response scenarios. Additionally, since 2023, we have incorporated ESG criteria into legally binding purchase agreements to enhance our operations.
*Supply Continuity Emergencies: Labor shortages due to strikes, transportation accidents, environmental incidents, cyber attacks, etc.
-
ESG Value Dissemination in the Supply Chain
The supply chain is becoming increasingly important for securing a company's sustainable global competitiveness, continuous growth, job creation, and as the economic foundation of a fair society.
Hyosung TNC has revised its internal regulations to incorporate sustainability elements such as ethical, social, and environmental standards into its existing supplier management process. This is designed to meet changing social demands and promote social responsibility within the value chain.
Related Information
Hyosung TNC Supplier Registration and Evaluation Process
-
Hyosung TNC Supplier ESG
Management Areas:Environment
Creating a greater environmental value
through actions and by establishing an
environmental management systemImplementing a cleaner
environmental managementSocial
Generating greater societal value
through positive relationship-building
with diverse stakeholdersBuilding more humane
stakeholder relationshipsGovernance
Creating greater ethical value
through a systematic and strict
governance structurePromoting more ethical
business conduct
Fair Trade
Establishment of
Fair Trade Order
Hyosung TNC has introduced and operates the four major compliance items recommended by the Fair Trade Commission as part of our company regulations to foster a culture of fair trade with our partners.
In addition, we have published guidelines prohibiting retaliatory actions such as one-sided trade restrictions or suspensions against our partner companies to create a foundation for a fair partnerships and to establish rational and transparent trading relationships.
Operation of Fair Trade
Self-compliance Program
To promote a culture of fair trade based on transparent and legitimate procedures, Hyosung TNC has implemented and operates a Fair Trade Self-compliance Program.
Furthermore, through the Transparent Management Committee under the board of directors, we address the issues such as favoritism or unfair internal transactions and conduct advance deliberations and resolutions on related issues, including compliance with the Fair Trade Self-compliance Program.
Pre- and Post-transaction Audits
Since 2019, Hyosung TNC has been operating a pre- and post-transaction audti system with partner companies. Through this system, we monitor compliance and the occurrence of unfair practices. Before proceeding with transactions, we confirm factors such as the provision of written contracts prior to trade, prohibition of unfair determination of subcontracting payments, and prohibition of coercion to purchase goods, as well as improper demands for monetary benefits. After completing transactions, we verify issues such as delayed payment, violations of technical data regulations, and unjust cuts in subcontracting payments.
Fair Trade
Education
Hyosung TNC establishes a direct relationships with partner companies involved in fair trade, such as the purchasing department and factory management team. We periodically conduct education on subcontracting laws, contract violations, and other relevant topics for departments that are at high risk of risk occurrence. Furthermore, we provide information on procedures and standards for compliance with fair trade laws, including the Fair Trade Act and Agency Act, to our sales department. This ensures that they have the necessary knowledge to adhere to relevant laws and regulations in their business conduct.
Partner Company Reporting/Proposal Process
