LG Hausys’ sustainability management takes the company’s vision, “creating human-friendly, eco-conscious living spaces”, as its basis. We strive to fulfill our social responsibility while at the same time effectively controlling risks and providing peerless value to stakeholders.
“We create human-friendly,
eco-conscious living spaces”
To achieve a sustainable company
in harmony with stakeholders
LG Hausys conduct thorough and effective risk management activities in order to early identify and solve any issues that arise. Nine areas are subject to review: Governance, Ethics management, Shared growth, Fair trade, Customer value, Social contribution, Labor conditions and Human rights, Safety and health, and Environmental management.Immediate action was taken to resolve any risks predicted and/or discerned through such inspections/diagnosis, and these areas are subject to regular monitoring to ensure the issues(s) have been effectively resolved.
LG Hausys has carried out various CSR activities. We are acutely aware of the impact of our business activities on society and people and utilize our CSR activities to nurture our relationships with local communities.
LG Hausys communicates with its major stakeholders - customers, shareholders and investors, business partners, employees, and local communities –through tailored channels. We ensure transparency by making widely available literature on the activities and outcomes of our business and other activities (eg. Sustainability reports, Business reports, Environmental information reports). Such transparent information disclosure enables us to gain the trust and respect of our valued stakeholders, and promote our CSR activities and various training programs.
LG Hausys’ roadmap for sustainability management guides our current efforts in this area and helps us set clear strategies for the future. In 2014, we added the “Major Issues about CSR Activity” to the board of directors (BOD) report, laying the foundation for future discussion of sustainability management-related topics at BOD meetings.
“Important Issues about
added to BOD report
The CSR Code of Conduct by LG Hausys is designed to present the requirements and standards that we expect our suppliers to participate in our social responsibility and efforts.
a. We prohibit the employment of children under the minimum legal working age, and concerning youth workers, comply with relevant regulations governing the minimum legal working age, work hours and work conditions
b. We prohibit forced labor, sweated labor and all other types of labor that go against the voluntary will of workers, and prepare labor contracts that clearly specify labor conditions.
c. We prohibit any type of discrimination on the grounds of race, skin color, age, gender, origin, disabilities, pregnancy, religion, political preference, labor union membership, and marriage status in such employment practices as recruitment, promotion, compensation, and educational opportunities.
d. We respect the dignity of workers, and create a work environment free from any inhumane treatment or threats ranging from sexual harassment, abuse, corporal punishment to psychological/physical coercion or verbal violence.
e. We abide by relevant legal criteria set forth concerning maximum work hours/days, minimum wage, welfare and benefits, labor hours and compensation
f. We acknowledge the freedom of association and the right to collective bargaining that are guaranteed by law, and create an environment where workers can communicate with the management on labor conditions without any fear on discrimination, retaliation, threat or harassment
g. We bear the responsibility to ban any type of corruptive practices such as bribe-taking (including receiving gifts) and embezzlement through corporate policy, and to constantly monitor and crack down on such practices. Furthermore, we guarantee the protection and confidentiality of whistle-blowers
h. We take legally-required actions to ensure that workers work and live (if residence is provided) in a safe and healthy environment, ranging from assessing and eliminating risk factors and offering continued training and emergency drills to providing personal protective equipment.
i. We do our utmost to obtain and update necessary environmental approvals and to minimize any negative impact of our manufacturing process – hazardous materials, waste and wastewater, air pollution and the use of resources - on the environment and local communities.
LG Hausys discloses ESG data based on stakeholder interests.
|Category||Median Employee Compensation||Mean Employee Compensation||Total CEO Compensation|
|Annual compensation [Unit : KRW 1 million]||71||73||660|
|CEO compensation divided by the mean or median employee compensation||9.30||9.04||-|
* Calculated with reference to LG Hausys Business Report 2019
|Name of Organization||Total Amount (KRW)|
|The Korean Chamber of Commerce and Industry||157,559,000|
|The Korea Enterprises Federation||33,200,000|
|Korea Specialty Construction Association||28,019,900|
|Korea Products Safety Association||12,000,000|
|Korea Association for Exterior insulation||10,000,000|
|Total contributions and other spending||329,765,220|
* LG Hausys does not contribute to political campaigns, political organizations, lobbyists or lobbying organizations.
* LG Hausys pays association fees as a membership only and has no issues or topics to participate in or support its position.
|Category||Unit||2016||2017||2018||2019||Target for 2019|
|Employee engagement||% of actively engaged employees||82||81||79||80||80|
|Data coverage||% of total employees||83.3%||82.5%||80.5%||83.8%||-|
* The LG Way Index indicates the ratio of positive answers, tabulating the number of respondents that assigned a score of four or five on a scale of one to five (five being the most positive response).
· CSR Activitie
|Category||Description of alignment between activites and our business drivers||Business Benefit KPI||Social / Environmental Benefit KPI|
|CSR activity related to business||LG Hausys provides wallcoverings, flooring materials, windows, and supports construction, and utilizes our business capabilities and infrastructure to improve the living environment of the underprivileged (national merit, independent historic sites, impoverished children, etc.).||
1. Public relations of products, construction, and design capabilities
2. Increase in the number of customers and enhancement of consumer satisfaction
|Environmental improvement support for the neglected class of people, and improvement in the standard of living of community : Number of times of support (Support for 26 men of national merit, Support for 10 historic sites for independence, Support for 24 youth facilities)|
|Education of children/adolescents||LG Hausys contributes to the development of society by providing educational opportunities to young people about cultural heritage, and assisting them to proactively and voluntarily discover contents on cultural heritage conservation, public relations, and utilization.||Enhancement of LG Hausys corporate brand Image||
1. Increase in concern for cultural properties
2. Discover contents on cultural heritage conservation, public relations, and utilization
|Social Value Creation||LG Hausys is working with Ministry of Land, Infrastructure, and Transport and local governments to conduct a
||Customer Securing and Increase in Sales : Increase in the number of construction progress(6,200 cases in 2016, 6,800 cases in 2017, 7,200 cases in 2018, and 7,500 cases in 2019)||Decrease in Building Energy Waste : Reduction of the maximum 40% in heating & cooling cost per household on an annual basis. (compared to 5th grade products)|
· Monetary Value of Contributions
|Type of Contribution||Total amount|
|Cash contributions||KRW 1,102 million|
|Time: employee volunteering during paid working hours||998 Hours|
|In-kind giving: product or services donations, projects/partnerships or similar||KRW 402 million|
|Management overheads||KRW 41 million|
|The overall CSR activity costs||KRW 1,545 million|