Jeong-Do Management is an ethical management and code of conduct to enable capability development and fair competition.
Work done with utmost transparency according to principles and standards.
Fair transaction
Provide equal opportunities and fair treatment in every transaction.
Improve capabilities through with which one can beat rivals in fair cometition.
LG Code of Ethics
We, at LG, share and believe in two key corporate philosophies “Creating value for customers” and “Respecting human dignity.” Based on these principles and in the spirit of our Management Charter, we strive to promote self-governing management and is accompanying responsibilities. It is our intention to uphold the principle of free market economy, which embodies the spirit of fair competition. We are committed to attaining our goal of becoming a global leader, and as such we will continuously pursue mutual benefits for our stakeholders on the basis of trust and cooperation. LG is committed to act uprightly and make value judgments in accordance to the code of ethics.
LG believes our customers’ views form the very foundation of our business and always respects them. Our goal is to earn unconditional trust from our customers by continuously creating and providing values that are useful for them.
1. Respect for Customers
LG values customers’ views and acknowledges their genuine needs at all times. First and foremost, our decisions and conduct are customer-oriented.
2. Creating Value
(1) LG always strives to discover values customers need and believes that helping our customers lead to our advancement.
(2) LG constantly creates values that genuinely benefit and satisfy customers.
3. Providing Value
(1) LG is always sincere to customers and keeps our promises.
(2) LG offers top-quality products and services at reasonable prices and responds to customer requests with speed and accuracy.
LG’s global business activities conform to relevant laws and regulations of the host nations. At the same time, we employ only fair and just means in obtaining our competitive advantage in the global market.
1. Pursuit of Free Competition
(1) LG pursues free competition under the principles of free-market economy and earns our customers’ trust through top-quality products and services.
(2) LG competes fairly and capably with our competitors and does not intrude upon their interests or exploit their weaknesses.
2. Compliance with Laws and Regulations
LG conducts domestic and overseas business activities in strict accordance with local laws and regulations and with respect for local business customs.
LG conducts all business transactions based on the principles of fair competition with equal opportunities for all parties. We build trust and cooperative relationships through fair and transparent trade and pursue mutual growth with the partners in the long term.
1. Equal Opportunity
(1) LG offers equal opportunities to all qualified companies seeking to become our business partners.
(2) All applicants are registered and selected in a rational manner following a fair and objective evaluation process.
2. Fair Transaction Procedures
(1) All business transactions are conducted under equitable circumstances. The terms and procedures of the transaction must be sufficiently discussed between the parties involved.
(2) Any abuse of power that results in unfair practices is strictly forbidden.
(3) LG exchanges information necessary for business through appropriate procedures in a timely manner. The results are evaluated fairly on a regular basis and complementary measures are mutually taken.
3. Support and Aid for Business Partners
(1) LG supports the long-term growth of our dealers and vendors by enhancing their competitiveness through technological and managerial assistance. We share the profits derived from business innovations.
(2) LG promotes transparent business conditions and maintains fair business systems mutually with our dealers and vendors.
Based on honesty and fairness, LG members uphold proper values and fulfill the duties through continuous self-development and integrity in performance.
1. Basic Ethics
LG members take pride in the company and always maintain an honest and fair attitude.
LG members set a high standard of morality and continuously strive to uphold their personal dignity and company’s honor.
2. Fulfillment of Duties
(1) LG members faithfully accomplish their mission in compliance with the visions and policies of the company.
(2) LG members carry out assigned duties in the best and fairest possible manner while observing relevant laws and regulations.
(3) LG members protect and preserve company property and do not divulge confidential information gained during employment.
(4) LG members exert themselves to enhance work efficiency through open communication and cooperation with colleagues and related departments.
3. Self-Development
LG members establish the image of an ideal employee and constantly strive to conform to it through continuous self-development.
4. Fairness in Performance
(1) LG members carry out their duties based on honesty and fairness, seeking to foster a sound business culture.
5. Avoidance of Conflict with Company Interests
(1) LG members avoid any individual behaviors or relationships that are in conflict with company interests.
(2) LG members do not use company property to pursue their personal interests without prior permission.
LG respects the human dignity of its members and provides fair treatment based on their abilities and performance. LG also strives to foster creativity among its members.
1. Respect for Human Dignity
(1) LG treats each member with trust and affection and places a high value on individual human dignity.
(2) LG inspires pride and fulfillment in members by instilling a sense of ownership in their jobs.
(3) LG establishes fair regulations and educational guidelines necessary for members to perform their duties.
2. Fair Treatment
(1) LG offers equal opportunities to all members based on their abilities and talent.
(2) LG applies fair measures to evaluate the abilities and performance of members and rewards them accordingly.
3. Promoting Creativity
(1) LG makes utmost efforts to promote a working environment conducive to creative thinking and autonomous behaviors.
(2) LG develops and manages its human resources on a long-term basis and gives active support to cultivating members’ abilities.
(3) LG creates a mature organizational culture based on mutual trust and understanding that respects personal privacy.
LG achieves sound growth through rational business operations, thereby protecting stockholders’ interests and contributing to national welfare and social development.
1. Rational Business Operations
(1) LG respects local social values in Korea and abroad in conducting its business.
(2) LG promotes its business expansions based on stable corporate growth.
2. Protection of Stockholder Interest
LG protects its stockholders’ interests by earning sound profits through effective management.
3. Contribution to Social Development
LG contributes to national and social development through creating jobs, paying taxes faithfully, and offering cultural and welfare programs.
4. Environmental Conservation
LG strives to prevent environmental pollution and employs all measures necessary to conserve precious natural resources.
Operation Programs
Operation of Management by Principle
LG Chem operates the Ethics Bureau, an organization dedicated to Management by Principle, directly under the chief executive officer to execute the activities for Management by Principle systematically. LG Chem's Korea and overseas business sites also have their own Ethics Bureaus.
Portal for Management by Principle
LG Chem operates an intranet site containing the detailed information about Management by Principle such as the LG codes of conduct, Q&A on Management by Principle, etc. Through this website, LG Chem prevents any act of violation caused by the failure to accurately understand the LG codes of conduct and answers all the questions that might arise while carrying out Management by Principle.
Ethics Hotline
LG Chem operates the Ethics Hotline to report any Management by Principle violations or wrongdoings. Executives, employees or any party concerned can submit a report via online, postal mail or fax. LG Chem makes a constant effort to prevent corruption and fraud by its employees while improving irrational systems and work processes.
Education/Promotion of Management by Principle
LG Chem provides training programs for its employees by their duties, including purchase, sales, production, R&D, etc. and also by their titles, including new recruits, managers, seniors, etc. The company also provides online training programs so that all the employees can take the training courses for Management by Principle on a regular basis. Moreover, the company has expanded the scope of its training programs, covering overseas employees and partner companies. Alongside the training programs, LG Chem does its best to firmly establish the organizational culture of Management by Principle by promoting the relevant activities and sharing specific cases of violation.
Reports on Act of Bribery
LG Chem strictly prohibits its employees from taking any monetary rewards or treats from the parties concerned under any circumstances. Notably, it prevents taking any personal gifts, including those for congratulations and condolences. If any of the employees had to take the money or gift for unavoidable reasons, they are required to return them after submitting a report to the company. If this is not possible, they are required to donate them directly to charitable organizations. If this is also impossible, the company holds an internal auction with the gifts its employees received and supports charitable organizations with the profits obtained from the auction.
Management by Principle Pledge
LG Chem performs the Management by Principle Pledge for its entire employees online. In this pledge, LG Chem's employees and partner companies vow to comply with the LG codes of conduct and practice Management by Principle every year.
Survey on Management by Principle
LG Chem performs Management by Principle survey every year targeting its employees and partner companies, and the survey results are used to improve the training programs/systems.