Governance Ethics and Compliance

Governance Ethics and Compliance

  • Basic Approach for ethics and compliance

    Hyosung TNC has established a "code of ethics" to ensure transparent business activities that adhere to ethical standards, providing guidelines for all employees to make a proper and ethical decisions. We will continue our efforts to establish a clean corporate culture and become a company that fulfills its social role and responsibility as a global corporate citizen.

seven elements of
ethics and compliance

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Compliance Action

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  • Goverance structure

    Hyosung TNC has established a robust ethics and compliance organization with the CEO at the top. The CEO is making an efforts to infuse the ideology of ethics and compliance throughout the company's business activities. Key ethics and compliance activities are put in a place under the jurisdiction of the Compliance Support Team, which is composed of personnel with advanced understanding of the company to provide the foundation for the smooth implementation of ethics and compliance activities. In addition, ethics and compliance officers have been appointed within each business department to assist the Compliance Support Team and establish a system to effectively manage the performance of ethics and compliance implementation. Furthermore, independent internal auditors, with no affiliation to the company, are appointed to ensure thorough oversight across all aspects of business operations, including fieldwork and headquarters operations. The CEO of Hyosung TNC has participated in the "CEO Pledge for Ethics and Compliance" hosted by the Ethics and Compliance ESG Forum for four consecutive years since 2020, declaring compliance with an ethics and compliance internally and externally.

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  • Communication Channels

    Hyosung TNC operates an HR counseling center and a complaint handling office where employees can report unethical behaviors and grievances that may occur within the company, such as harassment, personnel misconduct, and workplace harassment. In addition to in-person counseling, online anonymous counseling are also available to protect the anonymity of employees. Various communication channels, including email and postal services, are operated to encourage reporting. Furthermore, a Whistleblowing system is provided on the company's website to receive reports of unethical behaviors that may occur in the supply chain, such as bribery, improper solicitation, and unfair trading.

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  • Code of ethics

    We pledge to establish and actively practice the Code of Ethics, which serves as the behavioral guidelines for Hyosung Group, in order to adhere to the law and ethics, respect customers and employees, and fulfill the core role of the company and its social responsibilities.
    This Code of Ethics outlines the ethical values and behavioral standards that all employees of Hyosung Group must adhere to, serving as the criteria for evaluating the company's decision-making and actions for transparent and sustainable ethics and compliance.

    • Definition and Objectives to Pursuit

      The Fair Trade Compliance Program (CP) is an internal program and system that a company operates to voluntarily comply with a regulations related to fair trade through activities such as monitoring, training, supervision, and sanctions. We aim to prevent losses resulting from regulatory violations in advance, foster a desirable culture of competition and fair trade, and fulfill our responsibility in the area of business ethics to achieve responsible management. Hyosung TNC introduced the CP in June 2018, inheriting it from Hyosung Corp. when the company underwent a spinoff in September 2006. Every year, we update the Fair Trade Voluntary Compliance Manual to guide our employees in understanding the program guidelines. Through the operation of the CP, we strive to prevent risks associated with a regulatory violations in advance, establish a culture of compliance and ethics and compliance among our employees, and become a model company that adheres to fair trade.

    • CP Implementation Organization and Voluntary Compliance Officers

      The Fair Trade Voluntary Compliance duties are overseen by the Compliance Support Team, which works to minimize related risks through activities such as familiarizing all employees with the company's voluntary compliance program guidelines, providing fair trade training and monitoring.
      Compliance officers appointed by the board of directors serve as voluntary compliance managers, responsible for running the Fair Trade Voluntary Compliance Program. They are granted authority to report important matters directly to the board of directors and top management, and they regularly provide reports to the board of directors and top management.

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    • Dissemination of Ethics and Compliance Awareness

      When joining the company, employees are required to understand the ethics and compliance philosophy, ethical guidelines, and ethical guidelines in practice, and they must write an ethics and compliance pledge and a pledge not to take bribes and gifts, etc. In order to effectively improve ethical awareness, promotional videos and magazine-like materials are produced and distributed through the company's groupware.
      Partner companies are required to adhere to the "Hyosung TNC Supplier Code of Conduct," which encourages anti-corruption and ethics and compliance, and the company will further spread its message of ethics and compliance awareness throughout its supply chain through ESG management consulting support for small- and medium-sized enterprise suppliers.

    • Ethics and Compliance Education

      The company conducts ethics and compliance training for employees every year. Ethical management training is mandatory for newly hired employees and those who are promoted. Additionally, departments with a higher risk of issues related to their direct relationship with suppliers are selected for regular training on subcontracting laws, cases of contract violations, etc. Sales departments receive training on trade secret protection, violations of trade secret protection, embezzlement, gift-giving, document forgery, cases of violations of fair trade laws and distributorship laws, providing information on procedures and criteria established by law. The company also provides ethical training materials and training venues for supplier employees.

    • Strengthening Internal Monitoring and Post-management

      The company conducts audits throughout a various aspects of management, including field operations, various reports investigations, and business diagnoses. Audits are carried out in areas including technology and quality. The company ensures the independence of audit activities, guarantees anonymity to protect both the auditee and whistleblower from unfair treatment, and minimizes disadvantages. Regular audits are conducted in accordance with internal audit rules, and special audits are conducted when specific issues or problems arise. Depending on the severity of the case, measures such as warnings, disciplinary actions, and restitution are taken. Audit findings are reported to the CEO, and the auditees promptly make improvements in response to identified issues. Additionally, the audit team periodically re-evaluates to prevent the recurrence of similar issues.