LG Energy Solution advances governance for a sustainable future and practices sustainable management
in areas including ethics, compliance, risk management, and information security.
Ethics Management
Jeong-Do Management refers to LG’s unique code of conduct based on ethical management, which targets steady cultivation of competence to run fair competition.
The LG Code of Ethics, the standard for proper behavior and value judgment that all LG members must abide by, and Compliance Guidelines for understanding and responding to legal risks that may arise in the course of business, are all based on Jeong-Do Management. It also serves as the foundation for all LG Energy Solution’s business activities conducted by employees across all global business sites. With a view to ensuring Jeong-do Management in a systematic and coherent manner, we have a designated organization called the Ethics Secretariat. The secretariat is mandated to promote awareness and conduct ethics trainings to all employees across global sites, investigate and communicate on reported cases, and conduct ethics trainings for suppliers. Further, it identifies major ethical issues and conduct audits annually of employees for violations of ethical standards, such as misconduct, sexual and/or workplace harassment. In line with the compliance management system, we also monitor compliance related to ethical issues for all global business sites regularly and as needed.
Process
| Process | Tasks |
|---|---|
| Receipt of Report | Registration of received report |
| Plan for Investigation | Confirmation of the scenario, subject, schedule, and content of the investigation |
| Investigation | Preliminary, on-site, and follow-up investigation |
| Post-Investigation | Report to management including investigation results |
| Follow-up Management | Follow-up measures, verification of any disadvantages incurred to the informant |
LG Group, including LG Energy Solution, operates the Jeong-Do Management website. It serves as a channel for external stakeholders to report on customer complaints regarding product, service and quality, as well as for employees and partner companies to report on any unethical or illegal behavior, including bribery, solicitation/graft, embezzlement/misappropriation of assets, environmental and safety accidents, unfair trade practices, document manipulation, and sexual/workplace harassment and abuse.
Under the principle of informant protection, any information that exposes the ID of the informant or suggests it is not disclosed without consent of the informant, and we are held liable for any disadvantage incurred by failure to observe this by making restitution or equivalent action.
Further, we have put in place a whistleblower reward program to enhance the transparency and accountability of our business, as well as eliminate unethical or illegal behavior that undermines customer value.
Compliance Management
LG Energy Solution has established a compliance management system (CMS) to identify and prevent compliance risks in major areas related to business activities such as quality, environmental safety, information security, and ethical management, and operates its own compliance control standards. We have a designated compliance officer that oversees the compliance support and control system. We carry out annual evaluations of the system's validity, reflecting the evolving requirements of global standards and customers demands, and report to the Board of Directors.
In November 2021, LG Energy Solution became the first in the global battery industry to obtain ISO37301, an international certification for compliance management systems. We will continue to enhance transparency and reliability for our customers and stakeholders and acquire solid competitive advantage in global compliance.
Ensuring Business Resilience
LG Energy Solution operates a company-wide risk management system to identify, prevent and respond to risks in the areas of quality, occupational safety, supply chain, business, finance, and social and environmental risks. A Chief Risk Officer (CRO) is appointed to prioritize the safety of employees, local communities and customers, and a dedicated organization is responsible for proactive risk management. In particular, quality, environment and safety, and compliance have been identified as core risk areas, and to address related issues, we conduct various activities including enhancement of quality control system, expanding environment and safety improvement activities in new business sites, and building partnership to stabilize the supply chain. We plan to continuously improve the risk management system to minimize risks that may arise in our business activities.
Information Security
LG Energy Solution protects important information assets not only for the company but also for stakeholders including employees, customers, and suppliers in accordance with the ISO/IEC27001-based information security management system. While ensuring compliance with respective laws and regulations related to information security in countries where we operate, we implement various activities to raise awareness of stakeholders on information security. We also build alertness to detect and respond to cyber threats on a real time basis and prevent accidents.