Compliance Management
The goal of LS Cable & System's compliance management is to eliminate the risk of violating fair trade
laws and regulations and faithfully fulfill its management mission, ‘the role of fair corporate citizen.In order to achieve the goal, LS Cable & System has appointed Chief Compliance Officer and operates
the Compliance Program(CP) to guide employee practices.
- CEO's Message for Compliance Management
- Compliance Management System
- Practice and Expected Effects
Since 2012, LS Cable & System has implemented ‘Compliance Management Program to faithfully fulfill ‘the role as a fair corporate citizen’ in the society.
In order to internalize compliance management system into our corporate culture and have all of the employees abide by these principles CEO sends out his message on significance of Compliance Management System.
CEO's Message for Compliance Management
Dear Employees,
As all of you may be aware, global corporations are becoming more and more accountable for their social and ethical responsibility, and this Corporate social responsibility along with commitment for fair trade and competition is becoming foundational elements to ensure corporate survival.
LS Cable & System can only secure market competitiveness and achieve long-term success when all of the employees follow social and ethical responsibilities and fully commit themselves to engage in fair trade and competition.
As an instrument to ensure transparent and fair trade and to internalize compliance culture within the Company, LS Cable & System has implemented the ‘Compliance Management Program’ in 2012.
As part of these activities, we ask our employees to implement the following principles to establish a culture of compliance within our LS Cable & System.
- 1) Compliance with domestic and international fair trade laws, international standards and best practices, etc.
- 2) Actively participate in educational programs to maintain and strengthen the level of awareness of fair trade culture and consultation procedures for related laws and regulations.
- 3) Embrace a culture of compliance and work with compliance responsibilities in your field of work
All employees, please comply with LS Compliance Management Code of Conduct and Commitment to Stakeholders, company regulations, and related laws to secure customer trust and sustainable growth of LS Cable & System.
Yours sincerely.
Compliance Management System
Operation of Compliance Management Organization and System
ESG Management ‘Compliance’
- Operate conferences for systematic activities of Compliance within the company
- Establishment of Compliance System including appointment of Chief Compliance Officer
Homepage operation
- Introduction of LS Compliance Management Code of Conduct and Commitment to Stakeholders
- Regular posting of materials, such as cases of legal violations, to promote a culture of compliance among employees
Risk management of legal violations
- Conducting a Risk Self-Check for fair trade across the company voluntarily
- Operation of a Subcontract Dispute Mediation Council to achieve autonomous resolution of subcontract disputes
Employee training on fair trade
- Annual training for employees
- Provide various training such as customized training based on employee demand
Operate fair trade consultation room
- Activating free inquiries from employees related to fair trade
- Collecting and responding promptly to reports related to fair trade from internal and external
stakeholders on a regular basis.
Organizational Chart of Compliance Management
Compliance Declaration
Compliance Management Declaration
To become a company trusted by customers, LS declares, as follows, to practice compliance management based on the group's management philosophy known as “LS Partnership.”
First, we comply with all domestic and international laws and company regulations and do not engage in any illegal activities when conducting company business.
Second, we must hold lawbreakers to account for their illegal acts and deal with them sternly.
Third, through compliance management, we contribute to the improvement of the interests of customers, shareholders and local communities, and fulfill our responsibilities and obligations to the country and society.
January 2, 2014
LS employees
LS Compliance Management Code of Conduct
LS Compliance Management Code of Conduct
Based on the core value of C.O.R.E, all employees of LS Cable & System will pursue sustainable
development by practicing the following Code of Conduct and compliance with fair-trade laws.
- 1. Compliance Responsibilities and Obligations of Employees
- We compliance with domestic and international fair-trade laws, international standards and best
practices.
- We accept the culture of compliance and are responsible for compliance with laws and regulations in its
field of work.
- We do not connive the instruction, incitement, or detection of violations, such as the laws of other
employee.
- We actively participate in Compliance Training and pre-legislative advice to strengthen the company's
fair trade culture.
- We seek advice from the Chief Compliance Officer or Compliance office in the event of questions about
fair trade laws and concerns over violations.
- We report immediately to the Compliance office in case of violation of related fair-trade laws and actively
participate in subsequent sanctions and recurrence prevention programs.
- 2. Fair Trade
- We comply with laws and regulations related to fair-trade for the faithful implementation of the 'role of fair
corporate citizen'.
- We do not exchange information with competitors that may hinder fair competition, such as price
information.
- 3. Shared Growth with Our Suppliers
- We maintain sound partnerships with suppliers in the fields of raw materials, equipment, material
purchase, and manufacturing.
- We comply with the Subcontracting Act, and we do not engage in unfair acts such as abuse of trading
position with respect to suppliers.
- 4. LS C&S’s Compliance Responsibilities and obligations
- LS C&S operates compliance programs such as training so that employees can comply with domestic
and international fair-trade laws, international standards and best practices.
- LS C&S allocates appropriate duties and powers so that employees can accept the culture of
compliance have a sense of responsibility for compliance with laws and regulations in their field of work.
- LS C&S implements appropriate measures to prevent subsequent sanctions and recurrence
regarding violations of fair-trade laws and regulations.
- LS C&S provides rewards such as incentives to employees who actively contributes to the
establishment of compliance culture and practice this in an exemplary manner.
LS Compliance Management Commitment
LS Compliance Management Commitment
All employees of LS Cable& System practice the following LS Compliance Code of Commitment in
accordance with the LS Cable & System Compliance management Code of Conduct.
- Part 1. Prohibition of meeting and exchanging information with competitors
- 1. Employees shall not engage in the following acts.
- ① An act of agreeing with a competitor on terms of trade, such as price and quantity of products
- ② The act of attending official or informal meetings with employees of competitors
- ③ Exchanging confidential and sensitive information, such as price hike plans and price hike details,
with competitors
- 2. If attending a meeting with employees of a competitor due to unavoidable reasons, submit an industry
meeting attendance report to the Chief Compliance Officer and comply with meeting attendance
principles and processes.
- 3. In the event of a discussion on the terms of a transaction, such as price, at a meeting with employees
of a competitor, request an immediate cessation of the discussion, and if the discussion nevertheless
continues, leave immediately.
- 4. When preparing a document that describes a competitor's price, transaction conditions, production
volume, marketing strategy, etc., provide a clear source.
- Part 2. No bidding rigging
- Bidding rigging refers to an act of unfairly restricting competition by colluding with two or more
competitors in bidding for objects desired by employer, such as purchase of goods and services and
construction. In this regard, all employees shall observe the following.
- 1. We independently decide whether to participate in or withdraw from bidding, and the
conditions of bidding proposals, regardless of the circumstances of our competitors.
- 2. We do not agree or discuss with competitors whether to participate in or withdraw from bidding,
bidding prices and conditions, or regional market distribution.
- Part 3. Prohibition of unfair acts against suppliers
- 1. Maintain sound partnerships with suppliers in the fields of raw materials, equipment, material
purchase, and manufacturing.
- 2. We do not engage in unfair acts such as forcing suppliers to lower prices, delay payment,
unilaterally forcing purchases, and unreasonable returns by using our superior position in
transactions, and we do not impose any disadvantages on our suppliers for non-cooperation.
- 3. We do not set discriminatory trading conditions for our partners without reasonable grounds
or provide unfair benefits against business practices.
- 4. We do not force the counterparty to provide excessive economic benefits by using our trading
position, demand an unreasonable cessation of transactions, exclude competitors, etc., and
do not interfere in the management of partner companies under any circumstances.
- 5. If a request for a partner company is related to our superior position in transactions, sufficient
relevant information is provided to the partner company in advance.
- 6. Create a contract using our standard contract form and consult with Compliance office in
advance when modifying the contract.
- 7. We do not engage in unfair acts against our partners using other methods.
- Part 4. Prohibition of misappropriation and request of technical data
- 1. Do not request the technical data of other business operators, such as partner companies, to
be provided to the person or a third party without justifiable reasons.
- 2. When requesting technical data from other business operators, such as partners, for
justifiable reasons, the purpose, ownership relationship, price, etc. are determined in advance
in consultation with the business operator, and a written document containing the details is
provided to the business operator.
- 3. If technical data is provided from other businesses, such as partner companies, sign a confidentiality
agreement that includes the scope of the technical data, confidentiality obligations, and prohibition of
use other than purpose.
- 4. Do not act to unfairly use or provide to a third party for yourself or a third party with respect to
acquired technical data of other business operators.
- Part 5. Prohibition of Abuse of Dominant Market Position
- Executives and employees shall not engage in the following acts using market dominance.
- 1. An act of unfairly determining, maintaining, or changing the price of a product or the price of a
service.
- 2. An act of unfairly controlling the sale of products or the provision of services.
- 3. Unreasonably interfering with the business activities of other business operators.
- 4. Unreasonably interfering with the participation of new competitors.
- 5. Transactions in order to unfairly exclude competitors or acts that are likely to significantly
harm the interests of consumers.
- Part.6 Responding to investigations by competition authorities such as the Fair-Trade
Commission
- All employees shall comply with the following when investigating competition authorities such as the
Fair-Trade Commission.
- 1. In the event of an investigation by competition authorities such as the Fair-Trade
Commission, immediately contact the legal department.
- 2. Confirm the investigation period, investigation purpose, investigation subject, investigation
method, etc. written in the official identification card of the investigation official and the official
investigation document.
- 3. Request an immediate cessation of investigations by investigation officials who do not have
certificates and investigations that deviate from the matters described in the official investigation
documents and request the assistance of lawyers belonging to the legal department.
- 4. Cooperate with investigation officials in legitimate investigations, and do not arbitrarily destroy related
documents during investigations and investigations.
- Part 7. Sanctions in case of violation of promises of behavior, etc.
- 1. Employees and Partners who violate this commitment are subject to disciplinary action and
contract termination according to each company's regulations.
- 2. Employees shall bear civil and criminal responsibilities in case of violation of laws and
regulations related to fair competition.
- 3. Employees who voluntarily report violations of laws and regulations to the company may be
exempted from disciplinary action in accordance with relevant regulations.
Practice and Expected Effects
Practicing compliance management
Expected benefits of compliance management
Individuals
Establishing basic patterns of behavior
- Awareness of the code of conduct at work
- Suppressing minor and customary illegal acts
- Monitoring the illegal acts of others
Respective companies
Improving corporate competitiveness and establishing a culture of compliance
- Preventing risks
- Reinforcing long-term competitiveness by improving financial performance
- Enhancing customer trust by expanding the basis for compliance awareness
Group
Improving internal and external reliability
- Recovering LS brand image
- Contributing to group management and interests
- Establishment as a unique group culture
