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Economic Sustainability

Stake-holders’ Value and Enterprise Value Enhancement

Economic Sustainability

Hyosung Advanced Materials strives to meet the demands of the various stakeholders as well as to continue business in a manner that fulfills our social, economic, and environmental responsibility as part of the social community. We conduct economically sustainable activities to contribute to the enhancement of both stake-holders’ value and enterprise value.

Risk Management

Hyosung Advanced Materials defines and manages potential uncertainties in the market as well as internal and external risks and opportunities within its risk management system. We established risk prevention system enables to tackle risks preemptively with drawing of key risk in accordance with likelihood and impact of risk, separated in financial, business continuity and management.

  • Financial Risk

    Financial Risk

    Market risk and credit risk associated with financial factors such as liquidity, stock price and exchange rate fluctuation

    Current Management & Preventions Activities

    • Risk assessment, analysis and hedging through finance & trade finance specialists
    • Systematic risk management activities based on policy authorized by the Management Committee of the BOD
  • Risk to Business Continuation

    Supply Chain Risk

    Risk of delay in product delivery due to raw materials supply chain failure and/or interrupted production continuity

    Current Management & Prevention Activities

    • Periodic evaluation and audit for all major materials suppliers’ quality and environment based on international standards such as IATF16949 and ISO14001
    • Establish an emergency response system/protocol and training in accordance with the scenario of raw material supply chain failure to enhance customer responsiveness
    • Enhance responsiveness by defining emergency supply situations for final products, establishing emergency response system and training in accordance with the scenario of emergency supply situations

    Disaster and Safety Risk

    Risk of disasters (e.g. earthquake, fire) and safety accidents in the workplace

    Current Management & Prevention Activities

    • Establishment of emergency response organization for disasters and safety accidents, preparation of manuals including response and recovery measures for each accident scenario
    • Joint training with public organizations covering accident scenarios involving fires and explosion on a regular basis
    • Yearly education of accident case studies and hazardous substances handling training to all plant workers
    • Regular safety patrol checks in the plant by the Environment & Safety Team of each plant, a specialized team designated for environment and safety issues

    Environment risk

    Risk of legal sanctions or penalties due to inappropriate response to environmental regulations related to GHGs and hazardous substances

    Current Management & Prevention Activities

    • Environmental risk specialized team operation
    • Real-time monitoring and analysis by GHG emission system
    • Hazardous chemicals treatment through National Industrial Waste Discharge System and Reporting the use of hazardous chemicals to the Ministry of Environment in accordance with Environmental Information Publication System
  • Management Risk

    Security Risk

    Risk of cyber terrorism or information loss due to internal data leakage

    Current Management & Prevention Activities

    • Establishment of corporate-wide security policy and operating standards and monitoring/management by a designated security organization
    • Enterprise-level knowledge management through Enterprise Contents Management(ECM)
    • Monitoring of documention – full monoitor from creation to demolition including modification and sharing through the introduction of secured multifunction printers, ECM, and secured-USBs
    • Regular training of ‘The 10 Principles of Information Security’ and ‘Corporate Security Guidelines’ as well as additional IT security training at least once a month

    Legal and Ethical risk

    Risk of lawsuits or contracts which may adversely affect the business Ethical risks which may arise in business such as unfair trade practices or corruption

    Current Management & Prevention Activities

    • Legal risk prevention by compliance with corporate’s contract screening policy and use of standard contract form
    • Practical training of acceptances and guarantees in foreign exchange practices, trade contract management and patents
    • Status of contract processing and lawsuit cases are regularly monitored and shared to raise awareness of legal risks
    • In addition to the ethical management pledge that all employees are obliged to sign and abide by, annual training of Improper Solicitation and Graft Act, Subcontracting Act, Fair Trade Act and practical cases of ethical management are carried out

    Reputation risk

    Risk of damaged corporate image from misinformation or negative communication

    Current Management & Prevention Activities

    • Training for all newly employed and promoted employees as well as team leaders to prevent corporate image damage caused by wrong media response, misinformation and negative communication.
    • Establishment and training of behavioral principles and communication processes for PR personals
    • Case studies education to enhance understanding of PR risk

    General Management Risk

    Operational risk caused by personnel or system errors

    Current Management & Prevention Activities

    • By using ERP (Enterprise Resource Planning) system, entire business processes including production, logistics, finance, accounting, sales, purchases, and inventory are integrated and managed efficiently
    • Systematic VOC management and customer satisfaction enhancement through the application of the C-cube system

지속가능한 공급망

Hyosung Advanced Materials manages the ‘procurement, environment, safety, and quality’ of all its production partners(i.e. processing suppliers). We support the suppliers to tackle the issues raised through regular monitoring in accordance with IATF16949, ISO14001 standards and to make continuous improvements. In order to mutually grow as a win-win partner, we cooperate with our production partners and support their sustainable production, by managing the risks together as well as increasing their competitiveness in price and quality.

Sustainable Supply Chain

Production Partner
Hyosung Advanced Materials recognizes its suppliers as shared-growth partners rather than a mere stakeholder. Therefore we build shared growth system with our suppliers based on the perception that suppliers’ competitiveness is a driving force of our business growth. We retain the sustainability of our supply chain through supporting the growth of our suppliers’ and to strengthen their competitiveness. In addition, we strive to fulfill our social responsibility through encouraging our suppliers to comply with the ‘Hyosung’s Code of Conduct for Suppliers” .
Material Suppliers
Tire & Industrial Reinforcements PU manages its supply chain through an audit or on-site inspection of all its major raw materials and subsidiary processing materials suppliers each year in order to minimize supply risks and accomplish the goal of establishing a sustainable supply chain.

Code of Conduct for Suppliers

Hyosung Advanced Materials has established the Code of Conduct for suppliers in the areas of ethics, human rights, safety, and environment, and recommends that all suppliers comply with the detailed guidelines in the Code of Conduct.

Key Areas Covered in the Code of Conduct for suppliers
Ethics and Fair Trade : Facilitate transparent and fair business trade culture and to actively engage in ethical management.
Human Rights & Labor : Respect the human rights of employees and do not treat them in an inhumane manner
Safety & Health: Prevent workplace accidents and occupational diseases by proactively identifying risk factors in the workplace.
Environment : Meet environmental standards required for all the products and services we offer and strive to minimize their environmental impact.

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