Ethical Management

In an effort to ensure more transparency in its business management, HS Hyosung Advanced Materials has adopted the
‘Code of Ethics’ so that all employees can refer to it as a set of guidelines to make decisions properly and ethically.
HS Hyosung Advanced Materials will continue to facilitate healthy corporate culture and fulfill its social roles and
responsibilities as a global corporate citizen.
Ethical Management

Ethical Management System

Code of Ethics and its Practice Guidelines

HS Hyosung Advanced Materials' Code of Ethics and its Practice Guidelines target all stakeholders, including employees, suppliers, customers, shareholders, and society, providing guidelines on not only laws and regulations but also ethical responsibilities expected from society.
Code of Ethics and its Practice Guidelines
Ethical Management
  • Compliance with Laws and Regulations
  • Customer-respecting Management
  • Shareholder-oriented Management
  • Employee-respecting Management
  • Employees ethical management
  • Suppliers Shared Growth Management
  • Social Responsibility Management
  • Compliance with Laws and Regulations

    We strictly comply with laws and company regulations.

  • Employee-respecting Management

    Each of the employees is the most important asset of the company.

  • Customer-respecting Management

    A company exists to offer the value that can satisfy customers.

  • Employees Ethical Management

    All employees aim to perform their tasks in transparent and fair manner by complying with ethical management.

  • Shareholder-oriented Management

    A company belongs to its
    shareholders and it should
    absolutely gain their trust.

  • Suppliers Shared Growth Management

    Suppliers are a source of competitive edge for the company, and we aim for shared growth based on transparent and fair trading with suppliers.

  • Social Responsibility Management

    A company is a member of society
    and must achieve harmony with society to grow.

Compliance Governance

HS Hyosung Advanced Materials has established an ethics management organization headed by the CEO. It is comprised of Legal compliance team, Audit team, and ethics management representatives within each department to ensure compliance and prevent corruption within the company. In particular, Legal compliance officer and CPM are responsible for compliance and fair trade, and regularly report important issues related to ethical management to the CEO and BoD. In addition, major ethical management activities are operated under supervision of Legal compliance team, and the status of ethical management is reported to the Social contribution committee twice a year. HR team, Business administration team, purchasing team, QA team and the others cooperate with the Legal compliance team to ensure that compliance-related activities, including corruption and Bribery, are proceeded properly to ensure effective management and implementation.
Compliance Governance
  • Board of Directors
  • Social Contribution Committee
    • Audit
    • Legal Compliance officer, Fair Trade Compliance Program Officer
    • In-Charge of ethical management activates (Legal Compliance Team)
    • Support ethical management (HR, Business Admin, Purchasing, Quality-Assurance)
    • Person in charge of ethical management activities in each department

Ethical Management Activities

Ethical Management Activities

Ethical Management Activities

HS Hyosung Advanced Materials established and distributed the code of ethics and its practice guidelines on June 1, 2018 to internalize employees' ethical awareness that strengthens corporate sustainability. In line with changes in laws and regulations, and sustainable management development, we continue to supplement our ethical codes and guidelines to enhance the awareness of ethical management among employees. Employees are evaluated for compliance with the Code of Ethics through the ‘Work Attitude’ evaluation during the annual performance evaluation. In addition, in case of violation, disciplinary action such as reprimand, demotion, suspension, or dismissal will be taken against the violators.
Declaration of the fulfillment of the SDGs
HS Hyosung Advanced Materials CEO has declared the implementation of the Sustainable Development Goals(SDGs) through the 2019 UN Global Compact Declaration in order to fulfill ethical management and social responsibility. In 2022, HAMC participated in the “BIS Anti-Corruption Pledge Ceremony” of the 2022 Business Integrity Society Summit(BIS Summit) for 2 consecutive years in support to create a fair and clean society through corporate’s anti-corruption activities. Also, we participated in the “20th B.E.S.T. CEO Pledge Ceremony” hosted by B.E.S.T Forum(Business Ethics and Sustainability management for Top performance) as well to declare compliance with ethical management.
Ethical Management and Anti-corruption Training
HAMC mandates regular ethics training (Code of ethics and its practice guidelines) every year to promote ethical management practices and awareness among all global employees. We provide specific training on key violations of the Code of conduct, proper work attitudes, and practical examples to relevant employees based on their position and department. For departments with a high risk of corruption-related risks in direct relationships with subcontractors, HAMC conducts training on related topics such as the Subcontracting Act and real-world cases based on contract violations. For sales managers, HAMC conducts training on topics such as trade secret protection & violation cases, the Fair Trade Act, and the Agency Act. In addition, we plan and produce materials such as videos and magazines to effectively improve employee awareness on ethical management and distribute them through the company's groupware.
Fair Trade Training
We train our employees, from new recruits to experienced employees, about laws in the industry, including the Serious Accidents Punishment Act, the Monopoly Regulation and Fair Trade Act, the Fair Transactions in Subcontracting Act, the Improper Solicitation and Graft Act, and the Unfair Competition Prevention and Trade Secret Protection Act. The training also includes violation cases in ethical management. The fair trade training courses take place appropriate to the local conditions of overseas business sites.

Training Details by Trainee Positions

Training Details by Trainee Positions
Category Detailed Training Topic
All Employees
  • Anti-corruption training
  • Ethical management
  • Fair trade act and subcontracting act
New Employees
  • HAMC Code of ethics and its practice guidelines
Promoted
  • Ethical management by positions
  • Working attitude and its implementation
Training Details by Trainee Positions
Category Detailed Training Topic
Team & Department Leaders
  • Sharing of key violation cases
  • Advantages of compliance
  • Working attitude and its implementation
Sales, Business admin
  • Trade secret and its violation cases
  • Case of forgery of embezzlement and bribery documents
  • Fair trade act and subcontracting act
Purchasing Manager and Suppliers
  • Sustainable procurement policy and Eco-friendly green procurement policy
  • Supplier code of conduct
  • Anti-corruption and fairtrade, bribery

Training Details by Trainee Positions

Training Details by Trainee Positions
Category Detailed Training Topic
All Employees
  • Anti-corruption training
  • Ethical management
  • Fair trade act and subcontracting act
New Employees
  • HAMC Code of ethics and its practice guidelines
Promoted
  • Ethical management by positions
  • Working attitude and its implementation
Team & Department Leaders
  • Sharing of key violation cases
  • Advantages of compliance
  • Working attitude and its implementation
Sales, Business admin
  • Trade secret and its violation cases
  • Case of forgery of embezzlement and bribery documents
  • Fair trade act and subcontracting act
Purchasing Manager and Suppliers
  • Sustainable procurement policy and Eco-friendly green procurement policy
  • Supplier code of conduct
  • Anti-corruption and fairtrade, bribery
The Audit team
The Audit team conducts regular and special audits based on the internal audit regulations. Through regular audit, various potential risks such as bribery, embezzlement, forgery are identified in advance and preventive measures are taken. We are responding to any violations of Code of Ethics that have occurred through a special audit. The scope of the audit is global and covers overall management, including sales, purchase, accounting, production. Anonymity is ensured so that the auditee and whistleblower are protected and not discriminated.
Reporting channels for violations of HAMC Code of Ethics
HS Hyosung Advanced Materials strives to comply with laws and regulations, eradicate unfair infringement of executives and employees and stakeholders, and establish a clean and fair organization through the operation of reporting channels that are accessible to all stakeholders such as customers, suppliers, local communities and as well as executives and employees. Matters that require submission of report, such as violations of regulations, prohibitions, and illegal activities of executives and employees, including details listed below, can be reported through the Whistleblowing Center. Any violations reported from external reporting channels such as bribery, solicitation, and unfair trade are received directly by the audit team and investigated according to the reporting process. In addition, through the operation of the anonymous system, the progress and processing results are delivered to informants under the protection of the identity and thorough confidentiality.
Contents Eligible for Whistleblowing & Reporting
  • Violation of HS Hyosung Advanced Materials’s Code of Ethics and related laws Corruptions such as demand for and or receipt of money/compensations Fair trade violations and other business related complaints Workplace harassment Employee grievance Child and or forced labor Human rights violations

  • Lack of transparency in selecting suppliers Supplier grievances Illegal and improper use of company assets Manipulation of documents and or false reporting Information security, privacy breaches

Compliance Program

Introduction of Compliance Program(CP) and its Objective

The Compliance Program(CP) is a series of activities and system operated internally by companies to monitor, educate, and supervise business activities to comply with fair trade-related laws. HS Hyosung Advanced Materials adopted Hyosung Corp.’s CP, which was introduced in September 2006, upon the spin off on June 1, 2018, in order to establish a desirable business culture for fair trade.
Through CP operation, we will not only prevent risks from violations of laws, but also establish compliance and ethical management in the ways employees work and in our corporate culture. HS Hyosung Advanced Materials will faithfully fulfill our responsibilities in fair trade by tailoring our CP in accordance to the competition and our business situation to realize responsible management.

CP Organization & Fair Trade Compliance Program Manager

The Legal compliance team is responsible for the daily operation of the CP. We plan to minimize legal and other related risks by increasing awareness of the CP and its operation guidelines, fair trade & transaction training, and monitoring for all employees.
The Fair Trade Compliance Program Manager, appointed by the CEO, is the key person in charge of running the CP, and has been empowered to report important issues directly to the BoD and top management.
CP Organization & Fair Trade Compliance Program Manager
  • Social Contribution Committee CEO Board of Directors
  • Fair Trade Compliance Program Manager
    • Legal Compliance Team Audit, HR, Training
      • Risk Management Monitoring Internal/External whistleblowing
      • Compliance Program Training Periodic education and revision of Compliance Program Handbook
      • Reward System Awards & discipline related to CP
    Establishment and Revision of CP Regulations Top Management's Commitment for Compliance