LG 2002 Annual Report Download - page 20

Corporate Ethics
As a premier global enterprise, LGE adheres to ethical and transparent management practices.
Corporate responsibility and deeply ingrained business ethics have always been at the core of LGE’s
management values. The fundamental objective of ethical management is to ensure fairness and
transparency in all facets of operations with a view to maximizing customer satisfaction. LGE realizes
that by avoiding unnecessary risk through responsible and ethical management, its business will be
more sustainable over the longer term.
LGE has adopted a Code of Conduct that requires all company executives and staff to always comply
with relevant laws and company regulations when conducting business transactions and company
operations. To promote fair competition, the code requires all business transactions to be conducted on
the basis of principles of fair competition with equal opportunity guaranteed for the participation of all
qualified parties. The company also seeks to build trust and cooperative relationships through fair and
transparent transactions.
With an unwavering commitment to ensure integrity and fairness, LGE employees maintain a positive
value system and fulfill their duties through continuous self-development and objectivity in performance.
As for ethical behavior, the code mandates that all employees maintain high standards of morality and
personal integrity, while protecting the company’s reputation. All LGE employees are required to shun
any individual behavior or relationships that conflict with company interests, while avoiding the use of
company property in pursuit of personal interests.
Social Commitment
> Focus on Environment-friendly Products
LGE has been utilizing the tools of LCA (Life Cycle Assessment) and DfE (Design for Environment) to
assess the impact on the environment from the initial stage of product design. This environment-friendly
design process is gradually applied to all product models of the company. LCA identifies and quantifies
pollutants emitted throughout the different stages of product development for scientific analysis to
explore any room for improvement.
Of late, LGE’s built-in type refrigerator (Model: GR-171/130 liter capacity) received the Environmental
Award from the European Commission by acquiring Eco-Label designation, thereby gaining valuable
ground in the high-potential European refrigerator market. The Eco-Label designation is awarded to
environmentally friendly products in the European Union that promote energy conservation, ozone
protection, and prevention of global warming. Only two kinds of refrigerators have to date received the EA.
LG Electronics is committed to development of a diverse range of innovative products in response to
rising consumer demands for environmentally sensitive products. Based on its DfE system, LGE
incorporates environmentally friendly materials from the initial stage of product design. LGE has
operated a Recycling Center for home appliances in Chilseo, South Gyeongsang Province, since August
2001. This center is capable of processing some 250,000 units of home appliances a year. And to
promote more proactive environmentally friendly business operation, the company has adopted its EESH
(Energy, Environment Safety & Health) system for its business locations throughout Korea.
Back in 1994, LGE adopted a declaration on environmental protection that allowed the company to
carefully consider the environmental and social consequences as well as economic factors in its
management decision-making. In line with this philosophy, the company has acquired ISO 124001, an
international certification for systematic environmental management.
> Model Corporate Citizen
LGE, which maintains operations around the globe, is committed to making the world a better place
through its efforts as a model corporate citizen. It thus encourages young people to develop their
individual potential to the fullest, while seeking to broaden international understanding by sponsoring
various cultural and sports events.
Since 1990, LGE has provided financial support for a nationwide invention exhibition in Korea in order
to encourage young Koreans to demonstrate their creative potential in the science and technology
fields. This exhibition is supported by several government agencies, including the Ministry of Science
and Technology, and private industry groups.
Internationally, LG Electronics has also sponsored a cultural festival that has been presented in14
Russian cities as well as Kazakhstan and other CIS member countries since 1997. The “ two-way”
cultural exchange, which features talent contests and door prizes, attracts many people, including
community leaders. LG Electronics also sponsors baduk (go) tournaments in Russia and the CIS region
as part of its “ cultural-marketing efforts.” In Thailand, LG Electronics sponsors the “ LG Champion Quiz”
involving high-school student contestants, in cooperation with a local network that airs this TV program
on Saturdays. In Mexico, the company sponsored an international archery event in January 2003 in an
effort to boost global understanding and friendship through sports competition.
LG Electronics Inc. IAnnual Report 2002 I36 37
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