LG 2004 Annual Report Download - page 52

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LG Electronics firmly believes that ethical management is the most basic factor, and a key to
becoming a Great Company. By conducting fair competition, transparent business transactions, and
ethical norms, we remain committed to becoming a global company that has earned the confidence
and respect of the global community.
The Concept of Ethical Management
●Our ethical management system
is designed to maximize our business
performance in such areas as complying with
ethical management regulations, following a
code of ethics that includes transparent and
trustworthy business activities, and faithfully
assuming our social responsibilities. In 1994, we
introduced the 'LG Code of Ethics'. This was a
first for a private entity in Korea, and an
innovative approach at that time. In 1995 we
unveiled an Ethical Management Program that
offered specific guidelines to follow in
practicing the code of ethics. LG Electronics also
presented criteria for strict ethical judgments of
its employees by revising the 'Guideline for the
Code of Ethics', and the 'Explanation for the
Code of Ethics Guidelines ', in 2004.
Top Management's Strong Will
to Practice Ethical Management
●The CEO of LG Electronics always
shares the spirit of ethical management, and
the strong will to practice it with all employees
by stating, "The Company will strictly impose a
penalty upon any action that violates the spirit
of ethical management", and "The Company
will never accept an action that distorts
management data because it is an action that
fails the Company".
Particularly in 2004, we executed a
"Voluntary Reporting System" that creates a
sense of morality and fairness in making
reports. This was done with the objective of
encouraging all employees' to join us in the
practice of ethical management. By so doing,
we are headed in the right direction in
propagating a spirit of ethical management.
An Organizational Force for
Ethical Management
●LG Electronics has an Ethics
Committee that is a final decision-making
organization in matters related to ethical
management. This committee consists of the
Company's management board that is headed
by the CEO. We established a total of 13 ethics
bureaus in divisions, overseas headquaters, and
affiliated companies. These act as management
organizations of the Ethics Committee. The
main role of these ethics bureaus is to carry out
resolutions of the Ethics Committee, educate in
ethical management, and conduct specific
promotional activities for ethical management.
Systematic Activities for
Ethical Management
●We are strengthening our control
of ethical management processes through
automation of accounting processes,
introduction of business process
management, and readjustments of ethical
standards for the establishment of culture
that enhances transparent management. To
increase a sense of ethical management of
the Company's employees as well as
business partners, LG Electronics offers a
variety of education programs, as well as
placing ethical management-related cases
on the ethical management homepage. We
also operate an online consultation room to
help solve any problems with business
partners, and cyber hot line system to report
any wrong-doings in the Company. By doing
this we are making a maximum effort to
prevent any violation of ethical management
protocol. In the future, we will continue to
practice ethical management through the
improvement of management systems, and
the execution of a broad spectrum of events
to motivate ethical behavior.
Ethical Management
●Clean and Transparent
Management
●Fair Competition
●Making A Deep Impression
on Customers
●Honest Company
●Trustworthy Company
Ethical
Management
Customer
Fairness
Honesty
Sincerity
Business Partners
Competitors
Shareholders/Society as a whole