ethical standard - hyundai elevator employees must understand the meaning of ethical standard and...

To be a global leading company of the 21st century

Ethical Standard

Contents

1. Understanding Ethical Management

2. Ethical Standard

3. Code of Conduct

4. Q & A

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1. Understanding of Ethical Management

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While the importance of ethical management has been strengthened among

enterprises, it is not easy to practice properly.

In order to implement ethical management properly, the understanding of

management and of its employees on ethical management and practical

endeavors to exercise ethical management are critical.

There are some misunderstandings of ethical management as an effective

control measure against corruption of employees or a popular tool of

management innovation, but the genuine meaning of ethical management

is to recognize ethical responsibility expected under social customs as basic

obligations of the enterprise in additional to economic and legal

responsibilities of the enterprise and to regard ethical compliance as the

action principle of the enterprise.

It means that the enterprise must engage in business management in order

to gain trust from all stakeholders including customers, shareholders,

employees, competitors, suppliers, government and local society by taking

full ethical responsibilities of the enterprise. Accordingly, it is not a simple

concept to be more ethical in business activities. Rather, it is desirable to

recognize ethical management as a means to improve enterprise

competitiveness and maximize economic value added by correcting wrong

practices or cost structures to fit ethical standards.

1. Understanding of Ethical Management

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As such, ethical management must be positioned as a management

philosophy to implement corporate social responsibility.

Enterprises spend too much energy on profit seeking. If the enterprise seeks

effective and efficient measure of profit distribution and social return, which

turns to profit seeking again, there will be no need to mention about ethical

management.

An enterprise profit seeking and social responsibilities must be balanced and

harmonized for sound development. If such balance and harmony is

collapsed, social responsibility will not be implemented caused by failure of

profit seeking, and in turn, the failure of realization of social responsibilities

will cause moral defect of the enterprise.

It is not acceptable to exploit ethical management as a marketing method

or a management method arguing moral and ethical pride of the enterprise

and stressing efficiency of profit. Instead, it would be more efficient to

complement any shortages, to sprout sound culture of the enterprise and to

make balanced organizational composition through mutual check and

balance.

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Ethical Standard of Hyundai Elevator

2. Ethical Standard

1) Customer

2) Shareholder and Investor

3) Employee

4) Partner and Competitor

5) State and Society

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Ethical Management Charter Hyundai Elevator Co., Ltd aims to be a reliable enterprise by respecting fair competition and free competition market order, contributing to state and society with ethical management, complying with law and corporate ethics and satisfying social demands. Therefore, we enact the ethical management chart to set a standard of value decision and behavior by all employees not only in corporate activities., but also in everyday life. And so on, we grow and develop with all stakeholders and settle transparent corporate cultures and develop as a global leading enterprise in the 21st century counted on by customers and market

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1) Customer

Do the best for customer satisfaction with utmost faith for customer.

◎ The enterprise must do the best for customer satisfaction by providing

◎ high quality products and services.

◎ The enterprise must keep promises and make efforts to gain trust from

◎ customers.

◎ The enterprise must think from the perspective of customers and act on

◎ behalf of customer satisfaction to gain customer loyalty.

2) Shareholder and investor

Do the best for equality and fairness to protect shareholder’s profit and

increase corporate value.

◎ The enterprise must strive to be a safe enterprise to invest through

◎ enterprise activities that respect shareholder’s rights and profit.

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◎ All management resources must reflect facts of corporate transactions

◎ according to the accounting principle.

◎ The enterprise should provide reliable and useful information on overall

◎ management which shareholders and investors need.

3) Employee

Do the best to establish corporate culture that respects human dignity

based on companion reliability.

◎ The enterprise must respect employee’s human dignity, encourage

◎ creative thinking and autonomous behavior and provide active support

◎ and educational opportunity to develop employee’s capability.

◎ All employees must comply with laws and regulations, corporate policy,

◎ general company rules and ethical standard in fulfilling their duties.

◎ The enterprise should apply fair opportunity and criteria to create

◎ mature organization culture based on mutual reliability and understanding.

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2. Ethical Standard

4) Partner and competitor

Seek fair competition with competitors and mutual profit with the

counterpart .

◎ The enterprise must establish fair transaction order through a clean and

◎ transparent transaction environment with partners.

◎ The enterprise must seek joint development through mutual cooperation

◎ for sound growth of competitors in the long term.

◎ Fair opportunity must be provided in all transactions and mutual relation

◎ must be developed through transparent transaction.

5) State and society

Seek eco-friendly management based on a law-abiding spirit and

contribute to the development of state and society.

◎ The enterprise must respect laws, regulations, state policy and make an

◎ effort towards corporate social responsibility.

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2. Ethical Standard

◎ The enterprise must fulfill the mission to become a reliable enterprise

◎ among customers, society, the world and take initiative in social

◎ contribution to construct an affluent society .

◎ The enterprise, pursuing globalization, must continuously implement

◎ environmental management programs to realize better environment.

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3. Code of Conduct

1) Fair implementation of Duty

2) Conflicts of Interest

3) Attitude of Employee

4) Company Assets and

4) Information Protection 5) Obligation of Ethical

5) Standard Compliance

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1) Fair implementation of duty

Perform all transaction based on a free competition principle ensuring

equal opportunity of participation, establish mutual reliability and

cooperative relation and seek mutual development with all stakeholders in

the long term.

◎ Vendor registration must be performed by providing equal opportunity

◎ of participation to all suppliers, according to objective and fair criteria .

(1) Fair opportunity of transaction

(2) Fairness of transaction procedure

◎ Transaction must be performed from equal positions after conditions

◎ and procedures are negotiated with the transaction counterpart..

◎ All transaction must be done fairly from equal positions and no unjust

◎ behavior in any form must be required using superior status.

◎ Information necessary for transaction must be provided on time through

◎ proper procedure and transaction result must be updated and

◎ supplemented through periodic evaluation based on fair criteria.

◎ Relevant law and regulation must be kept for a fair transaction and

◎ unfair behavior must not be exercised.

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3. Code of Conduct

2) Conflicts of interest

Employees and their family must not receive money, service and other

benefits directly or indirectly from stakeholders such as dealers or people

who desire to make transaction.

◎ Employees must not receive any gifts from stakeholders in relation to

◎ business.

(1) Bribery

◎ It will be acceptable to receive expenses of congratulations and condolences

◎ within the general scope recognized in the social practice.

◎ Act of receiving through family or friend will be considered on behalf of

◎ the employee.

◎ Employees must not receive benefits regarding business from stakeholders

◎ (traffic, accommodation, tourism, guidance and event support)

(2) Benefits

◎ Employees must not receive entertainment regarding business from

◎ stakeholders (meal, drink, sports and entertainment).

◎ Any payment and redemption by stakeholders on behalf of employees

◎ regarding business will be considered as bribery.

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3) Attitude of employee

Employees must make an effort to develop organization culture based on

mutual reliability through an upright value system and ceaseless self-

development and fair implementation of duties.

◎ Employees must create sound corporate culture by maintaining high ethical

◎ value, personal dignity and mutual respect.

(1) Settlement of sound corporate culture

◎ Employees must respect each other and keep basic etiquette in the work

◎ environment.

(2) Mutual respect of employees

◎ Employees must not discriminate others based on education, gender,

◎ religion, place of origin, age and physical characteristics.

◎ Employees must not make any improper speech or action to others or

◎ defame others.

◎ Employees should portray a proper image as capable personnel and

◎ make a steady effort for self-development to meet globalized standards.

(3) Self development

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3. Code of Conduct

4) Company assets and information protection

Employees must protect company assets and information and must not use

them for private purposes or for personal interest.

◎ Employees must protect physical property of the company and must use

◎ budget in accordance with proper standard and purpose.

(1) Protection of corporate assets

◎ Employees must not use company assets for private purpose without the

◎ company’s approval.

◎ Employees must not seek unjust interest by utilizing important

◎ information of the company without prior consent.

(2) Information protection

◎ Employees must not provide customer information to the 3rd party

◎ illegally.

◎ Employees must not engage in unfair dealing using company’s important

◎ non-disclosed information.

(3) Prohibition of insider dealing and information use

◎ Employees must not release information obtained during work without

◎ prior consent.

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5) Obligation of Ethical Standard compliance

All employees must comply with the Ethical Standard faithfully. In the event

of violation, employees must take responsibility of ther actions in

accordance with corporate Ethical Standards

◎ All employees must understand the meaning of Ethical Standard and

◎ make it a criteria of value judgment and behavior by exercising it in

◎ corporate activities and everyday life.

(1) Criteria of behavior of value judgment

◎ Employees must not force other employees to violate Ethical Standard or

◎ must not overlook illegal behavior.

◎ If any employee violates Ethical Standards or finds a colleague violating

◎ Ethical Standards, it must be reported to the Audit Department.

(2) Obligation to report and confidentiality

◎ Employees must not give any disadvantage to the report or declarer and

◎ must not leak personal information.

◎ Employee must keep confidentiality, when he/she happens to know the

◎ report during work and may be punished according to the related

◎ regulation for leaking information.

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3. Code of Conduct

4. Q & A

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Q. Why is ethical management needed?

A. Enterprises performing based on transparency can develop as a global

enterprise. Otherwise, it may fall behind or disappear. Such examples

can be seen frequently. International society suggests ethical

management as the top priority for the evaluation of corporate

competitiveness. Establishment of policy strengthening ethical

compliance, and establishment of ISO and other ethical management

standardization in various countries have been widely progressed.

Therefore, practice of efficient ethical management compliance system

is a determining factor for survival and development of the enterprise.

Q. If I violate ethical management or find other employee’s violation

of ethical management, that can be solved internally, is it

acceptable not to notify?

A. Even if internal solution is available, the following cases must be notified.

• If there is no possibility of improvement with awareness of doing wrong?

• If there is a possibility of causing great harm to the company internally

and externally?

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4. Q&A

A. For effective introduction and practice of ethical management, 3 C

must be equipped. It means Code of Conduct – Compliance Check

Organization – Consensus by Ethics Education.

B. Code Of Conduct is a specific and documented method for the

compliance of corporate ethics. It suggests ethical management as the

top priority among the corporate value system including business

philosophy, mission and principle, and needs to include specific and

practical details.

C. Compliance Check Organization is about checking whether the

organization and system are equipped to practice ethical management

or not. Consensus by Ethics Education provides repetitive and routine

PR and education for compliance of corporate ethics so that employees

may show continuous interest and positive awareness on ethical

management.

Q. Lastly, cyber ethical management education, I learned that 3C are

essential for successful settlement and implementation of ethical

management. Please tell me in detail.

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Q. Is there any obligation to report violations which took place before

the introduction of ethical management?

A. We do not specifically deal with violation before the introduction of

ethical management. However, if the result of such violation continues to

affect works up to the present, it must be solved as soon as possible.

Otherwise, it will constitute violation of Ethical Standard causing

disadvantages.

Q. It is the rule to report or declare a person’s violation of Ethical

Standard. What if any conflict at work is expected after reporting or

declaration?

A. We will keep strict confidentiality of information of the informer to

prevent any such disadvantage. As wrong behavior can be a bigger

problem, it is more desirable to prevent such issues in advance.

Q. What if the identity of the informer is disclosed after report of such

violation?

A. It is in principle to keep strict confidentiality on the identity of the

informer. If the identity of the informer is exposed inevitably, we will do

our best to prevent the informer from any disadvantage according to the

intention of the informer.

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4. Q&A

Q. Even if Ethical Standard or Code of Conduct is violated, it is

difficult for the subordinate to refuse the instruction of the

supervisor in reality. What is the solution in this case?

A. If Ethical Standard or Code of Conduct is violated, it is subject to

punishment despite the instruction of supervisor. If the instruction of

supervisor is inordinate or unjust, it must be refused and reported to the

ethical management dept.

Q. Is it not acceptable to borrow money from an employee of the

customer whom I know?

A. In principle, lending and borrowing money with stakeholders is

prohibited. But, if it is inevitable, lending and borrowing money in a

normal condition is acceptable. The interest with the other party is not

problem, but the special benefit with other persons during the ‘lending

and borrowing money’ itself can cause a problem.

Q. My supervisor insults my character which I cannot bear. What

should I do?

A. Solving the problem through communication is the best solution. If the

other party does not change, contact the Audit Dept. to get help.

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4. Q&A

Q. I don’t know the accurate criteria of receiving gifts or limit of

entertainment expense. What is the case in advanced countries?

A. In most of advanced countries, when income is high, the limit of

entertainment is low. IBK, an American representative company, sets the

limit to $10. The majority set limit to $25 and some set the highest limit

to $50. Of course, the amount may be important, but the intention or

objective of the entertainment expense is regarded much more

important.

Q. Isn’t there a contradiction between the principle of transparency

and confidentiality for mutual development in the company?

A. You need to check if the issue deals important confidential information

with the relevant department or staff. If it is not essential for the

transaction with the client, you don’t have to provide such information.

Q. If I want to report any unethical behavior in the company, what

procedure should I take?

A. You can either use cyber ombudsman in our homepage or contact the

Audit Dept. directly for help.

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Ethical Standard

Date of Issue : 2006.09

Date of Revision : 2016.01

Edit : Audit Department

Telephone : +82-31-644-4937

Fax : +82-2-745-4227

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