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Life's Good Day 66 2014 - 2015 LG전자 지속가능경영보고서 Overview Stakeholder Communication Materiality Report // Appendix 67 with the Community

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Life's Good Day 66 2014 - 2015 LG전자 지속가능경영보고서 Overview Stakeholder Communication Materiality Report // Appendix 67 with the Community life’s GOOD WITH “Life’s Good with LG” is the official CSR slogan of LG Electronics and conveys our earnest desire for comprehensive communication with stakeholders about our CSR efforts in a variety of areas. LG 2014-2015 LG ELG전자lectronics 지속가능경영보고서 Sustainability Report 2014-2015 LG ELECTRONICS SUSTAINABILITY REPORT REPORT OVERVIEW CONTENTS LIFE’s Good WITH LG REPORT OVERVIEW OVERVIEW MATERIALITY REPORT In preparing our 2014-2015 Sustainability Report, LG Electronics adopted the G4 guidelines of the Global Reporting Initiative (GRI). As part of the new process for 2 Report Overview/Contents implementing the latest edition of the guidelines, we reviewed the previous year’s 4 CEO Message edition and best practice cases from corporations at home and abroad against With Our Customers p. 28 6 Management Messages the latest indices to identify the aspects that are lacking in our report. In order to address these aspects and prepare a more comprehensive and insightful report, Fair Business Practices 29 Communication with Customers we had extensive communication with business departments, focusing primarily 7 Management Philosophy 31 Communication based on Customer Service on our strengths and weaknesses. We also reached out to our internal and ex- 8 Corporate Governance 32 Enhancing Accessibility for People with Disabilities ternal stakeholders through a wide range of communication programs to seek 9 Compliance Risk Management 33 Product Quality & Safety their opinions, and performed a materiality analysis to identify the information 10 Jeong-Do Management 34 Information Security & Protection of Personal Information that is considered material to stakeholders as well as to LG Electronics. Based 11 Fair Trade on the findings, we tried to introduce information concerning “Material Aspects” as defined by the G4 guidelines. Externally, we worked with a third party assurer Corporate Overview to review the analysis results against the aspects perceived as material to indus- 12 Who We Are · What We Do With the Environment p. 36 Everyone at LG Electronics strives to try peers to verify what is missing from each other’s list (and vice versa), while 14 Where We Operate internally reviewing the results with related business departments to select and create the very best value for cus- 16 What We Achieved 37 Products with Greener Features introduce the information that is material and useful both to LG Electronics and tomers, values that bring excitement 39 Product Stewardship our stakeholders. Articles on material aspects prepared by business departments 18 CSR Management and conveniences into their lives. were finalized after a review by management and a third party assurer. 43 Green Partnerships Furthermore, LG Electronics carries 44 Environmental Awards out its responsibilities as a corporate REPORTING PRINCIPLES 46 EESH Management System citizen with great energy and passion, G4 guidelines of the Global Reporting Initiative (GRI), UN Global Compact STAKEHOLDER COMMUNICATION 47 Management of Energy and Environment at Business Sites from helping those in need to pro- (UNGC) Index, Accountability Principles Standard (AA1000APS), and Stakeholder 50 Health & Safety Management at Business Sites tecting the environment of the earth, Engagement Standard (AA1000SES) 20 Communication with Stakeholders in an effort to bring greater happi- 21 Stakeholder Consultation on CSR REPORTING SCOPE ness to our stakeholders, including 22 Communication at Each Stage This report covers all business sites of LG Electronics, both in Korea and overseas, customers, investors, and communi- of the Value Chain p. and major supplier sites, including activities and performance in economic, envi- With Our Suppliers 52 ties. The ultimate goal LG Electronics ronmental, and social areas (for the detailed scope of reporting, please refer to 24 Materiality Analysis strives for through its sustainability notes for each table). 53 Procurement Performance management efforts is to help all 54 Principles for Win-Win Growth our stakeholders achieve sustainable REPORTING BOUNDARY 56 Supplier CSR Management happiness. Information is organized based on material issues and presented under the “DMA KEY PROGRESS & PERFORMANCE (Disclosure on Management Approach)” for each section. 58 Conflict Minerals Management REPORTING PERIOD 26 Key Progress & Performance Data from the calendar year 2014, from January 1 to December 31 (for perfor- mance in select areas, data from the first half of 2015 was also included) With the Community p. 60 ASSURANCE APPENDIX Independent Assurance Statement (Korea Productivity Center) (See pp. 84-85) 61 Our Achievements in Social Contribution 79 Economic Data 62 Major Social Contribution Programs 80 Environmental Data 83 Social Data 84 Independent Assurance Statement 86 Memberships/Awards & Recognition With Our Employees p. 68 GUIDANCE SYSTEM Information Sources concerning LG Electronics’ Sustainability 87 GRI/UNGC Index Management Efforts 91 Past LGE Sustainability Report/ 69 Global Workforce Contributors to Report Preparation 70 Talent Acquisition & Cultivation Directed to the section of this report containing related or 73 Corporate Culture & Work-Life Balance detailed information 75 Protection of Labor Rights Directed to the website contain- ing information concerning the content of this report LG Electronics Corporate Website LG Electronics Annual Report WWW.LG.COM/SUSTAINABILITY CSR Team, LG Electronics | LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea Email: [email protected] / Tel: 82-2-3777-3263 4 2014-2015 LG Electronics Sustainability Report Overview // Stakeholder Communication Materiality Report Appendix 5 CEO Message “We are doing our best to remember that our stakeholders, including customers, are the absolute and enduring standard that drives our thinking, inspires our actions, and propels us forward through changing environments and global trends.” What do you think is the most important for sustainability management at LG Electronics? In a rapidly changing business environment, we cannot afford to remain still; we have to constantly think about ways to achieve growth and advance our businesses. At the same time, we have to always remember that our customers are the absolute and enduring standard that drives our thinking, inspires our actions, and pushes us forward, as we focus on creating positive impact on the world. Throughout this process, we always take “Jeong-do Management” as our guiding principle, because strict compliance with the law and standards is both the starting point and ultimate goal of our efforts to become a truly global corporation. Please tell us about LG Electronics’ achievements in sustainability management in 2014. In 2014, we made organization-wide efforts to build and strengthen fundamentals, the very foundation for sustainable and enduring growth. As a result, the strength of our organization is improving, and we are thoroughly preparing to secure opportunities in our future businesses. In addition, both our employees and management are carefully identifying actions and practices required for sustainable management and putting them into practice. We are also defining practices that we need to adopt in conducting business, while directing our interest and energy towards issues that affect both individuals and societies to fulfill our responsibility as a corporate citizen. I am convinced that all of these efforts will come together and help us establish sustainability management as our core strength. What is the direction of LG Electronics’ sustainability management? I strongly believe that first and foremost, corporations must focus on the primary purpose of doing business in order to contribute to society as well as to achieve sustained growth. To this end, it is important for corporations to identify changes both in customers and global trends, to think and prepare in advance, and to execute measures that respond to these changes in a careful and thorough manner. The business landscape around us is shifting constantly and becoming more complex with diverse and intertwined interests creating uncertainties. In order to overcome such challenges and achieve growth, we need to draw on strengths not only from within our organization but also from the outside world, creating synergy greater than the simple sum of our own strengths. In order to further strengthen our capabilities for sustainable management, LG Electronics will actively engage with stakeholders for their valuable opinions, while sharing our market intelligence and customer insight obtained directly from the frontline of business operations. I would like to respectfully ask all of our stakeholders and partners to continue to encourage us and support us in our endeavors. Thank you. May 2015 Vice Chairman and CEO B on J oon K oo 6 2014-2015 LG Electronics Sustainability Report Overview // Stakeholder Communication Materiality Report Appendix 7 Management Messages Management Philosophy Born out of the founding philosophies and refined over the years, the towards its vision of becoming “No. 1 LG” with a corporate culture that LG Way serves as the guiding principle for all LG employees in their rewards individual excellence, celebrates creativity, and respects autono- thoughts and actions, and has been the foundation for the growth and my. success of LG Electronics. It articulates our belief in attaining the vision of becoming “No. 1 LG” through “Customer-Value Creation” and “Peo- No. 1 LG ple-Oriented Management” as we base our business
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