2015 Aekyung Industrial Co., Ltd. Corporate Sustainability Management Report 2015 Aekyung Industrial Co., Ltd. Corporate Sustainability management Report
TABLE OF CONTENTS
04 CEO Message Management Philosophy of Aekyung Company of Promoting Value 06 Overview of the Report Customer-Centered Company in its people 27 Aekyung's Smart Green 49 Aekyung's Human Resources Overview of Aekyung Management 54 Aekyung's Management 10 History of Aekyung 31 Aekyung's Consumer-Oriented through Gratitude 12 Aekyung's Governance Structure Management 55 Aekyung's Management & Organizational Structure Company for Eco-Friendly & through Reading 14 Current Status of Aekyung’s Green Accompanied Growth Company of Interaction Employees 35 Aekyung's Integrated Quality, 15 with the Local Community Economic Value of Aekyung Environment, Green 60 Aekyung's Management Management Sustainable Products with Sharing and Business Status 47 Aekyung's Management for Accompanied Growth 18 Aekyung’s Sustainable product 65 Appendix 21 Aekyung’s Business Status SMART-GREEN Management of Aekyung
Aekyung implements Smart- Green Management so consumers use Aekyung's products and services and at the same time become eco-friendly consumers CEO Message Corporate Sustainability management Report 2015 Aekyung Industrial Co., Ltd.
Through accomplishing 3 strategic goals, we promise to develop as a sustainable company and to offer high-quality products and services to customers.
4 My dearest and respectful Aekung stakeholders!
Greetings!
In the previous year, our Aekyung, to become a sustainable company, implemented management tasks, aiming at offering higher values to customers and taking the society, economy and the environment into consideration, all of which led to record high sales and a range of minor and major accomplishments. Particularly, in our efforts to overcome difficulties in management and transform this hard time into an opportunity to leap, we set our management policy as 'Enhancement of the Company Value through Creating Brand Power', under which the action strategies with 3 strategic goals of 'Maximizing Strengths of the Company', 'Selection and Concentration Focused on Strategic Brands', 'Enhancing Implementation Power through Work Field Management and Explicit Communication' were set and we provided with better products and services to customers. Aekyung will continue to implement the 3 strategic goals and develop as a sustainable company that provides high-quality products and services to Aekyung's customers. www.aekyung.co.kr
Aekyung's first Sustainability Report published in 2015 transparently presents accomplishments and performances made by sustainable management in the year 2014. I ask for your special attention to and continued interest in Aekyung. Thank you.
March 23, 2015 Ko Gwang-hyeon CEO, Aekyung
5 Enquiries about the Report Information Sharing Information Reporting Process Report-Writing Standards of the Report Verification Timeframe of the Report Timeframe of the Report Scope • this report can be made to Further details can be found at the company web site below and any enquires about the contact point below. We will do our best to provide information and satisfying responses. Aekyung Industrial Co., Ltd. Plant 345-814 Address : 1547-9 Chungui-ro, Jeongsan-myeon, Chengyang-gun, Chungcheongnam-do Cheongyang http://www.aekyung.co.kr To provide better credibility of this report for stakeholders, the contents of this report have been verified by an To provide better credibility of this report for Korea Chamber of Commerce & Industry as a third verification expert in sustainable management from the • Co., Ltd. with relevant This report is published to share information on management of Aekyung Industrial partner companies and stakeholders of the company, who are customers of Aekyung's products and services, who work hard for low affiliated companies who supply quality raw &subsidiary materials to Aekyung, NGOs directly and indirectly in carbon, green growth of the society, financial institutions and stockholders who invest Aekyung, and Aekyung's employees who are shaping up a happy life together. • for management performances in the sectors in relation to the This report defines in advance the indicators which are related to economy, society, the environment, labor, and sustainability of Aekyung Industrial Co., Ltd., and accomplishment of activities in those sectors. human rights, and discloses performances • activities, which can lead to sustainable development together The report focused on a range of management with GRI (Global Reporting Initiative) G 3.1. with global citizens and was written in accordance • towards sustainability management to communicate with our stakeholders. towards sustainability • help January 1 to December 31, 2014. To accomplishments for the period from This report is about 2010 was reused. This report only contains yearly trends, data after the year stakeholders understand company with no daughter companies) by Aekyung Industrial Co., Ltd. (Unlisted accomplishments made • the headquarters in Seoul, the research center and Daejeon Plant This report includes activities carried out by logistics bases in Cheongwon, etc. to do our social duty as a in Daejeon, Cheongyang Plant in Cheongyang, the environment, and social contribution. citizen enterprise in the areas of economy, Overview of the Report Overview will continue to make public our activities Ltd. publishes our first CSR report and Aekyung Industrial Co.,
2015 Aekyung Industrial Co., Ltd. Corporate Sustainability management Report 6 the Report Overview of www.aekyung.co.kr 7 Beautiful Life of Yours. Beautiful Life of Yours. Aekyung is Always with You Aekyung is Always with You and in Caring, Loving, Smiling LOVE & RESPECT
Aekyung is making the world full of love and respect. Overview of Aekyung
2015 Aekyung Industrial Co., Ltd. Corporate Sustainability Management Report 1 Number of Employees (persons) Low-Carbon Label Certification st Address and Number of Branches Address and Number of Branches Total 691 120 Sinseoungnam-ro, Yuseong-gu, Deajeon Yun District, Room317/318, Yun ChengNorth2Road NO.163, Bai Guang Zhou, China 59 12 products of SPARK, obtained Carbon Label Certification Signed Carbon Partnership Voluntary Agreement with partner companies 6 products of TRIO Grain Dishwashing, obtained Carbon Label Certification 12 products of LiQ, obtained Carbon Label Certification "SPARK 3kg Carton", obtained world's 1 10 products of SPARK, additionally obtained Low-Carbon Label Certification Participated in Low-Carbon Green Growth Expo Constructed Cheongyang Factory Cheongyang Factory, obtained ISO 9002 Certification Daejeon Factory, adopted eco-friendly production process for powdered laundry detergent Opened Aekyung Integrated Technology Center Obtained ISO 9001 Certification Obtained ISO 14001 Certification Constructed Cheongyang Logistics Center Daejeon Factory, selected as an eco-friendly company Constructed Aekyung Design Center Signed Green Partnership Voluntary Agreement with partner companies Established Daeryung Industry Established Aekyung Fat & Oil Industry Constructed Daejeon Synthetic Detergent Factory Established Aekyung Industrial Co., Ltd. Section Address of Business Locations & Number of Branches of Business Locations Address Design CenterAekyung Institute of Technology 6-gil 41 World Cup Buk-ro, Mapo-gu, SeoulDaejeon PlantCheongyang PlantBusiness BranchesCheongyang-gun, Chungnam 1547-9 Chungui-ro, Jeongsan-myun, Daedeok-gu, Daejeon 174, Daehwa-ro 32 Beon-gil, 11 branches throughout the nationGuang Zhou Branch 199 63 37 101 2009. 12. 2010. 02. 2010. 10. 2010. 12. 2011. 11. 2012. 08. 2012. 10. 1994. 06. 1997. 04. 1998. 07. 2001. 10. 2003. 04. 2005. 05. 2005. 09. 2006. 02. 2007. 05. 2007. 07. History of Aekyung History 1951. 10. 1954. 06. 1975. 07. 1985. 04. • Aekyung Industrial Co., Ltd. manufactures and sells laundry detergent, kitchen detergent, products for dental Ltd. manufactures and sells laundry detergent, Aekyung Industrial Co., etc. Our vision is to be the 'Life Stylist which are used in home as well as cosmetics, care, hair care, body care, Values in Life' as we step towards our customers. for Customers' Higher
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 10 of the Company Overview www.aekyung.co.kr 11 Zero Carbon Label among st consecutive years Aekyung Group's 60th Anniversary of foundation negotiations without collective bargaining for Aekyung Industrial Co., Ltd., concluded labor-management 12 consecutive years Festival Selected as the best company in Korea Reading Declared adoption of Category Consumer Management Places (GWPs)' Received Grand Prize in 'Korea's 100 Great Work 3L for front loaders", obtained 1 "Container of Liquid Laundry Detergent LiQ household product companies Signed a Voluntary Green Product Partnership Agreement with partner Signed a Voluntary Green companies as "2013 Popular Green Product" by Perfect One Rinsing, selected consumers for 4 consecutive years company of "Green Product of the Year" Selected as an award-winning Label certifications among household product Selected as the record-holder for most Low-Carbon companies of foundation Aekyung Industrial Co., Ltd.'s 29th Anniversary Product of the Year" (2080 Solar Salt Gargle) for 5 Selected as an award-winning company of "Green SPARK MINI, selected as "Green Product of the Year" by consumers SPARK MINI, selected company of "Green Product of the Year" Selected as an award-winning for 3 consecutive years 2014. 09. 2014. 09. 2014. 11. 2014. 12. 2014. 04. 2014. 06. 2014. 06. 2014. 06. 2013. 06. 2013. 12. 2012. 11. 2012. 12. 2013. 06. 2012. 11. Overview of the Company
Aekyung's Governance Structure & Organizational Structure
•Governance Structure - Composition & Operational Status of Board of Directors Board of Directors of Aekyung Industrial Co., Ltd. consists of 6 internal directors and there are no external directors. The CEO of Aekyung Industrial Co., Ltd. is concurrently the Chairperson of the Board, who is in charge of making important decisions of the company. Internal directors are equipped with expertise in different areas and appointed as a general manager in each area.
The Board of Directors discusses not only major decisions to be made on the company’s sustainable management (specifically in the areas related to economy, society, the environment, labor, human rights, etc.) but also decisions to be made by Aekyung Group.
Total Remuneration Section Name Key Post Gender Role (in million won) for Year 2014
Corporate Sustainability management Report 2015 Aekyung Industrial Co., Ltd. Ko Gwang-hyeon CEO of Aekyung Industrial Co., Ltd. Male Chairperson of the Board & CEO
An Yongchan Vice President in Household Products Business Division of Aekyung Group Male Board Director Vice President responsible for Chae Hyeongseok Male Board Director Internal overall management of Aekyung Group Directors Head of Research / Production / Jo Insik Male Board Director 2,213 SCM Section of Aekyung Industrial Co., Ltd.
Lee Seokju Head of Marketing / Design Sections of Aekyung Industrial Co., Ltd. Male Board Director Head of Management Support Section Jang Uyeong Male Board Director of Aekyung Industrial Co., Ltd.
- Frequency of Previous Board Meetings
Year Major Issues for Decision-Making Frequency - Amendment of the bylaws & Par-value stock split (compared to IPO) 2012 27 times Investment asset purchase (AK S&D)
2013 - Sale of unessential investment assets/Approval of partition-merging with AK Holdings 14 times - Approval of setting-up & operating a liaison office in China
2014 - Sale of partial premises of Cheongyang Plant / 7 times Amendment of bylaws on sale of duty-free products (diapers)
12 www.aekyung.co.kr 13 Communication Channel Cycle s General Meeting / Sustainable Management Reports General Meeting / Sustainable 1/year ’ complaints Day 1/year ’ ’ Company NewsletterIntranet (Groupware) contribution programConsultation Council (in the Industrial Complex) / Social Responses to public offices 1/quarter 6/year Non-periodic Ad hoc Purchase Information SystemSeminars for partner companies companiesTechnical support for partner Team / Company Website / Call Center of Customer Satisfaction Addressing customers Labor Management CouncilPromoted Employees Grievance Procedure ProgramSatisfaction Survey of Employees Ad hoc Non-periodic Ad hoc 1/quarter Ad hoc 1/year Stakeholders Organizational Structure Organizational • Household Products Business Division of Aekyung Group and under Aekyung Industrial Co., Ltd. is affiliated to its CEO there are 8 sections. Aekyung Industrial Co., Ltd. categorizes its stakeholders as shown in the table below, for the purpose of shown in the table below, for the purpose Ltd. categorizes its stakeholders as Aekyung Industrial Co., to each group of stakeholders. providing necessary information - Engagement with Stakeholders Government / Public Institutions /Associations the environment Associations related to economy, society, Non-periodic Employees Local Community Partner Companies Customers Housewives as monitoring agents/Brand Satisfaction Survey / Ad hoc Shareholders report / Shareholder Sales Number of employees Men Women Men (%) Women (%) Percentage of average basic salaries NA 12 Men (%) Women (%) Proportion of basic salaries by pay grade Section2012 Year Year 2013 Year 2014 L1L2 *9% 22% 4% 6% **100% 106% 106% 81% 154 208 L5,S5 15% 1% 101% 93% 59 Executive Management Section Basic salaries: Current Status of Employees (permanent positions only) only) (permanent positions of Employees Status Current - Regular employees: 1,785 thousand won/month for L1 (starting salary for high school graduates) - Non-regular employees: 1,600 thousand won/month (including contract workers) • • Pay L3,S3 11% 4% 102% 94% 113 Following the consistently growing trend of its sales, Aekyung Industrial Co., Ltd. has been hiring employees for Co., Ltd. has been hiring employees growing trend of its sales, Aekyung Industrial Following the consistently in of employees was at factories with a change added. Especially, the significant increase creating greater value Co., in employees of Aekyung Industrial the 2-shift to 3-shift system. The rate of increase the shift system from at for male employees and by 16% for female 2014, indicates that it increased by 17% Ltd. between 2012 and similar rates. Current Status of Aekyung’s Employees Status of Aekyung’s Current • * Calculation method: Basic salaries of men at L1/Basic salaries of all employees x100 ** Calculation method: Average basic salaries of men at L1/Average basic salaries of all employees x100 - Proportion of Basic Salaries, Minimum Wage, Retirement Pension of Employees by Pay Grade & Gender - Proportion of Basic Salaries, Minimum Wage, - Child-Care Leave (Equal Employment Aekyung Industrial Co., Ltd. complies with applicable laws in relation with child-care leave to employees on and Work-Family Balance Assistance Act). No special supports are provided by the company child-care leave. Grade L4,S4 23% 5% 101% 94% 145 Employees on Child-Care LeaveReturn Rate after Child-Care Leave 100% 1 0% 4 33% 3
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 14 of the Company Overview www.aekyung.co.kr 15 Implementation To vitalize sales by creating brand values & To vitalize sales by creating of consumers raising brand awareness Sales volume between 2012 and 2014 Financial Ratio between 2012 and 2014 Business profit and net profit between 2012 and 2014 Key Performance Indicator Indicator Goal of Result Sales volume 435.6 billion won 406.9 billion won Business profit 23.1 billion won 7.8 billion won Sector Ratio of liquidityRation of debtROE 78.42% 211.87% 106.46% 247.48% 96.91% 4.12% 241.95% Liquid asset / Liquid debt x 100 Total debt / Total capital x 100 8.84% 3.72% Net profit of the term / Equity capital x 100 Economy Unit : one hundred million won Year 2012 Year 2013 Year 2014 Calculation Method Despite increasing challenges faced in domestic and overseas business environment, Aekyung Industrial Co., Despite increasing challenges faced in domestic since its foundation. We have recognized the potential of new Ltd. achieved the record-high sales in 2014 new products to customers. business areas where we can identify and offer Economic Value of Aekyung Value Economic LOVE & RESPECT
We are happy with you, and we love & respect you. We are Aekyung, opening the door for a better tomorrow in your life. Sustainable Products & Business Status
2015 Aekyung Industrial Co., Ltd. Corporate Sustainability Management Report st gel-type smart detergent in the st Low-Carbon Label certification among domestic powdered st foundation anniversary. The greatest driving force of Aekyung foundation anniversary. th dishwashing detergent, it was launched in 1966 and, through launching st It was awarded grand prize of 2014 Korea Future Creation Management. It was awarded grand prize of 2014 Korea Future The washing power in cold water was enhanced by 23% with surfactant and activating enzyme at low temperature. This brand obtained 1 Consumers’ needs for removing daily stains are reflected in this highly- Consumers’ needs for removing daily concentrated gel type detergent. which can be used as a measuring The container is designed with the stain eraser cup and a laundry ball with rubber brush. detergents. (SPARK 3kg carton) TRIO with Baking Soda SPARK • • LiQ 1/2, Highly-Concentrated Gel with Half the Amount Needed LiQ 1/2, Highly-Concentrated Gel with Half • • • innovative new products according to the change in the market and consumers’ needs and through continued quality improvements, it has kept its place as Korea’s representative dishwashing detergent. As natural materials used in homes, baking soda and citric acid are contained for the clean, mild, safe dishwashing detergent. Baking soda removes any oil effectively and citric acid gets rid of bad smells, all of which offer functions of removing food smell and any dirtiness effectively. eco-friendly brand, thinking of future generations. As Korea 1 it is a very popular brand. cold water it has kept its popularity for After the adoption in 1987, as a detergent for detergent in Korea. It obtained Korea’s 1 28 years and has become a representative temperature laundry system and it is an Low-Carbon Label certification with its low LiQ is eco-friendly concentrated detergent as the 1 LiQ is eco-friendly concentrated detergent power. The detergent can be poured into domestic market with excellent washing for a laundry ball. With increased the measuring cup which also can be used type to gel type and its lighter weight, convenience for use by changing it from liquid domestic dishwashing detergent ‘TRIO’, smart & green laundry detergent ‘LiQ’, as well as detergent ‘TRIO’, smart & green laundry domestic dishwashing st Signature Brand for Laundry Detergent for Brand Signature Signature Brand for Dishwashing Detergent • TRIO SPARK namely, the 1 such Ltd. advertises our products in the media ‘Perfect’, etc. Aekyung Industrial Co., ‘Kerasys’, ‘2080’, ‘SPARK’, is no laws and therefore, there newspapers in compliance with advertisement-related as TV broadcasting, involved. exaggerated or false advertising • LiQ Aekyung’s Sustainable Products Sustainable Aekyung’s Co., Ltd. had its 60 In 2014, Aekyung Industrial have been consistently loved by customers, our steady growth is the brands which Industrial Co., Ltd. for
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 18 Business Status Sustainable Products & Sustainable Products www.aekyung.co.kr 19 100% natural antibacterial premium dishwashing detergent and it premium dishwashing detergent 100% natural antibacterial st No paraben, isothiazolinone, silicon or pigments are used in the products. No paraben, isothiazolinone, silicon or pigments It was selected as Green Product of Year 2014. It is a shampoo for hair and scalp care. clinically proven by a dental university. It contains Sinan solar salt which is an active ingredient certified by Ministry of Food and Drugs Safety. It inhibits 99.9% of harmful germs in the mouth. (Shown in the results of in-vitro tests) This toothpaste prevents gingivalis which is a primary cause for gum diseases such as gingivitis, pyorrhoea alveolaris, etc. A study conducted by a dental university showed the clinical effect of inhibiting 99% of gingivalis. Antibacterial, bad breath suppressive, and gingivitis-preventive effects are Caulerpa racemosa ingredients, which have abundant vitamins and minerals, are Caulerpa racemosa ingredients, which have contained. • • 2080 K Anti-Gingivalis Project • • 2080 Solar Salt Gargle • Kerasys Naturing • • Soonsaem Zero sanitation and trust on ingredients. We guarantee kitchen • With our continued efforts to take care of all family members’ dental health as a With our continued efforts to take care of first place for its brand power for 10 total care brand, it has been awarded consecutive years and established its place as a leading brand in the market. • 20 teeth until the age 80!. Korea’s 1 oil. antibacterial ingredients extracted from mustard contains 100% natural under the mission to offer the same Kerasys Hair Clinic System was born at home. It is a brand for hair clinics. experience as getting professional hair care It is a natural, mild dishwashing detergent and consumers’ needs for safety are dishwashing detergent and consumers’ It is a natural, mild in its design and The brand is evolving with changes reflected in the product. functions. Signature Brand for Dental Care Signature Brand for Hair Care • 2080 Kerasys • Soonsaem A perfect 12-color eye shadow palette for Asian eye shape. A perfect 12-color eye shadow palette for Asian your eyes look luscious. Long-lasting and various colors will make You only need cold water to enjoy our delicious yogurt. You only need cold water to enjoy our delicious lactobacillus patented for its 3-layer This yogurt contains 1 billion vegetable coatings. • • Essence Cover Pact LUNA Runway Eye Shadow Palette It is a moisture compact foundation with more than 65% of essence contained and foundation with more than 65% of essence It is a moisture compact and moisture. has high skin coverage runway trend to make you look the best LUNA will help you style with the seasonal for your real-life fashion show. • • This brand is based on research knowhow in skin science of Aekyung Industrial Co., research knowhow in skin science of Aekyung This brand is based on 20s. to complete rejuvenating to the skin in the Ltd. and its function is New Signature Product Signature Brand for Cosmetics • Granola YogurtMeal Petit LUNA • Age 20’s
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 20 Business Status Sustainable Products & Sustainable Products Aekyung’s Business Status
•2014 Business Status With its continued endeavors to develop new products and new designs in line with the vision of Aekyung Industrial Co., Ltd. (Life Stylist for Customers' Higher Values in Life), the sales in 2014 increased by 113% compared to the previous year and the company achieved 406.9 billion won. Particularly the new sales channels such as the internet and home shopping, accounted for 12% of the total sales at 54 billion won. Further, in cosmetics business through continued product development such as AGE 20’s, LUNA, etc. and reflecting consumers’ needs in product planning and marketing activities, it showed a potential of growth with home shopping channels in the center and the sales of cosmetics was 5% of the total sales at 23.6 billion won.
•2014 Business Plan in Domestic Market www.aekyung.co.kr
2014 Achievement Rate of Sales Goal on New Products (Domestic Market)
In 2014, despite the challenging circumstances with government regulations and economic downturn Aekyung Industrial Co., Ltd. raised the value of the company through creating brand power. Against the backdrop of discount stores’ downturn which mainly used to lead the sales of the company, through concentration and selection of strategic brands such as LiQ and 2080 we focused on the new momentum of growth and achieved 337% of the sales goal for new products.
Additionally, in the rapidly changing trend of distribution business due to the use of mobile phones and 1 or 2 person families, we increased the sales volume at convenience stores, SSM, and drug stores by 4% compared to the previous year and set a foundation for a new business area to expand. Internally, the top priority was set to achieve the sales goal beyond it and focused on reducing inventory and credit, through which financial soundness was improved. With the brands such as Highly Concentrated LiQ 1/2 which has rubber brushes built on the container as well as 2080 Anti-Gingivalis with better design and functions, we will plan for the year 2015 to create concrete achievements, through which we will bring out innovation in the culture of the company.
•2014 Business Plan in Overseas Market Aekyung Industrial Co., Ltd. exports main products to 30 countries including China, Japan, Russia, Mongolia, Iran. Excluding Japan, China, and the world wide region we achieved a 7.6% of sales increase over the previous year. To achieve the sales goals of over 40 billion won in 2015 and over 50 billion won in 2016, we are striving hard to diversify brands with a wide range of products other than personal household goods and to exploit new distribution markets.
21 quarter of 2015, we plan nd China Beauty Expo 2080 Commercial Agent Conference partners of various channels such as GMS, home center, TV home shopping and continue to promote our partners of various channels such as GMS, brands to lay the foundation for steady growth. magazines and exhibitions we are making various efforts to accomplish our goals of brand awareness and our goals of brand awareness we are making various efforts to accomplish magazines and exhibitions developing new customers such as Uzbekistan, our goal is to grow by over 15% through increased sales. Plus, markets of Australia and Russia. new products tailored to the local Indonesia, etc. and launching over the previous year. With US$1.8 million in 2014 a 13% sales increase was recorded In the Chinese market, these through Guangzhou branch. As part of 2015, we continue to manage the market as the sales goal for as JUSCO, VANGUARD, etc. in China we are selling products of efforts, in the foreign discount stores such brand for Chinese customers. In the 2 Kuskuching which is developed as a designated to have 2,000 stores in the drugstore Watson. market of China in 2015 we will concentrate on exploring new Additionally, to increase the sales in the online operation plan, in the Japanese market we will find new business buyers. On top of the existing OEM business - Overseas Business Implementation Strategy - Overseas Business Implementation year. volume is increasing by 25-30% each (excluding China and Japan), the sales In the world wide region the of 2015 to achieve US$ 10 million only with Mongolia, and Iran, we set the sales goal Especially in Russia, TV, continuous marketing activities through Co., Ltd. In the overseas markets, brands of Aekyung Industrial
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 22 Business Status Sustainable Products & Sustainable Products - Major Exports
Product Name Sales in 2014 (unit: million won) Export Countries 2080 Toothpaste 5,200 Kerasys 11,072 Kerasys Bar Soap 1,578 Showermate 878 Showermate Bar Soap 270 China, Mongolia, Iran, Russia, Paraguay, Kuskuching 826 Singapore, Australia, Vietnam, and 20 others TRIO 704 Soonsaem 417 SPARK 460 Wool Shampoo 379 Esthaar 846 China, Russia, Singapore, etc.
•2014 New Project Operation Strategy www.aekyung.co.kr To establish a leading and stable position in the online and home shopping markets, which require new value systems and approaches unlike the traditional off-line markets, we are planning and developing new products according to customers’ needs at their eye level. Quickclean Magic Foam Spray which was newly developed in 2014, recorded an annual sales of 13 billion won as a single product in the home shopping market. With that momentum, we expanded the sales of the product to the off-line market as well. Hair and body care products of Kuskuching brand were designed for online sales channels and overseas markets. Kuskuching products received favorable reviews in China and there are around 300 shops in Watson. We are receiving positive responses from the Chinese online market as well. Kuskuching brand was designed in collaboration with domestic animation character and the brand is also popular for its unique design. We are doing our very best to adjust to new markets and our customers’ specific needs and at the same time, to expand our influenced throughout the markets.
•Risk Management of Aekyung Industrial Co., Ltd. Since 2014, Aekyung Industrial Co., Ltd. in the company-wide perspective analyzes sales opportunity through prediction of demand and holds a video conference on S&OP (Sales and Operation Planning) as an activity to plan, operate, and control issues about product supply, quality claims, etc. once a week. Sales opportunities and problems derived from these activities are addressed not exclusively by the departments in charge but in the company-wide perspective in a uniform direction. Additionally, with monthly analysis of profit and loss prediction for the past 3 months we are working towards building a sufficient infrastructure for future funds to execute.
•Funds/Accounting Management of Aekyung Industrial Co., Ltd. Aekyung Industrial Co., Ltd. not only raises its work efficiency and transparency by linking the ERP which is a company-wide resources management system and the intranet which is Aekyung Groupware, but also retains its credibility on the company’s funds operation and all related information by carrying out a periodic accounting audit by an external accounting audit institution.
23 LOVE & RESPECT
Akyung is implementing smart, green management so that consumers can use Aekyung’s products and services, and at the same time, become eco-friendly consumers. Management Philosophy of Aekyung
2015 Aekyung Industrial Co., Ltd. Corporate Sustainability Management Report Implementation Strategy Implementation Strategy To upgrade environment- related certifications for new products / To retain certifications for existing products / Expand low-carbon products Enhance customer satisfaction when receiving complaints / Improve CCM (Customer-Centric Management) operation system 4.6 4.4 Key Performance Key Performance Indicator Indicator Plan Result Indicator Indicator Plan Result Customer Satisfaction Sector Sector Customers Environment Related Certification 144 Certifications 135 Certifications Aekyung’s Smart, Green Management Aekyung’s Consumer-Oriented Management Customer-Centered Company Customer-Centered • •
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 26 Philosophy of Aekyung Management www.aekyung.co.kr 27 Needs for Environment-Related Certification for Products for Certification Environment-Related Needs for Co., Ltd. launches eco-friendly products through continued research and development. Co., Ltd. launches eco-friendly products through continued research and development. 2013 the number of With its start in 2007 by obtaining 5 environment-related certifications, up until number is appropriately certifications increased despite the fastidious conditions to retain them. In 2014, the maintained at 135 with the development of new products and enhanced renewal. products which satisfy Aekyung Industrial Co., Ltd. will continue to be in the lead to provide eco-friendly customers. • Today’s consumers and distributors’ needs for eco-friendly products, continue to grow. Aekyung Industrial To meet these needs and further, to offer high quality eco-friendly products to consumers, With these efforts, through company-wide Smart-Green Management in marketing, research, designing, With these efforts, through company-wide Smart-Green Management in marketing, of its consumers and the factories, the environment, safety, etc. we will be reborn as a company which thinks eco-friendly products to environment at the same time. Aekyung Industrial Co., Ltd. will continue to provide who are concerned with consumers so that when they use our products they can naturally become consumers the nature and environment. As a good example of Smart-Green Management, Aekyung Industrial Co., Ltd. has been selected as the ‘Green As a good example of Smart-Green Management, Network (NGO, Environmental movement organization) since Product of the Year’ by Korea Green Purchasing detergent ‘LiQ’ in 2010, ‘Esthaar’ shampoo in 2011, powdered 2008 for 5 consecutive years; Liquid laundry laundry detergent ‘Perfect One Rinsing’ in 2013, ‘2080 Solar laundry detergent ‘SPARK MINI’ in 2012, powered Salt Gargle’ in 2014. On May 13, 2010 Aekyung Industrial Co., Ltd. declared ‘Smart-Green Management’ to become a supplier to On May 13, 2010 Aekyung Industrial Co., eco-friendly and convenient products. make homes more comfortable and to provide which is the “smart management that enables consumers to enjoy The management concept is established, Co., Ltd., and at the same time, naturally practice eco-friendly products and services of Aekyung Industrial products as well as more enjoyable services to consumers”. activities by providing safer and more convenient Aekyung’s Smart-Green Management Smart-Green Aekyung’s China Beauty Expo Circumstances of Research and Development of Research Circumstances Sales Volume of Eco-Friendly Products of Eco-Friendly Volume Sales -Low-carbon Product Development Process and sells low-carbon To realize low-carbon, green growth, Aekyung Industrial Co., Ltd. manufactures Industrial Co., Ltd. is products. In our implementation, the entire designing process of products in Aekyung designed to make products through “low-carbon product development process”. With the growing concern of consumers for eco-friendly products, Aekyung Industrial Co., Ltd. is consistently With the growing concern of consumers for sales despite the obtaining environment-related certifications for products and is leading it to increased difficulties in the economic circumstances. • which are made with Aekyung Industrial Co., Ltd. is putting enormous efforts into developing products only powdered laundry ingredients harmless to the human body and more eco-friendly for production of not products, oral hygiene detergent, liquid laundry detergent, dishwashing detergent, fabric softener, hair care products, body care products, and household products but also health supplements. •
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 28 Philosophy of Aekyung Management www.aekyung.co.kr 29 Designing for the Environment Designing for emission. We are also making various efforts, aiming at enhanced conveniences for customers, through emission. We are also making various efforts, aiming at enhanced conveniences renewable packaging and added functions. Concept”, continues to launch designs to lead customers’ lifestyle through creating brand power. Moreover, we Concept”, continues to launch designs to lead customers’ lifestyle through creating brand with eco-friendly develop designs with the society and the environment in mind through launching products considerations including the life cycle of products. continues to research In line with the government policy, Design Center of Aekyung Industrial Co., Ltd. towards less carbon measures for reduced weight and volume of existing packaging and improved productivity quality products as a result of these efforts. • Design with Visible In 2014, Design Center of Aekyung Industrial Co., Ltd. with the slogan of “Creative Design, sincerity by setting up a platform to develop eco-friendly products through implementing low-carbon product sincerity by setting up a platform to develop honestly communicating the information in relations to quality, the development process, and by openly and as a socially responsible company we introduced non-animal environment, safety, and health. Furthermore, ingredients used. test tools and expanded the proportion of natural competitive We strive to set up a framework for sustainable growth in the future by developing internationally through providing accurate information but also in the process of obtaining Low-Carbon Label certifications. through providing accurate information but Industrial Co., Ltd. who proactively participates in management The executive management of Aekyung activities to reduce greenhouse gas in each step. We also activities, make suggestions and implement in greenhouse gas assessment and to retain the capacity for established an internal system to foster experts are diligently playing our role as a good company based on our realizing Smart-Green Management. We Our products are planned and produced as shown in the flowchart above ultimately for consumers to reduce Our products are planned and produced as a process to reduce emission of greenhouse gas not only emission of greenhouse gas by implementing and by purchasing 2 LDPE - Cap and container . This is the same amount of carbon dioxide which 2 ➜ Carbon Zero certification among household product companies. st generated when manufacturing ‘LiQ Concentrated Gel 3L for front loaders’, Aekyung 2 PE - packaging, LDPE - Container PP - Top and bottom parts of the cap Carbon Zero Certification in greenhouse gas emission as household products Carbon Zero Certification in greenhouse gas Response to Climate Change Climate Response to st 631,800 30-year-old pine trees absorb in a year. has been directly applying Aekyung Industrial Co., Ltd. declared in 2010 smart, green management concept and The smart, green social contribution activities of protecting the environment in product development. management which Aekyung Industrial Co., Ltd. is pursuing, contains the resolution of the company that we will lead the low-carbon, green growth through our intention to help our consumers to use our products and also naturally join eco-friendly activities. Aekyung Industrial Co., Ltd. obtained the 1 the CER (Certified Carbon Zero products are products with actual zero carbon emission through purchasing entire processes from Emission Reduction) equivalent to the amount of greenhouse gas generated in the production to distribution or through greenhouse reduction activities. For 4,212 tons of CO of CO Industrial Co., Ltd. made the carbon emission to zero (0) by planting trees for 500 tons internationally accepted CER for the rest of 3,712 tons of CO • -1 Currently, we are carrying out a research on Wool Shampoo to suggest an innovative product by addressing out a research on Wool Shampoo to Currently, we are carrying functions. continuous renewal and adding new existing problems through - Design for Reduced Number of Packaging Parts & Materials - Design for Reduced and Shampoo, it is designed to be eco-friendly parts and materials for liquid neutral Wool With fewer packaging to are both LDPE and so there is no need conveniences. The caps and containers it increased customers’ for consumers and the rate of recycling. recycling, which raised the convenience separate them when
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Corporate Sustainability management Report 30 Philosophy of Aekyung Management www.aekyung.co.kr 31 unit: cases management capacity To vitalize activities to resolve complaints To strengthen activities to respond to risks 4. To strengthen risk 4. • • relations To advance CRM activities and upgrade the consulting system To enhance communication with customers 3. To enhance customer 3. • • VOC Status operation system training To raise the level of customer-centered consulting system To enhance CCM Key Performance Goals of Consumer-Centered Management Key Performance Goals of Consumer-Centered Management 2. To upgrade CCM 2. • • Total 63,534 33,771 35,848 Section Year 2012 Year 2013 Year 2014 Web Consulting 414 550 384 Telephone Consulting 63,120 33,221 35,464 satisfaction receiving complaints To integrate and upgrade on/off system of VOC To improve the organizational capacity To raise customer satisfaction when consulting and Raised Customer Satisfaction Raised Customer • • • 1. To raise customer 1. suggestions by customers into products through a satisfaction survey of new products. suggestions by customers into products through a satisfaction survey of new products. - Survey of Customer Satisfaction and New Products a customer satisfaction Aekyung Industrial Co., Ltd. continues to improve our insufficient parts by carrying out securing loyal customers. survey of customers who had complaints, aiming at preventing losing customers and product feedback and We also make efforts for Customer-Centered Management (CCM) by reflecting In 2014, a total of 35,848 customer complaints were dealt with and they were resolved on the basis of Consumer In 2014, a total of 35,848 customer complaints were dealt with and they were resolved Dispute Resolution criteria notified by the Fair Trade Commission. them into service To prevent repeated complaints, we analyze voices of customers and then reflect tasks. improvement, We strive to raise customer satisfaction by selecting and sharing core improvement Aekyung Industrial Co., Ltd. carries out holistic actions in addressing customers’ complaints by sharing them Aekyung Industrial Co., Ltd. carries out holistic to prevent repeats of the same complaints in the future. with relevant departments and by managing satisfaction by changing customers with complaints into customers Through this, we strive to realize customer loyal customers. in favor of the company, and ultimately into - Customer Consulting and Resolving Complaints • to Address Customers’ Complaints - Operation of Self-Management Program Aekyung’s Consumer-Oriented Management Consumer-Oriented Aekyung’s the to be consumer-oriented and to expand Ltd. strives to overhaul all our activities Aekyung Industrial Co., culture. consumer-oriented business half of 2015 st half of 2015, Aekyung Industrial Co., Ltd. is consistently half of 2015, Aekyung Industrial Co., Ltd. is st Enhanced Customer Relations Customer Enhanced Upgraded CCM Operation System CCM Operation Upgraded competitiveness, and by overhauling systems and processes to prevent and address claims. competitiveness, and by overhauling systems • - Communication with Customers through ‘AK LOVER’ customer-centered Aekyung Industrial Co., Ltd. is running the Aekyung supporters, ‘AK LOVER’ for realizing active members of AK management philosophy and for partnership with customers. Currently, there are 4,100 of comments on products LOVER, and we are implementing Prosumer Marketing which is to listen to a variety and reflect them into through online surveys, offline FGIs (Focus Group Interviews), product shows, etc. Co., Ltd., we offer management activities. For more customers to experience the products of Aekyung Industrial parties, etc. opportunities for product experience groups, product shows, cultural lectures, year-end - Establishment of Integrated Consulting Center & Integrated System - Establishment of Integrated Consulting Center for customer consulting and quality upgrade through Integrated Aekyung Industrial Co., Ltd. is working hard complaints with the ail departments in real time through the Consulting Center and, by sharing customers’ problems at on early stage. integrated system we identify and address • Certification in the 1 - To Obtain CCM (Customer-Centered Management) in the 1 With a goal to achieve the CCM certification Through customer-centered management, we do our best to trying to positively change the internal systems. the company in the customers’ perspective to raise international satisfy customers by continuously improving identify their needs in the customer’s perspective, not the company’s. identify their needs in - CS for a Day ‘CS by operating the company-wide Ltd. implements customer-centered management Aekyung Industrial Co., to to employees to directly listen and respond everyone in the company from the CEO for a Day’ which allows and etc. and to understand customers enquiries, complaints, suggestions, requests including customers’
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Corporate Sustainability management Report 32 Philosophy of Aekyung Management www.aekyung.co.kr 33 Strengthened Risk Management Capacity Strengthened active cooperation and information exchange with a number of consumer groups. In addition, we are active cooperation and information exchange with a number of consumer groups. activities to students who contributing to vitalizing training by providing opportunities for training and hands-on of Consumer Affairs majored in consumer science and are seeking jobs when OCAP (Organization Professionals) conducts field training. usage, from purchasing to disposal, in consideration of characteristics of products. This leads customers to usage, from purchasing to disposal, in consideration to know, and guarantees objectivity of product safety. correct usage of products, satisfies their right - Interaction with Consumer Groups through close and Aekyung Industrial Co., Ltd. is contributing to protection of consumers’ rights and interests • - Operation of PL (Product Liability) Secretariat Ltd. presents directions for employees to actively respond with PL Secretariat of Aekyung Industrial Co., situations pertaining to product liability occur. consistency, objectivity, and continuity when by customers we check and revise warning phrases for every step of Also, for safe and efficient use of products From 2011 up to the present, Aekyung Industrial Co., Ltd. has been running continued CRM activities to offer a From 2011 up to the present, Aekyung Industrial products. Through these activities to enhance customer relations, range of benefits to customers who buy our striving to realize more customers’ satisfaction and to maintain VIP customers continue to grow and we are loyal customers. - Activities to Enhance CRM (Customer Relationship Management) - Activities to Enhance CRM (Customer Relationship Management Philosophy of Aekyung
Company for Eco-Friendly & Green Accompanied Growth Corporate Sustainability management Report 2015 Aekyung Industrial Co., Ltd. •Aekyung’s Integrated Quality, Environmental, Green Management Key Performance Sector Implementation Strategy Indicator Indicator Plan Result To reinforce compliance of laws/ Society Violation of laws 0 case 0 case To monitor applicable laws & enhance prior preparation Reduction rate To upgrade productivity through Environment 2% 1.7% of utilities continuous improvements in work sites To improve workers’ health and Labor Injuries/Accidents 0 case 6 cases safety training
•Aekyung’s Accompanied Green Growth Key Performance Sector Implementation Strategy Indicator Indicator Plan Result To implement partnership projects for Economy Funds for 100 mil. won 112 mil. won partner companies green, accompanies growth with partner companies
34 www.aekyung.co.kr 35 ISO14001 Certification ISO 9001 Certification Green Management System Certification Integrated Quality, Environmental, Green Management Green Quality, Environmental, Integrated then, the Green Company certification of Daejeon Plant expired in 2014 due to the obsolete equipment and then, the Green Company certification of decreasing market for powdered laundry detergent. we formed a Green Management Committee directly under the CEO, To be re-designated as a Green Company, in the center, we are endeavoring to establish a management and with the Green Management Committee green management. system through the integrated quality, environmental, In 1997, we obtained ISO 9001 for quality management and ISO 14001 for environmental management in 2005, ISO 9001 for quality management and ISO In 1997, we obtained As a result, Daejeon Plant was designated management system was established. through which an integrated again in 2009. (formerly, Eco-Friendly Company) in 2006 and as a Green Company System) certification by KAB (Korea Accreditation Board) In 2011, we obtained the GMS (Green Management to the green management system. From this, we began with and switched all of the company’s regulations Smart-Green Management and low-carbon green growth. Since full-fledged and tangible performances of Aekyung’s Integrated Quality, Environmental, Quality, Environmental, Integrated Aekyung’s Management Green • Management Philosophy of Aekyung
•Examination of Integrated Quality, Environmental, Green Management Review of green management is to evaluate if the company’s green management system is efficiently in operation. Since 2012, the activities of examining conformity and validity and then making improvements, are incorporated into the green management review. The Green Management Secretariat of Aekyung Industrial Co., Ltd. is in charge of fostering internal auditors in each department biannually and we evaluate if the green management system is efficiently in operation in every sector through the internal auditors. Details and effects for improvement are reviewed through the internal audit and the audit findings are taken into consideration through the management review. Aekyung Industrial Co., Ltd. made an effort to overhaul the management system to conform to the actual work manual. We formed a task force for that effort and operate the green management system, through which we identify ways to align the actual work with the manual through W/S (Work Simplification). We hold periodic workshops (2/year) to revise the company’s standardized agreement. Corporate Sustainability management Report 2015 Aekyung Industrial Co., Ltd.
2014 Workshop for Revision of Company’s Standardized Agreement (in the 1st & 2nd Half)
The green management system of Aekyung Industrial Co., Ltd. is audited biannually by a third-party auditor (Korea Standards Association) against the system operational status. The audit findings are reflected into short, medium, and long-term improvement plans and the implementation of these improvements are reviewed in the next internal audit.
Audit Process of Aekyung’s Green Management System
•Provision against Environmental & Safety Accidents Aekyung Industrial Co., Ltd. considers the safety and health of its employees as the top priority. We conduct drills in response to environmental and safety accidents in order to be prepared against environmental accidents including toxic chemical spills and fires, as well as safety accidents related to mechanical and chemical equipment at the worksite. Additionally, we carry out daily environmental and safety patrols by persons in charge of the environment and safety, and the management supervisor. On a regular basis, through visiting experts, we cross-check the worksite and make it safe.
36 www.aekyung.co.kr 37 Environmental, Safety, and Health Training Fire Drill Safety and Health education materials Legal Compliance - As declared in the environmental policy, Aekyung Industrial Co., Ltd. considers compliance with laws and - As declared in the environmental policy, Aekyung Industrial Co., Ltd. considers compliance other requirements as its highest priority. as product-related laws Aekyung Industrial Co., Ltd. takes actions to comply with laws by categorizing them Ltd. are as shown below and business-related laws. Product-related laws concerning Aekyung Industrial Co., and we are doing our utmost to comply and implement them. • These accident cases are utilized as materials for the safety and health training, which is carried out in every are utilized as materials for the safety and These accident cases regularly, in order to enhance workers’ in the collective training for the entire company department, and also accident prevention. safety awareness for discuss issues on the safety and health of workers and we are making every effort to improve working safety and health of workers and we discuss issues on the and environment and by closely identifying noise, dust, and toxins in the work conditions. By measuring we are striving to create a safe working through risk assessment in each process, improving hazard factors all of accident and 5 injuries occurred in 2014, Despite these endeavors, 1 industrial environment for workers. momentary mistake of workers. which happened by a Furthermore, every quarter we hold the Labor-Management Industrial Safety and Health Committee to Industrial Safety and Health Committee quarter we hold the Labor-Management Furthermore, every Usage of Toxic Chemicals Management of Chemicals and Resources Management of Chemicals - Since 2010, with increasing demand for dishwashing detergents such as LiQ and Trio, etc. and consequently - Since 2010, with increasing demand for dishwashing is used for neutralizing with increasing production, the amount of sodium hydroxide increased by 30% which the main ingredient, surfactant. used and spilled through Aekyung Industrial Co., Ltd. is endeavoring to minimize the amount of toxic chemicals systematic management of toxic chemicals and developing alternative raw materials. are conducting regular Chemicals are categorized and managed as chemicals in use and in transit, and we training, particularly for chemicals in transit, to prevent chemical spills. - Operation of a task force on chemicals contains more reinforced contents of registration and toxicity Act on Registration, Evaluation, etc. of Chemicals with under Toxic Chemicals Control Act, It encompasses provision assessment of chemicals which were dealt of products. Consequently, Aekyung Industrial Co., Ltd. of information on chemicals and safety management to arrange for all related laws and systematically manage matters formed a task force on chemicals in order on products. Co., Ltd. is striving to provide more eco-friendly and safer products Through these efforts, Aekyung Industrial developing and manufacturing safe products. by fulfilling consumers’ right to know and by •
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Corporate Sustainability management Report 38 Philosophy of Aekyung Management www.aekyung.co.kr 39 Fuel Usage Electricity Usage - Fuel Usage Plant. Instead, we have Fuel usage for 1 ton of products, Bunker-C oil is no longer used for Cheongyang operating forklifts and purchased steam from AK ChemTech since 2011. Therefore, we only use diesel for commuter buses. effort to reduce electricity usage for manufacturing 1 ton of products through regular energy diagnosis on a effort to reduce electricity usage for manufacturing monthly basis. The MSDS of products are constantly updated with test results and are managed to comply with regulations. are constantly updated with test results and The MSDS of products evaluation on related chemicals by business on the basis of the result of toxicity MSDS : This is produced import, utilize, transport, or store chemicals. owners who manufacture, - Electricity Usage electricity usage showed a slight increase. We are making an Despite the increase of production and sales, Aekyung Industrial Co., Ltd. provides customers with MSDS (Material Safety Data Sheet) which is (Material Safety Data Sheet) which Co., Ltd. provides customers with MSDS Aekyung Industrial materials used. and health information about raw and subsidiary environmental, safety, from partner companies or relevant entities, subsidiary materials, which are acquired The MSDS on raw and If the as references to chemical treatment. departments of the company to be used are forwarded to relevant data concerned for information provision. person in charge of R&D completes the MSDS is insufficient, the - MSDS Management - MSDS Management Water Usage Emission of Air Pollutants Less Environmental Impacts Environmental Less - Minimum Water Pollutants and utilizes it for its Daejeon Plant in cooperation with AK ChemTech, operates a waste water treatment facility treatment facility in the waste water. Cheongyang Plant discharges its waste water to a joint waste water agricultural and industrial complex. both water usage and the Because of the small-quantity batch production system and more frequent washing, water and to make amount of waste water increased. We continue to set up measures to reduce waste optimizing production improvements through upgrading current small-quantity batch production and processes. • - Minimum Air Pollution Plant has significantly decreased since 2011 by purchasing steam Emission of air pollutants at Cheongyang and stopping operation of boilers. from a subsidiary company, AK ChemTech consistent improvements on washing methods for equipment. consistent improvements - Water Usage to and also utilizes water to make steam and Ltd. utilizes purified water for production Aekyung Industrial Co., and Daejeon Plant utilizes both public water Plant utilizes ground water, and wash equipment. Cheongyang With growing water usage, we are making use. Consequently, no water is reused. water for industrial
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Corporate Sustainability management Report 40 Philosophy of Aekyung Management www.aekyung.co.kr 41 Waste Water Emission of Greenhouse Gas Cheongyang Plants. As the total production of products increased, since 2011 we have started to purchase Cheongyang Plants. As the total production for steam production as an alternative to Bunker-C oil in order to steam from AK ChemTech which uses LNG this, we have continuously been reducing emission of reduce emission of greenhouse gas. Through 1 ton of products. greenhouse gas as well as the emission for - Emission of Greenhouse Gas project for Greenhouse Gas Emission Trading by KEC (Korea Based on the knowledge from the pilot Co., Ltd. measures emission of greenhouse gas in Daejeon and Environment Cooperation), Aekyung Industrial Generated Waste B.T.X.E (Benzene, Toluene, Table of Analysis of Soil Pollutants at Chengyang Plant Xylene, Ethyl Benzene) Pipe Acceptable (Not detected) Acceptable (Not detected) Tank Acceptable (Not detected) Acceptable (Not detected) Location Item Year 2000 Year 2002 Surroundings Acceptable (Not detected) Acceptable (Not detected) - Soil Pollutants into the storage area for raw and subsidiary materials as well Soil pollution may be caused by rainwater getting as fuel, that may seep into the soil. through prevention of any leakage of raw and subsidiary materials There has been no incident of soil pollution Plant is not legally applicable, and Cheongyang Plant used to and strict management of reservoirs. Daejeon factors after 2003. control soil pollutants but no longer has causal - Waste Reduction and we are striving to reduce waste through the company is disposed of by a contractor Waste generated from and training of employees. upgraded equipment, waste recycling, better production processes, *After 2003, there is no causal factor for soil pollution.
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Corporate Sustainability management Report 42 Philosophy of Aekyung Management www.aekyung.co.kr 43 Innovative Activity Workshop, March 2014 Training on Innovative Activity Operation, April 2014 Investment for Green Processing towards Environmental Preservation Environmental towards Processing Green for Investment Quality Management at Production Line at Production Quality Management • In 2014, Aekyung Industrial Co., Ltd. designed a creative operational system for these innovative activities Co., Ltd. designed a creative operational In 2014, Aekyung Industrial To establish this innovative activity operation loss from duplication of TRM, QCC, etc. through minimizing the division, site supervisors, heads of teams in with the director and heads of each system, we hold workshops Outcomes drawn from the workshops are applied to the innovative factories to upgrade the innovative activities. training sessions for all employees of factories. We also have a activity system and are disseminated through activities within the company. contest with performances of these innovative Factories of Aekyung Industrial Co., Ltd. manufacture the right quantity of high quality products at the right quantity of high quality products at the Industrial Co., Ltd. manufacture the right Factories of Aekyung added. As for innovative activities for improved at right costs, and create high value time as customers require QCC the TRM (Total Productive Maintenance), at factories, we continue to implement working environment Cheongyang Plants. and we make suggestions at Daejeon and (Quality Control Circle), • Management Philosophy of Aekyung
•Eco-friendly Logistics -Status of Logistics Bases of the Company Aekyung Industrial Co., Ltd. has the CDC (Central Distribution Center) which consists of Daejeon and Cheongyang Plants as well as the Central Logistics, and the RDC (Regional Distribution Center) which consists of Yangji, Jumunjin, and Gimhae Logistics, and also the TC (Transfer Center) which holds no inventory and covers Daegu and Gwangju regions. In the past 10 years, in order to implement an eco-friendly logistics system we have carried out reconstruction of logistics bases, upgrade of logistics systems and processes, and streamlining of distribution system. Through our various efforts, we have created tangible effects of fuel reduction, less emission of air pollutants, less waste, etc. Additionally in 2015, the warehouse in Cheonhyang Plant will be expanded (building area of 885 pyung), which will lead to more inventory concentrated in the CDC and a decrease of the opportunity cost. It will also bring efficient management in stocktaking and the FIFO (First-In, First-Out) operation through categorizing products for export by location. These will enable us to enhance our distribution services to customers.
1. Yangji Logistics Center Corporate Sustainability management Report 2015 Aekyung Industrial Co., Ltd. Jumunjin Eni-ro 20-gil 11 Ynagji-myeon Cheoin-gu Yongin-si Kyunggi-do Yangji 2. Kimhae Logistics Center Halim-ro 224 Hanlim-myeon Gimhae-si Kyungsangnam-do 3. Jumunjin Logistics Center Central Logistics 30-4, Maemaegiaraet-gil, Jumunjin-eup, Gangneung-si,
Cheongyang Daegu Gangwon-do, Korea
Daejeon 4. Central Logistics Jeosantaeseong-ro 268-24 Gannae-myeon Hengdeok-gu
Kimhae Cheongju-si Chungcheongbuk-do Gwangju 5. Chengyang Plant Chungui-ro 1547-9 Jeongsan-myeon Cheongyang-gun Chungcheongnam-do Factory Logistics Regional Logistics 6. Daejeon Plant Central Logistics TC Logistics Center Daehwa-ro 32beon-gil 174 (Daehwa-dong) Daedeok-gu Daejeon Metropolitan City
- Streamlining Distribution Process Aekyung Industrial Co., Ltd. has been carrying out an improvement project since 2013 for the purpose of creating jobs with a business agreement concluded for outsourcing production with ‘Hyungwon’ (Paju Gyunggi- do) which employees a number of severely disabled people as a occupational rehabilitation facility. We have maintained a win-win relationship with a steady increase of supply volume by Hyungwon. As of 2014, a 52% increase over the previous year was accomplished by adding more brands which are supplied by Hyungwon, starting with Bravo in 2013 and Irin in 2014. The distribution system for Bravo is normally through Cheongyang Plant and then to food supplies companies. Most food supplies companies are concentrated in the area around the capital and we streamlined the distribution that Hyungwon directly delivers its Bravo products to those companies. Taking the delivery amount by each logistics center into consideration, as a measure to move inventory between bases and to elaborate inventory fill, we set up an automatic fill operation system after shipments. We carry forward ways for efficient delivery through reduced delivery amount and distance, which leads to reduced cost and greenhouse gas.
44 www.aekyung.co.kr 45 Greenhouse Gas Generated from Logistics - Yearly Greenhouse Gas Emission by Logistics operation plan through Aekyung Industrial Co., Ltd. implements its efficient and eco-friendly logistics With these efforts, continuous control and management of greenhouse gas from logistics centers and vehicles. the production volume. we are striving to reduce emission of greenhouse gas from logistics in comparison to Aekyung Industrial Co., Ltd. takes part in Eco-Drive Campaign to promote eco-friendly driving habits for higher Aekyung Industrial Co., Ltd. takes part in Eco-Drive fuel-reduction devices and Hi-Pass units attached to them for fuel efficiency. Our transport vehicles have We continue to standardize our worksites through controlling reduced air pollution and better fuel efficiency. First-Out) inventory management and 5s activities for a better product identification for FIFO (First-In, environment. - Eco-friendly Green Logistics Services Agreements have been saving 400 to 600 million won each year in logistics cost. have been saving 400 to 600 million won each Services Agreements relations with more companies such as other Ltd. continues to expand collaborative Aekyung Industrial Co., and other LOTTE branches for joint logistics. Jeonnam and Hamyang regions, and GS Nonghyup branches in with delivery of right time and right amount and enhanced Consequently, we aim at eco-friendly logistics distances of running vacant vehicles and reduced fuel usage. delivery services, all of which derive from shorter Aekyung Industrial Co., Ltd. established collaborative relations with distributors for discount stores and with distributors for discount stores Ltd. established collaborative relations Aekyung Industrial Co., and distribution with Loex (formerly Resko) our previous collaboration experience in Nonghyup based on Agreements for PDS (Primary Distribution Co., Ltd. We signed Delivery Services AremDawoon Cosmetics with Home Plus in January and with LOTTE SCM (Supply Chain Management) strategy Service) as a win-win The 2012, and with EMART in November 2013. with Pyungtaek Nonghyung in August MART in August of 2011, - Operation of Joint Delivery System - Operation of Joint Delivery Management Philosophy of Aekyung
- Pallets for the Use in Premises In order to curb the rising costs in the usage of rental pallets due to increasing sales and product volumes, Aekyung Industrial Co., Ltd. purchased approximately 6,000 pallets designated for the use in its premises to store long-term storage items with no need for transport such as goods and products as well as raw and subsidiary materials in factories and logistics centers instead of using rentals. In the future, Aekyung Industrial Co., Ltd. will analyze the correlations with OEM companies in storage and delivery of products and pallets, and utilize more pallets designated for the use in the premises for fixed volume of products for storage and delivery towards the direction of mutually reduced costs.
- E-documentation of Slips for Inbound and Outbound Products/Pallets As of 2014, Aekyung Industrial Co., Ltd. has approximately 5,000 slips for inbound/outbound pallets per month and in order to address issues with storing and managing these slips we use high-speed scanners. From this, we now effectively respond to customers’ requests and manage the slips which used to be manually stored but now are electronically filed. Furthermore, to simplify the printing process of the EDI slips for outbound pallets we improved the SAP, Service Access Point (ERP, Enterprise Resource Planning) linked process so that we can issue EDI slips in real time through consultations with AKIS, Korea Pallet Pool, and KLNET. This improvement reduced unnecessary work and cost for inventory loss, and work efficiency has been on the rise. Corporate Sustainability management Report 2015 Aekyung Industrial Co., Ltd.
Outbound Inbound / Electronic Address Customers’ Documentation & Products / Pallets Outbound Slips Filing Requests
46 www.aekyung.co.kr 47 Objective To purchase machines, equipment, materials for developing green products 208,527 Total (unit : 1,000 won) Green Product Partnership Agreement (2014) nd 2 (uni t: 1,000 won) Scale of subsidies (Government Subsidies) Receiving subsidies Current Support for Participating Companies in Green Product Partnership Number of partner companies Year Green Product Partnership Agreement (2013) st 1 year 2014 22 111,615 year 2013 11 96,912 Active Training for Partner Companies for their Green Management, Environmental their Green Companies for Partner for Training Active Voluntary Agreement for Green Product Partnership Partnership Product Green for Agreement Voluntary st nd Section 1 2 Aekyung and partner companies. for win-win growth. Moreover, we invite experts to deliver training sessions for better understanding of green for win-win growth. Moreover, we invite experts to deliver training sessions for better eco-designs, Carbon products through introduction to the concept of green products and the trend, creating Label certification for the LCA (Life Cycle Assessment) method, the trend of environmental regulations in the overseas market. Through these training sessions to deliver guidelines for eco-friendly and green management, we established a virtuous cycle of green products between • Management, Quality Management CEOs as well as In order to promote smooth communication between all departments and partner companies’ We also conduct worksite persons in charge, Aekyung Industrial Co., Ltd. carries out 10 workshops in a year. companies’ know-how visits to partner companies to disseminate new production techniques as well as other packaging materials, and also resulted in environmental/economical/technical accomplishments through packaging materials, and also resulted in and learning technologies. developing green materials and packaging, Green Product Partnership project began with signing agreements with 11 partner companies in the first year with 11 partner companies in the first project began with signing agreements Green Product Partnership Through this, we revised the green product year (2014) with 22 partner companies. (2013) and in the second to management system for green products which is from establishing an integrated developing process and production and delivery. This resulted in reduced developing green raw materials and packaging, less environmental impact such as less greenhouse gas environmental cost and regulatory risk through higher recycling rate, and developing green raw materials and through assessment for the entire process, Aekyung’s Management for Accompanied Growth Growth Accompanied for Management Aekyung’s • was Project” in October 2012, which Ltd. carried out the “Green Product Partnership Aekyung Industrial Co., The by Korea Institute of Industrial Technology. of Trade, Industry and Energy and hosted sponsored by Ministry Implementation Strategy To raise workers’ work satisfaction, GWP (Good Work Place) To conduct job and competence training To expand statutory training Key Performance IndicatorPlan Indicator Result Sector Labor Retirement rate 10% 9.9% Aekyung’s Management through Reading Aekyung’s Human Resources Aekyung’s Management through Gratitude Human Rights Training time/person 20 hrs 23 hrs Company of Promoting Value in its People Value Company of Promoting • • •
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Corporate Sustainability management Report 48 Philosophy of Aekyung Management Aekyung’s Human Resources
•Management for Human Rights and Anti-Discrimination Recognizing the importance of guaranteeing basic rights of workers and of creating a work environment in equity, every year protection of workers’ rights among KPIs(Key Performance Indicators) are set as implementation goals for executives and the head of the personnel team. Through SFA(Survey-Feedback- Action) surveys, the implementation results are evaluated and this is to proactively implement the detailed plans of management for human rights from the management-level and prevent any potential violation of rights or discrimination in advance. For instance, to implement anti-discrimination policy for non-regular workers, our HR executives were actively involved in the examination of the status of non-regular workers and their treatment by the company as well as in revision of relevant policies. Consequently, there is no discrimination between regular workers and non- regular workers (in the work environment and benefits, etc.).
•Company-Wide Establishment and Evaluation of Goals by Employees
Aekyung Industrial Co., Ltd. aims to build a culture of performance-based system regarding performance www.aekyung.co.kr evaluation. It means the system is set up so that we motivate high-performance employees with more rewards and low-performance employees with ways towards improved performance. Evaluation is done in achievement and competence, and the evaluated employees are categorized as ‘employees with annual salary’ and ‘employees for simplified evaluation(all office jobs, production / logistics / worksite jobs with pay grade system)’. Without division between men and women, 100% employees are involved in the evaluation in consultation with evaluators for a regular performance evaluation.
Direction of the Company for Evaluation 1. Linkage between individual and organizational goals ➜ To specify individual goals with an aim of creating organizational outcomes 2. Securing leadership for increased outcomes ➜ To promote increasing outcomes & lead to continuing improvement 3. Identification of factors for stagnation and success of the company ➜ To identify reasons for current successes for future improvement 4. Evaluation process regarding consensus as important ➜ To set goals and determine evaluation results under consensus 5. Motivating employees ➜ To explore potentials for creating outcomes & link evaluation results with rewards 6. Visible linkage of outcomes with rewards ➜ To link evaluation results with rewards & give better feedback on evaluation results
Frequency of Evaluation and Timeline Month Sector 123456789101112
Evaluation Cycle ◀ ▶ Evaluation Achievement ■ ■ Date Competence ■ Goal Setting ■ Interim Counselling ■Achievement ■Competence ■Achievement
49 Note in bonuses. (including the team bonus) in bonuses. (including the possibility of transfer is determined. company-wide, teams, and positions. Based on the evaluation results, systematic education is delivered in insufficient areas. salary. - Results of achievement evaluation is reflected - Results of achievement evaluation, - Utilizing the results of competence is targeted for - The level of competence - It is utilized for categorizing pay grades for basic Education Promotion ■■ ■ Education Hours Transfer ■■ ■ Compensation Career development Basic salary Incentive Sector Physical Check-up for Employees Check-up for Physical Status on Education Status gender, job training by sector/position, etc. check-ups. Office workers are subject to biennial check-ups but we also offer annual check-ups to the check-ups. Office workers are subject to biennial check-ups but we also offer 90%. (As a result of 2014 employees. For the past 5 years, the rate of check-ups has been maintained at over check-ups, there is no employee with a severe disease.) to general check-up Realizing the significance of aging and health management of employees, in addition numerous ultrasound items, we are expanding the free check-up items to blood cancer, endoscopy and chemicals, we also examinations, etc. For employees working in the production line and dealing with special offer specialized examination as a precautionary step against any potential incidents. such as cancers at an As a result of these efforts, more employees detect and treat severe health problems early stage and we continue to work towards a healthier life for our employees. - Average education time per person is 23 hours. (Based on 389 employees at L2 and above) - Average education time per person is 23 hours. (Based on 389 employees at L2 and by personnel team) - Average cost for education per person is 430,000 won. (Based on internal education education on discrimination by Main contents for education: Sexual harassment prevention education, - company) - Education for retirement: Courses to prepare for certificates (education fee: borne by • from annual general Everyone from temporary workers to executives, all employees of the company benefit • Employees Subject to Career Development Employees Subject to for reflected in the personnel system on competence, the results are uniformly Through regular evaluations development. compensation and career evaluation (achievement+ competence) Result of competence evaluation Result of overall Result of accomplishment evaluation
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 50 Philosophy of Aekyung Management www.aekyung.co.kr 51 Year 2013 Year 2014 Membership Rate 38.7% 39.9% 46.1% Year 2012 *Calculation method: Current membership/Possible membership x 100 Labor-Management Negotiations Concluded without Collective Bargaining for 12 consecutive Years Labor-Management Relation based on Trust Labor-Management 2014 One Labor-Management Hiking Event processes, production processes, quality upgrade of products, industrial safety management guidelines, etc. to processes, production processes, quality upgrade of products, industrial safety management pending issues identify items to benchmark. It also serves as a channel to candidly discuss and understand faced by the labor and the management, aiming to maintain a win-win relationship. 2. Harmonization Programs for Labor-Management external risks, and to To provide opportunities to flexibly respond to and cooperate for possible internal and harmonization event. relive stress of work and motivate employees, we hold an annual labor-management during which the Representatives of both the labor and the management participate in the biannual workshop, negotiation participants experience in person domestic and overseas leading companies’ labor-management relationship, we set mutual trust as the top priority and actively engage in in-depth discussions to review and relationship, we set mutual trust as the top the company including higher productivity, distribution of bonuses, improve a wide range of circumstances in of strikes, reform of the personnel and labor management addressing grievance of employees, prevention scheme, etc. 1. Regular Meetings of Labor-Management Council 1. Regular Meetings of Labor-Management meet once a quarter to share issues of the company and Delegations of the labor union and the management resolve possible labor issues related education and the union. During the meetings, to fundamentally able to draw up a cooperative, non-conflicting, labor-management discussions are held side by side. To be • Industrial Co., Ltd. are implementing social responsibilities The labor union and the management of Aekyung and cooperative labor-management relationship, aiming at securing in various ways based on the constructive in the market and upgrading working conditions of employees. corporate competitiveness of the company Creating the Good Organizational Culture to Work to Culture the Good Organizational Creating - Rewarding short-term achievements evaluations and We have reduced formulized rewarding methods such as annual or biannual achievement which can give both company foundation day commendations. Instead, we have a special rewarding program which can capture right impression and motivation. Since 2012, we have had a monthly rewarding program We continue this times to reward short-term achievements and share those small successes company-wide. program for all employees to learn habits for growth from others. running shoes and their For instance, under the concept of ‘You Ran Hard’ reward recipients were given managers tied the shoe laces to congratulate them. - Introduction of AK in-house coaching system of coaching are selected with a culture of communication in To improve the organizational climate, objectives with Active Coaching’ and since 2009 external coaches are the center, aiming at ‘Creating an Organization manager-oriented coaching but since 2013 we gradually introduced and maintained. Initially, we conducted programs for all employees. Additionally, in order to internalize have adopted and implemented coaching employees are selected as internal coaches. There were 9 internal coaching as internal competence, specific 2014, who carry out a range of activities for intention and purposes coaches selected in 2012 and 7 coaches in and employees. of coaching programs between the executives manage changes for every group of the company. The program is designed and carried out under the themes every group of the company. The program manage changes for For management strategies of the company. changes, resulted from periodic on managing company-wide ‘Habits for Growth’ for 2013, and ‘Enhancing ‘Concentrating on Results’, ‘Learning Others’ 2012, the theme was the and implements action plans under for 2014. Each group of the company establishes Aekyung’s Strengths’ together under common goals of employees are trying to create a culture of working theme, from which we and their groups. • organizational climate - Workshop for improved to on organizational climate as a program Ltd. carries out workshops each year Aekyung Industrial Co.,
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Corporate Sustainability management Report 52 Philosophy of Aekyung Management www.aekyung.co.kr 53 ‘2014 Korea’s 100 Great Places ‘2014 Korea’s 100 Great th Wednesday of the month, ‘Hop Hop’ for rd Aekyung Industrial Co., Ltd. is developing a variety of programs to raise the trust level among employees, have work satisfaction, and create a pleasant culture to work, through which we strive to form a great business culture to work and make a happy workplace. As a result of our efforts, employees’ satisfaction level of working environment and workplace atmosphere greatly went up and in December 2013 we were selected as an excellent family-friendly company by Ministry of Gender Equality and Family. were selected as an excellent family-friendly company by Ministry of Gender Equality relationships between Representative programs would be ‘Partner, Love Village’ for building up good departments, ‘Family Day’ for leaving work at 5PM sharp on the 3 family members, Aekyung Mini Olympics, ‘My Drawings of Aekyung’ for a drawing contest among employees’ and ‘Make Memorable Photos with the Team’ for producing company calendars, etc. - Being selected as an excellent family-friendly company recovering the downturn of organizational atmosphere due to recent low performance through ‘Fun Event’, of organizational atmosphere due to recovering the downturn adjustment and integration to the company’s for new employees for their early phased adjustment programs First the company, a mentoring program, ceremony for new employees entering culture, a celebration day for long-term employees, and vitalizing in-house coaching anniversary of new employees, a welcoming program. Aekyung Industrial Co., Ltd. had the honor to be awarded grand prize at the 13 Ltd. had the honor to be awarded grand Aekyung Industrial Co., Center, located in Yeouido Seoul, being in November 2014 in 63 Convention to Work Awards’ ceremony by realizing a great workplace through to the development of the industry recognized for our contributions GWP with trust. In addition, we received an innovative system for management building and implementing and building up the unity of team members Innovation Award, being recognized for Team Performance - Winning grand prize in 2014 Korea’s 100 Great Places to Work Awards in 2014 Korea’s 100 Great Places to Work - Winning grand prize Worksite Worksite Shampoo Cosmetics Liquid Worksite Worksite Aekyung’s Thank-You Campaign Thank-You Aekyung’s We Implement ‘Aekyung’ - Culture of Freely Expressing Love and Respect Love Expressing of Freely - Culture ‘Aekyung’ Implement We Toothpaste and factory machines to express gratitude for the current work environment. Together with this campaign, we and factory machines to express gratitude samples of rice with ‘I conducted an experiment with cooked rice, which was to compare the conditions of two to indirectly deliver the hate you’ and ‘I love you’ spoken in order to show the power of positive words, and gratitude and positive message of ‘power of words’ to everyone in the company and eventually lead to mutual conversations. • campaign of sticking 3 types of stickers-‘Thank you for not Aekyung Industrial Co., Ltd. runs a Thank-You environment’, ‘Thank you for working with me’ on employees’ desks breaking’, ‘Thank you for the good working On the first page of Aekyung Industrial Co., Ltd. is a section of ‘We Implement Aekyung’. Aekyung is a of ‘We Implement Aekyung’. Aekyung Aekyung Industrial Co., Ltd. is a section On the first page of ‘love and respect’ in the company. Aekyung and ‘Respect’ and we freely express our compound word of ‘Love’ with it. Expressing love and respect and respect heaven and we are implementing philosophy is to love people making an affectionate organizational culture. a line of words, we are Aekyung’s Management through Gratitude through Management Aekyung’s •
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Corporate Sustainability management Report 54 Philosophy of Aekyung Management www.aekyung.co.kr 55 연도별주요활동 2014 Recommended by the CEO Phase Contents Management through ReadingSettlement phase ofManagement through ReadingCreation of outcomes book report awards, etc. from Management through Reading initiating external activities, etc. personal performance indicators, Book-ING Festival, etc. Reading Relay, books is embedded in Reading self-development Introduction phase of Management through ReadingExpansion phase of Books Recommended by the CEO, etc. of a book purchasing system, Establishment lectures by authors, Holding special Year 2009-2010 2011-2012 2013-2014 2007-2008 Books Recommended by the CEO Books Recommended Funding Program regarding Management through Reading Management through regarding Program Funding Philosophy of Aekyung Industrial Co., Ltd. in Management through Reading in Management through Co., Ltd. Industrial of Aekyung Philosophy • with employees Books recommended by the CEO are distributed on a regular basis. The CEO communicates through approximately 16.2 books a year and candidly shares comments about books. • points to purchase books every year. Through the company’s book We give to all current employees 120,000 they want any time. Monthly, one or two books recommended by the purchasing system, people can buy books management policies of the company and the CEO’s key messages CEO are given free of charge to deliver the through books. through reading, which aims to pursue growth and happiness through books, and to communicate and share aims to pursue growth and happiness through through reading, which of task force ‘Junior Board’ for the purpose of the company. We are running the with employees the direction through reading, we are at a phase to see contributions of the philosophy, and after years of management of the established management culture through reading. reading in creating outcomes on the basis Aekyung’s Management through Reading through Management Aekyung’s • have Reading. For nearly a decade, we Co., Ltd. introduced Management through In 2007, Aekyung Industrial and intention of the CEO in management a long-term plan to realize the philosophy been implementing Korea st 2014 Management through Reading Good Workplace Certification Winning of Grand Prize in ‘2014 Management through Reading, Good Workplace Reading, Prize in ‘2014 Management through Winning of Grand Most Read Books by Aekyung’s People Read Books by Aekyung’s Most Workplace Certification’ and was awarded grand prize by Minister of Culture and Sports at the 1 Workplace Certification’ and was awarded grand prize by Minister of Culture and was highly praised for Reading Festival hosted by Ministry of Culture and Sports. Aekyung Industrial Co., Ltd. ‘Let’s Become the Best the efforts to expand a culture of reading books to all employees under the vision of culture of reading in the Company in Management through Reading’ and actually contributing to building a company. this year for the first time Management through Reading, Good Workplace Certification system is implemented in accordance with to expand a reading-friendly workplace and a culture of reading books in a company Culture and Sports. ‘Framework of Reading Culture Promotion Plan (2014-2018)’ established by Ministry of Aekyung Industrial Co., Ltd. was selected as the best company in ‘2014 Management through Reading Good Aekyung Industrial Co., Ltd. was selected as the best company in ‘2014 Management • Certification’ •
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Corporate Sustainability management Report 56 Philosophy of Aekyung Management www.aekyung.co.kr 57 Special Lectures by Authors Special Lectures ’Management through Reading’ Awards of the Company Reading’ Awards ’Management through • key messages of the year We invite authors who employees desire to meet, or who wrote books with the CEO’s of the books, there is a , and conduct special lectures. After the lectures on authors’ messages and contents satisfaction. Q&A session for employees to ask questions and a book signing for higher employees’ Aekyung Industrial Co., Ltd. publishes the book ‘Book Cafe’ which is a collection of book reports for the Aekyung Industrial Co., Ltd. publishes the reading. Evaluation is done by experts invited and awards are purpose of settlement of a culture of voluntary excellent reading activities, best book report, and excellent book given for most book reports, department with awarded. reports, andcertificates and cash prizes are • through Reading is utilized as a major management activity to communicate with employees and share the communicate with employees and share as a major management activity to through Reading is utilized for we are selected as the best company of the company through books”, and “Now vision and direction a corporate culture of reading.”. Reading in Korea, we will lead in expanding Management through policies and is leading a culture of reading books by carrying out a number of activities for Management a culture of reading books by carrying policies and is leading management through reading ‘Junior Board’, as operating the company’s forum for through Reading such book donation campaign, conducting Golden books, operating an on/offline book cafe, funding for purchasing as giving books recommended by the CEO. Bell on reading, as well through reading, saying “Management expressed his ambition for future management CEO Ko Gwang-hyeon Since 2007, Aekyung Industrial Co., Ltd. set Management through Reading as one of the primary management Industrial Co., Ltd. set Management through Since 2007, Aekyung 3,400 15,241 year. This internal and th Donated to Number of Books Donated floor of Aekyung Industrial Co., Ltd. we launched AK Book Cafe. AK Book Cafe is floor of Aekyung Industrial Co., Ltd. we launched AK Book Cafe. AK Book Cafe st Jeongsan Gohan Middle School, Jeonnam Nangju High School, Jeongsan Gohan Middle School, Jeonnam Nangju Jeonnam Hampyung Middle School Total of Donated Books Launching AK Book Cafe Book Sharing Activity Year 20082009 High School, Jeonbuk Jayul Byunsanseo Middle School Kyungnam Sancheong Jirisan School, Busan HaeundaeBanyeo Middle School Jeonnam Sinan Abhae High 2010 20112012 Gangwon-do Wonju Munmak High School 1,000 2013 High School Gangwon-do Hongcheon Hongcheon 2014 Chungnam Yesan Daeheung High School Seoul Yeonglim Middle School 3,200 2,000 3,000 2,141 500 • On August 4, on the 1 as well as books equipped with around 1,500 books donated by employees and subsidiary companies check out books and take recommended by the CEO, best sellers, etc. so that Aekyung’s people can freely productive relaxing time while reading. and books. • of Love’ activity for the 7 Ltd. has carried out the ‘Book Donation Aekyung Industrial Co., in remote areas and reuse the precious nature a good campaign to send books to teens external campaign is
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Corporate Sustainability management Report 58 Philosophy of Aekyung Management www.aekyung.co.kr 59 Implementation Strategy To deduct differentiated amounts from all employees’ salaries and donate To enhance social contribution activities of each sector & department Key Performance Indicator Indicator Plan Result Contribution to (Total donation) Sector Society local community won 30 million 34 million won Aekyung’s Management through Sharing Company of Interaction with the Local Community with the Local Company of Interaction • Management Philosophy of Aekyung
Aekyung's Management with Sharing
Aekyung Industrial Co., Ltd. draws up and implements plans by sector company-wide to participate in the local community and to conduct social contributions and voluntary work. Online education for all employees was carried out on ethics including sexual harassment prevention education. There are no acts or establishments with negative influences to the local community or politically.
•AK Donating Angel Campaign Since 2011, we have been carrying out the ‘Matching Grant’ donation event, for which differentiated deductions by position are made in all employees’ salaries and the company donates the same amount as the total deduction. In 2014, donations of 34 million won were used to help the unprivileged neighbors.
•Project for Steppingstone of Hope Since March 2012, Aekyung Industrial Co., Ltd. has been carrying out Project for Steppingstone of Hope to deliver love to the neglected class of people such as single-parent families, muti-cultural families, and low-
Corporate Sustainability management Report 2015 Aekyung Industrial Co., Ltd. income families who require social welfare services. Project for Steppingstone of Hope is to carry out activities for management through sharing once a month such as giving away free meals, spring outings, cultural activities, giving away household products of the company, box lunches, laundry services vehicle, etc. Furthermore, we have donated around 880 million won towards welfare facilities and free meal projects for the elderly since 2001. In 2014, we carried out our management through sharing by donating around 60 million won to 10 entities including Suwon Maryword Children Center and Saint Francisco Disabled People Center to help out every socially neglected person positively redesign their future.
We will continue with our Project for Steppingstone of Hope and become a responsible company for social contribution and responsibilities.
Giving Away Free Meals Laundry Service Vehicle
Voluntary Cleaning Kimchi Sharing Event
60 www.aekyung.co.kr 61 grades, who are from socially nd and 2 st event which is to support low-income families with household items. This event is the 3rd event since 2012 to take part in a low-income family support project and 100 people including Executive Director Seok-ju Lee and employees from Aekyung Industrial Co., Ltd. participated as well as Hong- yeon Choi, Director General for Welfare Policy from Seoul City, Su-hong Lee, In May 2013, Aekyung Industrial Co., Ltd. carried out a lesson on ‘Proper Tooth In May 2013, Aekyung Industrial Co., Ltd. carried Brushing Habit’ to 13 students in the 1 neglected families in Deajeon Metropolitan City. A dental hygienist from the Korea Dental Health Association gave a lesson at their eye level and they were satisfied. From this opportunity, we will continue with educating children how to properly brush their teeth and have no cavities. On December 10 of 2014 in front of Guro Community Center, Aekyung Industrial Co., Ltd. and Seoul City jointly held ‘2014 Bundle of Hope’ donation Consumer Network in Korea for a project to make a corporate culture of Consumer Network in Korea for a project to this MOU, we will carry considering women in emotional labor. According to identify grievances of women in out not only in-depth interviews and talks activities to improve the working emotional labor but also a number of labor such as exploring the environment of women engaged in emotional employees. As an effort to create jobs at establishments with disabled people, to create jobs at establishments with disabled employees. As an effort its overall Industrial Co., Ltd. assisted Hyungwon with in July 2013 Aekyung can production technology transfer so that Hyungwon process upgrade and Consequently, detergent TRIO Bravo on their own. produce a dishwashing new disabled for end products is higher and 20 more Hyungwon’s productivity Ltd. signed an MOU with Green In July 2014, Aekyung Industrial Co., Since July 2014, Aekyung Industrial Co., Ltd. has been manufacturing a fabric Industrial Co., Ltd. has been manufacturing Since July 2014, Aekyung disabled which has a number of severely softener Irin at Hyungwon Donation of Goods to Low-Income Disadvantaged Class of People Class Disadvantaged Low-Income Donation of Goods to Central Research Center of Aekyung Industrial Co., Ltd. Educates Proper Tooth Brushing Tooth Proper Co., Ltd. Educates of Aekyung Industrial Center Research Central Signing MOU for Women Engaged in Emotional Labor Women Signing MOU for Project to Support Establishments with Disabled Employees with Disabled Support Establishments to Project continue with our efforts to give hope and courage to disadvantaged neighbors. Secretary General of Seoul Council on Social Welfare, etc. We gave away 3,000 boxes of ‘Bundles of Hope’ Secretary General of Seoul Council on Social Welfare, etc. We gave away 3,000 boxes disadvantaged families containing household items such as shampoo, toothpaste, detergent, etc. to low-income for people and we will selected by Seoul City. Aekyung Industrial Co., Ltd. is a company with love and respect • breaks from work for emotional exhaustion. • code of conduct and conducting campaigns. We strive to innovatively improve the working environment for code of conduct and conducting campaigns. up a systematic customer response manual for in-house women engaged in emotional labor by setting benefits in consideration of the nature of work such as allowing customer relations employees and providing • employees were hired, killing two birds with one stone. Aekyung Industrial Co., Ltd. will continue with our Industrial Co., Ltd. will continue with killing two birds with one stone. Aekyung employees were hired, employees so that they can expand areas of business and become support for establishments with disabled self-sufficient. • more than 90% is concentrated in Asia and Africa. We are taking part in a in Asia and Africa. We are more than 90% is concentrated among climate in nutritionally vulnerable areas project to support children (1-week of hope and meals for nutrition deficiency refugees with T-shirt on t-shirts draw pictures containing messages of hope portions). Employees We draw ‘Hope’ and save ‘Lives’. We draw ‘Hope’ and save among which change, more natural disasters occur, Due to global climate of April 2014, there was a scholarship awarding ceremony by Aekyung Welfare Foundation. of April 2014, there was a scholarship awarding th to 17 th Awarding Aekyung Welfare Foundation Scholarships Foundation Aekyung Welfare Awarding Campaign of Drawing on T-shirts Campaign of Drawing middle, and high school students with excellent academic performance. middle, and high school students with excellent around 100 welfare entities and more including Saint Francisco and It also has supported events and facilities of Center, Seoguipo Muti-Culture Center, House of Hanul, etc. Suwon Gonjiam Cathedrals, Jeju Muti-Culture From 14 along with Jeong-su Kim, Heung-su Gwak, and Namyong Lee Board Chairperson Ms. Young-shin Chang concerned at 15 schools such as Mirae Elementary School, Younglim Directors met with principals and persons and understood the circumstances of scholarship recipients, while Middle School, Sejong High School, etc. awarding scholarships in person. and deliver to climate refugee children as precious relief goods to save lives. refugee children as precious relief goods and deliver to climate • in July 2000 for the purpose of supporting disadvantaged neighbors Aekyung Welfare Foundation was founded carrying out public welfare projects including projects to support for a new start with their lives, and it has been free-meal projects, awarding scholarships, etc. To date, every welfare facilities, projects to support the elderly, to 500 teens who are heads of household and to 500 elementary, year the foundation has awarded scholarships •
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Corporate Sustainability management Report 62 Philosophy of Aekyung Management www.aekyung.co.kr 63 Aekyung Industrial Co., Ltd. The Love-Driven World with Most Beautiful Stories Together LOVE & RESPECT
Happy Community Made by Aekyung Together with Customers
We will Continue to Be a Responsible Company for Social Contribution and Responsibilities. APPENDIX
2015 Aekyung Industrial Co., Ltd. Corporate Sustainability Management Report 883,000 (Unit: 1,000 won) Government Grants Project Duration 2014. 6~2015. 52013.8~2014. 8 40,000 100,000 2013.11~2014.10 200,000 Project Name Names of Awards and Recognitions by Awarded Carbon-Zero Certification. Technology Institute July Concluded MOU for Women in Emotional Labor Green Consumer Network Financial Assistance Granted by the Government Granted Financial Assistance List of Associations and Stakeholders of Associations List Sector 2014 Major Awards and Recognitions and Recognitions 2014 Major Awards March Frontier Received grand prize at Korea Marketing Korea Marketing Association February prize as National Consumer-Centered Brand Received grand Dong-A Ilbo December Laundry detergent LiQ 3L for Front Loaders obtained Industry and Korea Environmental November prize in 'Korea's 100 Great Work Places (GWPs)' Received grand GWP Korea September September prize at 2014 Korea Future Creation Received grand at Korea Reading Festival Selected as best company The Korea Economic Daily Ministry of Culture, Sports and Tourism Industrial Technology (KITECH), Korea Green Business Association (GBA), The Korea Chamber of Commerce Industrial Technology (KITECH), Korea Green Korean Standards Association (KSA), Korea Management (KCCI), Korea Industrial Safety Association, Korea Cosmetics Association (KCA), Korea Association (KMA), Korea Fire Safety Association(KFSA), Customs Logistics Association (KCLA), Korea Product Safety International Trade Association (KITA), Korea Clinical Toxicology (KSCT) Association (KPSA), The Korean Society of • • Management Association (KCMA), Korea Environmental Green Company Council (GCC), Korea Chemicals Industry and Technology Institute, Korea Institute of Engineers Association (KEEA), Korea Environmental • Energy Partnership ProjectProject for Business-to-Business Integrated Monitoring System Building Project for Product Developing with Unitary Packaging MaterialProject for Establishment and Dissemination of Green Product Developing 2014.07~2014.11System in the Fine Chemicals Supply Chain Total Amount 2013.05~2014.06 360,000 63,000 2014.07~2014.11 20,000 Development of Production and Application Technology for Development of Production and Application Technology Fine Chemical Intermediate in Suksan Acid Group Peptide Derivative Development of Whitening Material Using Natural Development of Foods with Side Effect-Mitigating, Immunopotentiating, Hematogenesis Effects for Post-Cancer Treatment Patients 2014.11~2015.10 100,000
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 66 APPENDIX www.aekyung.co.kr 67 ( Unit : kilo won) 2 3 0 0 259 190 464 691 355 302 4,259 4,324 3,747 3,725 18,891 19,920 23,384 23,874 65,436 69,050 65,436 59,653 50,016 47,171 37,382 200,600 196,266 200,600 Sector Year 2014 Year 2013 2014 Statement of Financial Position 2014 Statement • 4.Deffered tax assets(non-current) 287 285 3. Software 4.Right to use industrial water facilities5. Usable and profitable donation assets(4) Other non-current assets1.Long-term accounts receivable2.Deposit 3.Other investment assets 0 301 8,868 0 4,321 244 0 8,608 0 3,999 5.Delivery equipment or vehicles6.Equipment assets7.Construction in progress(3)Intangible assets1.Industrial property rights2. Development expense 119 172 7,165 1,152 1,917 98 0 6,622 429 1,005 1,940 0 6.Derivative assets (2)Tangible assets1.Land 2.Buildings 3.Structures 4.Machinery and equipment 58,389 8,400 59,315 8,182 II.Non-Current Assets(1)Investment assets1.Long-term financial instruments2.Held-to-maturity securities3.Avaiable-for-sale securities4. Investments in equity securities 5.Long-term loans receivable 130 70,346 1,171 775 9 0 257 71,453 133 1,590 774 409 0 275 2.Semi-finished goods3.Work in goods 4.Raw material 5.Subsidiary material6.Supplies 7. Imported goods to arrive 5,397 2,786 194 5,411 3,102 92 8.Advance payments9.Pre-paid expenses10.Taxes refund receivable11. Other quick assets12.Current deferred tax assets(2)Inventories 1.Products 1,760 0 674 263 40 1,866 270 234 0 23 2. Short-term financial instruments3.Held-to-maturity securities4. Sale credit 5. Short-term loans receivable6.Accounts receivable7.Revenues receivable 0 0 116 377 0 0 350 114 582 2 Total Assets I.Current Assets(1)Current assets1. Cash and cash equivalent 1,935 130,254 70,601 124,813 2,307 74,797 ( Unit : kilo won) 0 10,000 294 543 3,058 3,058 58,664 56,482 20,542 20,542 Sector Year 2014 Year 2013 . Capital Adjustment. Accumulated Other Comprehensive Income . Retained Earnings 0 - 0 36,091 0 - 21,221 55,131 ⅴ 1.Legal reserve 2. Reserve for business improvement4.Unapporpriated retained earningsTotal liabilities and equity 4,780 28,253 200,600 4,780 47,292 196,266 1. paid-in capital in excess of par value2. Other capital surplus(2)Revaluation reserveⅢ 1.Losses from capital reduction2.Treasury stocksⅣ 1,991 39 1,991 0 0 - 0 - 21,221 39 0 - 0 5. Deferred tax debit (fixed)Total Equity I.Capital 1.Captal stock-commonII. Capital Surplus(1)Capital reserve 0 20,542 2,030 2,030 0 20,542 2,030 2,030 11. Other current liabilities 12.Deffered tax liabilitiesII.Non-Current Liabilities1.Corporate bonds 2. Long-term loans3. Appropriated liabilities for retirement benefits 4. Appropriated liabilities for returns 2,419 490 7,534 0 116 3,435 5,000 440 22,547 0 113 9,000 5.Deposit received6.Accrued expenses7.Deposit received8. Derivatives liabilities9.Accrued taxes 10.Current long-term liabilities 1,102 2,472 14,000 1,453 0 1,231 1,349 15,000 762 0 Total LiabilitiesI. Current liabilities1.Accounts payable2. Short-term loans3.Accounts payable4.Advances received 134,402 141,936 60,584 46,312 7,565 131 117,237 139,784 59,318 31,378 7,210 6
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 68 APPENDIX •GRI (Global Reporting Intiative) Contenet Index Fully reported ●/ Partially reported ◐/ Not reported ○/ N/A(Not Applicable)
Application Indicator Content Pages Others Level Strategy 1.1 Statement from the most senior decision-maker of the organization ● 5 and Analysis 1.2 Description of key impacts, risks, and opportunities ● 5 2.1 Name of the organization ● 6 2.2 Primary brands, products, and/or services ● 6, 10, 18-20 Operational structure of the organization, including main divisions, 2.3 ● 6. 10, 12 operating companies, subsidiaries, and joint ventures 2.4 Location of organization's headquarters ● 10 Number of countries where the organization operates, and names of countries with Organizational 2.5 either major operations or that are specifically relevant ● 10 Profile to the sustainability issues covered in the report 2.6 Nature of ownership and legal form ● 6 2.7 Markets served ● 10, 12, 21-23 2.8 Scale of the reporting organization ● 10 2.9 Significant changes during the reporting period regarding size, structure, or ownership ● 10-11 2.10 Awards received in the reporting period ● 66 3.1 Reporting period ● 6 3.2 Date of most recent previous report N/A N/A First report 3.3 Reporting cycle ● 6 3.4 Contact point for questions regarding the report or its contents ● 6
3.5 Process for defining report content ● 6 www.aekyung.co.kr 3.6 Boundary of the report ● 6 3.7 State any specific limitations on the scope or boundary of the report ● 6 Basis for reporting on joint ventures, subsidiaries, leased facilities, Report 3.8 outsourced operations, and other entities that can significantly affect comparability ● 6 Parameters from period to period and/or between organizations
3.9 Data measurement techniques and the bases of calculations ● Each datum includes the calculation method. Explanation of the effect of any re-statements of information provided in earlier reports, 3.10 and the reasons for such re-statement N/A N/A First report Significant changes from previous reporting periods in the scope, boundary, 3.11 or measurement methods applied in the report N/A N/A First report 3.12 Table identifying the location of the Standard Disclosures in the report ● 69-71 3.13 Policy and current practice with regard to seeking external assurance for the report ● 72-73 Governance structure of the organization, including committees under the highest 4.1 governance body responsible for specific tasks, such as setting strategy or ●12 organizational oversight 4.2 Indicate whether the Chair of the highest governance body is also an executive office ● 12 For organizations that have a unitary board structure, state the number and gender of 4.3 members of the highest governance body that are independent and/ ● 12 or non-executive member Mechanisms for shareholders and employees to provide recommendations or 4.4 ● 12, 51 direction to the highest governance body Linkage between compensation for members of the highest governance body, 4.5 senior managers, and executives (including departure arrangements), ● 12 and the organization's performance (including social and environmental performance) Governance, It consists of Commitments, Processes in place for the highest governance body to ensure conflicts of N/A N/A and 4.6 internal interest are avoided directors only. Engagement Process for determining the composition, qualifications, and expertise of the members 4.7 of the highest governance body and its committees, including any consideration of gender ● 12 and other indicators of diversity Internally developed statements of mission or values, codes of conduct, and principles 4.8 relevant to economic, environmental, and social performance and the status ● 12 of their implementation Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, 4.9 ● 12 including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles Processes for evaluating the highest governance body's own performance, 4.10 ● 12 particularly with respect to economic, environmental, and social performance
69 N/A(Not Applicable) ○/ ○/ Not reported 41 41 41 40 39 39 34 34 40 40 66 12 12 12 12 14 13 60 28 48 59 26 27 13 66 39-42 ◐/ ◐/ 14, 34 26, 34 34, 48 23, 33, 36 33, 36, 66 Partially reported ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ○ ○ ◐ N/AN/A N/A N/A N/A N/A Level N/AN/A N/A N/A ●/ ●/ Application Fully reported Content Pages Others minimum wage at significant locations of operation Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk Understanding and describing significant indirect economic impacts, Understanding and describing significant indirect economic including the extent of impacts Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives Financial implications and other risks and opportunities for the organization's Financial implications and other risks and opportunities activities due to climate change to local Range of ratios of standard entry level wage by gender compared suppliers Policy, practices, and proportion of spending on locally-based at significant locations of operation hired from Procedures for local hiring and proportion of senior management the local community at significant locations of operation and services provided Development and impact of infrastructure investments primarily for public benefit or other initiatives to which the organization subscribes or endorses or other initiatives to which the organization and by stakeholder group been raised through stakeholder engagement, Key topics and concerns that have including through its reporting Explanation of whether and how the precautionary approach or principle is addressed Explanation of whether and how by the organization (Risk management) environmental, and social charters, principles, Externally developed economic, EC1 Direct economic value generated and distributed 4.134.14 organizations in associations and/or national/international advocacy Memberships 4.15 groups engaged by the organization List of stakeholder 4.16to engage identification and selection of stakeholders with whom Basis for by type to stakeholder engagement, including frequency of engagement Approaches 4.17 to those key topics and concerns, and how the organization has responded 4.11 4.12 EN1EN2 Materials used by weight or volume EN3 Percentage of materials used that are recycled input materials EN4 Direct energy consumption by primary energy source EN5 Indirect energy consumption by primary energy source Energy saved due to conservation and efficiency improvements EN6 EN7EN8 Initiatives to reduce indirect energy consumption and reductions achieved EN9 Total water withdrawal by source Water sources significantly affected by withdrawal of water N/A N/A EC9 EC2 EC3EC4 of the organization's defined benefit plan obligations Coverage financial assistance received from government Significant EC5 EC6 EC7 EC8 EN11 EN12 EN13 Habitats protected or restoredEN14 Strategies, current actions, and future plans for managing impacts on biodiversityEN15 EN16 N/A Total direct and indirect greenhouse gas emissions by weight EN17 Other relevant indirect greenhouse gas emissions by weight EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved EN19 Emissions of ozone-depleting substances by weight N/A N/A N/A EN10 Percentage and total volume of water recycled and reused Indicator DMA LA Labor sector DMA EC Economic sector DMA SO Social sector DMA PR Product sector DMA EN Environmental sector DMA HR Human rights sector and GRI (Global Reporting Intiative) Contenet Index Index Contenet Intiative) Reporting GRI (Global (DMAs) Economy Approach Governance, Engagement Environment Management • Disclosures on Commitments,
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 70 APPENDIX www.aekyung.co.kr 71 N/A(Not Applicable) ○/ ○/ Not reported 51 50 61 50 50 50 49 13 14 50 49 51 40 42 38 27 29 43 13 49 51 51 37-38 44-46 12, 13 13, 48 ◐/ ◐/ Partially reported ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ○ ○ N/A N/A N/A N/A N/A N/A Level ●/ ●/ Application Fully reported Content Pages Others of child labor, and measures taken to contribute to the effective abolition of child labor human rights that are relevant to operations Operations and significant suppliers identified in which the right to exercise freedom and actions taken to support these rights Operations and significant suppliers identified as having significant risk for incidents Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations Programs for skills management and lifelong learning that support the continued Programs for skills management and lifelong learning that support employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career development reviews, by gender Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation Percentage and total number of significant investment agreements and contracts that or that have undergone human rights screening Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken Total workforce by employment type, employment contract, and region, broken down by gender Total number and rate of new employee hires and employee turnover by age group, gender, and region health Percentage of total workforce represented in formal joint management-worker and safety committees Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender in place to assist Education, training, counseling, prevention, and risk-control programs serious diseases workforce members, their families, or community members regarding Weight of transported, imported, exported, or treated waste deemed hazardous Weight of transported, imported, shipped internationally and percentage of transported waste biodiversity value of water bodies and related habitats Identity, size, protected status, and organization's discharges of water and runoff significantly affected by the reporting impacts of products and services, Initiatives to mitigate environmental and extent of impact mitigation are Percentage of products sold and their packaging materials that reclaimed by category sanctions for Monetary value of significant fines and total number of non-monetary non-compliance with environmental laws and regulations goods and materials Significant environmental impacts of transporting products and other of the workforce used for the organization's operations, and transporting members LA1 LA2 LA3LA4 Benefits provided to full-time employees by major operations LA5 Percentage of employees covered by collective bargaining agreements Minimum notice period(s) regarding significant operational changes LA6 LA7 LA8 LA9 Health and safety topics covered in formal agreements with trade unions HR3 Total hours of employee training on policies and procedures concerning aspects of HR4 Total number of incidents of discrimination and corrective actions taken HR5 of association and collective bargaining may be violated or at significant risk, HR6 HR7 of forced or compulsory labor, and measures to contribute to the elimination of all forms N/AHR8 N/A HR1 include clauses incorporating human rights concerns, HR2 N/A N/A LA10 Average hours of training per year per employee by gender, and by employee category LA11 LA12 LA13 of employees per employee category Composition of governance bodies and breakdown LA14 LA15 Return to work and retention rates after parental leave, by gender EN23 number and volume of significant spills Total EN24 the terms of the Basel Convention Annex I, II, III, and VIII, under EN25 EN26 EN27 EN28 N/AEN29 EN30 and investments by type Total environmental protection expenditures N/A EN20 SOx, and other significant air emissions by type and weight NOx, EN21 water discharge by quality and destination Total EN22 weight of waste by type and disposal method Total Indicator GRI (Global Reporting Intiative) Contenet Index Index Contenet Intiative) Reporting GRI (Global Labor Environment Performance Performance Indicators for Indicators for Human Rights • N/A(Not Applicable) ○/ ○/ Not reported 6 31 18 18 31 60 60 60 60 60 60 60 60 60 60 37-38 37-38 37-38 29, 31 ◐/ ◐/ Partially reported ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● N/AN/A N/A N/A N/A N/A Level ●/ ●/ Application Fully reported Content Pages Others Life cycle stages in which health and safety impacts of products and Life cycle stages in which health and safety impacts of products surveys measuring customer satisfaction related to marketing Programs for adherence to laws, standards, and voluntary codes communications, including advertising, promotion, and sponsorship Total number of incidents of non-compliance with regulations and voluntary codes and sponsorship by type of outcomes Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services for non-compliance with laws and regulations with significant Prevention and mitigation measures implemented in operations potential or actual negative impacts on local communities and services categories subject to such procedures voluntary codes Total number of incidents of non-compliance with regulations and by type of outcomes and percentage of Type of product and service information required by procedures, significant products and services subject to such information requirements voluntary codes Total number of incidents of non-compliance with regulations and of outcomes concerning product and service information and labeling, by type Practices related to customer satisfaction, including results of human rights reviews and/or impact assessments human rights reviews and/or impact human rights filed, addressed and resolved through Number of grievances related to formalgrievance mechanisms local community engagement, Percentage of operations with implemented programs impact assessments, and development politicians, Total value of financial and in-kind contributions to political parties, and related institutions by country Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes sanctions Monetary value of significant fines and total number of non-monetary Total number of incidents of violations involving rights of Total number of incidents of violations indigenous people and actions taken operations that have been subject to Percentage and total number of SO9 Operations with significant potential or actual negative impacts on local communities SO1 SO2SO3 analyzed for risks related to corruption Percentage and total number of business units SO4 anti-corruption policies and procedures Percentage of employees trained in organization's SO5 Actions taken in response to incidents of corruption Public policy positions and participation in public policy development and lobbying SO6 SO7 SO8 PR6 PR7 communications, including advertising, promotion, concerning marketing PR8 PR9 PR1 services are assessed for improvement, and percentage of significant products PR2 life cycle, concerning health and safety impacts of products and services during their PR3 PR4 PR5 HR9 SO10 HR11 HR10 Indicator GRI (Global Reporting Intiative) Contenet Index Index Contenet Intiative) Reporting GRI (Global Society Products Performance Performance Performance Indicators for Indicators for Indicators for Human Rights •
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Corporate Sustainability management Report 72 APPENDIX www.aekyung.co.kr 73 Third-Party Audit Certification Third-Party Review application of internal sustainability reporting criteria of the company process Review information contained in the ‘report’ and documents on information collecting Interview the persons responsible for reporting and collecting of data on the company’s sustainable Interview the persons responsible for reporting and collecting of data on the management through site Review data management, reporting system and processes for sustainable management inspections Review reported contents on revaluation of materiality and contents related to key issues, and policies and Review reported contents on revaluation of materiality and contents related to key review criteria of the company • • • • • greenhouse gas emissions reviewed by a third-party organization are not included in the scope of this audit. greenhouse gas emissions reviewed by a third-party organization are not included in Primary Audit Procedures documents the company BISD reviewed the interviews with the relevant persons of the company and relevant provided. Primary audit procedures include the followings: report content’(stakeholder inclusiveness, sustainability context, materiality, completeness). Adequacy of report content’(stakeholder inclusiveness, reviewed with ‘Principles for ensuring the quality and appropriate information described in the ‘report’ was presentation of reported information’ as a reference. out at Cheongyang Plant. The scope of this audit is limited to For this audit, site inspections were carried excluded. In addition, outcomes included in the ‘report’, and previous data and online information are carrying out the third-party audit and providing opinions of audit in order to maintain independence and carrying out the third-party audit and providing autonomy. Audit Criteria and Limitation and reviewed the ‘report’ on the basis of ‘Principles for defining BISD adopted Global Reporting Initiative(GRI) Responsibility and Independence future plans made by Aekyung Industrial Co., Ltd. in 2014 towards This ‘report’ presents efforts, outcomes, and for any matters in relation to producing the ‘report’ is borne by sustainable management and all responsibility Aekyung Industrial Co., Ltd. of profit in management with Aekyung Industrial Co., Ltd. other than BISD is not engaged in any other interests Objectives whether or not the ‘report’ contains aims to identify with independent audit procedures This audit certification the competence of Aekyung Industrial Co., Ltd. in its sustainable any significant errors or prejudice and whether management is properly indicated in the ‘report’ Business Institute for Sustainable Development (BISD) (hereinafter ‘BISD’), founded by the KCC (Korea Sustainable Development (BISD) (hereinafter Business Institute for Sustainability Management Report’ (hereinafter was requested to audit ‘2015 Aekyung Chamber of Commerce), in the audit on the ‘report’ as indicated ‘third-party auditor’ and we have concluded ’report’) as an independent this certification. • corrective actions accordingly, and disclosed performances during the period of the ‘report’. corrective actions accordingly, and disclosed not omitted. and information that may have significant economic, environmental, social impacts was activities were implemented and disclosed its sustainable management activities implemented on the basis activities were implemented and disclosed of the findings through this ‘report’. companies, customers, employees, local communities, government/public offices/associations through companies, customers, employees, local respective channels for the group. topics through communication channels. Through the 1st issue of the Sustainability Management Report, we found that Aekyung Industrial Co., Ltd. Through the 1st issue of the Sustainability Management Report, we found that Aekyung Completeness: Does it cover the material topics and Indicators and definition of the report boundary sufficient Completeness: Does it cover the material topics and Indicators and definition of the report Sustainability context: Is it reporting the performances of the organization at broader level of sustainability? Sustainability context: Is it reporting the performances Materiality: Is it indicating aspects that may reasonably be considered important for reflecting the Materiality: Is it indicating aspects that social impacts, or influencing the decisions of stakeholders? organization’s economic, environmental, and Stakeholder inclusiveness: Is it explaining if the organization identified its stakeholders and how it has Is it explaining if the organization Stakeholder inclusiveness: expectations and interests? responded to their reasonable - The contents of the ‘report’ were set in accordance with general boundaries of Aekyung Industrial Co., Ltd. The contents of the ‘report’ were set in accordance with general boundaries of Aekyung Industrial - - Aekyung Industrial Co., Ltd. identified regional environmental, social circumstances where management Aekyung Industrial Co., Ltd. identified regional environmental, social circumstances - - Co., Ltd. strived to utilize objective information ad measuring methods for the ‘report’. Aekyung Industrial had on stakeholders and took Aekyung Industrial Co., Ltd. identified impacts that management activities - - Aekyung Industrial Co., Ltd. categorizes and provides necessary information to shareholders, partner Aekyung Industrial Co., Ltd. categorizes and provides - stakeholder groups in the process of collecting Aekyung Industrial Co., Ltd. did not exclude any important - recommendations: • social outcomes for its made efforts to communicate with stakeholders and economic, environmental, the company and its sustainability. In the future, Aekyung Industrial Co., Ltd. is advised to identify how of interest in the report. stakeholders are influencing each other, and explore and reflect stakeholders’ matters process and select In this respect, I recommend Aekyung Industrial Co., Ltd. establish a materiality assessment main topics accordingly. • to assess the to reflect significant economic, environmental, and social impacts and enable stakeholders reporting organization’s performance in the reporting period? Recommendations suggests the following BISD, within the boundary of not influencing the conclusions of the audit, • • reported information’ of GRI, there are no significant errors in the contents of the ‘report’. of GRI, there are no significant errors in the reported information’ by BISD, we reviewed the followings: On the basis of audit activities • Opinions of Audit and the ‘report’ was modified as necessary. audit process as described in the certification BISD carried out the of the quality and appropriate presentation on the basis of the ‘Principles for ensuring It is our opinion that
2015 Aekyung Industrial Co., Ltd.
Corporate Sustainability management Report 74 APPENDIX •To implement sustainable management systematically, a performance management process should be established. It is advised to set goals and key objectives by major sectors, carry out sustainable management accordingly, and arrange for an internal process to assess and improve. This can be done by a designated unit and persons in charge of work related to sustainable management, enabling them to supervise organizational changes. It will be useful for stakeholders of Aekyung Industrial Co., Ltd. to recognize sustainability of the company from the findings of its reports.
•If a report is produced with application GRI guidelines, from 2016 reports will have to be produced GRI G4 Guidelines. It is recommended Aekyung Industrial Co., Ltd. prepare to apply the new guidelines for future reports. G4 Guidelines identify important aspects of the company and discloses relevant management approaches and indicators. I look forward to reports by Aekyung Industrial Co., Ltd. with more characteristics reflected in them. www.aekyung.co.kr
March 2015
President Tae-jin Park
75 2015 Aekyung Industrial Co., Ltd. Corporate Sustainability Management Report
Publication related information - Publication Date : March 23, 2015 - Publisher: Gwang-hyen Ko Division Responsible for Publication: Environmental Management Support Part, Aekyung Aekyung Industrial Co., Ltd 1547-9 Chungui-ro Jeongsan-myeon Cheongyang-gun Chungcheongnam-do - Enquiry Point : TEL(+82-41-940-3550), FAX(+82-41-940-3559), Homepage(www.aekyung.co.kr) - Design & Printing : Samwon DPS
Our Thanks to: Song Geun Mok, Jeong Heon Chang, Lee Sang Jik, Kim Yong hyeon, Park Seul Woo, Lee Young Kook, Park Jung Tak, Kim Yong Ho, Park Hong Youl, Jang Sung Ho, Kim jong seong, Kim Geun Young, Heo Chang Beom, Shin Seung Hyun, Ahn Min Young, Kim, Kap Mo, Han Sang Dong, Kim Jin Won, Chang Se Keun, Kim Han Young, Ilmin Han, Han Dong Sung. Nam Ki Chun, Min Yeong Ik, Kwon Woo Jung, Baek Jung Hwan, Seo Jong Chul, Jun Hyerin, Lee Yun Kyeong, Choi Jee hae, Yoo Boram, Lee Eun kyung, Lee Lak Hyung, Im Geum Hee, Lee Ki Suk , Baik Jae Seok, Kim Kwan Jin, Kim keon woo, Lee Yeo Rim, Jung Hyun Ah, Ji Su hyun, Song Jin sub, Hong Keun Ho, Sim In Seup, Lee Min Kyu, Seo Chang hee, Chung Ji Young, Ryu Geun Seok, Lee Ju Hyun, Park Dae Gi, Kim Youn Duk, Kang Ju Hee, Kim Hye Rim, Ahn Jung Tae, Park Hye Jin, Kang Young Bok, Yim Gie Hong, Chang Yeun Hee, Ryu Hyeun Seok, Lee Jung Wook, Kim Jin Suk, Ahn Eun Young, Kwak Yung In, Woo Seung, Noh Jun Ho, Song Ki Bok, Kim Woo Jung, Yoon Gun Sun, Kim Jun Kyum
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