focuS 01 focuS 02 focuS 03 focus 04 focuS 05 2. Community Involvement & Development Corporate Philanthropy Value Framework Details of the Study on Cause-related Marketing in China Corporate Vision External Internal Environment Analyses Environment Analyses A Leading Global Tire Company that Provides Customers with Value and Pleasure Automobile and tire business Mid/long-term strategy of the trends, consumer trends, Chinese Headquarters, brand Slogan social issues survey outcomes, status of Driving for Your Happiness the distribution operations, social contribution in China Mid/long-Term Goal Review Directions Contribute to the growth of local communities and the enhancement of corporate brand value · Focus on social value Four Strategic Directions 10 Major Implementation Tasks · Mobile-enabled social network communication · Social issue of ‘air pollution’ 1. Concentrate core 1. Align with tire business characteristics · Online promotions to engage customers, capacity 2. use technology and capacity employee engagement in volunteering · Promotion via diverse media in alignment with sales 3. Build employee consensus and motivate employees · Plans to track customer engagement and sales volume 2. Engage employees 4. Revitalize volunteerism · Attempt to launch ‘cause-related marketing’ 5. Revitalize donations 6. Strengthen self-sufficiency and capacity 3. Support the growth (Support the self-sufficient ecosystem) Set directions in launching cause-related marketing in China of local communities 7. Support the culture, arts and sports of local communities 8. Expand the corporate philanthropic system by region 4. Expand company- 9. Strengthen the capacity of the staff in charge of corporate philanthropy wide execution 10. Expand and support the corporate philanthropy of subsidiaries Global Corporate Philanthropic Expenditure As a global corporate citizen, Hankook Tire takes its social responsibility seriously, and undertakes cI-2 corporate philanthropy globally to pursue shared growth with the local communities where it is based. We will gradually scale up social-giving initiatives in line with the widening reach of our global corporate philanthropy. Participation of Employees (unit: KRW million) (unit: %) 3,036 4,166 4,835 0.04 0.06 0.07 Included in our endeavors to facilitate employee volunteerism and engagement in donation activities are: the alignment of volunteering with HR systems, implementation of year-end group volunteer activities, and the launching of campaigns on the online donation website. Expand Employee Engagement in Volunteering and Donations 2012 2013 2014 2012 2013 2014 Expanded Engagement in Volunteerism • On May 9th of 2013, we launched the ‘Donggeurami Volunteer- company-Wide (Korea+overseas) Against sales ing Team’ to celebrate the corporate anniversary, and widened the scope of our employee volunteerism across the company. In 2014, we aligned our promotion get as close as possible to our markets and custom- point scheme (HR system) with volunteer hours to en- ers. We conducted internal/external environmental gage more employees and successfully establish this analyses to identify successes & failures as well as volunteer team. On December 12th of the same year, relevant implications. Our findings helped us choose approximately 1,300 office staff in Korea joined year- China as our target country to launch such market- end volunteer programs. Our goal for 2015 is to further ing initiatives. We took brand awareness, market broaden the scope of our engagement and initiate share, market demand, and retail network levels into ‘family volunteerism’ joined by employee families as consideration, and we analyzed local conditions to well as employees. Our employee volunteer team was set directions in developing social-giving programs. also launched at our Hungarian establishment in 2013, As needs arise for cause-related marketing in the lo- and undertook community support programs through cal Chinese market, these programs will serve as the regular volunteer activities in 2014. foundation to support our social-giving initiatives. 55 Korea Volunteer Hours per training curriculum to help team managers improve Employee category 2012 2013 2014 their awareness and build consensus. In all, the training (unit: No. of hours) Total Volunteer Hours (No. of hours) 16,308 20,054 27,103 was completed by 328 employees through 13 sessions 2.3 3.0 Total Volunteers (No. of persons)* 3,250 5,316 7,493 in 2014. In 2015, we will open a one-hour course entitled Net Participants (No. of persons)** 1,336 2,671 3,020 ‘understanding Disabilities and Human Rights Train- Volunteer Activity (No. of activities) 222 345 396 ing’ for the employee volunteer programs undertaken for the disabled. We plan to align such training directly Hungary Plant with volunteerism so that our volunteer initiatives are category 2013 2014 undertaken in tandem with ‘training’ and ‘execution’. Total Volunteer Hours (No. of hours) 1,600 2,227 Total Volunteers (No. of persons)* 66 104 Volunteer Leader Capacity-Building Training • Our Net Participants (No. of persons)** 5 8 9 3 employee volunteer teams are supervised by ‘volun- Volunteer Activity (No. of activities) 10 18 teer leaders’ who represent each volunteer group. Our volunteer leader capacity-building training was Korea and Hungary Plants designed to fully deliver the meaning of volunteering category 2014 2013 2014 to volunteer team members. In 2014, such training was Total Volunteer Hours (No. of hours) 29,330 newly offered to sales offices, regional headquarters Total Volunteers (No. of persons)* 9,626 * Per capital volunteer hours = Total volunteer hours/No. of total and logistics centers to widen the effects of training in Total Volunteer Activity (No. of activities) 509 employees of the concerned year nation-wide sales operations. Basic-level training was Volunteer Hours per Employee (No. of hours) 3 (Korea, Hungary) * Sum of all volunteering participants (including redundancies) No. of employees engaged in volunteerism on more than one occasion ** Donation Campaign Hosted in Celebration of the Corporate Employees General Public Anniversary ‘Going to School with Excitement’ (unit: KRW 1,000) Operation of the Online Donation Website ‘Dreamfull’ Total 9,359 10,820 19,614 • ‘Dreamfull’ is an online donation website that we 13,999 jointly operate with the Corporation Leftovers Love Sharing Community, a private non-profit organization, to help with the healthy growth of children and teens from low-income families. The website allows diverse 8,235 stakeholders(employees, customers and other busi- 6,609 nesses) to conveniently make donations. As joint dona- 5,615 tion initiatives, we undertake the 'Going to School with 2,750 Excitement' campaign every May and the 'Matching 2,585 Grant' donation campaign at the end of every year on 2012 2013 2014 'Dreamfull'. In the 4th ‘Going to School with Excitement’ Year Details of campaign Activities campaign in 2014, 100 bikes were donated for children 2012 50 bikes for students to commute to school(one for each of the 50 children from low-income from low-income families to help them commute to families across the nation), one month’s worth of transportation expenses for 100 children school. Through the ‘Matching Grant’ campaign hosted 2013 61 bikes for students to commute to school between November and December each year, Hankook 2014 100 bikes for students to commute to school Tire matches the donations raised by employees and the general public. The 2014 Matching Grant campaign, Year-End Matching Grant Campaign launched under the slogan of ‘For My Better Tomor- Employees General Public row’, enabled children to aspire for a brighter future. (unit: KRW 1,000) Total 142,986 157,000 154,157 We donated a total of KRW 200 million for children in 2014: KRW 150 million donated through the campaign, 144,002 145,136 KRW 150 million donated by Hankook Tire and KRW 50 124,096 million raised through separate social network events held to promote children’s educational programs. strengthen Employee capacity for corporate Philanthropy Employee Awareness Enhancement Training • We 18,890 provided wide-ranging social contribution training with 12,998 9,021 the belief that executional capacity-building through 2012 2013 2014 employee training is required to facilitate employee * In 2014, donations made during the Matching Grant campaign dropped 2% from 2013. Meanwhile, agreed-upon engagement in corporate philanthropy. In 2014, such donations to be made regularly surged by 474% from the previous year. Since regular donations, not ad-hoc donations, training was added to the entire Manager Leadership increased, this is expected to positively impact the operation of Dreamfull in the upcoming years. 56 focuS 01 focuS 02 focuS 03 focus 04 focuS 05 2. Community Involvement & Development completed by 57 volunteer leaders via three sessions wide social welfare centers as of 2014. Our analyses of in 2014. Our 2015 plan is to further broaden the scope the operational reports gathered each year from our of this training across the all nation-wide establish- beneficiaries discovered such benefits as reduced op- ments. erational expenses, easier access to narrow alleyways, and increased mobility. These benefits significantly in- creased the operational capacity of these centers. This initiative is constantly evolving by improving on issues identified through such reports (addition of convenient interior functionalities and safety options) and by en- cI-3 hancing the effect of vehicle operations through