Policy and strategy

• Principles of corporate social responsibility Management

• corporate social responsibility management strategy

• corporate social responsibility management policy

• CENTRAL’s UN SDGs

• • Central respects the following seven principles to maximize our contribution to sustainable development when we approach and carry out social responsibility.

    entral bases itself on the principles of corporate social responsibility management and acts according to the policies within the context of specific situations, complies with the international code of conduct as well as specific guidelines, and considers diversity of societies, environments, laws, cultures and organizations as well as differences in economic conditions.

    Responsibility for explanation

    1. Central will be responsible for explaining how the organization will influence the society, economy and environment.

    Transparency

    1. Central will secure transparency in decision-making and activities or the organization that will influence the society and environment.

    Ethical behaviro

    1. Central will act ethically.

    Respecting the interests of interested parties

    1. Central will respect the interests of interested parties and respond to them by considering them.

    Respect the rule of law

    1. Central will accept that respecting the rule of law is obligatory.

    Respect the international code of conduct

    1. While complying with the principle of respecting the rule of law, Centrail will respect the international code of conduct.

    Respecting human rights

    1. Central will respect human rights and recognize the importance and universality of human rights.

    Central supports the ten principles of the UN Global Compact.

    he ten principles of UN Global Compact on human rights, labor and anti-corruption originate from the declarations and agreements such as the Universal Declaration of Human Rights (1948), ILO Declaration on Fundamental Principles and Rights at Work (1998), Rio Declaration on Environment and Development (1992) and United Nations Convention against Corruption (2003). Central respects these global agreements and promotes corporate social responsibility management based on the ten principles of the UN Global Compact.

    Human rights

    Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights; and

    Principle 2. make sure that they are not complicit in human rights abuses.

    Labor

    Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining,

    Principle 4. the elimination of all forms of forced and compulsory labor,

    Principle 5. the effective abolition of child labor and,

    Principle 6. the elimination of discrimination in respect of employment and occupation.

    Environment

    Principle 7. Businesses should support a precautionary approach to environmental challenges,

    Principle 8. undertake initiatives to promote greater environmental responsibility and,

    Principle 9. encourage the development and diffusion of environmentally friendly technologies.

    Anti-corruption

    Principle 10. Businesses should work against corruption in all its forms, including extortion and bribery.

• • 
    

    corporate social responsibility management

    • 

      Human rights management

      • Advancement of the governance system

      • Prepare the basis for human rights management

      • Increase the labor-related level

    • 

      EHS management

      • Use sustainable resources

      • Prevention of environment pollution and protection

      • Response to climate change

    • 

      Quality management

      • Sustainable product development

      • Secure product sustainability

      • Increase the awareness for customer CSR

    • 

      Ethical management

      • Established ISO 27001 and ISO 31000

      • Advanced ethical management system

      • Reinforce ethics of officers and employees

    • 

      Win-win management

      • Strengthen responses to customer CSR

      • Prepare supply chain CSR

      • Create shared values for local communities

    Operation of a global management system, expand communication with interested parties

    • Annual leave use percentage 86.5%

      Return to job after maternity leave percentage 100%

    • Environment safety investment achievement percentage 113%

      Greenhouse gas reduction 416.6t co2

      Occupational disease occurrence percentage 0%

    • Corruption risk evaluation percentage 100%

      Ethics training 4 times/year

    • Customers’ social responsible policy pledge

      Establish a supply network corporate social responsibility management policy

      Hired 31 local talents

    • Emission reduction due to lightweightness

      Environmental pollution quality reduction

    • 
    • 

• • Integrated management policy

    Product Safety

    Under the philosophy of respect for human life and dignity, we design and manufacture products suitable for use through the satisfaction of domestic/foreign laws and regulations and requirements to secure high level of trust of customers.

    Quality

    Under the customer-centered philosophy, we realize the highest level of quality and on-time delivery through the satisfaction of requirements and continuous improvement to achieve customer satisfaction.

    Environment

    Under the philosophy of environmental preservation, we preserve a clean global environment by minimizing impacts to the environment through the satisfaction of laws and regulations and requirements, pollution prevention and continuous improvement.

    Occupational Health & Safety

    Under the philosophy of the pursuit of happiness for employees, we minimize safety and health risks through the satisfaction of laws and regulations and requirements to secure safety and health of employees and create a pleasant work environment.

    corporate social responsibility management policy

    Compliance of laws, regulations and code of conduct

    1) Central will comply with the laws and regulations of countries where our businesses belong to.

    2) Central will comply with the corporate social responsibility management guidelines of Central’s business partners, not just the corporate social responsibility management policy of central.

    3) Central will publish the result of CSR results and let everyone know that Central is doing its best for corporate social responsibility.

    ANTI-CORRUPTION AND ANTI-BRIBERY

    1) Central will comply with the Anti Graft Law, Foriegn Corrupt Practices Act, U.K. Bribery Act and laws related to anti-corruption and prohibition of bribery in areas where our business establishments belong to.

    2) Employees of Central will neither offer bribery and money and valuables nor allow receiving such under any situation, and will neither request or promise such act./p>

    3) Central will neither offer direct/indirect bribery to any government agency or persons who have interests for the purpose of either induce action beneficial to the company nor accept such.

    4) Central will not be involved in unfair acquisition or embezzlement for the purpose of unfair and inappropriate profits.

    5) Central will operate internal whistleblowing processes and channels regarding anti-corruption and prohibition of bribery and protect whistleblowers.

    6) Central will take necessary measures, such as disciplinary actions for employees who violate anti-corruption and prohibition of bribery according to the regulations of Central.

    RESPECTING AND PROTECTING HUMAN RIGHTS

    1) Central will support and comply with the Universal Declaration of Human Rights, Fundamental Principles and Rights at Work, and UN Guiding Principles on Business and Human Rights, which have become the foundation for the human rights management system.

    2) Central prohibits forced labor, which is against the free will of employees by unjustly restricting the mental and physical freedom of employees.

    3) Central complies with the minimum employment age stipulated by the laws and regulations of areas our business establishments belong to and at the same time, bans child labor such as not employing youth less than at least 15 years old, and not assigning safety and health hazard tasks when employing youth less than 18 years old.

    4) Central does not discriminate employees in hiring, compensation, promotion, etc. for race, gender, nationality, disability, religion, pregnancy, membership in a labor union, marital status, social status, etc. Also, Central guarantees equal compensation for same jobs and requires employees to complete human rights training.

    5) Central gives opportunities for communication among employees, and guarantees freedom of association such as not giving disadvantages to employees for the reasons of membership and activities in a labor union or organizing one.

    6) Central complies with the guarantee for minimum wage, overtime payment, provision of rest and vacation specified in the laws and regulations of the areas our business establishments belong to, and contribute to just remuneration and stabilization of livelihood such as promoting the stabilization of livelihood of employees and qualitative improvement of labor conditions.

    7) Central complies with the legal working hours of the areas our business establishments belong to and does not force overtime.

    8) Central provides a safe and clean working environment to employees and protects workers from hazardous substances.

    HEALTH & SAFETY MANAGEMENT

    1) Central will comply with the laws and regulations related to workplace health and safety in the areas and countries where our business establishments are located at. Central will have a health and safety policy and procedures and implement them and guide and share them in the language understood by employees working at workplaces.

    2) Central will not implement any procedure, process or activity not complying with safety policies, regulations and law based on our belief that safety of employes come first.

    3) Central will provide a safe and hygienic work environment to employees.

    4) When an accident occur at a workplace of Central, we will perform an appropriate corrective action and take a measure for reoccurrence thereof.

    ENVIRONMENTAL MANAGEMENT

    1) Central will comply with the laws and regulations related to environment in the areas where business establishments are located at, have an environment policy and procedures and implement them.

    2) Central will implement policies to decrease negative environmental impacts such as emission of pollutants and greenhouse gases that occur during corporate operations.

    3) Central will propose criteria on environmental achievement and research a revolutionary solution for it to strive to contribute to product development and environmental protection.

    PROTECTING CONFIDENTIALITY, PERSONAL DATA AND INTELLECTUAL PROPERTY

    1) Central considers the information of employees, business partners and customers as very important, establish and operate a protection policy for information security, and complies with various laws and regulations related to personal information.

    2) Central collects the minimum required personal information and will not collect any information that may considerably violate the human rights of users. Also, when collecting personal information, we will seek consent from users and if the purpose of use is achieved, we will immediately destroy such information.

    3) Central will respect the rights of properties given to knowledge creation of human and comply with laws regarding intellectual property rights and trade secret protection.

    CONFLICT OF INTEREST

    1) Employees of Central will not engage in any financial or personal relationships that will bring about conflicts of interests between the employees of business partners and both sides.

    ANTI-COMPETITIVENESS

    1) Central will comply with the principle of market competition and respect business ethics and trade conventions and not pursue profits by unfair ways.

    2) Employees of Central will neither collect competitor’s information in unfair ways such as making false statements or information theft nor receive confidential information without consent of owners of such information.

    3) Central will ensure that employees will complete training on laws and regulations related to anti-competition.

    SUSTAINABLE PURCHASING POLICY

    1) Central will guide the corporate social responsibility management policy to employees of business partners.

    2) If action of an central employee is contrary to this guideline or there is a concern that it may be contrary to this guideline, any business partner may either report such or inquire to the on-line report center of Central. We will keep such report or inquiry absolutely secret and keep the identity of informants or inquirer confidential.

    3) Central will carry out corporate social responsible management risk analysis and status diagnosis of business partners for responsible procurement.

    4) Central will reflect the result of 3) on the procurement decision of new and current business partners and seek to improve the level of corporate social responsible management with business partners.

    5) Central will recommend business partners to discuss with corporate social responsible management issues and establish a responsible procurement policy that respects related principles.

• The Sustainable Development Goals (SDGs) are the greatest common goals of the UN
  and international society that were launched in 2016 with intended execution until 2030,
  replacing the Millennium Development Goals (MDGs) that were in place from 2000 through 2015.
  
  As a member of the international society,
  Central will contribute to the achievement of these 17 goals through 2030,
  in a manner that best suits us to resolve the universal problems of humankind
  (poverty, disease, education, gender equality, refuges, warfare, etc.),
  global environmental issues (climate change, energy, environmental pollution, water, biodiversity, etc.),
  and socioeconomic issues (technology, housing, labor and management, employment, production
  and consumption, social structure, law, and domestic/international economy).
  
  
  

  NO POVERTY

  Operation of international corporations

  ・ Create jobs and increase income for

  local employees internationally

  ・ Job creation for locals and increase

  income

  ・ Transportation and reduction of

  carbon emission due to local production

  Improvement of quality of life and emotional support for vulnerable communities

  ・ Cooperation with partners not only

  for businesses but also to contribute to vulnerable communities

  ・ Win-win Cooperation Association

  from 2017, social value creation activities in collaboration with local governments and NGOs

  

  GOOD HEALTH AND WELL-BEING

  Promote work and life balance

  ・ Flexible working

  ・ Support workplace joint

  kindergarten

  ・ Improvement of working conditions

  ・ Operation of welfare and benefit

  regulations (congratulatory/consolation, new electee treatment, welfare cards, home loans, etc.)

  Regular CPR training

  Mental health care

  ・ Evaluation and psychological

  counseling to care for the mental health of our employees/officers

  

  GENDER EQUALITY

  Communication with female employees

  ・ CEO messages for World

  Women’s Day and other events

  ・ Small group discussions with female

  employees and regular training for prevention of sexual harassment at workplace

  ・ Hold rose bouquet events for

  properties in Vietnam twice a year

  

  DECENT WORK AND ECONOMIC GROWTH

  Environmental investment & strengthen management

  ・ Environment effects evaluation and

  environmental risk evaluation (Changwon)

  ・ Environment/safety investment

  management

  ・ Workplace zero hazard management

  Establish a sustainable procurement policy

  ・ Operate a business partner win-win

  fund

  ・ Inspect business partners’ EHS

  

  QUALITY EDUCATION

  Activation of job training

  ・ In-house job training offered all year

  long (CAE, injection, design, material, etc.)

  ・ Offer Job-training intensive course

  (APQP, FMEA, facility preservation, etc.)

  ・ In-house trainer selection and

  training, secure a job specialist pool

  Leader capability cultivation

  ・ Strengthen leader and manager

  coaching skills, train future leaders

  ・ Cultivate leadership capabilities per

  each level

  Strengthen global capabilities

  ・ Leverage pool of residential workers

  Reading culture with Gyeongsangnamdo Office of Education

  ・ Donate books to Gyeongsangnam-do

  Office of Education Library and Book Cafe

  ・ Humanities concert (free

  admissions for CTR and pople of Gyeongsangnam-do, Humanities Concert Sponsorship)

  ・ Sponsors Gyeongsangnam-do Office

  of Education reading events

  

  CLEAN WATER AND SANITATION

  Clean water and hygiene

  ・ Minimization of generation of waste

  water

  ・ Prevention of pollution of dringking

  water source in the local community through subcontracting a wastewater specialist company for entire amount of wastewater

  

  INDUSTRY, INNOVATION, AND INFRASTRUCTURE

  Invest in local industry development

  ・ Support investment for startup

  venture companies (Youth Impact Fund, Shareholders of Gyeongnam Venture Investment)

  ・ Participate in Gyeongsangnam-do

  and government institution associated smart factory building businesses

  ・ Support for 3D printing

  industry under consideration

  

  RESPONSIBLE CONSUMPTION AND PRODUCTION

  Reduction of waste through conducting environmental impact assessments

  ・ Conduct an environmental impact

  assessment once a year

  ・ Monitor and make improvements on

  responsible consumption and production through internal review

  Maintain ISO14001(environment management system) certification

  ・ Maintain certification through

  certification audit by a certification agency and continuous improvement

  

  CLIMATE ACTION

  Greenhouse gas monitoring and reduction activities

  ・ Greenhouse gas reduction

  ・ Atmospheric contaminant reduction

  Purchase and operate vehicles for ecofriendly business

  ・ Use hybrid vehicles, electric vehicles

  and compact cars

  Emergency situation training to respond to risks due to climate changes

  ・ Emergency drills in preparation for

  heavy snowfall, quakes, etc. and feasibility assessment

  

  PEACE, JUSTICE AND STRONG INSTITUTIONS

  Improvement of ethical management policies for peace, justice, and anti-corruption of Central systems

  ・ Operate a control process to prevent

  corruption and bribery

  ・ Report a report and suggestion

  process for anti-corruption

  ・ Sign and manage a business ethics

  policy

  ・ Observe a fair trade practice for

  business partners

  

  PARTNERSHIPS FOR THE GOALS

  Sponsorship of culture and arts organizations

  ・ Sponsorship of cultural & arts

  organizations through art matching funds with Gyeongnam Mecenat Association

  ・ Supporting organizations’

  sustainable succession and development of culture and arts since 2014

  Building safe playgrounds

  ・ Playground remodeling to ensure the

  physical safety of children, who are our future, and to secure the psychological well-being of parents, as ‘safety’ is a core value of Central

  ・ Partnerships with Save the Children,

  Social Welfare Fund Raising, KEAB Architectural Offices, and local government offices (Gyeongnam Provincial Office, Changwon City Hall)

  Expansion of global businesses

  ・ Global partnerships through

  businesses in China, Vietnam, Mexico, and Europe

  ・ Internalization of company vision

  and value systems

  ・ Conduct satisfaction survey for

  global businesses

  

  AFFORDABLE AND CLEAN ENERGY

  Partnership for renewable energy production for installation of solar panels on the rooftops of buildings owned by Central Group

  ・ Central (Changwon/Yeongsan/Asan),

  MOTEK (Ulsan/Seosan), DTS (Daegu), CMS (Yeongsan/Daehap/Busan)

  Purchase and utilization of wooden pallets made with recycled scrap wood

  

  REDUCED INEQUALITIES

  Alleviate inequalities

  ・ Zero tolerance policy (zero tolerance

  for ethical issues and inequalities)

  ・ Offer awareness improvement for the

  disabled training regularly

  

  SUSTAINABLE CITIES AND COMMUNITIES

  Carry out an energy efficiency improvement policy

  ・ Reduction of power consumption

  and increase light bulb life by changing to LED lamps

  ・ Introduction of high-efficiency

  motors and inverters when installing and converting process facilities

  ・ Turn off lights where lights are not

  needed and during lunch

  ・ Calculate energy output and find

  improvement ideas (Once a year)

  ・ Energy efficiency improvement

  through energy diagnosis (Once every 4 years)

  ・ Maintain optimal temperature for

  heating and air conditioning

  ・ Participate in the Earth Day lights-out

  activity

  ・ Install photovoltaic generators on

  building roofs

  

  LIFE ON LAND

  Small participate for sustainability of forests and prevent desertification and impoverishment

  ・ No disposable cups within workplace

  and offices

  ・ Try not to use paper such as A4 paper

  through paperless

  ・ Prevention of soil pollution and loss

  of resources

Ethical management

• Ethics Charter

• Ethics of employees and staff

• Customer’s ethics

• Partnership companies’ basic ethics

• Directors and employees’ basic ethics

• Cyber notifying center

• • One.	We always pursue honesty and sincerity with prides as a member of corporations and make efforts to keep dignity of individuals and honor of corporation.
    One.	We make health corporation culture according to principles and bases by clarifyingpublic and private matters in our jobs and complying with related laws and rules and completing our duties.
    One.	We protect secrets acquired from businesses and avoid behaviors conflicting between company and individuals.
    One.	We acquire all information fairly and transparently and won’t use them illegally or unfairly.
    One.	We always respect customers and think in terms of their aspects and regard customers as a standard of all behaviors.
    One.	We secure trust through customer-centric thinking and activities and contribute to persistent creation of customer values.
    One.	We protect assets and honors of customers and provide them with correct information about products and services.
    One.	We respect market economy orders based on responsibilities and transparency and comply with fair trade – related laws and rules.

  • One.	We purse prosperity together by building mutual trusts and cooperation through fair trade.
    One.	We won’t take advantage of superior positions nor force unfairness and other unethical behaviors.
    One.	We respect employees and staffs as every individualpersonality and make best efforts for them to exhibit their creativeness.
    One.	We make working environment where every employees and staffs can work safely and pleasantly and make best efforts to prevent industrial accidents along with preventive measure.
    One.	We protect personal information against employees and staffs and guarantee them as an information owner.

• • Completing duties

    1. 1. We, employees and staff share corporation’s visions, missions and goals of management and will complete our duties to achieve them faithfully.

    Identifying public and private matters

    1. 1. We, employees and staff will clearly identify public and private masters.

    2. 2. We, employees and staff, won’t use corporation’s assets privately nor other purposes than their intended budgets (Costs) and won’t damage such assets.

    Avoiding conflicts of interests

    1. 1. We, employees and staff will avoid all behaviors causing conflicts of interests against companies in our duties and jobs.

    2. 2. If there is any conflict of interest between companies, individuals and department, then we will most prioritize interests of company unless there is against ethical standards.

  • Reporting entertaining and bribery

    1. 1. We, employees and staff will make submit written report with entertainment and money attached on it to senior manager and then to presiding department within 3 days if there is any entertainment and money inevitably given by partnership companies or other entities related to interests in connection with jobs.

    2. 2. Such presiding department should summarize related money and goods and return them back to their providers. If such retuning is impossible, we will donate them regularly through official procedures.

    Mutual respecting between employees and directors

    1. 1. We, employees and directors, shall comply with basic etiquette for each other and won’t do behaviors such as criticizing partners or arrogant acts.

    2. 2. Senior shouldn’t instruct to his or her junior unfair orders such as borrowing money, debt guaranteeing and other unfair orders. Juniors will follow fair orders but reject unfair or illegal orders.

    3. 3. We, employees and staff, won’t do any behavior such as sexual humiliation or feeling of aversion between them.

  • Prohibiting sexual harassment

    We, employees and staff, won’t do behaviors such as sexual temptation and sexual humiliation and other similar behaviors between them.

    1. 1. Grabbing or touching specific body parts

    2. 2. Behaviors such as naughty humors, sexual lewdness or crude stories

    3. 3. Sexual insinuation or assessing sexual appealing against partners’ appearances

    4. 4. Posting sexual photographs or pictures or showing them to partners

    5. 5. Forcing members to serve drinking table or to dances

    6. 6. Other behaviors causing sexual humiliations in terms of social standards

• • Respecting customers

    Our employees and directors will always respect customers and think everything in terms of them and take most prioritized standards for customers’ all behaviors.

    Provision 31 Customer Satisfaction

    1. 1. We will always make efforts to provide true values through innovation and creation required by customers.

    2. 2. We will provide excellent quality and best services just in time and make best efforts to satisfy customers with our technologies and quality improvement.

    Provision 32 Protecting customers

    We won’t expose nor take advantage of customers’ information for other purposes without their prior consent and will protect assets and honors of customers.

    We will help customers to make reasonable decisions by providing information necessary or needed for customers correctly and rapidly.

• • Fair Trade

    1. 1. Company will guarantee fair opportunities for qualified partnership companies and appoint them based on objective and fair audits and rational procedures.

    2. 2. Company will explain newly assigned partnership companies with basic guidelines, codes of ethics and reporting system regarding trade with our company.

    3. 3. Company shall set clear evaluation standards for partnership companies and secure transparency.

    4. 4. Company will prevent cases to disconnect trade by our own decisions such that determines, maintains or revise their products’ price and services unfairly or relies on unfair behaviors.

    5. 5. Company will comply with fair trade related laws and won’t violate them at all costs.

  • Descriptions for relations with interests

    1. 1. Our employees and staff will perform fair trade without having influences upon partnership companies which have relations of interests.

    2. 2. Employees whose positions are higher than team leaders will describe relations of interests and submit it to presiding department.

    3. 3. Presiding department will keep such summarized information confidential.

    Mutual advancement

    1. 1. Company or employees and staff will cooperate with each other to make clean and transparent trading practices and also to maintain fair trade rules.

    2. 2. Company or employees and staff will support and cooperate with partnership companies as much as possible so that they can grow with their capabilities.

    3. 3. Company will recommend partnership companies to receive confirmation form for participating in ethical management asking them to cooperate and participate in practice of ethical management.

• • Respecting employees and staff

    1. 1. Company shall treat every individual as a person with dignity and respect their religious and political aspects.

    Provision 38 Protecting personal information

    1. 1. Company will protect personal information that it collects, keeps and manages according to related laws and company’s rules and also guarantee rights of such information ownership.

    Prohibiting discrimination

    1. 1. Companywon’t discriminate employees and staff because of their ethnic groups, nationality, religions, academic background, birth place, blood relations, political views, social position, marital status (pregnancy) and disabled status in connection with employment, promotion, compensation and other employing customs.

    2. 2. Company shall give fair opportunities depending on individual employee and staff’s capabilities and performance and will evaluate and compensate them based on fair standards.

  • Improvement of working environment

    1. 1. Company will make working environment where employees and staff can work safely and pleasantly.

    2. 2. Company will make best efforts to prevent industrial accidents and risks by complying with laws and rules related to Environment / Safety / Health.

    3. 3. Company will develop and practice programs to enhance health, education, welfare and quality of life for employees and staff.

• • Behaviors to be reported and their measure

    Behaviors which should be reported

    1. 1. If someone received money & goods or entertainment in connection with jobs from any party under interest with company and provides conveniences beyond conventional level

    2. 2. If someone sought individual benefits by doing against benefit of company or establishing such relationship

    3. 3. If someone damaged honors of company by committing inappropriate behaviors or his or her actions are believed to be unethical behaviors

    Protecting those who reported above information

    1. 1. Presiding department should protect those who reported aforementioned inappropriate behaviors and their reports so that they are not discriminated nor suffer from unfairness.

    2. 2. If those who reported aforementioned inappropriate behaviors are discriminated or suffer from unfairness, then they shall be able to request protection and correcting against such unfairness. In this case, presiding department shall take proper measure against such measure.

  • How to report or measure

    1. 1. In principle, such reporting should be done by actual name (For transparency for reporting from slandering certain person, distributing false information)

    2. 2. Reporting could be written without any format but based on ‘Who’, ‘When’, ‘Where’, ‘What’ and ‘How’ with detailed information attached on it

    3. 3. Cyber reporting, mail, telephone or face-to-face interview outside of company

Reporting

Coexistence management

Central and its partnership companies will be advancing toward our relations by sharing each company’s technologies and distributing achievements under the principles of best products, win-win growth and ethical management.

Social contribution

Central, as a member of the community, is carrying out various activities targeting local communities to contribute to creating a better society. We will seek ways to create sustainable values based on cooperation and respect, and strive to create a safe world by growing and coexisting with society through communication with our stakeholders.