Fair Trade
We will strive to be a sustainable IT company.
Fair Trade
Promoting fair practice and raising awareness is a key part of driving sustainable growth and fulfilling our social responsibilities. LG CNS pursues fair competition and Jeong-Do Management to achieve the vision of “LG WAY” which provides a basis for our employees' conduct. Recognizing the importance of risk management of fair transactions and prevention as our action plan, we continue to engage in various activities and take a proactive approach in risk management while creating culture for fair practice at a corporatewide level.
Key Activities
Based on our reviews on the regulatory requirements, we conduct a risk analysis of sales, procurement and project development organization that are subject to high level of risk with a focus on cartel, subcontract regulations and transaction between affiliates. If necessary, additional on-site inspections are conducted to identify the areas of improvement and carry out performance management as part of risk prevention. To integrate fair trade practices in our daily business operations, we realigned our training system that had been focused on group training at the headquarters to add on-site training to the curriculum from the 2nd half of 2018 onwards. Furthermore, we created the Fair Trade Portal to assist employees in abiding by fair trade regulations: our employees can ensure their fair trade compliance simply by conducting their work through this portal system, and we use the portal to share the revisions made on fair trade policies, regulations, and systems as well as latest issues and relevant cases as a way to raise employees’ fair trade awareness.
- Risk Assessment
- Conduct self-assessment & onsite audit, Analyze root causes & implications
- Risk Response
- Improve business processes, Conduct employee training awareness campaigns
- Report & Feedback
- Brief management on compliance issues, Perform ongoing monitoring, Measure & assess compliance performance
- Risk Identification
- Analyze laws and regulations, Identify risks and risk types
Progress by Area
LG CNS shares our commitment to the prevention of cartels and conducts annual special training for employees who are at high risk. In 2018, we provided online training in addition to offline training to raise employees’ awareness on cartels and other fair trade practices, and have performed relevant reviews from the beginning of 2019. We prohibit any contact with competitors to prevent any suspected cartel activities. Any contact with employees of our competitors that is necessary for business will be reported to keep our employees and company from being exposed to risk.
We analyze potential risk factors and review cases to prevent violation in the course of business while conducting training and reviews for related organizations. In addition, we carry out in-depth reviews of documents and contracts of more than certain amount to identify the areas of improvement and take initiatives to prevent violations.
LG CNS promotes fair subcontracting practices and builds a foundation for mutual growth between big and small companies. To this end, we conduct employee training on statutory compliance and organize on-site reviews and work process improvements on a regular basis. In 2017, we established a framework and improved existing guidelines on unfair concessions and technical data to ensure compliance. In 2018, we monitored whether existing business processes successfully came online and abided by relevant regulations to establish and disseminate fair trade practices across the board. Our 2019 plan is to provide on-site training to raise employees’ awareness on fair trade compliance and to alert them to the need for such compliance.
Fair Trade Portal
LG CNS sets guidelines on conduct for the prevention of any violations of the law and conducts necessary training and monitoring. As part of these efforts, we are building Fair Practice Portal as a basis for fair practice to raise awareness and promote culture at a corporate-wide level.
Based on the Fair Trade Act and our internal policy, we are going to strengthen our monitoring system against violations of laws and establish a system to coordinate with assessment to promote fair trade.
