Business Ethics / Compliance Management
KCC's Jeong-Do Management
"The meaning of the KCC's policy of 'be the owner of the position' is to fulfill your responsibility and walk to the right way. KCC has been on the road of Jeong-Do management for about 60 years since its foundation. Walking to the right means obeying the law, not acting outside of common sense, and inheriting tradition."- KCC Honorary Chairman Jung Sang-young
Since its foundation in 1958, KCC has been striving for the development of the country and industry by making Jeong-Do management a principle that complies with law and ethics. Jeong-Do management is KCC's core value to make a sustainable company that practices social responsibility by complying with laws and ethics.
In accordance with the principle of Jeong-Do management, KCC's domestic / foreign corporations, their executives and employees are striving to carry out their business in a legal and ethical manner and fulfill their corporate social responsibilities. In order to practice Jeong-Do management, KCC has established and operated Code of Conduct that meets global standards, and compliance regulations consist of two main pillars: compliance management and ethical management.
KCC operates COMPLIANCE PROGRAM as a self-compliance policy to achieve Jeong-Do management. This PROGRAM consists of three activities: prevention, monitoring, and follow-up management, that forms a systematic supplementary system. The operation details of PROGRAM are reported to the board of directors through the Autonomous Compliance Coordination Committee twice a year, by aggregating the implementation and scheduled matters of each semiannual and then self corporate disclosure is conducted.
Practice of Compliance Management
KCC distributes guidelines and self-compliance manuals to support employees' compliance with laws and regulations, also communicates the latest issues through regular / occasional training and newsletters to compensate for the shortcomings. Through these activities, KCC is practicing fair trading order, intellectual property protection, and corruption prevention for compliance management.
1. Establishing a Fair Trade order
- All executives and employees of KCC comply with Antitrust and Fair Trade law, company guidelines in Korea and the host country of overseas corporations.
- If KCC employees violate Antitrust and Fair Trade law, the company is liable for penalty surcharge, fines, and compensation, and its employees can be fined or sentenced to prison, and above all, KCC employees should keep in mind that it can lead to a decline in the company's corporate value and cause huge losses.
- The main contents and guidelines of domestic Antitrust and Fair Trade law are as follows.
|Major laws||Main contents and guidelines|
|Fair Trade Act||
2. Protection of intellectual property
- In addition to copyrights, patent right and trademark right, intellectual property rights have a variety of forms, such as confidential trade secrets that are not disclosed to the outside. KCC employees should understand their concepts and scope, and strive to gain a comparative advantage in a fair and honest way in accordance with relevant laws and company guidelines.
- KCC employees must not view, print, copy, photograph, transmit, or deliver the company's confidential information without prior permission.
- The primary responsibility for managing the company's confidential information rests with the team leader and the executive in charge of the team. Therefore, team leaders and executives should protect the company's intellectual property by actively exercising the authority granted when managing confidential information.
- The company's confidential information should not be leaked to the outside without prior permission, and it should not be stored or utilized for purposes unrelated to work.
- When KCC employees leave the company, make a list of all the documents, return them to the company, and do not take them out.
- Do not infringe on the intellectual property of competitors, partners, or other companies, or acquire, use, or disclose trade secrets in an illegal manner.
- Do not approach executives and employees of competitors to provide or guarantee benefits such as money and valuables, and do not ask for trade secrets.
- When hiring new employees, do not approach former and current executives and employees to violate the intellectual property of their competitors or partners and do not ask for trade secrets on condition of employment.
- No third-party intellectual property is infringed on by hiring an agent or consultant.
3. Anti-corruption and Anti-Bribery
- All executives, employees and third-party agents of KCC must comply with Anti-corruption and Anti-bribery laws, perform their duties according to the guidelines prepared by the company.
- Do not use third-party agents or use expedient methods to accomplish their objectives to avoid Anti-corruption and Anti-bribery laws.
- KCC do not make illegal solicitation or provide money or valuables to domestic / foreign public officials and persons prohibited by law.
- Compliance procedures are followed in advance when providing money and valuables to public officials who are not directly related to their work, or when donating or sponsoring external institutions.
- Complies with domestic Improper Solicitation and Graft Act and international Anti-corruption related laws (e.g. FCPA, Foreign Corrupt Practices Act, UK Bribery Act, etc.) and Anti-corruption related laws in foreign countries.
- KCC do not demand or provide any form of illegal or unethical benefits, such as bribes, gifts, treat or entertainment to interested parties such as our customers and clients. In addition, we do not ignore the detected corruption even though it is beneficial to KCC.
- Our executives and employees do not engage in political activities on behalf of companies that are not individual qualifications. In addition, different political views among executives and employees should be respected and support, donations for specific political parties or politicians should not be forced.
- If KCC employees are aware of a violation of Anti-corruption related laws or policies or find suspicious circumstances, report the relevant facts to the company immediately.
Practice of Ethical Management
All executives and employees of KCC, as well as partners and external stakeholders are working together to comply with ethical management activities and fair trade order. Recognizing that fair and transparent corporate management is essential for improving national competitiveness and achieving joint economic prosperity, KCC is doing its best to practice ethical management, including preventing Conflict of Interests, to fulfill its responsibilities to stakeholders such as customers, shareholders, partners and communities.
1. Prevention of Conflict of Interests
- If KCC employees or employees’ family is affected financially, such as doing business with the company, must notify the company in advance or as soon as knowing it.
- KCC do not use the information we have learned at work or the company's business opportunities as a personal means of profit.
- The company's assets are legally used for business-related purposes only and not for private purposes.
2. Fair trade, competition, and documentation
- Treat customers, suppliers, competitors, third-party executives and employees honestly and fairly comply with the law and market competition order, and compete fairly.
- Do not conspire with third parties to manipulate unfair collusion or other transactions.
- Executives and employees involved in purchasing and procurement shall comply with fair competition principles such as quality and price, not by solicitation at work.
- To ensure that stakeholders understand the company's business activities transparently, our business records must be accurately and honestly prepared in accordance with domestic and international standards and various laws and regulations.
- In the preparation of accounting and financial data, experimental results and all other data, whatever the contents of the records are, they are not falsely prepared or manipulated.
- All applications for reimbursement of expenses must have complete proof, including receipts, and the expenses must be used for business purposes only.
3. Mutual respect for executives and employees and create a healthy working environment
- Executives and employees communicate smoothly through horizontal relationships based on mutual trust.
- No defamation or insult shall be made between executives and employees or any third party in business contact, and KCC do not discriminate against any factors, including race, skin color, religion or religious creed, sex(including pregnancy, childbirth, breastfeeding or related medical conditions), gender, sexual orientation, gender identity, national origin, ancestry, age, disability, marital status, and other legal prohibitions.
- Do not use the superiority of position or relationship in the workplace to cause physical or mental pain to other workers or worsen the working environment, and do not cause unpleasant and hostile work environments among co-workers.
- Do not carry weapons inside or outside the workplace and do not pose violence or threats to executives and employees or any third parties in business contact.
- Do not drink alcohol in the workplace without prior permission, and do not own, use, sell, or provide illegal drugs under any circumstances.