Managing the 'Hanssem Compliance & Ethics Index' and Establishing a Company-Wide Fair Trade Culture
Expanding the 'Win-Win Fund' to Provide Low-Interest Loans Down to Second-Tier Suppliers
Hanssem Co., Ltd. (CEO Kim Yu-jin) announced that it received the top rating in the Korea Fair Trade Commission's Fair Trade Agreement Compliance Evaluation, becoming the first furniture manufacturer to do so.
The Fair Trade Agreement Compliance Evaluation is overseen by the Korea Fair Trade Commission and administered by the Korea Fair Trade Mediation Agency, which evaluates companies' voluntary compliance with regulations such as the Subcontracting Act and the Fair Trade Act, as well as their implementation of win-win cooperation, and announces companies awarded top and excellent ratings. Companies with the top rating receive a two-year exemption from the Commission's ex officio investigations.
In this evaluation, Hanssem was recognized for its continued range of activities aimed at establishing a fair trade culture and win-win cooperation with suppliers—led by its Ethical Management Office—including △managing its compliance and ethics index, △operating a win-win fund, and △establishing a subcontracting review committee.
First, the Ethical Management Office created the 'Hanssem Compliance & Ethics Index' metrics and built an internal system to encourage employees' voluntary fair trade practices. The Compliance & Ethics Index translates into indicators the detailed standards and guidelines that employees must observe throughout the entire process, from the start to the end of a transaction with a supplier. Based on the Compliance & Ethics Index, the Ethical Management Office inspects employees' supplier transaction processes to prevent unfair trade.
Hanssem is also expanding its approximately 23 billion won 'Win-Win Fund' for suppliers. The Win-Win Fund is a program that provides low-interest loans to suppliers to help them sustain stable business operations. Since last year, Hanssem has broadened the eligibility of the Win-Win Fund—previously offered to first-tier suppliers—to include second-tier suppliers, thereby expanding its scale. To promptly resolve key deliberation matters related to fair trade, Hanssem holds a 'Subcontracting Review Committee' meeting every month. The committee is composed of some 10 division heads from areas such as purchasing, manufacturing, and legal affairs. The committee listens to suppliers' grievances, deliberates and resolves on the fairness and legality of transaction processes, and is working to establish a fair subcontracting order.
In addition, Hanssem was recognized by the Korea Fair Trade Commission for its efforts to achieve shared growth with suppliers, operating programs such as equipment and maintenance support to improve supplier productivity, supplier recruitment support programs, the conclusion of fair trade agreements with suppliers, and joint projects for quality improvement.
▲ Hanssem Co., Ltd. became the first furniture manufacturer to receive the top rating in the Korea Fair Trade Commission's Fair Trade Agreement Compliance Evaluation.