Ethical Management

01Campaign to Create Proper Corporate Culture

• Employees should have good manners toward each other and should not exhibit unethical behavior, or say unethical things.
• To encourage mutual respect and form an organizational culture of equality, we use a unified form of "Mr./Ms. + Name" rather than titles (deputy, team leader, etc.)
• Employees should concentrate on their work and not leave their desk for long periods of time. Additionally they should try to leave work on time so that they can also enjoy their personal time.

02Campaign to Create a Healthy Get-together Culture

• Employees should avoid a alcohol-oriented get togethers. Instead, employees should try other structured activities together.
• After work get-togethers should be focused on dining together to speak about work-related predicaments and promote harmony among employees. If it is inevitable, they can have a moderate amount of drinking together. However, drinking should not be forced.
• To avoid improper situations and for safety reasons, it is recommended to conclude a get-together before 11:00 pm.

03Campaign to Build Healthy Partnerships

• Employees should strive to establish a framework that encourages mutual growth by building a solid business relationship with partners and their employees.
• Coordination of work should be done during work hours and employees should not receive any entertainment or favors in return for the expected fulfillment of duties.
• Even for business reasons, employees should try to avoid dining together in the evening. If drinking does happen, it should be light.
• Employees should practice a campaign of avoiding exchanging gifts with partners and their subordinates.

04Operation of Report System

• If an employee is caught violating the campaigns to create a proper corporate culture, healthy get-together culture, and healthy partnership; a proper report should be made on the concerned person to the concerned department in order to reinforce the ethics of the employees.

05Training on Ethics Management

• Proper training should be received by employees to make them understand the importance of the ethics management and encourage them to observe the ethics code.
• Employees should recognize the importance of ethics management by themselves and try to observe the ethics code, as well as avoid any unethical situations.
• Training for new employees will be carried out as follows.

  - For newly-hired employees, training on the Ethics Management Policies and Prevention of Corrupt Practices should be carried out.

  - After the ethics training for new employees, a written oath should be made by the employees to demonstrate their firm determination to abide by the ethics code.

• Training for Employees

  - An audit plan should include training on the Ethics Management Policies and Prevention of Corrupt Practices on a regular basis, which should be made at least once a year for all employees throughout the company.

  - The training should be made through the LOTTE DUTY FREE Ethical Consciousness Test (LECT). If necessary, a lecturer can be invited from outside of the company for training.

06Promotion of Anticorruption Programs and Prevention of Unfair Rebate

• All employees throughout the company should be committed to the highest standards of integrity in accordance with the company’s code of ethics and anticorruption programs such as the anonymous reporting system, which should be actively implemented.
• All necessary precautions should be taken to prevent unfair rebates from counterparts.
• A corruption report center should be in operation.

  - Channels through which any fraudulent act can be reported (reports can be made online or by telephone) should be promoted to all employees throughout the company. Also, matters reported should be recorded and properly maintained.

  - Awards or benefits in terms of personnel matters for a whistle blower should be promoted along with disciplinary actions against a violator.

• A return center should be in operation.

  - A return center should be operated under the control of the Ethics Management. In addition, its operation should be promoted to all employees of the company and their counterparts.

  - All money and valuables received from a counterpart (cash, marketable securities, gifts, etc.) are included.

  - As a rule, any reported money and valuables should be returned. If they are not returned, the said money and valuables should be auctioned off in the company. Profits made through the auction should be donated to a public organization.