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Ethical Management

LOTTE DUTY FREE’s Ethics Code

LOTTE DUTY FREE Shop will seek to achieve a fair and transparent corporate culture and corporate social reliability in order to grow as a leading global company.
Lotte Duty Free hereby vows to practice the code of ethics that establishes basic principles to be observed by all executives and employees at all times.

Trust Relationship with Customers
Trust Relationship with Employees
Trust Relationship with Partners
Trust Relationship with Stockholders
Trust Relationship with Society
  • Chapter 1

    General Rules

    Article 1 [ Purpose ]

    1. The purpose of this ethics code is to set a framework for the company’s ethical management by establishing a standard for proper behaviors and values to be practiced by all LOTTE DUTY FREE employees thus contributing to strengthening the awareness on the practice of ethical management.

    Article 2 [ Scope of Application ]

    1. This code applies to all Lotte Duty Free executives and employees as well as partners.

    Article 3 [ Definitions ]

    • 1. Terms used within this code are defined as follows.
      • ① Money and goods: Cash, marketable securities, commodities, and other financial advantages
      • ② Offering entertainment: Benefits pertaining to meals, alcoholic beverages, sports, games, entertainment, etc.
      • ③ Accommodations: Provision of other sorts of benefits aside from money and goods or offering entertainment, such as lodging and transportation, tourism, event support, waiver of obligation, and rights and privileges
      • ④ Cases that are consistent with social rules and norms: Acts such as demanding for a remedy for infringement of rights following the procedure set by a public institution, providing money and goods upon fair grounds of claim, or any other acts that meet the legitimacy of the motive or purpose of the act or the reasonability or proportionality of means or methods that make the act acceptable in light of social ethics or norms
      • ⑤ Stakeholder: An individual who has legal or actual relationship of interest with actions or decision-making of the company and its executives and employees
      • ⑥ Partner: A company under a transactional relationship with the company or that has a history of transaction

    Article 4 [ Organization ]

    1. The company holds the right to separately set up an ethics commission to enforce this ethics code.
    2. The enforcement of this ethics code is mainly performed by the Ethical Management Team.

    Article 5 [ Application ]

    1. Any violation against this ethics code will be taken care of in accordance with the regulations of the Personnel Committee. For those otherwise stipulated in those regulations, additional rules can be added to this ethics code.

  • Chapter 2

    Trust Relationship with Customers

    Article 6 [ Customer Respect ]

    1. We protect the best interests of our customers by prioritizing their opinions and behaviors as the best standard for our management practices.
    2. We respect and understand what our customers think and create values that are in favor of their interests.

    Article 7 [ Customer Satisfaction ]

    1. We strive to be the No. 1 choice for our customers by offering the best products and services.
    2. We respond to and deal with the complaints and suggestions of our customers in a timely and correct manner by clearly identifying what they need.

    Article 8 [ Customer Trust ]

    1. We do not offer any false or exaggerated information to our customers. We only provide correct and honest information.
    2. We always tell the truth and stick to the promises we made to our customers.
    3. Any customer information should not be disclosed outside or used for purposes other than those that were previously agreed upon.

  • Chapter 3

    Trust Relationship with Employees

    Article 9 [ Compliance with Regulations ]

    1. We behave properly in accordance with the social norms, company rules, high ethical values, as well as the law.
    2. All executives and employees shall not take unethical actions in their daily life nor works that may be incur criticism from society.
    3. All executives and employees shall be mindful of their social responsibility and shall actively respond to opportunities and dangers that may arise. They shall also behave in compliance with international standards that stipulate corporate management and shall take initiatives to be exemplary.
    4. The company shall be under obligation to run an education program about sexual harassment at least once a year to prevent sexual harassment at the workplace, and all executives and employees are obliged to complete this training. Upon the discovery of an act of sexual harassment, it must be followed by strict disciplinary measures.

    • 5. All executives and employees shall not commit any act delineated in the subparagraphs below.
      • ① Words or actions that cause sexual humiliation or emphasize a gender role
      • ② Committing lewd behavior or actions that enforce or insist on the other person to drink alcoholic beverages or dance
      • ③ Access to pornography through the internet or other media at the workplace
      • ④ Sexually evaluating or comparing colleagues’ physical appearance
      • ⑤ Making unnecessary physical contact
    6. All executives and employees shall not commit acts that cause physical or mental distress to another employee or exacerbate working conditions using one's position or working relationship beyond the scope appropriate to one’s job responsibilities.
    • 7. Specifically forbidden actions and behavior at the workplace are as delineated in the following subparagraphs.
      • ① Acts that commit physical violence or threaten harm
      • ② Repeating swear words or verbal abuse
      • ③ Acts of defamation such as insulting an employee in front of colleagues or online, or spreading rumors about an employee’s private life
      • ④ Acts of repeatedly ordering another employee to run one’s personal errands or affairs without due reason
      • ⑤ Acts of disesteeming or ridiculing an employee’s job performance or achievements without due reason
      • ⑥ Acts of bullying an employee as a group, or excluding or ignoring an employee regarding critical work-related information or decision-making process without due reason
      • ⑦ Acts of ordering an employee to carry out tasks or menial errands unrelated to the jobs as described in the employment contract for a significant period of time without due reason or to carry out errands unrelated to the jobs as described in the employment contract
      • ⑧ Acts of assigning almost no work to an employee for a significant period of time without due reason
      • ⑨ Any other act that causes physical or mental distress to another employee or that exacerbates working conditions beyond the appropriate scope of job responsibilities
    8. All executives and employees shall not commit any act not included in this code that would be deemed unethical according to social rules and norms.

    Article 10 [ Faithful Implementation of Duty ]

    1. We perform all our duties honestly and fairly. Also, we always strive to establish a fair corporate culture.
    2. All executives and employees shall proactively prevent dangers that may be consequent to one’s own decisions or actions and shall take responsibility if a problem arises.
    3. All executives and employees shall accurately and truthfully create records and reports for all information and shall not falsify or falsely report documents or computations.
    4. All executives and employees shall responsibly manage the company assets and shall not arbitrary use the said assets for personal use.
    5. All executives and employees shall not take up employment at the company’s competitor.
    6. All executives and employees shall pursue active cooperation and smooth communication between co-workers and related departments to increase work efficiency.
    7. All executives and employees shall not hinder fairness in business affairs or commit graft in exchange for any form of financial advantage such as money, gift, hospitality, entertainment, and accommodations.
    8. Acts defined in paragraph 7 shall be, by principle, forbidden. Even in outlying cases, one shall not overstep the legally or socially permitted scope of conduct.
    9. Any instance of executives or employees assisting in another employee’s family event shall be voluntary. The amount of assistance shall be consistent with social rules and norms and shall not be overbearing on any employee or partner, etc.
    10. Each individual’s political rights or alignments are to be respected, but no individual shall carry out political activities within the company nor use the company’s capital, facilities, personnel, etc. for a political purpose.
    11. All executives and employees shall not establish any joint surety or mutual guarantee with each other.
    12. All executives and employees shall not partake in addictive games, visit indecent websites, or gamble during working hours.

    Article 11 [ Self-development ]

    1. We establish a desirable employee character code and strive to match up to it through ceaseless self-development.
    2. Seniors should help their juniors develop capabilities by taking their aptitude and talents into consideration.
    3. The company encourages its employees to constantly develop themselves and provide active support for them to improve capabilities that are required to perform their duties.

    Article 12 [ Mutual Respect ]

    1. We employees, should build a healthy and respectful team spirit. Also, we should strive to understand and cooperate with each other.
    2. We do not discriminate against anyone based on their educational background, gender, religion, age, race, nationality, or other factors.
    3. We do not form a clique or any private circle that causes disharmony in the organization.
    4. We watch our behaviors and languages that could adversely affect a healthy work environment, avoiding sexual harassment, verbal abuse and violence.
    5. We refrain from conducting cash only businesses and joint investments with our colleagues.

    Article 13 [ Information and Security Management ]

    1. We do not disclose any intellectual property or confidential information of the company to outsiders or third parties without prior consent or permission.
    2. Individual employees, as well their families or friends, do not take personal gains by using internal information acquired over the course of work.
    3. We thoroughly protect the company’s intellectual properties, which is the foundation of the company.

  • Chapter 4

    Trust Relationship with Partners

    Article 14 [ Fair Trade ]

    1. All business with partners should be carried out in a transparent and fair manner.
    2. We offer a fair chance for partners to participate in our business, provide them the necessary information and go through sufficient consultation on terms and conditions of business.
    3. Laws and regulations on fair trade should be strictly observed.

    Article 15 [ Growing Together ]

    1. We recognize our partners as companions we work toward a common goal with by building mutual trust and cooperative relations.
    2. We strengthen our competitiveness with our partners. We seek out mutual growth by providing legitimate support.
    3. All executives and employees shall not collect confidential information of a partner or competitor through a personal relationship or a customer.

    Article 16 [ Prohibition of Improper Solicitation Pertaining to Public Servants, etc. ]

    1. All executives and employees shall not engage with improper solicitation with public servants or employees of government affairs.
    2. All executives and employees shall not provide or promise a public servant or an employee of government affairs any money and goods, offering entertainment, or accommodations that relate to a job responsibility or that exceed a pre-established amount.

    Article 17 [ Prohibition of Unethical Acts Pertaining to Partners ]

    1. All executives and employees shall not receive work-pertinent money and goods, entertainment, or accommodations from a partner. However, cases that are consistent with social rules and norms shall be exempt.

    • 2. In addition to the acts listed in paragraph 1, all executives and employees shall not commit any of the unethical acts described below.
      • ① Work-pertinent acts of receiving proxy payment or repayment of card bills, credit bills, or loans; acts of receiving bank loan guarantees or movable assets; acts of receiving, demanding, or promising marketable securities, business rights, membership, or other advantages to possessed wealth
      • ② Acts of loaning money from a partner or demanding or promising to loan money from a partner
      • ③ Work-pertinent acts of leasing assets or receiving security from a partner for personal benefit of an executive or employee
      • ④ Work-pertinent acts of purchasing or leasing movable assets or real estate in a cost lower than the original price from a partner to obtain substantive benefit
      • ⑤ Acts of making remarks or using abusive language or swear words that induces a feeling of sexual humiliation directed at a partner's executive or employee
      • ⑥ Acts of unlawfully demanding a partner’s information or using the information outside the intended purpose
      • ⑦ Any other unethical acts committed to a partner by the company’s abuse of its superior position

  • Chapter 5

    Trust Relationship with Stockholders

    Article 18 [ Enhancement of Stockholder Value ]

    1. The company and its executives and employees shall protect stockholders’ assets by carrying out their duties in a just and transparent manner and shall do their best and use their creativity and achieve innovation to increase the stockholders’ values in the mid-to-long term.
    2. The company and its executives and employees shall enhance stockholders’ profit through efficient and reasonable decision-making, as well as transparent and sound business activities, and shall attentively listen to stockholders’ opinions if they are reasonable.

    Article 19 [ Conflict of Interest ]

    1. All executives and employees shall not abuse their positions to procure personal benefits or commit any other such acts that run counter to stakeholders’ profits, including those of the company and stockholders, and shall obtain prior approval from the company if an activity is deemed to be in conflict of interest with the company.

    Article 20 [ Enhancement of Accounting Transparency ]

    1. All executives and employees shall make public announcements of the company’s management data in compliance with relevant laws and business accounting standards.
    2. All executives and employees shall not intentionally manipulate nor falsify documents or figures that may confuse the relevant department’s judgment or lead to misjudgment.

    Article 21 [ Prohibition of Insider Trading ]

    1. All executives and employees shall not leak to external parties any information gained through one’s position at work or work-related authority and shall not abuse any such information to benefit oneself.

  • Chapter 6

    Trust Relationship with Society

    Article 22 [ Healthy Corporate Activities ]

    1. We respect the laws and regulations of the country and local communities we operate in, in addition to their social norms. We carry out reasonable and healthy corporate activities.
    2. We denounce irregularities that hinder healthy corporate activities.

    Article 23 [ Social Contributions ]

    1. The company shall carry out its corporate social responsibilities through social contributions related to training, culture, scholarships, and welfare benefits.
    2. The company shall contribute to social progress by promoting executives and employees’ volunteering.
    3. The company and its executives and employees shall humbly embrace reasonable demands from each social class and local community.
    4. The company shall continually create jobs to contribute to the national development.

    Article 24 [ Environment Protection ]

    1. The company and its executives and employees shall devote themselves and strive toward preserving the environment for the future.
    2. The company and its executives and employees shall comply with environmental laws and regulations to fight climate change and reduce greenhouse gases.
    3. The company and its executives and employees shall furnish and maintain facilities necessary for the prevention and improvement of environmental pollution.

    Article 25 [ Respect for Diversity ]

    1. The company and its executives and employees shall familiarize themselves and comply with national and local legislations related to their duties in order to respect the entry country’s value system and customs.

    Article 26 [ Separation of Politics and Economy ]

    1. The company shall not support or assist any specific politician or political party as a company or as an organization.

    Article 27 [ Safety Control and Accident Prevention ]

    1. In the course of business operation, the company shall serve the protection of the safety of its executives and employees, partners, and customers as its critical management regulations.
    2. The company shall comply with international standards, relevant laws and regulations, internal regulations, etc. to prevent safety-related accidents.
    3. The company shall operate regular education and training programs to prevent safety-related accidents and to rapidly respond to disasters.
    4. The company shall carry out exhaustive safety inspections of various facilities and ensure the non-occurrence of safety-related accidents.

  • Chapter 7

    Treatment of Violation of Regulations

    Article 28 [ Violation Reporting and Reporter Protection ]

    • 1. If one becomes aware of various acts that violate this code or comes to know of such acts from a third party, one is obliged to report the acts to the company. The company, on the other hand, shall facilitate its executives and employees to make such reports under anonymity.
    • 2. The ethical management team shall investigate on the reported issue without delay and shall promptly and clearly reply to the reporter’s questions during the course of inspection.
    • 3. The company is obligated to ensure the secrecy of both the reporter and the content of the report and shall ensure that the reporter is not disadvantaged in any way due to making such report.
    • 4. The company may carry out a high level of disciplinary action against any executive or employee that retaliates against the reporter for reporting.
    • 5. Channels for consultation or filing reports are as follows:

    Article 29 [ Treatment of Violators ]

    1. If a violation of this code is discovered, the relevant department shall immediately report about the fact in writing, including relevant documents and inspection findings, to the ethical management team.
    2. The ethical management team shall review the submitted report and call for an ethics committee meeting or a personnel committee meeting.
    3. Proper measures should be taken for the involved partner based on the severity of the matter. In addition, damages caused to the company should be compensated by the concerned partner.

  • Chapter 8

    The Ethics Committee

    Article 30 [ Formation of the Ethics Committee ]

    1. The formation of the Ethics Committee and the nomination of members should be in accordance with the rules of the Personnel Committee.

    Article 31 [ Calling of the Ethics Committee ]

    1. If an ethics violation occurs, the supervising team or the concerned department should provide a detailed written report along with documents as evidence. In addition, a secretary of the committee should be immediately notified of such an act.
    2. The secretary of the committee reviews the submitted report and decides on whether the Ethics Committee should be called or not.

    Article 32 [ Reward and Punishment ]

    1. The company can award employees who made contributions to the company’s ethical management by taking the advice of the Ethics Committee or Reward Committee. The level of reward and procedures should be in accordance with the related company rules.
    2. Employees who violate the ethics rules may be subject to punishment, in accordance with the decision of the Ethics Committee. Also, the level of punishment and related matters should be in accordance with the related company rules.

  • Additional Rules

    Article 1 [ Effective Date ]

    1. This ethics code comes into effect from March 1, 2012 (amended on March 1, 2012).
    2. This ethics code is amended and comes into effect from March 1, 2015.
    3. This ethics code is amended and comes into effect from November 1, 2015.
    4. This ethics code shall take effect on September 17, 2021.

    Article 2 [ Prohibition of Retroactive Application ]

    1. This code shall not apply to any action prior to the code’s enforcement date.

    Article 3 [ Criteria of Translation ]

    1. For matters that are not stipulated in this ethics code or in case of a discrepancy in translation, decisions and translation of the Ethics Committee should be followed