Social
Win-Win Management
Haesung DS aims to build a mutual sustainability management system by strengthening the win-win partnership
with its partners based on trust and supporting their fulfillment of social responsibilities.
Partner
Co-Prosperity Policy
Haesung DS aims to build a mutual sustainability management system by strengthening the win-win partnership with its partners based on trust and supporting their fulfillment of social responsibilities.
01Enhancing Fair Trade
- 1)To prevent unfair trade practices, Haesung DS establishes compliance requirements in contracts with partners and fosters a rational, fair trading culture through written documentation and retention.
- 2)To enhance transparency and fairness in the selection and operation of partners, Haesung DS establishes an internal compliance management system to create an orderly and fair trading environment.
02Operating a Sustainable Supply Chain
- 1)Haesung DS supports its partners in establishing a safe working environment, respecting employees' human rights, and operating ethically by fulfilling their environmental responsibilities.
- 2)Through support in areas such as technology, education, and management, Haesung DS helps enhance the capabilities of its partners and their employees.
03Enhancing Collaboration
- 1)Haesung DS recognizes its partners as key collaborators and actively engages in activities to enhance their capabilities and build trust.
- 2)Haesung DS actively promotes initiatives to drive results and protect technology, sharing the outcomes through a performance-sharing system..
Haesung DS Co., Ltd. CEOCho Byung-Hak 
Code of Conduct
Haesung DS's code of conduct for partner companies promotes a safe working environment, respects employees' human rights, and upholds ethical operations by meeting environmental responsibilities. Haesung DS reserves the right to modify this code of conduct as needed, and any changes will be communicated in advance through the partner portal site (http://www.smart-net.co.kr) or other channels.
Haesung DS (or external auditors) may visit partner facilities and request improvements to ensure compliance with this code of conduct. Partners of Haesung DS must specify compliance with this code of conduct as a condition in contracts with the company.
Support Program
for Partner Companies'
Social Responsibility Implementation
Haesung DS conducts ESG assessments for companies with a transaction volume above a certain threshold.
Those partner companies that receive high evaluation ratings are provided with additional incentives, while areas for improvement are identified and addressed, with ongoing management of corrective actions.
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01
Selection of Evaluation Companies
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02
Conduct Evaluation
(Ongoing/Periodic) -
03
Review Results
(Evaluation Rating) -
04
Follow-Up Actions
Comprehensive Evaluation Implementation of Partner Companies
Haesung DS is expanding and promoting the comprehensive evaluation of its partner companies to strengthen sustainable supply chain management in 2024. Based on the previous year's transaction performance, evaluation targets will be selected.
The purchasing, quality assurance, and technical teams will conduct regular evaluations (annually) and ad-hoc evaluations (in cases of risk detection or emergencies) for the selected companies. The key evaluation criteria include environment/safety, credit assessment, financial evaluation, responsiveness, delivery, cost reduction, and quality. After the evaluation is conducted, incentives and penalties will be assigned based on the evaluation ratings (A, B, C, D, E).
Through these efforts, Haesung DS aims to enhance the competitiveness of its partner companies, strengthen product competitiveness, build a pool of high-quality partner companies, and continuously monitor and verify risks and changes associated with its partner companies.
| Incentive and Penalty Operating Plan by Comprehensive Evaluation Rating | ||
|---|---|---|
| Score | Grade | Remarks |
| 100-90 points | A Grade | Maintain partnership |
| 89-80 points | B Grade | |
| 79~70 points | C Grade | |
| 69~60 points | D Grade | Improvement period granted |
| 59 points or below | E Grade | Termination of partnership |
Co-Growth
Haesung DS conducts environmental mentoring, safety training, and fire response drills for partner companies, fostering co-growth partnerships. Through the operation of a partnership council targeting key partner companies, Haesung DS aims to promote mutual cooperation. In 2024, Haesung DS plans to expand the number of participating companies from 9 to 15. Additionally, Haesung DS will enhance regular exchanges by providing training and support for partner companies, while also establishing communication channels to listen to and address the concerns and opinions of our partner companies, thereby strengthening mutual communication.
Selected as an Excellent Company for Price Adjustment Linkage System
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Haesung DS has been a pioneer in implementing the price adjustment linkage system as the first new participant company in this initiative. To share the challenges faced by partner companies amid the rapidly changing prices of raw materials, Haesung DS has been linking transactions to the fluctuations in raw material prices for items that include key raw materials such as copper, nickel, and precious metals, even before the legislation of the price adjustment linkage system. More than 60% of the total purchasing amount is transacted through raw material price linkage, and particularly during the COVID-19 pandemic, Haesung DS expanded this linkage to include auxiliary materials in response to increased fluctuations in raw material prices. In recognition of these achievements, Haesung DS was selected as an outstanding company for its timely payments for delivered goods in December 2023 and received an award from the Minister of Small and Medium Enterprises and Startups. In 2023, Haesung DS engaged in over 37,000 linkage contracts, with the total transaction amount reaching 194 billion won.
What is the Price Adjustment Linkage System?
The Price Adjustment Linkage System is a framework where a written agreement is established between the supplier and the client. This agreement stipulates that if the prices of major raw materials used in the goods supplied by the contractor fluctuate beyond a certain level, the payment for the delivered goods will be adjusted accordingly. This system contributes to stabilizing the supply chain by allowing for adjustments in payment due to unforeseen fluctuations in raw material prices at the time of contract signing.
Conflict Minerals Management
What is the Conflict Minerals Regulation?
The regulation of conflict minerals refers to economic sanctions aimed at eradicating social issues such as human rights violations, child labor exploitation, and sexual violence occurring in conflict regions of Africa (including the Democratic Republic of the Congo and nine other countries), primarilydriven by developed countries.This regulation designates four key minerals (3TG: tin, tungsten, tantalum, and gold) mined in these regions as conflict minerals. Its goal is to prevent the flow of mining funds into rebel financing by imposing restrictions on companies' use of conflict minerals.
Source : NEWSECURITYBEAT
Conflict Minerals Management Measures at Haesung DS
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- Conduct a usage status survey of all domestic and international partner companies (a total of 85 companies).
- Require proof of origin from new suppliers of conflict minerals that trade with Haesung DS.
- Strictly manage by including compliance items for non-use of conflict minerals in the purchase order.