Hankook Tire aims for win-win business management solutions with its subcontractors based on transparent and fair cooperation that can give rise to sustainable growth and development.
Background of This Issue
Stakeholders, including consumers, of global companies care not only about company's own sustainability (such as ethics management or eco-friendly business practice), but also about suppliers' sustainability issues (such as human rights and environment, etc.). This prompted global carmakers to go beyond simply improving and strengthening their own corporate social responsibility initiatives to expanding such CSR initiatives to their suppliers.
Risks & Opportunities
If a company fails to manage suppliers' CSR issues properly, which leads to difficulties in the stable procurement of materials and the management of its own supply-demand, it will naturally weaken the company's competitiveness. Meanwhile, expanding stable suppliers who can manage their sustainability outstandingly can lead the company to improved production efficiency and competitiveness. Ultimately, this will increase the reliability of the company's products and contribute to generating long-term business outcomes.
Hankook Tire’s Policy
Hankook Tire pursues stable and long term competitiveness through expanding supplier CSR evaluations and assisting suppliers' sustainability policies with mutual trust.
Management Responsibility & Governance
• Chaired by: Purchasing Department Director
• Supervised by: Purchasing Planning Team
• Members: Purchasing Team 1 & 2, Raw Material Development Team, Global Quality Assurance Team, Engineering-related Team
Future Plans & Outlook
In evaluating our suppliers, we will gradually increase the ratio of CSR evaluations and directly perform CSR audits to strengthen the monitoring of our supplier CSR management. We also plan to benchmark leading companies to establish our green procurement system over the long term. Given that price fluctuations of raw materials such as butadiene, coal, and others are intensifying, we will expand our support to raw material suppliers to ensure the stability of their business operation.