Hankook Tire’s materiality analysis is performed once a year based on stakeholder interest and business impact. The results are proactively addressed and reported back to our stakeholders and our management.
We identify issues that are material to our stakeholders and our business conduct and thus require intensive management while reporting on the status of and achievement in managing these issues. We conduct the materiality analysis in consideration of both internal and external impacts, and further clarify and address those issues that we believe to be relatively more important through the CSR Steering Wheel.
Materiality Analysis Process
Phase 1 Compile Relevant Issues
A pool consisting of 36 issues in 9 categories was created through the application of the economic, social and environmental aspects suggested by the GRI G4 Guidelines, a global framework of social responsibility management, media research, review of CSR issues in the industry, and identification of Hankook Tire’s core CSR issues.
Phase 2 Identify the Level of Interest and Significance
We investigated the level of stakeholder interest and business significance about 36 identified issues. Surveys were conducted to check the level of stakeholder interest. We also reviewed our internal corporate policies and norms & regulations while analyzing media articles and benchmarking global standards and industry peers to identify the level of business significance.
Phase 3 Prioritize Identified Issues
We prioritized the above issues in line with stakeholder interest and business significance. This report aims to provide a more detailed and transparent disclosure of top issues.
CSR STEERING WHEEL 2016
Most material issue:
Customer Satisfaction and Quality Management - Development of products to foster customer safety and health
Why this issue is important to Hankook Tire.
As the quality and performance of the tire are directly related to safe driving, Hankook Tire has been putting quality and safety at the forefront in R&D. With the recent interest in safe driving, tires featuring advanced technologies have been developed to ensure safe driving in emergency situations. These include run flat tires, which are capable of being driven a certain distance even when a tire blows out, and seal guard tires, which its sealant materials applied inside goes out and immediately block punctures in a tire, ensuring vehicle safety.
To supply safe and healthy products to customers, Hankook Tire focuses on the following three strategies: continuing the development of runflat tire technology, developing technologies to enhance brake performance and fuel efficiency, and securing 1st-tier-level quality. All of these are aligned with the evaluation and compensation of executives in charge of R&D, materials, product, and quality divisions.
- 1) Continuing the Development of Runflat Tire Technology
Our 1st-generation runflat tire (RFT) with just basic runflat function had been far behind general tires in riding comfort and fuel efficiency. However, the 2nd-generation RFT was developed with the focus on reducing weight, and the latest third-generation RFT achieved greater rolling resistance and fuel efficiency while maintaining existing performances. Particularly, Hankook Tire operates the RFT Project TFT to spur the development of cutting-edge RFT technologies. Our 3rd-generation RFT is highly recognized for its riding comfort, which is indistinguishable from normal tires, and creates a new segment of high-performance RFT in Korean tire industry. Currently, the 3rd-generation RFT ‘Ventus S1 evo2 Run Flat’ is equipped on Mercedes Benz C Class and BMW MINI for the first time in Korean tire industry.
- 2) Developing Technologies to Maximize Brake Performance and Fuel Efficiency
It is very difficult to enhance the brake performance and fuel efficiency simultaneously as they have trade-off relationships. Hankook Tire operates the Innovation Braking Technology (IBT) Project TFT in charge of research on technologies related to friction, brake, traction, and materials in order to develop new tires that ensure excellence in both brake performance and fuel efficiency by capitalizing on our own technologies. In addition to this, we also preemptively respond to the labelling system related with rolling resistance and wet grip performance.
- 3) Securing 1st-tier-level Quality
Hankook Tire implements strategic quality policies in the aspects of manufacturing and market. From a manufacturing perspective, we established quality standards in 2010 to attain the goal of ‘One Quality’ and has strived to strengthen processing capability of both semi-manufactured and finished products. We also conduct diverse strategic tasks such as finding causes of performance issue and applying improvements to worksites, and expanding quality indices to upgrade the uniformity of product quality. From a market perspective, we comprehensively analyze customer needs and proactively adopt those to our new products.
|Category||Matrix No.||& Materiality||Issue|
|Leadership & Responsible Corporate Governance||8||●||Risk and crisis management|
|11||●||Responsible corporate governance|
|17||●||Vision and executive leadership|
|23||●||Communication with stakeholders|
|Creation and Distribution of Economic Value||2||●||Direct economic performances (sales, operating income, etc.)|
|5||●||Indirect economic performances (creation of jobs in local communities, contribution to expanding tax revenues, etc.)|
|13||●||Distribution of created values|
|Customer Satisfaction and Quality Management||1||●||Development of products to foster customer safety and health|
|3||●||Communication with customers|
|14||●||Provision of accurate product information (Discouragement of exaggerated advertising, environmental information, etc.)|
|19||●||Personal information protection|
|Employee Value Creation||7||●||Win-win labor-management relations through open communication|
|6||●||Employee health and safety management|
|9||●||HR system to offer equal opportunities|
|16||●||Great workplace and work-Life balance|
|18||●||Educational systems to support the development of employees|
|Environmental Management||10||●||Minimization of environmental impact throughout the entire product life cycle (collection/transport of resources, manufacturing, use, recycling, disposal)|
|20||●||Conservation of energy and reduction of GHG emissions|
|21||●||Conservation and protection of resources (raw materials, water, etc.)|
|36||●||Biodiversity management and protection of endangered species|
|Business Ethics and Transparency||4||●||Elimination of all kinds of corruption and bribery|
|15||●||Reception and resolution of complaints regarding unethical behavior|
|24||●||Prohibition of anti-competitive and monopolistic/oligopolistic practices|
|25||●||Education and dissemination of ethics management|
|Respect for and Protection of Human Rights||22||●||Prohibition of discrimination on religion, gender, etc. and respect for diversity|
|26||●||Guarantee of freedom of association and rights to collective bargaining|
|27||●||Prohibition of forced and child labor, guarantee of minimum wage, and compliance with work hour regulations|
|33||●||Prevention of (sexual) harassment|
|Win-Win Supply Chain Partnership||28||●||Support for suppliers in evaluating and improving CSR practices|
|31||●||Win-win partnership programs|
|32||●||Preferred consideration of local suppliers|
|Community Involvement & Development||29||●||Support for the growth of local communities (enhancement of self-dependency and competency, employment of local talents, protection of the rights of indigenous people, etc.)|
|30||●||Corporate philanthropic activities linked with core competencies|
|34||●||Establishment of the corporate philanthropic system|
|35||●||Facilitation of employee engagement in corporate philanthropic activities|