Supplier Sustainability Guidance
Hankook Tire pursues co-prosperity with its suppliers on the basis of transparent and fair relationships.
Supplier Sustainability Guidance
Hankook Tire will conduct ethical management to contribute to increasing corporate value as a global company as well as fulfilling its corporate social responsibility as we pursue solid and sustainable growth with all stakeholders involved such as our clients, business partners, local communities, and employees. And Hankook Tire applies its ethical regulations based on reliable and righteous management to all of its actions and value determination.
In order to form a meaningful and effective relationship between Hankook Tire and its suppliers where both sides grow and prosper, Hankook Tire is requesting that the suppliers share, respect, and comply with “Hankook Tire’s Supplier Sustainability Guidance.”Our supplier sustainability guidance applies to the suppliers of Hankook Tire and its employees along with all agencies and agents in contract with Hankook Tire and all contractors (collectively referred to as “suppliers”). Hankook Tire distributes this guidance to all suppliers prior to entering into contractual relationships. The suppliers should come to understand the contents of this supplier sustainability guidance prior to entering into any contractual relationship with our company as they share and teach its contents to their employees and promise to comply with its contents.
Hankook Tire may evaluate whether a supplier is complying with the contents of this guidance and may conduct inspections such as on-site visits, if necessary. Hankook Tire promises security regarding the confidential information of the suppliers but may request the submission of documents for evaluation, if necessary. If it is deemed that an inspection such as an on-site visit is necessary, Hankook Tire must notify the supplier prior to the visit. The supplier must respond faithfully to the requests made for evaluation by Hankook Tire and must also report any contents that may be or are in violation of this guidance to Hankook Tire immediately. If the negative social and environmental effects resulting from violation of this guidance are deemed critical, Hankook Tire may cease transactions with the violating supplier at any time.
Progress of Health and safety
1. Compliance with Laws, Regulations, and Code of Ethics
1) The supplier must comply with the laws and regulations in the local and national jurisdiction of its business site.
2) The supplier must comply with its own code of ethics and Hankook Tire’s Supplier Sustainability Guidance.
3) Hankook Tire must fulfill its corporate social responsibility by making its CSR performance public to all stakeholders. In order to achieve this, Hankook Tire may request the following contents from its suppliers, and the suppliers must faithfully comply with such requests unless there is a reasonable and mutually understandable cause.
(1) Request for CSR Performance of Supplier : Hankook Tire may request information regarding the supplier’s policies, program progress status, and final results. At this time, all information provided by the supplier is not used for any purpose other than CSR evaluation, and Hankook Tire guarantees that all information will be handled in compliance with the information security policies of each supplier.
(2) Supplier CSR Inspection by On-site Visit : Hankook Tire may request an on-site visit if an inspection of the supplier is deemed necessary. In this situation, Hankook Tire shall notify the supplier prior to the visit and guarantees to comply with the visiting security policies of the supplier.
(3) Faithfull Response to Evaluation and Inspection : The supplier must submit accurate data at the right time for the CSR evaluation and auditing performed by Hankook Tire. If any violations of laws, regulations, and Hankook Tire’s Supplier Sustainability Guidance or potential issues have been observed, the suppliers must immediately share this observation with Hankook Tire. If the supplier provides false data for the evaluation and the audit or if the supplier’s violations cause critical social and environmental effects, Hankook Tire may terminate its business relationship with the supplier.
2. Anti-corruption and Anti-bribery
1) The supplier must comply with the anti-corruption and anti-bribery laws in their jurisdictions such as the Anti-solicitation Act, Foreign Corrupt Practices Act, and UK Bribery Act.
2) The supplier may never provide any bribes such as money and valuables to anyone or accept them under any circumstances and may never demand or guarantee such to anyone.
3) The supplier may not provide any direct or indirect bribes to government institutions for commercial profit or to induce activities beneficial to the corporation.
4) The supplier may not provide to or receive from any government institution, Hankook Tire, or stakeholders any gifts, money, valuables, or items that go beyond the standards of local laws and regulations.
5) The supplier is not to be involved in any improper acquisitions, or embezzlement that results in unfair and improper benefits.
6) The supplier must establish a whistle-blowing channel for anti-corruption and anti-bribery purposes, and the supplier must guarantee anonymity and substantially protect the whistleblower.
7) The supplier must take necessary measures against employees that violate the anti-corruption and anti-bribery regulations, such as punitive actions, according to company regulations.
3. Respecting and Protecting Human Rights
1) Hankook Tire is a corporation that has established a human rights management system and has declared itself to be a human rights management corporation and demands that suppliers respect and protect human rights as well. Also, Hankook Tire demands that the suppliers support and comply with the Universal Declaration of Human Rights, UN Global Compact, Fundamental Principles and Rights at Work, and UN Guiding Principles on Business and Human Rights, which all serve as the foundation of the human rights management system of Hankook Tire.
2) Prohibition of forced labor : The supplier should not restrain the mental and physical freedom of its employees and force any labor that is against the free will of the employees.
3) Prohibition of child labor :The supplier should comply with the minimum employment age designated by the local regulations in the jurisdiction of its business sites and not employ children below the age of 15 and not assign any jobs that are hazardous to safety and health if they employ teens below the age of 18.
4) Prohibition of discrimination :The supplier should not discriminate against employees based on their race, age, gender, nationality, handicap, religion, pregnancy, labor union membership status, marital status, and social status regarding their employment, compensation, and promotion. Also, the same job titles should guarantee equal compensation, and the suppliers should conduct training on diversity and anti-discrimination.
5) Guarantee of freedom for group meetings : The supplier should grant opportunities for communication between the company and employees and guarantee freedom for group meetings among the employees and not hold employees at a disadvantage for their labor union membership or organization.
6) Just wage payment and stable life :The supplier should comply with the minimum wage guarantee, overtime wage payment, social insurance membership, and provision of breaks and vacations defined in the local regulations in the jurisdiction of their business sites to contribute to improving the quality of labor conditions and stable life of their employees.
7) Working hours : The supplier should comply with the statutory working hours in the jurisdiction of their business sites and not force overtime labor on its employees.
8) Guarantee of health and safety :The supplier must provide a safe, clean work environment for its employees and protect workers from harmful substances.
9) Conflict minerals : The supplier must not receive any raw materials or minor ingredients from areas in conflict where human rights are threatened and must determine and report the use of conflict minerals at the request of Hankook Tire.
4. Health and Safety Management
1) The supplier must comply with all laws and regulations related to the health and safety of work sites in the jurisdiction of their business sites and must establish and enforce its own health and safety policies and processes. Also, the health and safety standards and processes must be notified and shared among employees in a language that they are able to understand.
2) The supplier must put the safety of its employees first and foremost under any circumstances. Therefore, suppliers must not perform any processes, manufacturing, or activities that do not comply with the safety policies, regulations, or laws.
3) The suppliers must provide to their employees a safe and clean work environment that includes the following items.
(1) Safety equipment and training necessary to perform work in a safe manner
(2) Training on emergency response at work site
(3) First aid kit that is practical and convenient to use
(4) Operational fire extinguishers and emergency fire exits
(5) Air ventilation system that supplies air from the outside or filtered air
(6) Pleasant work site temperature
(7) Appropriate lighting for performing work
(8) Drinking water for employees
(9) Provision and continued maintenance of appropriate bath and sanitary facilities
(10) Provision of appropriate seating (chairs) for work
(11) Facility for employees to change into work uniforms and to store and dry work uniforms if the employees wear uniforms or work clothes
(12) Facility to cook and store food along with a sanitary dining hall for employees
(13) A dormitory (lodging facilities) that is clean and safe while guaranteeing appropriate living space
(14) Clean bathrooms for men and women that are accessible
4) The supplier must prohibit the use, possession, distribution, and sale of all illegal drugs in all of its business sites.
5) If an accident occurs at the supplier’s business site, the supplier should assess the accident, take appropriate corrective measures, and take adequate measures to prevent the recurrence of such an accident.
6) If a supplier has been ordered to suspend its business or has been levied a significant fine as a result of violating health/safety regulations and laws or has been convicted in a court of law, such fact must immediately be reported to Hankook Tire.
5. Environmental Management and Greenhouse Gas (GHG) Management
1)The supplier should comply with laws and regulations related to the environment in the jurisdictions of its business sites and establish and execute its own environmental policies and processes.
2) The supplier should make the following efforts to decrease negative environmental effects which occur during corporate management.
(1) Environmental protection
(2) Response to climate change
(3) Safe processing of harmful substances, atmospheric pollutants, waste, and wastewater
(4) Recycling and re-use of resources, and saving resources by using alternate resources
(5) Use of energy efficient and environmentally friendly technology
(6) Decreased waste
(7) Acquisition, management, and renewal of environmental permits and declarations
3) If a supplier has been ordered to suspend its business or has been levied a significant fine as a result of violating environmental regulations and laws or has been convicted in a court of law, such fact must immediately be reported to Hankook Tire.
6. Conflict Minerals
1) All suppliers that supply materials to Hankook Tire should not use any minerals coming from areas in conflict and must submit certificates to prove the origin of these minerals. If necessary, Hankook Tire may conduct an on-site inspection of the supplier.
(1) Conflict areas refer to the following regions : People’s Republic of Congo, Sudan, Central African Republic, Congo, Angola, Zambia, Tanzania, Burundi, Rwanda, and Uganda.
(2) The minerals subject to regulation (conflict minerals) refer to tin, tantalum, tungsten, and gold, which are mined from the 10 regions mentioned above.
7. Protecting Confidentiality, Personal Data and Intellectual Property
1) The supplier should comply with information security regulations pertaining to the information of employees, suppliers, customers’ personal information, finances, and health, and must establish and operate a protection policy.
2) The supplier may only request and collect personal information from its employees, customers, and employees of its own suppliers with legal grounds and must comply with the local laws and regulations in its respective jurisdiction in such situation.
3) The supplier should respect the laws pertaining to intellectual property, trade secrets, trademark rights, and confidential information and must establish and operate a protection policy regarding the items above.
8. Conflict of Interest
1) The employees of suppliers and Hankook Tire should not enter into any financial or personal relationships that may cause a conflict of interest for either side.
2) The suppliers should immediately report to Hankook Tire if a conflict of interest arises or if they are worried about a potential conflict of interest. For example, if a family member or close relative of an employee of Hankook Tire has been employed by the supplier, such fact should be notified to the legal department of Hankook Tire immediately. Also, the supplier should re-designate a supervisor in this situation to prevent the conflict of interest.
1) The supplier should comply with the principles of market competition while respecting business ethics and customs and not pursue profit in an inappropriate manner.
2) The employees of the supplier must not collect competition-related information through improper channels such as false testimony and information theft and must not obtain confidential information without consent from the information owner.
3) The supplier must understand the terms above and share them accurately with its employees and contractors. Also, it must conduct education on anti-competition laws and regulations for its employees as well.
10. Additional Requirements Regarding Supplier Sustainability Guidance
1) The supplier should guide and educate its employees regarding the contents of this sustainability guidance.
2) The supplier may report or inquire to the cyber auditing center, management diagnostics department, or legal department of Hankook Tire if the employees of its own company or Hankook Tire violate this guidance or are in danger of violating the terms of this guidance.
3) Hankook Tire should adhere to its security regulations regarding reports and inquires made by suppliers and guarantee anonymity for reporters and inquirers.
4) The supplier should prepare appropriate channels for reporting any violations or potential violations of the contents of the guidance mentioned above while establishing and operating a policy that guarantees anonymity for the reporter. Also, the supplier should provide education to its employees regarding whistle-blowing channels and its processes along with the reporter protection system.
5) Hankook Tire strongly recommends that its suppliers establish and execute sustainable purchasing policies regarding its own suppliers.