[Sponsored Report] Cultivating cooperation with local communities
In order to promote fair business with its subcontractors, Hyosung has established an internal committee to evaluate fairness and adequacy of subcontractor selection and trade process. Also, the company applies four principles regarding its relationship with the cooperative firms, and declared guidelines that prohibit lopsided trades. In particular, it bans retaliatory acts such as limiting or eliminating trade with the cooperative firms.
The company has reinforced its educational activities such as the quality and safety of the subcontractors. Each month, the company holds educational sessions on business and production for CEO and executives, prepared by external sources. Furthermore, Hyosung Power & Industrial Systems funds the subcontractor firms to study abroad in Japan and tour factories in Southern China.
Moreover, Hyosung continues to support the improvement of the financial situation of its subcontractors. The company has implemented apparatuses and instruments to improve productivity, provided funds for technological development, and signed a ‘network-loan’ with finance sector. Network-loan refers to an agreement to allow the companies to take out a necessary loan for executing delivery contracts. In addition, the company funded over 70 companies, aiming to provide financial support to 100 companies until 2017.
Hyosung Power & Industrial Systems has adopted meetings with subcontractors. In April, it had the first meeting and painted walls as part of the “Safe Town” project, a community service project organized with the exemplary subcontractors. This event took place in Mangwon-dong, western Seoul, as part of a cooperative meeting with the subcontractor firms. 40 cooperative firms participated, and the participants of the meeting discussed suggestions and the problems of the cooperative firms. The exemplary cooperative firms were selected and awarded during the meeting in the second half of the year.