[Sponsored Report] Hyosung pursues ‘shared growth’ with contractors
Through communication with contractors, Hyosung will identify and prioritize difficulties that contractors face and provide support in areas such as technology, systems, exploration of new markets and finance.
The company will pursue four tasks to strengthen fair trading with contractors by setting compliance regulations for shared growth: 1) selection and operation of contractors; 2) conclusion of contracts; 3) establishment of an internal deliberation commitee to review the fairness and legitimacy of contracting; and 4) issuance and storage of documents over the conclusion of contract agreements and the transaction process.
To build trust and solidify its partnerships with contractors, the company has set a guideline on the prohibition of retaliation involving unilateral restrictions or halts to trading.
Hyosung will also offer support to contractors in finding new markets. Its textiles unit is participating in domestic and international exhibitions together with contractors to support global sales and marketing, an area in which contractors are considered weak.
Hyosung Goodsprings, a subsidiary active in sectors like seawater desalination, concluded a memorandum of understanding to support overseas expansion in the water industry with state-owned K-water and 39 small and medium-sized companies in Korea. Hyosung Goodsprings also announced that it will jointly bid for water project contracts abroad, allowing Hyosung to secure outstanding products from contractors and enabling them to bolster sales through exports.
Hyosung is also helping contractors improve their technical capacity. The CEOs and employees of contracted companies receive monthly education on product quality, process, safety and management from external professional organizations. Overseas training and field trips to stimulate production innovation are also offered.
“In a situation where competition is intensifying, surviving on our own is too difficult,” Chairman Cho said, “so we should strengthen our partnerships with contractors to grow together.”
By Kim Min-ji [firstname.lastname@example.org]