Sustainability Management Strategy

Greetings to our valued stakeholders,

“LG Group celebrates its 70th anniversary this year. We were founded in 1947
when we released Lucky Facial Cream, the first cosmetic product in Korea.
We’d like to express our sincere thanks to our customers for their loyalty and support.”

All of us at LG H&H are driven by our sense of duty to help our customers discover their own beauty and realize their dreams.
Although we’ve achieved much over the last seven decades by striving to explore new challenges, we continue to push forward.
Step by step, we will grow into a sustainable company that has create value for the people for more than a century.
2016 was a year of rampant uncertainty both at home and abroad.
Nevertheless, LG H&H set clear goals and made concerted efforts to eventually accomplish our best performance every quarter. By sticking to our principles, we further developed trust with consumers in terms of product safety.
Our company also fulfills its corporate social responsibility
by listening to various opinions and addressing
shortcomings through regular communication
with internal and external stakeholders.
LG H&H earned the honor of being awarded
the Presidential Citation for win-win growth
of large/medium/small companies,
and we were recognized as a First-Class Company
in the Win-Win Index for two years in a row.
We’ve also been included in the Dow Jones Sustainability Index
for seven consecutive years,
and placed in the top list of Asia CSR Ranking.
Although the internal and external business environment
this year is still unclear and it’s difficult to predict changes,
we’ll continue to make progress through our commitment
to lead the market and overcoming obstacles.

Upgrading the level of business structure

The economy of China, one of our major markets, will continue to slow down. The uncertainty in the global economy will also increase due to the ramping up of protectionism around the world. Nevertheless, LG H&H will reorganize its business divisions for continued growth and achieve satisfactory performance by establishing and implementing strategies customized for each business division. We will create higher values, even from the same work we’ve always done, to achieve sustainable outcomes. Our entire company will also work to improve our business through consolidating our company structure and enhancing our fundamental business value.

Strengthening social responsibility with sinceritys

When it comes to upholding our principles, we at LG H&H are uncompromising-especially when it comes to quality and safety. We will further build customer trust through safety standards based on high ethical criteria, and establish a quality control system so that our principles are strictly observed throughout the entire process. We will also continue to pursue win-win growth by supporting our suppliers so that they can become healthy companies that create good products. The Borrowed Earth School, our business-related program that trains students to adopt an eco-friendlier lifestyle, has been recognized as an exemplary educational project for the Free Semester Program in middle schools. We will expand the program to reach students in remote and isolated areas, as well as those in large cities, and provide them with more educational opportunities.

Sharing values with stakeholders through communication

By communicating with customers, shareholders, employees, suppliers, and other stakeholders in diverse ways, we will share and expand our company’s value with society. We will achieve this through our sustainability management activities, including manufacturing of goods, ensuring product safety, and creating work-life balance through our corporate culture. We’ll also realize win-win growth with suppliers, a safe and clean environment, human-centered Jeong-do Management, and meaningful social contribution.

Great things can happen from small changes in common things. In 2017, LG H&H will make small changes that will lead our company to achieve great goals. The 2016 LG H&H CSR Report, our 8th published report, provides transparent information and the performance data of our sustainability management activities, which we pledge to implement for our customers, suppliers, local communities, and employees.

As a global leader in sustainability management, LG H&H will comply with the Ten Principles of the UN Global Compact. We’ll continue to commit our utmost efforts to fulfill our social responsibility and roles to create a better future. We greatly appreciate your continued loyalty and support. Thank you.

May 2017
Suk Cha, CEO & Vice Chairman
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