Press Release
- LG H&H Co., Ltd. CEO :
- Lee Jung Ae
- Business License Registration No. :
- 107-81-98143
Any unauthorized reproduction, copying or distribution is strictly prohibited.
Copyrights © LG H&H Co., Ltd. All Rights Reserved.
For your beautiful life
For your healthy life
For your Refreshing life
Our vision is to create a culture dedicated in promoting our customers beauty and dreams.
It is with our CEO¡¯s firm commitment to making LG H&H more resistant to external shocks that we operate an integrated company-wide risk management system. Business segment-specific risks are monitored regularly and non-financial risks are diagnosed by internal experts to be addressed more appropriately. In addition, operational and hazardous risks in the environmental and social sectors are identified by respective functional units and are effectively managed through an organically aligned reporting system.
(Company-wide integrated core risk management)
* Subcommittees: 12 committees in total, including Environment & Safety, Quality & Service, Information Security, Production, Beverage Production, Purchasing, Logistics, Compliance, and Finance, to discuss issues related to their respective subcommittees. They define crises and major risks for each division, establish a response system in the event of a crisis, and conduct risk improvement activities.
After consulting with each subcommittee, we defined core crises by major categories, defined accident grades, and established a dissemination/communication system based on accident/issue levels(grades). Through the crisis management information system, we simultaneously disseminate information to management and related departments in the event of an accident and respond quickly to prevent it from escalating into a major crisis. In the event of a company-wide crisis, the ¡®Company-wide Crisis Management Committee¡¯ is converted to the ¡®Emergency Response Committee¡¯ to review and decide on agenda items for immediate and efficient response.
LG H&H organized the Company-wide Crisis Management Committee to improve crisis response execution and strengthen risk prevention activities from
an integrated company-wide perspective and operates it every other month.
The CRO chairs the Company-wide Crisis Management Committee for efficient decision-making, and key executives are organized as standing members and subcommittee chairs.
The Crisis Management Committee is the highest decision-making body in the company and discusses and resolves the overall operation of the crisis management system,
including determining the company-wide crisis management policy and checking the crisis response system by division.
It also selects priority risks from a company-wide perspective, discusses improvement measures for high risks identified by each subcommittee, analyzes risk phenomena,
and checks mitigation activities by ordering onsite inspections or short-term task operations as needed.
* Scope of attendance adjusted according to agenda
*Disaster Recovery
Risk Name | Risk Definition | Response Status | Relevant department |
---|---|---|---|
Climate and Environmental Risks |
Risks arising from natural disasters and changes in weather patterns due to climate change Risks arising from policies and regulations Risk of increased treatment costs due to expanded regulations on the cross-border movement and treatment of hazardous waste(e.g., non-recyclable plastics) |
Declared 2050 carbon neutrality to combat climate change Continuously monitoring the applicability of greenhouse gas regulations to LG H&H Enhancing LG H&H¡¯s natural disaster risk management system, including building manuals and scenarios Continuously monitoring regulatory trends and prospects in the regions where LG H&H sells its products Continuously tracking domestic and international trends and regulations |
Green Management Part ESG Team |
Human Rights Risks |
Risk of damage to corporate reputation due to workplace harassment, discrimination, etc., violating human dignity and values guaranteed by law or recognized internationally. |
Identifying and responding to potential human rights risks through the implementation of human rights impact assessments Operating the ¡®Sexual Harassment/Workplace Harassment Consultation Center¡¯ to resolve human rights violations such as workplace harassment and sexual harassment. Conducting workplace harassment and sexual harassment prevention training for all employees |
Human Resources Labor&Management Relations ESG Team |
Global Economic and Supply Chain Risks |
Risks arising from rapid changes in political, economic, social, etc. conditions Risk of supply chain management crisis due to global regulations |
Enhancing due diligence monitoring to identify global trends and manage overseas supply chains Strengthening communication within the organization and minimizing unnecessary reporting Developing new markets, innovative new products, and marketing activities |
Business divisions and overseas subsidiaries Global SCM Center |
External Environmental Risks | Business operations disrupted due to unexpected environmental changes such as epidemics, wars, terrorism, and earthquakes, including the procurement of raw materials and the closure of business sites. |
Establishing a ¡°Crisis Response for Overseas Subsidiaries¡± manual and establishing a companywide crisis management system |
Overseas subsidiaries Purchasing/Logistics, etc. |
Reputational Risks | Risks arising from a company losing the trust of consumers, such as poor management, social disruption, major lawsuits, and misleading information. |
Expanding active communication utilizing internal and external channels Establishing a company-wide crisis management public relations manual and enhancing communication channels with external stakeholders |
Public Relations Division |
Safety Risks | Risks related to environment and safety arising from business operations |
Investing in forklift human body detection systems to prevent forklift accidents that could lead to serious accidents Conducting inspection activities to prevent workplace fires and safety accidents Expanding an integrated health promotion system |
Environmental Safety |
Quality Risks |
Significant risks arising from quality management, such as harmful substances or inadequate content of active ingredients in products. Increased treatment costs due to expanded regulations on cross-border movement and treatment of hazardous wastes |
Improving change management processes at suppliers Operating the Reassurance Quality Management(RQM) system, an integrated quality management system to meet national quality standards. |
QA Division Quality Management Team Customer Service Center |
Information Protection/IT Risks | Risks of theft, loss, or leakage of personal information handled within the company, hacking of information assets, virus and malware infections, and other breaches or disasters on key systems. |
Monitoring domestic and international information protection policies at all times Creating and operating a ¡®Disaster Recovery Guide¡¯ manual Establishing a centralized documentation system for research institutes to block sources of core information leakage Expanding the integrated security management system for subsidiaries |
Information Security Center |
Intellectual Property Risks | Risks arising from infringement of our trademark and patent rights, etc. |
Protecting patent and trademark rights and preemption Monitoring exaggerated and false advertising |
Intellectual Property Division |
Customer Risks |
Risks arising from the management of protective measures such as domestic and international customer information management regulations and remedies, complaint counseling, and compensation regulations Risks of decreased demand and behavioral changes due to customers¡¯ preference for low-carbon products |
Establishing an integrated management system and strengthening monitoring of domestic and international customer claims Introducing self-service using answer bots and applying AI technology for customer counseling Raising the awareness of LG H&H as an eco-friendly company by expanding the development of green products Monitoring regulatory trends and expanding internal control systems |
Consumer Safety Center |
Risks of legal violations | Risks arising from violations of major laws and regulations such as fair trade, personal information protection, product quality, human resources/labor, environment/safety, intellectual property, etc. |
Identifying and preparing for key risks Sending compliance newsletters to all employees to ensure compliance with laws and regulations |
Legal Department External Cooperation Team |
Risk Name | Risk Definition | Response Status | Relevant department |
---|---|---|---|
Accounting Fraud Risks | Risk of embezzlement or other accounting irregularities by internal employees |
Expanding the consolidated internal accounting management system Monitoring financial statements and financial ratios of small subsidiaries Conducting on-site inspections of overseas subsidiaries |
Accounting Division |
Liquidity Risks |
Funding risks arising from temporary shortage of liquid funds Future market instability and sudden volatility, such as sudden exchange rate fluctuations, interest rate fluctuations, capital risk, credit risk, tax risk, etc. Market instability and sharp volatility |
Monitoring macroeconomic conditions, including short-, medium-, and long-term funding plans in foreign currencies Long-term management of financial liabilities and financial assets through analysis and review of cash outflow budgets and actual cash outflows |
Accounting Division |
Tax Risks | Tax risks in business |
Enhancing expertise by hiring tax experts Establishing a process to review taxes before making major decisions |
Tax Trade Division |