- Social /
- Human Rights
Coway considers human rights management as a top priority in all its activities. Coway promotes human rights management by evaluating human rights issues that may arise in all activities and establishing improvement procedures for remedying human rights violations. The BOD is the highest decision-making body overseeing the human rights management system. The BOD includes an ESG Committee and makes all decisions on sustainability management, including human rights management. The human rights management is an important topic of discussion addressed in the social sub- consultative group centered on the ESG Consultative Group. The sub- consultative group includes the heads of social-related organizations and representatives from the departments and each office unit.
The Human Rights Management Strategy is led by the Human Resources Office of Coway's Business Support Division. Other departments included in the working group implement response tasks to address the risks and opportunities related to human rights management. We share and report our performance and plans through the ESG Consultative Group four times a year. Some of the contents related to human rights management shared at the previous ESG Consultative Group are presented as sub-agendas of the ESG Committee, and decisions are made through the final report to the BOD.
In addition to being a matter for voluntary corporate responsibility, human rights management is also stipulated by law, and Coway is reviewing and reinforcing its human rights management system accordingly.
As the starting point of this effort, Coway redefined its human rights management system in 2022, including revisions to its human rights policy, and established a strategy to implement mid- and long-term progress in human rights management in stages.
Coway respects the Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights established by the UN Commission on Human Rights. We also comply with the standards of labor, human rights, and working conditions in all nations and regions where our factories are located. Our Human Rights Policy applies to all our stakeholders, including customers, suppliers, sales and service partners, and local communities, in addition to our employees.
Coway is also participating in the UNGC Business and Human Rights Accelerator Global Intensive Course in 2023 to internalize the UN Guiding Principles on Business and Human Rights and establish clear guidelines for promoting human rights in our business activities.
Legislation on human rights protection is expanding in South Korea and abroad, and in response, Coway revised its Human Rights Policy in 2022 to put into practice concrete step by step plans for incorporating human rights protections into its business management and effectively manage human rights risks. We added new clauses on “Freedom of Association,” and “Responsible Mineral Sourcing" while removing elements that overlap with others and have potential for misinterpretation and ambiguity. We also further clarified all elements to clearly indicate the directions of our Human Rights Policy.
Our Human Rights Policy consists of the following 12 elements: 1. Non-Discrimination; 2. Prohibition of Child Labor; 3. Prohibition of Forced Labor; 4. Working Hours; 5. Humane Treatment; 6. Health and Safety; 7. Freedom of Association; 8. Responsible Mineral Procurement; 9. Health and Safety of Consumers; 10. Responsible Marketing; 11. Privacy; and 12. Protection of the Human Rights of Local Residents.
Non-discrimination
Prohibit discrimination based on race, age, gender, body, religion, etc. in employment, including in the conduct of hiring, firing, wages, compensation, and training.
Prohibition of Child Labor
Do not hire employees below the minimum employment age in each country and hire in compliance with labor relations laws.
Prohibition of Forced Labor
Ensure conditions of employment are voluntary and without undue restraint of mental or physical freedom.
Compliance with Working Hours
Overtime work must be voluntarily agreed to by workers and paid.
Humane Treatment
Prohibit inhumane treatment and provide protection and remedy in the event of harm.
Safety and Health
Provide a safe work environment.
Freedom of Association
Ensure freedom of association and bargaining rights according to labor relations legislation.
Responsible Mineral Sourcing
Prohibit the use of raw materials obtained through illegal and unethical means.
Consumer Safety and Health
Comply with consumer safety and health guidelines when providing services.
Responsible Marketing
Create advertising or marketing that conveys accurate facts to consumers without exaggeration.
Protecting Privacy
Respect individual privacy and make every effort to take necessary steps to protect privacy.
Protecting the Human Rights of Local Residents
Protect the human rights of residents in the region where operations are located.
Coway monitors human rights issues on a regular basis following the established process for risk identification and mitigation to eliminate potential human rights risks in advance for human rights protection. Coway’s human rights risk identification and mitigation process consists of the following four steps: (1) Risk Identification & Assessment, (2) Establishment of Proper Mitigation Actions, (3) Tracking Implementation and Results, and (4) Communication.
We identify human rights risks by conducting surveys among stakeholders, including suppliers, customers, and local organizations. In cases where important risks have been identified in the human rights impact assessment, we suggest to the relevant factories and suppliers that they draw up action plans to address such issues.
Coway requires all suppliers to comply with the Supplier Code of Conduct and conducts ESG diagnostics of key suppliers to identify potential ESG risks in the supply chain. When suppliers do not meet certain standards, Coway requires remedial actions.
In 2022, human rights and labor due diligence on our key suppliers was conducted by an external expert (QESG).
In the area of human rights and labor, we found that Coway's suppliers have adequate human rights and labor standards and practices and workplace safety management systems. Nonetheless, certain improvements were needed in their human rights and labor management, such as obtaining safety certifications and expanding across the scope of the supply chain.
Human Rights/Labor Standards and Practices
Human rights/labor standards and practices are based on principles that protect workers' fundamental rights, including employment practices, working hours, wages and compensation, labor relations, and non-discrimination. A business or organization must establish policies based on international labor standards and labor laws and maintain internal monitoring and controls to ensure that workers receive their due rights.
Business Site Safety
Business site safety and disaster management are directly linked to worker engagement and productivity. By establishing systems to prevent catastrophic events and managing occupational safety and health metrics, businesses and organizations can minimize human capital loss and improve productivity.
Supply Chain Human Rights/Labor Policy
Companies and organizations need to understand and manage the human rights and labor risks of suppliers and partners in their supply chains beyond their own scope, especially in industries with highly structured supply chains that extend to first-, second-, and third-tier suppliers, or that rely heavily on suppliers and partners as part of their business model, where the human rights and labor risks of their supply chain are more likely to be directly linked to their own risks.
While the suppliers we assessed had established formal human rights and labor policies, there was less consideration given to addressing global human rights standards such as freedom of association, child labor, and the prohibition of forced labor as part of their management agenda.
While 100% of the suppliers surveyed have formal human rights and labor policies, their policies are limited to employment rules, which leads to some gaps in human rights-related provisions such as ensuring freedom of association and prohibiting child labor and forced labor.
It was found that the assessed suppliers do not have a code of conduct or fail to properly conduct ESG assessments. In order to secure the ESG soundness of our secondary suppliers, Coway shall begin by supporting our primary suppliers to establish a supply chain ESG management system in the mid- to long-term.
None of the suppliers surveyed had documented regulations or policies on human rights and labor to follow, and there was a lack of integration of ESG factors into their decision-making on transactions with suppliers.
Coway records and manages working hours to ensure that employees do not work more than the legal maximum duration (52 hours per week). Coway also introduced flexible working hours to enhance flexibility and efficiency in working hours.
Coway provided human rights management training to all employees to enforce their labor rights and spread a culture of respect for human rights within the company. Through the mutual respect human rights training program, employees learned the importance of human rights management and contributed to the creation of a healthy internal culture, with efforts to prevent sexual harassment in the workplace and improve disability awareness.
