Human Rights Management System

Human Rights Management Policy

Coway‘s human rights management policy was developed in compliance with the Universal Declaration of Human Rights (UDHR), the UN Guiding Principles on Business and Human Rights (UNGPs), and the principles and standards of the International Labor Organization (ILO). The policy applies not only to our employees but also to all stakeholders, including customers, partner companies and local communities. Coway‘s human rights management policy is based on the prohibition of discrimination; prohibition of child labor; prohibition of forced labor; compliance with working hours; humane treatment; safety & health; freedom of association; responsible mineral procurement; customer safety & health; responsible marketing; private information protection; and the principle of protecting human rights of local residents.

Executive Organization of Human Rights Management

Coway makes decisions related to human rights management at meetings of the ESG Committee (in which the top decision-makers participate) and the ESG Council (in which the decision-makers and the working-level employees from major divisions participate). The Committee regularly reports on and discusses matters considered necessary to protect human rights, such as enactment and revision of policies related to human rights, and the current status of and plans for human rights management. Coway‘s human rights management is supervised by the Human Resources Team and IR-ESG Team, and they manage and supervise the establishment and implementation of the human rights impact-assessment system, and the setting and monitoring of tasks to be improved. The Council internally discusses the agendas to be decided by the ESG Committee. And the persons-in-charge of labor management, compliance and ethical management, and legal matters must participate in the discussion.

Promotional Strategy for Human Rights Management

Implementation System for Human Rights Management

Identification of Major Human Rights Impact

Human Rights Impact Assessment

Coway conducts a human rights impact assessment to identify actual and potential negative human rights impacts caused by stakeholders in accordance with the management and business operations and to continuously check and enhance the adequacy of the risk-prevention systems and follow-up measures. Through the human rights impact assessment, we monitor the status of our human rights management on a regular basis and transparently disclose the level of implementation of human rights in each field, and promotion activities carried out by employees and stakeholders. The checklist used in the assessment is in accordance with the guidelines of the National Human Rights Commission and the UN Global Compact (UNGC). And indicators have been revised and supplemented to conduct a more appropriate and advanced assessment for the company. In the human rights impact assessment conducted in 2024, a total of 164 detailed questionnaires in a total of 10 human rights sectors were prepared. And the assessment was conducted based on the current status of 2023. In order to beef up practical performance capabilities in conducting the assessment, all persons-in-charge were matched and necessary training materials were provided. Through this assessment, we developed additional indicators related to the improvement of the human rights management system and the protection of employee human rights. We are planning to establish mid- and long-term strategies based on the confirmed improvements supported by step-by-step actions and responses.

Human Rights Impact Assessment Process

Scope and Description of Human Rights Impact Assessment

Human rights sector (issue name) Major contents Number of indicators
Establishment of a human rights management system Establishment of a human rights management system, policies and systems, human rights impact assessment, human rights management performance monitoring and disclosure, relief systems for infringement of human rights 37
Non-discrimination in employment Providing a non-discriminatory working environment regardless of gender, place of birth, affiliation, etc., in terms of employment 12
Guarantee of freedom of association and collective bargaining Guarantee and protection of freedom of workers‘ collective bargaining rights and union activities 14
Prohibition of forced labor Prohibition of all types of forced labor, including mandatory overtime work 13
Prohibition of child labor Prohibition of employing children aged 15 years or less, implementation of necessary measures when legally hiring minors 13
Guarantee of occupational safety and health Activities to protect workers' safety (monitoring workplaces, providing safety education/training, providing necessary equipment, and other measures), protection of vulnerable workers, and support for disaster-affected or injured workers 20
Responsible supply chain management Establishing systems to prevent violations of human rights of partner companies and monitoring the status of their compliance with human rights 5
Guarantee of environmental rights Establishing and maintaining environmental management systems, disclosing environmental information, activities to prevent and mitigate environmental impacts, establishing plans to respond to emergencies 11
Customer human rights protection Compliance with laws to protect customers, taking action when facing product defects, customer information protection 14
Humane treatment of workers Prevention of violations of human rights of employees, improving the organizational culture and promoting human rights of employees, protection of maternity and balancing work and family, strengthening rights to rest, protection of disabled workers 25

Results of Human Rights Impact Assessment

Coway conducted this human rights impact assessment as a tool to identify negative impacts on human rights of internal and external stakeholders. According to the results of the human rights impact assessment as of 2023, a total of 122 respondents said ‘Yes’ (74.4%); 20 said ‘Supplement Needed’ (12.2%); 15 said ‘No’ (9.1%); 0 responded with ‘No Information’; and 7 said ‘Not Applicable’ (4.3%) — out of the 164 indicators. As a result of the assessment, we confirmed various domestic and international laws and standards, voluntary policy promotion, and a number of activities to ensure the human rights of employees and external stakeholders — and ways in which to prevent violations of human rights based on performance and evidence. Coway complies with relevant internal regulations and domestic laws to eliminate discrimination in employment, guarantee freedom of association and collective bargaining and eradicate forced labor. We also listen to the opinions of customers and employees of partners on a regular basis by actively operating various communication channels. In order to ensure the safety of users, including employees, in operating office buildings and factories, we comply with the international standards of ISO45001 to manage safety, health and hygiene of facilities and working environments, and conduct walk-around inspections at least once per month and fire inspections at least once in 6 months in parallel. In order to strengthen responsible supply chain management, we come up with a separate ‘Purchase Standard Subcontracting Agreement’ and sign a ‘Supply Chain Code of Conduct’ agreement for mutual respect and the establishment of a fair order. We also provide annual self-inspections and on-site consulting services for partner companies. In addition, we are planning to carry out various human rights training programs and activities to spread and internalize a culture in which human rights are respected. Through this assessment, we found that we need to improve internal human rights management regulations and systems; to strengthen the monitoring of human rights violations of employees and stakeholders; to expand support for hygiene measures for vulnerable workers based on communication; and to introduce and supplement some factors related to human rights management of supply chains. Based on this, we will beef up the system of protecting human rights of internal and external stakeholders by establishing more specific improvement directions and transparently disclosing and spreading the implementation and performance of human rights management.

Category Description
Category Top-10 Human rights issues
Number of indicators 164 indicators
Score 87.5

Human Rights Risk Management

Operation of Grievance-handling Channels

Coway operates grievance reporting channels where human rights violations of employees and other grievances can be reported at any time. Considering the work type of each job category, we operate a number of reporting channels, including groupware, messengers, business apps, etc., for easy accessibility and filing. Grievances are classified and managed as human rights violations (bullying, sexual harassment, discrimination, etc.) or general grievances (working environment, welfare, personnel system, safety and health, etc.) by their contents and issues. And for filed grievances, we promptly identify and take action within 10 days according to in-house grievance handling manuals that comply with relevant laws and guidelines set by the Ministry of Employment and Labor. During this process, we strictly protect the informant and guarantee his/her anonymity to ensure that he or she is not going to suffer any disadvantage or discrimination due to the reporting.

*Grievance Reporting Channels

Category How to report via channels
HQs and R&D center Groupware (portal) -> Business support -> Grievance handling -> Describing and submitting the grievance
Sales Dedicated on-line channel (separated)
Production Dedicated on-line channel (online grievance submission and whistleblowing)
Field jobs Coway Ethical(Jeong-Do) Management website -> Report

* Depending on other situations, messengers, business apps and e-mails are also used for reporting.

Grievance-Handling Process

Coway promptly verifies and takes action within 10 days when a grievance is submitted. Regarding the result of the investigation, we comprehensively and closely review relevant laws, guidelines of supervisory organizations, court precedents, and existing internal cases. If needed, we ask external organizations to step in so as to ensure fairness. Regarding such cases, Coway responds firmly in accordance with internal regulations as to disciplinary and personnel actions against the perpetrator through the Personnel Committee. We also provide training to prevent a recurrence and resolve the cause.

Grievance-Handling Process

01

Grievance submission

  • Violation of human rights
  •    Workplace bullying

       Sexual harassment

  • Other grievance
  •    Working environment

       Welfare

       Personnel system and others

02

Checking submitted contents

  • Checking detailed contents
  • Actions to protect reporters
  • Reviewing investigation plans
03

Conducting investigation

  • Listening to opinions
  • Verifying fact relevance
  • Determining the acknowledgment
04

Grievance handling

  • Delivering the result
  • Improvement
  •    Disciplinary, personnel actions

       Training to prevent recurrence

Conducting Human Rights Management Training

Coway conducts training on human rights management for all employees every year to raise their awareness of human rights and spread a culture in which human rights are respected. In 2023, as many as 95.4% of the employees completed the ESG training course on the topic of ‘Practicing Human Rights Management to Increase Corporate Value.’ A total of 279 employees were excluded from the training course as they were scheduled to leave the company or were in supportive positions (health care, cooks).