The declaration of ethics management
In the management of our businesses and operations, SJM bases all our actions on the philosophy of ethical management that is rooted in righteousness, as we pursue transparency, fairness, and rationality in our operations and business conduct.
For this, all members of SJM will share the management philosophy of the company, which is ethical management, all operations, and businesses of the company. All members of the company pledge to observe and practice the newly introduced ethics decree and code of conduct, which are the basic principles and criteria for value judgment to be followed by all members. Today, as we celebrate the 42nd anniversary of the company, we declare the implementation of our ethical management with our collective will, so that all the members of the company and those without shall be advised of this new policy.
With today’s declaration, we shall work together to make our company a trusted business, by way of forming a shared set of values that are transparent and reasonable, which we share with the members within and friends without, as we announce the implementation of this new policy of ethical management. We shall be reborn as the leader of changes and innovations; we will grow into a global company that befits the world standard in terms of the awareness of the employees and the system of the company. And, our success in this new endeavor will change us into a true global leader, which is the corporate philosophy of SJM.
July 1, 2017
CEO Kim Whi-joong
SJM Co., Ltd.
Ethics Decree
① 1) Our attitude toward customers
(1) Protecting the customers
- The company shall protect the interest, safety, personal information, and honor of the customers; the company shall not do any injustice toward the customers.
(2) Respecting the customers
- The company shall think and act in the best interest of the customers and endeavor to realize customer satisfaction by providing the best services and products that can satisfy and be trusted by the customers.
② 2) Our attitude toward our shareholders
(1) Protecting the rights and interest of shareholders
- The company shall protect the rights of shareholders and respect the rightful demands and suggestions by them.
- The company shall maximize the value of the company through transparent and efficient management; the company shall also share the fruits of such endeavors with the shareholders.
(2) Transparent sharing of information
- The company shall, based on the generally accepted principles of accounting, maintain records and provide the information on the financial status and business performance of the company transparently and accurately.
③ Our attitude toward suppliers
(1) Fair business transactions
- The company and its suppliers shall establish mutual trust and a cooperative relationship in pursuit of mutual growth.
- The company shall establish a sound practice of procurement and contracting based on mutual trust and cooperation; the company shall refrain from unfair procurement or sub-contracting practices.
- The company shall not use its superior position to force or influence any form of unfairness.
(2) Pursuing mutual growth (co-existence)
- The company shall actively support the suppliers in their endeavor to become a more competitive company with a higher potential for growth in the longer-term through technical support and management consultations, etc. The company shall also share the profits from the innovations with them.
- The company shall encourage a fair business practice and work together with the suppliers to ensure that such a practice is sustained.
④ Responsibilities for employees
(1) Respecting our employees
- The company shall respect each employee as a human being based on trust and true affection for humanity.
- The company shall do its best to make sure that the employees of the company can be proud of and feel rewarded by their work.
- The company shall take the necessary steps, such as establishing a system to ensure that the employees can fulfill their missions in a suitable method, training, and supervision, etc.
(2) Reasonable and fair treatment
- The company shall make sure that the employees of the company are given equal opportunities based on their talents and aptitudes without being discriminated (due to family ties, personal connections, schools they are from, their religion, age, disabilities, or marital status, etc.)
- The company shall evaluate and reward the employees based on reasonable evaluation criteria for their aptitudes, capabilities, and performances.
⑤ Corporate Social Responsibilities
(1) Compliance with domestic and international laws, regulations, and social norms
- In all places where the company conducts its businesses, be that in South Korea or elsewhere, the company shall abide by and honor the laws, regulations, social norms and accounting standards, etc. while respecting the culture and customs of the local community as a member of the country and the local community.
(2) Contributing to the development of the national economy and society
- The company shall contribute to the development of the national economy and society through the enhancement of productivity, creating jobs, paying taxes honorably, and community outreach, etc.
Business Guideline
We, SJM, have been endeavoring in many aspects to develop a transparent and fair business practice. SJM declared our ethical management policy and introduced the ethics decree, which is to be followed by all employees in the line of duty. With this, we intend to establish the related criteria. We promise you that we will become a company that can be trusted, changes, and innovates through transparent business management and honesty and hereby inform you of our commitment to this program as follows, for which your kind cooperation is requested.
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1) We will not receive any gifts or presents from suppliers.
We, the members of SJM, will not receive any money, entertainment treats, presents, or any other kinds of gifts from our suppliers.
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2) We will establish a practice of fair business conduct in cooperation with our suppliers.
We will ensure fair selection and evaluation of our suppliers to develop a co-existing relationship that grows on.
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3) Expect disadvantages for the employee and the company alike in case of offering gifts.
If a supplier is found to be offering or providing gifts, we will reconsider maintaining a business relationship with you in accordance with our internal regulations, with which your kind understanding and cooperation will be deeply appreciated.
Ethical Management Whistleblowing
Purpose of the Whistleblowing Channel
SJM operates this whistleblowing channel to foster an ethical corporate culture by receiving reports on misconduct, corrupt practices, and unfair business conduct by its executives and employees in connection with external stakeholders, including business partners.
Scope of Reporting
Working conditions, including working hours, rest breaks, and facility safety
Training, professional service duties, and employee welfare/benefits
Discrimination based on gender, nationality, religion, disability, age, or other protected statuses
Grievances, hardships, or personal distress (mental, psychological, or physical) impeding an employee from performing their duties
Workplace sexual harassment and workplace harassment/bullying
Preferential treatment of vendors/business partners and unfair business practices
Giving, offering, soliciting, or receiving bribes, illicit financial transactions, or inappropriate entertainment
Unauthorized leakage or misappropriation of company information, trade secrets, or talent
Subcontracting disputes and violations of fair subcontracting transactions regulations
Child labor, forced labor, and human trafficking
Other unfair practices, corruption, conflicts of interest, fraud, money laundering, and anti-competitive conduct
Whistleblower Protection
SJM strictly maintains the confidentiality of the whistleblower’s identity and ensures that whistleblowers will not face any retaliation, disadvantage, or discrimination as a result of filing reports, making statements, or providing evidence.
All reports will be investigated and addressed promptly, with the resolution communicated back to the whistleblower via their preferred method of contact.
Please provide reports with as much factual detail as possible, following the 5W1H principles (Who, What, Where, When, Why, and How). Reports with inaccurate or misleading claims may be excluded from investigation.
Anonymous reports may not be investigated if the submitted claims lack sufficient detail, concrete evidence, or credible grounds.
