The case for CSR/ Sustainability Reporting Done Responsibly


IDENTIFY - MEASURE - MANAGE - CHANGE

Insights on how you can protect the environment, maintain and increase the value of your company, through a structured process.

Insights on how you can protect the environment, maintain and increase the value of your company, through a structured process.

Home / case studies / Case study: How Hyundai Mobis promotes compliance and ethical business practices

Case study: How Hyundai Mobis promotes compliance and ethical business practices

Since its establishment in 1977, Hyundai Mobis has been producing and supplying automobile modules, core components and aftermarket service parts – and is now working with such technologies as autonomous driving, connectivity, and electrification, to create a new future for automobiles. Recognising compliance and ethical management as an integral part of sustainable growth, Hyundai Mobis has established a system to promote compliance and ethical management in its relationships with stakeholders  Tweet This!, including employees, customers and suppliers.

This case study is based on the 2019 Sustainability Report by Hyundai Mobis published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Layout 1Abstract

All Hyundai Mobis employees are required to comply with the Hyundai Mobis Global Compliance Guidelines and Ethics Rules, and use them as a guide in the event of ethical dilemmas. In order to promote compliance and ethical business practices Hyundai Mobis took action to:

  • encourage employees to sign a Pledge of Compliance
  • distribute Global Compliance Guidelines
  • strengthen compliance and ethical management training

What are the material issues the company has identified?

In its 2019 Sustainability Report Hyundai Mobis identified a range of material issues, such as achieving technological competitive edges through R&D, securing new growth engine and diversifying business, more engagement with local community and more social contribution to local community, driving mutual success with suppliers, developing eco-friendly products and services. Among these, promoting compliance and ethical business practices stands out as a key material issue for Hyundai Mobis.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Hyundai Mobis engages with: 

Stakeholder Group                Method of engagement
Global automakers / competitors ·      Production and sales policies

·      Shared direction for product development

·      Joint projects

·      Tests on quality & technology capabilities

·      Monitoring of market trends

Employees ·      Employee satisfaction surveys

·      Company-wide corporate culture assessments

·      CSR awareness surveys

·      Assessments of employee awareness on business ethics and Cyber Auditing

Suppliers ·      Regular meetings

·      Executive-level conferences

·      Seminars for suppliers’ CEOs and for suppliers of overseas subsidiaries, and CTOs (Chief Technology Officers)

Customers (dealers/consumers)

 

·      Agency policy seminars

·      Council meetings for executives

·      Customer satisfaction surveys

Investors

 

·      Non-deal roadshows (NDR)

·      Disclosures

·      General annual shareholders’ meetings

·      CSR evaluations

Government/ Associations

 

·      Responses to public policies and institutions

·      Joint projects

Media/Academia/ CSR agencies

 

·      Brand recognition surveys

·      CSR communication activities

·      Industry-academia R&D alliances

Local communities ·      Social outreach partnerships

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Hyundai Mobis carried out a survey among its stakeholders – including customers, employees, suppliers and local communities.

What actions were taken by Hyundai Mobis to promote compliance and ethical business practices?

In its 2019 Sustainability Report Hyundai Mobis reports that it took the following actions for promoting compliance and ethical business practices:

  • Encouraging employees to sign a Pledge of Compliance
  • Hyundai Mobis shares its commitment toward ensuring compliance and ethical practice and creating a fair and transparent corporate culture, and encourages its employees to sign a Pledge of Compliance. The Pledge encompasses fair practice, corruption-free conduct, information security, prevention of sexual harassment and safety compliance. In 2018, more than 90% of Hyundai Mobis’ employees signed the digital form, to affirm their commitment to compliance.
  • Distributing Global Compliance Guidelines
  • Hyundai Mobis established the Global Compliance Guidelines to set the standards for ethical conduct in 2015. The guidelines include requirements under 8 areas of conduct, including corruption-free conduct, fair practice, employment and environment. Published in both Korean and English for Hyundai Mobis’ overseas employees, the purpose of the guidelines is to prevent unethical and illegal conduct. In 2019, Hyundai Mobis also established the Mobis Code of Conduct that integrates the Global Compliance Guidelines, Ethics Charter, and Code of Ethics, as Hyundai Mobis’ highest compliance standards that apply to all key areas.
  • Strengthening compliance and ethical management training
  • To raise awareness of ethical conduct and prevent risks, Hyundai Mobis carries out on/offline training for its employees. While promoting the importance of ethical management through training held once a year, Hyundai Mobis makes utmost efforts to also provide the guidelines for ethical conduct and continually improve the effectiveness of training. The training covers areas such as ethical practice, corruption-free conduct, prevention of sexual harassment, safety and management of legal risks. Hyundai Mobis also sets standards for employee conduct by sharing detailed regulations, guidelines, and case studies on sexual harassment, awareness of disabilities and ethical practice. Additionally, Hyundai Mobis provides compliance training for suppliers and agencies to affirm its commitment to compliance and ethical management and prevent corrupt practices throughout the value chain.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 205-2 Communication and training about anti-corruption policies and procedures

Disclosure 205-2 Communication and training about anti-corruption policies and procedures corresponds to:

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified, IEMA & CIM recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified, IEMA & CIM recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

Most importantly, you will gain the knowledge to use the GRI Standards, project manage your own first-class sustainability report and:

  • Identify your most important impacts on the Environment, Economy and Society
  • Begin taking solid, focused, all-round sustainability action ASAP

 

References:

1) This case study is based on published information by Hyundai Mobis, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Hyundai Mobis: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.