What are the material issues the company has identified?

In its 2016 Corporate Social Responsibility Report Compeq identified a range of material issues, such as employee recruitment and retention, occupational health and safety, economic performance, effluents and waste, market presence. Among these, promoting labour-management relations stands out as a key material issue for Compeq.

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 organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s 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 Compeq engages with:

Stakeholder Group	Method of engagement
Employees	·      Employee conference ·      Communication hotline, suggestion box, and email ·      Intranet and extranet ·      Memo/weekly assembly announcements ·      Corporate Social Responsibility Questionnaire
Union	·      Union Directors and Supervisors ·      Labor Union Congress ·      Employer-Employee Meeting ·      Corporate Social Responsibility Questionnaire
Customer	·      Email ·      Extranet ·      Customer Satisfaction Questionnaire ·      Client Audit ·      Corporate Social Responsibility Questionnaire
Supplier	·      Email ·      Supplier Monthly Review Meeting ·      Supplier annual audit and review ·      Corporate Social Responsibility Questionnaire
Investor (Shareholder)	General shareholders: ·      Shareholders Meeting ·      Annual Report ·      Information Publication ·      Website ·      Corporate Social Responsibility Questionnaire Institutional investors: ·      Company Visit ·      Seminar ·      Corporate Social Responsibility Questionnaire
Government authorities	·      Correspondence of official documents ·      On-site interview and inspection by competent authority ·      Corporate Social Responsibility Questionnaire
Media	·      Press conference ·      Press release ·      Corporate Social Responsibility Questionnaire
Local communities	·      Local community organisation ·      School ·      Corporate Social Responsibility Questionnaire

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Compeq engaged with its stakeholders through a survey. Out of a total of 485 copies of the survey questionnaire that were distributed, 256 were collected, representing a response rate of 53%.

What actions were taken by Compeq to promote labour-management relations?

In its 2016 Corporate Social Responsibility Report Compeq reports that it took the following actions for promoting labour-management relations:

• Supporting employees’ freedom of association
• Compeq respects the rights of employees bestowed by law and has never inhibited employees’ freedom of association. In 2016, all employees joined the labour union. The labour union holds a meeting bimonthly or a provisional team leader meeting, as necessary. The union also holds a general meeting of its members every year. A board meeting is held monthly or whenever necessary. Team leader meetings take place on an ad hoc basis, to communicate organisational policies and union policies to members and collect their opinions. Employee concerns are reviewed and discussed by labour representatives and management representatives, so effective responses can be proposed. The meeting minutes are also published internally, to inform employees of the actions to be taken for every issue. Labour-management meetings are held on a regular basis, for management and labour representatives to review and discuss issues that concern employees and propose practical measures. Weekly and monthly meetings are regularly organised to inform employees of the company’s business direction and accomplishments, and important announcements are emailed as memos to all employees or announced during shift changes for on-site workers.

• Providing communication channels
• Compeq values having a dialogue with employees, to understand their needs and opinions, through various communication channels. Accordingly, Compeq has established diversified internal grievance and communication channels and releases memos every month to encourage employees to use various communication channels. These channels include “direct communication with supervisors”, “direct communication with the HR unit/HR head”, “employee suggestion box”, “email”, “grievance hotline”, and “seminar”. In Taiwan, Compeq translates memos into the languages of foreign workers and posts them in each plant and the shoe changing area, to achieve barrier-free communication with employees. The scope of CSR grievances covers labour practices, industrial safety, and environmental safety.

• Building a friendly workplace
• Since 2015, Compeq started holding quarterly meetings for building a harmonious and friendly work environment. Attendees include the parties involved and supervisors or management staff of the general affairs unit, industrial safety unit, and the Employee Welfare Committee (EWC). Compeq also requests all function owners to make quarterly suggestions or proposals for improving working conditions or employee benefits. Improvement policies proposed in 2016 included employee relations training courses for supervisors, monthly health topic sharing, and breastfeeding room environment optimisation.

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

The GRI Standard addressed in this case is: Disclosure 402-1 Minimum notice periods regarding operational changes

Disclosure 402-1 Minimum notice periods regarding operational changes corresponds to:

• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor/management relations

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by Compeq, 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) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

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

Note to Compeq: 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.

What are the material issues the company has identified?

In its 2017 Sustainability Report Hyundai identified a range of material issues, such as product and service quality, improving financial stability, ethics/compliance management, developing eco-friendly products. Among these, promoting labour-management relations stands out as a key material issue for Hyundai.

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 organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s 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 engages with:

To identify and prioritise material topics Hyundai engages with its stakeholders through the following channels:

Stakeholder Group	Method of engagement
Customers/Dealers	·      Motor show and new car launching ceremony ·      Test driving ·      Sports sponsorship ·      Customer service ·      Customer satisfaction survey ·      Car club ·      Before Service ·      Website ·      On-line communication ·      Dealer seminar/conventions/events ·      Agent conventions ·      My Car Story 2.0 ·      Stakeholder interviews ·      Reports (financial reports, sustainability reports, etc.)
Employees	·      Labor-Management Council ·      Occupational Safety and Health Committee ·      Internal publications ·      Newsletters ·      Employee satisfaction surveys ·      WorkSMART assessments ·      Health & safety systems ·      Websites ·      Stakeholder interviews ·      Sustainability reports ·      Roundtable meetings ·      Management workshops ·      Lunch meetings ·      Grievance counseling ·      Suggestion Box ·      Home correspondence ·      Events with employee families ·      Sports events
Suppliers	·      Win-win growth and fair trade agreement ·      Foundation of Korea Automotive Parts Industry Promotion ·      Seminar and training for suppliers ·      Stakeholder interview ·      Energy-Saving Technology ·      Exchange Meeting ·      R&D Tech Day ·      R&D symposium ·      R&D Motor Show ·      Purchasing portal ·      Reports
Shareholders/Investors	·      Annual general meeting ·      Corporate Governance & Communication Committee ·      Company briefing ·      IR meetings ·      Website ·      Reports
Society	·      Communication with local communities near worksite ·      Youth support program ·      Website ·      Stakeholder interview ·      Reports
Government	·      Participation in policy-making public hearings ·      Participation in policy discussions and briefings ·      Website ·      Stakeholder interview ·      Reports

What actions were taken by Hyundai to promote labour-management relations?

In its 2017 Sustainability Report Hyundai reports that it took the following actions for promoting labour-management relations:

• Promoting labour-management communications
• Hyundai guarantees employee rights to organise labour union activities, to take collective actions and to exercise collective bargaining. In Korea, 48,150 employees or 72.0% of Hyundai’s total workforce are, since 2016, members of the ‘Hyundai Chapter of the Korean Metal Workers’ Union’. In 2016, the Labor Management Council developed measures to provide a better working environment for Hyundai’s employees, including improving the cafeterias and work uniforms. In addition, the collective negotiations in 2016 brought labour and management together to seek sustainable growth by signing agreements to support Hyundai’s response to the ever-changing landscape of the automobile industry, including the Labor-Management Future Development Strategy Committee and an agreement on eco-friendly vehicles. Additionally, Hyundai holds regular briefing sessions to build a consensus between labour and management.

• Developing healthy overseas employee relations
• Hyundai complies with all overseas labour-related laws and regulations, and guarantees and respects the legal right to take collective actions and exercise collective bargaining. BHMC (Beijing Hyundai Motor Company) and CHMC (China HyundaiMotor Corporation) in China have public assembly organisations, and HMI (Hyundai Motor India) in India and HMMC (Hyundai Motor Manufacturing Czech) in the Czech Republic each have their own labour unions, to represent the voices of employees. Workers at HMB (Hyundai Motor Brazil), Hyundai’s Brazilian subsidiary, joined the local labour union in the early stage of its existence, and the company maintains strong employee relations (ER). Although HMMA (Hyundai Motor Manufacturing Alabama) in the U.S., HMMR (Hyundai Motor Manufacturing Rus) in Russia and HAOS (Hyundai Assan Otomotiv Sanayi) in Turkey have no labour unions, they address staff requests through round-table meetings, employee committee activities and other regular activities. In 2016, Hyundai’s headquarters selected best practices in ER on a regular basis and rewarded them, to encourage overseas subsidiaries to better manage their ER.

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

The GRI Standards addressed in this case are:

1) Disclosure 403-4 Health and safety topics covered in formal agreements with trade unions

2) Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

 

Disclosure 403-4 Health and safety topics covered in formal agreements with trade unions corresponds to:

• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Occupational health and safety

Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk corresponds to:

• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Freedom of association and collective bargaining

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by Hyundai, 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) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

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

Note to Hyundai: 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.

What are the material issues the company has identified?

In its 2016 Social Responsibility Report IIAC identified a range of material issues, such as anti-corruption, compliance with social regulations, customer safety and health, noise management, employee training and education. Among these, advancing labour-management relations stands out as a key material issue for IIAC.

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 IIAC engages with:

Stakeholder Group	Method of engagement
The People/National Assembly	·      Homepage ·      Corporate news letter ·      Business report ·      Investor relations ·      ALIO
Government	·      Homepage ·      Corporate news letter ·      Business report ·      Investor relations ·      ALIO
Media	·      Homepage ·      Corporate news letter ·      Business report ·      Investor relations ·      ALIO
Local community	·      Volunteers ·      Committee for specialised business for local schools
Employee/family	·      Conversation with CEO ·      Vision workshop ·      VOE ·      Labour-management meeting ·      HR Ombudsman
Labour union	·      Conversation with CEO ·      Vision workshop ·      VOE ·      Labour-management meeting ·      HR Ombudsman
Business partners	·      Meeting with representatives ·      Middle management meeting ·      Site management meeting with 2nd tier business partners ·      Communication workshop
In-house retailers	·      Service improvement committee ·      Airline operation committee ·      Business facility operator meeting ·      Free-trade zone operation committee
Airport users including passengers	·      VOC customer committee ·      SNS

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics IIAC conducted an on-line stakeholder survey among business partners/ construction companies, employees, in-house retailers/ logistics companies, customers, the local community and airline/ ground staff, asking stakeholders to rank issues according to importance.

What actions were taken by IIAC to advance labour-management relations?

In its 2016 Social Responsibility Report IIAC reports that it took the following actions for advancing labour-management relations:

• Establishing a labour union
• IIAC Labour Union was established in 1995, and it is a member of the Federation of Korean Public Industry Trade Unions in the Federation of Korean Trade Unions. All employees with job Level 3 or lower are eligible for membership and, of the total 959 persons eligible to be a member, 957 (99%) have joined the labour union. IIAC complies with domestic and foreign labour laws, and always consults the labour union before making changes to business or organisation that will cause a material change to working conditions and employment.

• Updating labour relations strategies
• IIAC updated its strategies for advancing labour-management relations, to carry out government policy initiatives and increase employee morale, while fulfilling its social responsibilities. IIAC’s labour-management strategy aims to “create a labor-management relationship that is beneficial to the employees, corporate, and the People.” To achieve this goal, IIAC identified four strategic tasks: 1) upgrading and implementing a labour-management relations strategy, 2) creating output through sound labour-management relations, 3) promoting constant labour-management communication and improved relationship management, and 4) actively implementing government policy initiatives.

• Setting up communication channels
• To promote a consistent communication between the labour and management, IIAC has established several communication channels, including official meetings such as the Labour-Management meeting and Labour-Management Representatives meeting. Additional channels include top-down, bottom-up, two-way, and on/ off-line communication. IIAC also launched the “Online Proposal Bulletin”, to enable open communication regarding irrational customs, inefficient systems, work, and culture. Likes and dislikes functions and response functions available on the bulletin, make it a creative and constructive forum for discussion. In addition, IIAC further solidifies sound labour-management relations by holding on-demand working level meetings and joint workshops.

• Preventing labour-management conflicts
• IIAC seeks to prevent labour-management conflicts by forming a common understanding between labour and management. Accordingly, IIAC has established and implements an optimised salary peak programme in advance, in response to the government’s introduction of the Salary Peak Programme for Public Corporations. To boost employee morale after the implementation of normalisation measures for reckless management, IIAC also implemented various innovative campaigns and systems. These include the 337 Campaign, compressed workweek, recharge vacations, and celebrating Department Days to improve employees’ work ethic and mutual understanding. As a result, no labour disputes took place during the reporting period.

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

The GRI Standard addressed in this case is: Disclosure 402-1 Minimum notice periods regarding operational changes

 

Disclosure 402-1 Minimum notice periods regarding operational changes corresponds to:

• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor/management relations

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by IIAC, 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) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

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

Note to IIAC: 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.