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Shared Growth

To create a sound industrial ecosystem in which economic and social values circulate in a virtuous cycle, we establish partnerships with excellent partners and operate a transparent purchasing process to practice our 'fair corporate citizenship' promise of action.


Subcontract council

LS Cable & System operates a subcontract council to create a fair and transparent subcontracting culture and establish legitimacy in transactions with partners. The council is chaired by the head of the purchasing department and consists of three members: the head of the legal team and the head of the purchasing planning team. The three members check unfair risks at the monthly regular council meeting.

Members
Head of legal team / Head of purchasing planning team
TOPIC
Details

For subcontract transactions worth KRW1 billion or more, pre-deliberation on the fairness of the contract signing and pricing process, and the legality of related laws such as the Subcontracting Act

Matters to be deliberated in relation to the Subcontracting Act
  • Compliance with the requirement to issue a written contract
  • Potential violation of the ban on determining unfair subcontract payments
  • Compliance with the obligation to open a domestic letter of credit and guarantee subcontract payments
  • Potential violation of the ban on forced purchase of goods, etc.
  • Adequacy of the vendor deregistration criteria and procedure
  • Raising of any objection to vendor non-selection or deregistration

Reinforcing bylaws to prevent unfair transactions

Main contents of LS Cable & System’s contracting guideline

Purpose
The purpose of this guideline is to establish a trade practice in which contracts between LS Cable & System and vendors can be concluded reasonably and fairly. In this guideline, the conclusion of any contract includes a contract whereby a company is selected and a price for each item is set in addition to a standard contract signed with a vendor.

Building the contracting infrastructure
1) How to conclude a contract: When transacting with LS Cable & System, the partner will specify the available options.
2) Operating a proposal system for companies wishing to do business with LC Cable & System

Introduction to the contract signing process

Specifying do’s and don’ts when concluding a contract

Main contents of LS Cable & System vendor selection and operation guideline

Purpose
The purpose of this guideline is to establish fair trade order by securing transparency and fairness in selecting and operating the vendors of LS Cable & System

Building the contracting infrastructure
1) Evaluating a total of eight categories, including general management, process management, quality management, environment and labor management, financial management
2) Based on the total, a score of 70 points or more indicates a pass, a score between 60~70 points indicates a tentative pass, while a score of less than 60 points indicates failure.

Providing fair opportunities to start trading
We do not restrict or discriminate against companies selected and registered as vendors in terms of opportunities to participate in bids for initiating transactions without justifiable reasons.

LS Cable & System has strengthened related business regulations to prevent unfair transactions. First, to ensure the fairness of contract signing with partners, we introduced the ‘LS Cable & System contracting guideline’ in our purchasing business regulations with the aim of preventing unfair trade practices that may occur when an employee transacts with a partner.



Also, By reinforcing the ‘business partner registration business rules,’ we make sure that the purchasing manager is clearly familiar with all the criteria for selecting partners, and selects partners in a fair and transparent manner. The fair trade-related policy of LS Cable & System is posted on the electronic purchasing system (e-Procurement, http://epro.lscable.com) so that unfair practices can be checked both internally and externally by enabling not only employees, but also partners to read it.

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