Our company observes and supports international human rights standards, such as the Universal Declaration of Human Rights (UDHR), UN Guiding Principles on Business and Human Rights, UN Global Compact and the OECD Guidelines for Multinational Enterprises, which are guidelines that are widely adopted by countries around the world.

All human beings have the right to be treated with dignity. This includes the right to life and physical safety, freedom of ideas/expression/religion, freedom of association, work and home life balance, guarantee of privacy, food and water security, freedom from torture/slavery or forced labor, right to fair and decent working conditions, and discrimination prohibition.

Our company identifies any adverse human rights violations to prevent and to mitigate their impact. When deemed necessary in order to fulfill its responsibility, Our company may perform human rights due diligence (HRDD). The due diligence procedure includes identification and evaluation of actual and potential human rights impact, response to the identified issues, documentation of the response activity, and communication to stakeholders about how the impact was addressed.
Human rights due diligence considers:

• Include negative impacts related to human rights that may be directly or indirectly caused in the course of the company's management activities.
• We consider various related matters according to the location and size of the business site, human rights-related risks, the characteristics and contents of the business, and the political and economic conditions and characteristics of the host country.
• As the company's activities and business operation environment change, the risk to human rights gradually changes, and it is continuously implemented.

Our company conducts efforts to identify and check the real and potential negative effects on human rights due to domestic and foreign management activities according to the following procedures.

• - If human rights-related risks are detected in major domestic and foreign workplaces, the status quo analysis and improvement plan are derived through human rights due diligence.
• - In principle, due diligence shall be conducted by internal experts, and if necessary, it may be conducted together with the support of external experts.
• - Conduct practical interviews with potentially affected groups and stakeholders.
• - The potential and practical impact of the human rights inspection should be identified. The potential impact should be taken to share the evaluation results at the enterprise level and to prevent and mitigate them by performing relevant procedures, and the actual impact that has already occurred should be subject to redemption and resolution.
• - Human rights due diligence is conducted using a checklist that diagnoses key elements related to human rights management.

We establish a response system based on the facts found from human rights due diligence to prevent and mitigate the negative effects that may affect human rights and take follow-up measures.

• 1) Establishment of an internal response system
  • - Clarify roles and responsibilities with relevant departments to address issues found
  • - Apply internal decision-making, budget allocation, and surveillance procedures to effectively respond to these impacts.
  • - We accurately understand the problems derived through due diligence on human rights and manage them as important issues.
• 2) Follow-up and Remediation
  • - Take necessary measures to prevent and mitigate human rights issues when they have caused or are likely to have a negative impact on human rights.
  • - Even if the best policies and procedures are in place, if they cause unexpected negative effects, work alone or in cooperation with other entities to improve the negative effects.
  • - Even if our company did not directly violate human rights, if the negative human rights-related effects are related to the operation, production, and service of the company in relation to other entities (e.g., partner companies), it is not directly responsible, but plays a prescribed role to improve.
  • - Where the company has influence to prevent and mitigate human rights violations, it shall be utilized, and if not, it may strengthen its influence in cooperation with the relevant entity.
  • - As an effective remedy, we operate a grievance system for stakeholders.

If stakeholders raise concerns about human rights impacts, the company will provide a responsible explanation.

• - Communicate responsibly and transparently to stakeholders, including individuals and investors, and consider various forms of communication, such as face-to-face meetings, publication of official reports (such as audit reports), and online channel utilization (such as the company's official website).
• - When issuing an official report, it includes substantial and potential negative effects, and independent verification procedures are considered to increase the credibility of the report.
• - Provide information to help stakeholders assess whether the company is responding appropriately to specific human rights impacts.

It induces practical improvement in human rights management through internalization of organizational culture and institutional improvement activities of human rights due diligence results.

• - We carry out activities to internalize human rights management into organizational culture, such as education on the necessity of human rights management for all executives and employees, education on norms related to human rights management, and sharing success and failure cases.
• - We continue to improve the human rights management system by consulting experts, communicating with stakeholders, and discovering improvements through the implementation of the system.

As an effective remedy, our company has a grievance handling program for stakeholders. To ensure that an issue that is identified is promptly discussed and remedied, our company is making efforts to generate quick and reasonable solutions by taking advantage of existing programs, such as the ethical grievance counseling center (Helpline) and the non-ethics-related grievance counseling center (Hotline), which were designed to assist individuals and local communities exposed to adverse impact. The Grievance Handling Program performs the following important functions in association with the Company's responsibility to observe human rights.

• Facilitates understanding about adverse human rights impact, providing a conduit through which those directly impacted can raise their voice.
• By collecting grievances and offering remedies to victims in the early stages, the proliferation of the human rights impact can be contained.
• By analyzing the registered grievances, weaknesses of the human rights policy and procedures can be identified and they can be improved.

E-mail : bk1004@e-bukyung.co.kr