Ethical Management

Transparent and fair business activities

Ethical Management

Ethical Management

Kia Motors promotes ethical management activities to align its practices and cost structure with ethical standards in order to pay due respect to stakeholders and improve our long-term competitiveness.

Governance

We have the Audit Committee, the Ethics Committee and Board Nominating Committee under the Board of Directors for continuous improvement of ethical management.

Operating structure for mutually beneficial cooperation

Ethics Committee

The purpose of the Ethics Committee is to evaluate the transparency of internal transactions and the company’s progress in ethical management. The Ethics Committee assesses the transactions between affiliated persons as stipulated by the Monopoly Regulations and Fair Trade Law and the Capital Market and Financial Investment Business Act. It also monitors Kia Motors’ program for voluntary compliance with fair trade regulations, major policies related to ethical management and social outreach programs, and the enactment, revision and implementation of ethics codes and regulations.

  • Procurement Division's Code of Ethics
    (Korean Ver.)

  • Gift Management Policy
    (Korean Ver.)

  • Employees’ Code of Conduct
    (Korean Ver.)

  • Code of Ethics

  • Workplace Ethics Policy
    (Korean Ver.)

  • Grievance Counseling System / Internal and External Complaints

Human Rights Protection

Kia Motors protects the basic human rights of its employees. It has developed a human-rights based management mechanism to ensure all recruitment procedures conform to the Framework Act on Employment Policy. Kia Motors’ Employment Regulations stipulate that only a person 18 years old or above qualifies for employment. Under Article 65 of the Collective Agreement, the company does not force overtime work or holiday work, nor does it give disadvantages for denial of such requests.
The Grievance Counseling System is available on the intranet, where employees can easily view the progress and results of their grievances submitted. For the protection of human rights of women and prevention of sexual harassment, all employees are provided with training on related laws and regulations, company guidelines, and measures at least once a year.

 

Human Rights/Ethical Management related Training 2017 2018 2019
Total 20 times, 7,320 persons 20 times, 7,510 persons 28 times, 8,527 persons
Offline 18 times, 520 persons 18 times, 510 persons 26 times, 744 persons
Online 2 times, 6,800 persons 2 times, 7,000 persons 2 times, 7,783 persons

※ [Findings of Human Rights Impact Assessment] To be provided

Fair Trade

The CP (Compliance Program) is an internal compliance system that a company operates internally to comply with the laws and regulations on fair trade. We included the CP operating regulations in Kia’s standard business procedure, and use internal supervision and education to ensure fair trade practices. More intensive education is provided to the members of sales and procurement departments, who are relatively more prone to noncompliance. Opportunities for external programs are also offered to members concerned where they can learn about the latest developments in fair trade and apply it to their work where appropriate. Kia organizes a competitive bidding for suppliers to give them an equal opportunity to bid for contracts.

 

We will continue to cement the culture of fair competition and uphold business transparency through thorough inspections and preventive measures.

 

※ [Fair Trade Rules for Competitors] To be provided

Key Achievements

Item Performance
CEO’s commitment to compliance
  • A code of conduct, compliance policy and sanctions on non-compliant employees are announced.
Appointment of Compliance Officer
  • Compliance Council chaired by the Compliance Officer (March 23, 2012)
    - Department responsible: Stock Management Team, Advice: Legal Affairs Team. Supervising teams were designated by area.
Providing CP education
  • Continuous CP training including customized on-site training
    - Audience: members of sales divisions in Korea, managers or higher from plants
  • Monthly training for key departments concerned. (Fair Trade Day)
  • Training for new hires and special lectures by fair trade experts
Internal monitoring system
  • A discussion mechanism to prevent non-compliance before engaging in fair-trade related projects
  • Compliance checklist for self-check and regular/frequent field audits.
  • Compliance Officer reports the findings from internal audits to the Board of Directors. Corrective actions are taken and monitored.
Sanctions and incentive systems
  • Rules on sanctions are in place against employees who violate the Fair Trade Act.
  • Starting from 2012, additional rewards are given to departments which demonstrated exceptional compliance performance.
    - KRW 10 million in total per year/recognition by CEO at the year-closing ceremony
Document control system
  • A dedicated website to Fair Trade Compliance
  • CP as a continuous effort: revise and update related regulations and guidelines. CP is included in the standard business procedure.

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