Strengthen Competitiveness with Compliance Management Vaccines

Compliance Program

Many companies agree on the importance of compliance, in terms of legal compliance,
as well as fair trade, corruption prevention, and environmental issues.
Hyundai Glovis has been operating an in-house compliance program and has been making progress internalizing it.
Article. Editor’s Office

Preventive vaccine to minimize management risk

Increased interest in corporate ethics has led many large corporations to carry out compliance activities. Compliance means following internal and external laws, regulations, and rules. This may sound like an obvious thing, but it is often overlooked for unavoidable reasons and lack of awareness. Compliance is now regarded as a corporate culture that could impact the image and credibility of a company. In today’s world, companies that practice compliance management are perceived as competent.

Hyundai Glovis, too, is actively operating Compliance Programs (CP) to not only establish compliance management and ethical management as an organizational culture, but also minimize risks related to fair trade, etc. While leaving it to the discretion of individual employees for the most part, the company also encourages and supports employees by promoting a variety of programs, so compliance becomes a part of corporate culture.

“Prevention is paramount because once the corporate image is damaged, it takes several times the effort to recover. Accordingly, we are carrying out various CP activities and continuing our efforts to establish an autonomous compliance practice culture,” remarked the senior manager Yoo Seung-gi of the Compliance Team.

The Compliance Team has been disseminating information about sizzling issues and topics by publishing related guidelines and newsletters, offering training courses about the Fair Trade Act and subcontracting laws, and operating campaigns for disseminating a self-compliance and compliance management culture within each team. These activities are being improved through analysis and evaluation. In addition, a compliance officer is appointed at the beginning of the year for each team to help spread CP activities more rapidly and encourage participation of team members.

Various efforts for self-compliance
These activities are divided into company-wide activities and strategic/selective activities by departments. As a company-wide activity, all employees are asked to perform self-checks, study case studies, and quizzes on the last Monday of every month, which is set as “Compliance Management Day.” In addition, Compliance Committee regularly conducts compliance training and issue-sharing sessions. Every year, employees from CEO to overseas subsidiaries participate in the compliance and ethics pledge as a reminder of their strong commitment to compliance.
Departmental strategic/selective activities include performing strategic tasks to check and improve on the risk of violations of laws, as well as identifying corruption risks in advance and establishing improvement plans through “ISO 37001 (corruption prevention) certification activities.” To encourage more participation in self-compliance activities, optional tasks may be carried out by departments. Although it was first introduced last year, participation in optional activities in the second half of the year showed a 9% improvement compared to the first half.

Teams that actively participated in CP activities are awarded at the end of the year. This is to set an example for executives and employees alike, motivate more to participate, and further encourage voluntary improvement activities for the future. Last year, the Value Chain Innovation Team won the grand prize for active engagement in activities through opening of a dedicated channel for CP activities within Teams.
A reliable supporter for establishment of a compliance culture
Active and voluntary participation of executives and employees are key for effective CP activities. The company-wide participation rate has shown a meaningful improvement with an upward curve in 2020. For 2021, we are planning to customize training and improve activities to further encourage participation.

Our plan is to identify employees’ needs as well as relevant current issues through surveys so we can incorporate them into customizing training courses. In addition, the company will focus on making improvements to the previous CP activities and opening a dedicated channel for the Compliance Committee in Teams to facilitate active sharing of information.

“The ultimate goal of CP activities is to minimize company risk and to create an environment in which all employees can work with a spirit of compliance. We want to work on narrowing the gap in participation by departments by employing effective CP activities and reinforcing establishment of a compliance culture that will eradicate unfairness and illegal activities.”

All of us must strive to prevent risks in advance as much as possible and secure transparency for sustainable growth. We look forward to seeing establishment of a compliance culture through activation of CP and active participation.

interview
Self-Compliance Manager of Value Chain Innovation Team Winning the 2020 Grand Prize
Senior Manager Yu Sang-mo,

How does it feel to be a winner of the Grand Prize for Best Practices in CP Activities in 2020?
I am thankful for the support of my team leader and team members. I was just being enthusiastic about a company event, so I am glad to receive positive responses from team members and the award.

In which CP activities did you participate and what efforts did you make to encourage team members’ participation?
On every Compliance Management Day, I reminded team members of the activities through e-mail, messenger, and notes and made sure to record everyone’s responses. As per my team leader’s suggestion, I created a Teams channel, where we could share compliance-related information, including relevant cases of violation, CP activities, and news articles.

Did the team members follow along well?
All of the team members participated voluntarily, though; some people did not take it seriously at first. As I persistently asked them to perform the tasks and give feedback, they became used to participating in the activities. When our team unexpectedly came in in the first place during mid-year evaluation, more team members started to participate more actively.

Did you notice any changes through CP activities in the past year?
I would say that some of the topics or issues didn’t come across as relevant or relatable at first. However, as I continue to check the goals and tasks for the team, I began to realize that even things I considered as small and trivial could become a problem. This allowed me to be more aware of the compliance issues. The biggest change was that the team members started to share this awareness as they participated voluntarily.

Do you have any advice about CP activities?
I think more people should develop a deeper interest in CP activities. If people are not interested, they do not feel the need. If something goes wrong, the impact would not be small. Prevention is more important than follow-up measures. That is why we should continue doing CP activities. I hope that all employees of our company will develop keen awareness.

interview
Self-Compliance Manager of Value Chain Innovation Team Looking to Win for the Second Time in 2021
Manager Jang Dong-yeong,

You were a participant last year, but this year you became a manager. How do you feel about that?
I feel a little bit of pressure because our performance last year was so good. So, my goal is just keeping up with it. Ha! ha! I will do my best to keep up the good work from last year.

What did you learn from participating in CP activities?
To be honest, I was not super serious about CP activities at first. I was quite surprised that things that I thought of as trivial had broader consequences, like fines or social risks. When I became the manager of compliance activities, I started developing more interest and it feels almost like I am getting enlightened. It is in the early stages, so we are just solidifying the grounds, but I plan to be more active in the second half of the year.

Did you get any advice from last year’s manager in regard to the CP activities?
공He said that sharing and participation are most important. I think it is vital to have fair trade deeply rooted. To that end, I’m going to share examples and information with team members and highlight any possible risks. When they take part in compliance quizzes and digest the relevant information, I hope they will be able to think about fair trade once more.

What areas will the CP activities focus on during 2021?
The goal of our team’s CP activities is for everyone to absorb the concept of fair trade and apply it daily at work. When selecting or collaborating with a partner company, you must be careful not to violate fair trade during the process. I will be focusing on informing team members of the proper procedures.

Please explain to us your determination as a compliance manager in anticipation of another Grand Prize.
CP activities will be the foundation of our company’s competitiveness. I think it will not be a small contribution if we can help build external credibility through one year of activities. With that in mind, I will continue to do my best ─ even with the smallest tasks!