PREAMBLE
This Code of Ethics establishes the ethical values and behavioral standards that must be respected and cultivated by all employees. At POSCO Group, we practice the Code by embracing modern principles as well as by inheriting the foundational spirit of steelmaking patriotism founded on self-sacrifice and service to the country.
It is our enduring goal to establish a corporation that holds the values of integrity, fairness and honesty in the highest esteem and that is trusted by all stakeholders. Hence, in 2003, POSCO Holdings wrote the Code of Ethics to be observed by all employees. In 2014, the values that proclaim support and respect for human life and dignity, as defined in the UN Guide, was explicitly added to the principles. Most recently, the Code was amended to include stricter ethical standards in its management practices.
This Code of Ethics consists of the Preamble, followed by the Principles of Ethical Management that define compliance and responsibilities of employees and practice guidelines that set the standards for ethical decision-making.
All members of POSCO Group must strictly abide by the principles and practices defined by the standards in all aspects of business and conduct.
Observance of the Code offers a means to pay tribute to the exceptional commitment of our founding members in their effort to preserve the history and to continue the spirit of POSCO Holdings.
Principles of Ethics
1. We must comply with related rules and regulations in all areas of the world where POSCO is conducting business operations.
2. We must retain our dignity as POSCO employees and make efforts to maintain the company’s reputation.
3. We must preserve integrity, fairness and trust throughout all jobs and business relations.
4. We must not become engaged in activities in which there are conflicts of interests between the company and individual.
5. We must not irrationally discriminate against other employees or stakeholders based on race, nationality, gender, disability and religion, and must respect the dignity and diversity of each individual.
6. We must make efforts to create a safe workplace and protect the environment.
7. We must be devoted to establishing an ethical culture by taking responsibility and practicing ethical conduct..
Employees must understand and practice all aspects of the code of ethics, and comply with domestic and international laws regarding anti-corruption as members of a global company.
1. Understanding and Complying with the Code of Ethics.
- – We must fully understand and faithfully comply with all aspects of the code of ethics.
- – Regarding situations in which there are conflicts concerning the code of ethics, decisions must be made after consulting with the department head or the Ethics Management Office.
- – We must take responsibility for unethical conduct.
2. Reporting and Consulting Unethical Conduct
- – If we find out that our or others’ behavior conflicts with the code of ethics, we must immediately report to and consult with the department head or the Righteous Management Office.
- – We must be aware of various methods to report or consult about cases in which there are conflicts over the code of ethics.
Role and Responsibility of the Leader
The leader must perform a key role in enhancing the competitiveness of the company by preventing and eradicating unethical conduct through ethical compliance.
1. Decision-making
– The leader has the obligation to make decisions with ethics being the top priority whenever the company’s benefits conflict with ethics.
2. Operational accountability
– The leader possesses unlimited liability in unethical conduct, and must take supervisory responsibility in case of unethical conduct by his or her subordinates.
3. Job performance
– The leader strictly abides by the law, does not pursue private interests, is devoted to creating corporate values, and does not deal with corrupt stakeholders.
4. Elimination of favors and solicitations
– The leader aims to eliminate all forms of favors and solicitations and eliminates business influence in relation to outsiders.
5. Respect for humans
– The leader strives to eliminate conduct that impairs respect for fellow humans such as sexual harassment and verbal abuse in the organization.
6. Practical activities
– The leader is devoted to increasing the level of ethical practice to that of world-class levels by taking the initiative in operating the ‘Ethical Practice Programs’.
The leader must also prevent unethical conduct of members, and take the following measures in case of such conduct.
1. Training and counseling on ethics
– The leader must provide training and counseling on ethics for relevant staff.
– The leader must have relevant staff understand the importance of compliance with the code of conduct and practice of ethical conduct.
2. Precautions for unethical conduct
– In case of unethical conduct that occurs habitually, the leader must isolate the cause, improve the process, and fundamentally take preventive measures.
– The leader must report to or consult with the Righteous Management Office immediately after receiving a report that a member has violated the code of ethics.
Employees violating the code of ethics may receive certain penalties including dismissal according to related regulations.In particular, the zero tolerance policy is applied to unethical conduct such as accepting bribes, embezzlement, fabrication of information, and violation of sexual ethics.
Conduct Subject to Penalty
- – If one has violated the code of ethics or demanded others to do so
- – If one has not immediately reported a violation of the code of ethics that he or she is aware of or is skeptical about
- – If one does not cooperate with the investigation of the Righteous Management Office regarding matters that may have violated the code of ethics
- – If one takes retaliatory action against other employees who reported an issue regarding ethical management