CSR Guideline for Suppliers
Doosan Heavy Industries & Construction seeks to attain sustainable growth by fulfilling its social responsibilities and retaining the company’s competitiveness through Inhwa, customer-oriented business philosophy, transparent business operations and innovation. In order to achieve this, Doosan Heavy Industries & Construction has established the following “CSR Guideline for Suppliers” based on the 10 principles of the United Nations Global Compact relating to Human Rights, Labor, Environment and Anti-Corruption, which all suppliers of Doosan Heavy Industries & Construction are obligated to comply with. We would like to also ask you to promote it as a sustainable procurement policy for your suppliers.
Health & Safety
Every supplier of Doosan Heavy Industries & Construction shall understand the importance of providing a safe work environment in order to prevent accidents and hazards, which will help improve the quality of products, while enabling continuity in production and boosting employee morale. Hence, the suppliers are required to comply with applicable laws, regulations and establish preventive procedures against industrial accidents and diseases by providing a healthy work place, sanitary facilities, adequate lighting and ventilation to their employees. Also, it is necessary to offer training programs to prepare for emergencies pertaining to accidents such as fire outbreaks in order to minimize risks of potential damage at the workplace.
Working Conditions and Wages
Every supplier of Doosan Heavy Industries & Construction shall comply with and honor the standard working hours, minimum wages, overtime pay, benefits package and any other relevant protocols regulated by the International Labor Organization (ILO). Employees shall be granted performance-based pay, minimum welfare and any other remuneration for which they qualify in accordance with the governing law.
Every supplier of Doosan Heavy Industries & Construction shall treat their employees with respect and not impose any forms of punishment, sexual harassment, violent threats or physical, sexual, psychological abuse. If an employee, out of good intentions, happens to file a report on a violation of this guideline or law, s/he shall be ensured of protection from any form of retaliation.
Every supplier of Doosan Heavy Industries & Construction shall ensure protection of all employees’ personal information and their privacy. If human resource related information needs to be collected, it shall be for fair and legitimate reasons.
Freedom of Association
Every supplier of Doosan Heavy Industries & Construction shall recognize the right of employees to organize a lawful and non-violent union for their collective bargaining without punishment or unlawful interference.
No supplier of Doosan Heavy Industries & Construction shall employ or use child labor. “Child” refers to someone under the minimum age of employment or one who has not completed the mandatory local education, and any supplier who employs a person under 18 years of age, shall be subject to the applicable laws and regulations relating to youth employment.
Every supplier of Doosan Heavy Industries & Construction shall comply with the law against employment of any forms of involuntary labor, such as slavery and human trafficking. No benefits arising from forced and involuntary labor shall be permitted.
No supplier of Doosan Heavy Industries & Construction shall unethically discriminate against their employees. In particular, no discrimination shall be made relating to general employment terms, such as compensation, benefits, promotion, discipline, termination, or retirement. The same applies to the recruitment process and discrimination based on race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, marital status, political views and disabilities.
Environmental Protection and Pollution Control
Every supplier of Doosan Heavy Industries & Construction shall comply with the environmental laws and regulations, ensuring effective measures to discharge minimal waste, waste water and air pollutants in any process, and ensure that environmental pollution remains at the minimum.
No supplier of Doosan Heavy Industries & Construction shall partake in bribery, embezzlement, and corruption-related acts. In addition, suppliers shall not attempt to bribe, through gifts, money, entertainment, hospitality or any other unethical practice, the employees of Doosan Heavy Industries & Construction in order to seek favorable or preferential treatment.
Every supplier of Doosan Heavy Industries & Construction shall adhere to the Fair Trade Act and refrain from engaging in actions such as bid rigging and price agreements, and will ensure compliance with local law, national law and international law. Product pricing, sales, distribution and safety related regulations are subject to the national and international law, convention and industry standards.
Posting of Guidelines & Rules of Compliance
It is every supplier’s duty to fully understand and comply with these Guidelines when working with Doosan Heavy Industries & Construction. Suppliers shall ensure that their employees can easily view these Guidelines, and notify the provisions of these Guidelines to all their employees who work in relation to Doosan Heavy Industries & Construction. In addition, any actions that could violate these Guidelines can be reported via the Win-Win Call Center (080-069-5000) of Doosan Heavy Industries & Construction. If these Guidelines are deemed more stringent compared to the national or international law, then the Supplier shall comply with said Guidelines. However, if a conflict occurs between these Guidelines and the local, national or international law, the Supplier shall comply with the relevant local, national or international law.
Monitoring and Compliance
An agent or official designated by Doosan Heavy Industries & Construction may visit the sites of a supplier to check on the compliance status pertaining to the Guidelines, and the supplier is required to demonstrate compliance with these Guidelines for the work associated with Doosan Heavy Industries & Construction, which is to be maintained within their operations.
Background for Conflict Minerals Regulation
– Definition of Conflict Minerals: Conflict Minerals are four natural minerals (known as ‘3TGs’ – Tantalum, Tin, Tungsten and Gold) extracted from the DRC (Democratic Republic of Congo) which is a conflict zone, and its ten neighboring nations are also included: Sudan, Rwanda, Burundi, Uganda, Congo, Zambia, Angola, Tanzania and Central Africa.
– Need for Conflict Minerals Regulation: Armed forces in the area are continuously causing conflict by securing funds through mining and distribution of minerals and as this causes environmental pollution and human rights issues, such as human casualties, human rights abuses, child labor exploitation and sexual violence, demand for the disclosure of the origin of minerals and the suspension of using conflict minerals has been continuing under the leadership of civic organizations.
– Legal Basis for Conflict Minerals Regulation: In August 2012, the U.S. Securities and Exchange Commission (“SEC”) issued its final rules regarding “Conflict Minerals” as defined in and required by section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In accordance with the regulation, companies listed on the American Stock Exchange must first determine whether they are subject to the Conflict Minerals Regulation. If it is revealed they are subject to the regulations, the second step would be to go through a reasonable process of determining the origin of the mineral. The final third step would be to inspect the supply chain and report to the U.S. Securities and Exchange Commission if suppliers are using conflict minerals.
Doosan Commitments for Conflict Minerals Regulation
Doosan Heavy Industries & Construction is ensuring that our products do not contain conflict minerals that have been sourced from mines that support or fund conflict within the Democratic Republic of Congo or the adjoining countries, and we would also like to request the following of our suppliers:
– All suppliers should refrain from using any conflict minerals in the manufacturing of products and must submit a certificate of origin as proof if necessary.
– Doosan may, if necessary, conduct a survey with cooperating companies to ascertain the origin of the conflict minerals and the suppliers shall actively cooperate with the survey.
Doosan’s Conflict Minerals Compliance Program
In 2012, Doosan implemented a procedure and support system for determining the origin of raw materials. On average seven cases per month for steel scrap, which is the main raw material for mold tool steel, are investigated for determination of the origin of raw materials. We have been confirming with the mill makers, who purchase the raw material for manufacturing and supply the final product to Doosan, that the suppliers do not use conflict minerals, and we plan to revise the contents of the purchase agreement signed with subcontractors to include provisions on not using conflict minerals to ensure that all suppliers comply with the regulations.