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Mutually Beneficial Cooperation

To establish fair trade order and to show a strong will to
achieve shared growth, MOBIS has made subcontract agreements
annually with suppliers from 2008 to the present.

To establish fair trade order and to show a strong will to achieve shared growth, MOBIS has made subcontract agreements annually with suppliers from 2008 to the present.

To this end, three sets of guidelines were introduced in May, 2009, and have been in operation for fair transactions in subcontracting, which include supplier contracting guidelines, new supplier registration and operation guidelines, and guidelines for establishing and operating an internal deliberation committee for subcontract transactions. In 2010, MOBIS proclaimed its ‘seven wonderful promises’, a program for shared growth reflecting the strength of the industry. The ‘seven beautiful pledges’ project, consisting of seven different themes including financial support for suppliers, research collaboration, and education support, is a win-win message that addresses the bipolarization of large, medium and small sized companies.

Seven Beautiful Pledges

  • Pledge 1

    To raise 56.5 billion won for financial support

    To raise 8.9 billion won for R&D, 800 million won for an automotive parts promotion foundation, 5.55 billion won for network loans, 20 billion for mutually beneficial loans, 21 billion won for mutually beneficial funds, and 270 million won for root industry guarantee funds

  • Pledge 2

    R&D collaboration for strengthening SMEs` independence

    R&D mutually beneficial investments, transfer of analysis technology, guest engineering,test equipment support

  • Pledge 3

    Continuous support for secondary and tertiary suppliers

    Additional points for suppliers that received good evaluations, quality training for secondary suppliers, reward system for excellent suppliers

  • Pledge 4

    Educational program support

    Quality academy operation, articulated education with automotive parts promotion foundation, R&D support for laboratories

  • Pledge 5

    Program for better communication with suppliers

    Suppliers association operation, association events, CTO association

  • Pledge 6

    Support for cultivating a fair trade culture and ethical management

    Compliance to 3 sets of guidelines for subcontractors, ethical management reinforcement

  • Pledge 7

    Mutually beneficial cooperation support including performance sharing

    Operating a performance sharing system, encouraging a system of buying materials and supplying to vendors for resupply, reflecting the management difficulties of suppliers

Supplier Code of Conduct

Sustainability Risk Management

Sustainability Risk Monitoring

Monitoring
(Number of
suppliers)
Primary company Main Secondary company Results
(Number of
suppliers)
High Risk Good
310/353 88% 97/100 97% 6 1.5% 401 98.5%

Sustainability Risk Assessment

Assessment
(Number of
suppliers)
Primary company Main Secondary company Total Results
(Number of
suppliers)
Corrective action Recommended Action Total
3 3 6 2 4 6

Total

Corrective
Action
(Cases)

Not operating an anonymous reporting channel → Operate anonymous reporting channel and maintain relevant confidentiality as well as establish a procedure to prevent retaliation against those that made the report.

Insufficient in-house training [Supplier Code of Conduct] → Provide In-house training / Express its will to comply with [Supplier Code of Conduct] by the executive board / Perform self-monitoring.

Management standards/regulations on technical data are unclear → Complementing management standards/regulations for technical data including development information of customers by type.

Non-discrimination clause not reflected in HR regulations → Add an anti-discrimination clause (race, color, religion, age, gender, marital status, nationality, political views, social status, or disabilities) when hiring employees.

Regular safety checks(inspection) are being conducted, but some corrective actions have not been implemented → Establish a management plan to check if the risk factors found as a result of the inspection have been corrected.

Training on Supply Chain Management [Sustainability Risk]

Hyundai Mobis provides [Sustainability Strategy/Policy in Supply Chain & ESG Management] training for executives and employees as a purchasing policy, and [Supplier Code of Conduct], [ESG Management (Social issues, Best practice, etc.)] training for suppliers.

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