Best Technology, Better Future
Code of Ethics (Chapter 3. Fair Transactions)
All business transactions are based on the principles of fair competition, with equal opportunity guaranteed to all entities. We build trust and cooperative relationships through fair and transparent transactions. Such relationships are built based on long-term mutual growth.
1
Equal Opportunities
1)
We offer equal opportunities to all qualified companies seeking to become our business partners.
2)
We register and select all applicants in a systematic manner, following a fair and objective evaluation process.
2
Fair Transaction Process
1)
We conduct all business transactions under equal circumstances. The terms and procedures of the transaction are thoroughly discussed between the parties involved.
2)
We never engage in any form of unfair transaction taking advantage of any superior position.
3)
We exchange transaction information through appropriate procedures in a timely manner. Transaction results are evaluated on a regular basis and mutual cooperation measures are taken.
3
Pursuing Mutual Growth
1)
We support the long-term growth of our partner companies by enhancing their competitiveness through technological and managerial assistance. We share the profits derived from business innovations.
2)
We pursue mutual efforts and cooperate with our partner companies in promoting a healthy business environment and maintaining fair business processes.
Fair Trade Compliance Guidelines
Chapter 1
Application Scope
Chapter 2
Purpose
Chapter 3
Basic Principle
Chapter 4
Duty of the Organization Leader
Chapter 5
Liability in case of Violations
Define risk types considering semiconductor industry characteristics and evaluate supplier competitiveness based on LX Semicon’s management standards
Conduct Supplier credit ratings for financial risk management, and evaluations on capability & ESG management(biannual)
Items that can take a significant toll on the supply chain and require immediate action
Items requiring continuous monitoring to respond to internal processes or prevent recurrence
Items affecting positively to facilitate mutual communication
Risk Types
Category | Details |
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Finance | Risks of bankruptcy of others based on information such as profitability, debt, and cash flow |
Operation | Risks of supply and demand disruptions and quality defects associated with technology, manufacturing, logistics, quality, etc. |
Commercial | Risk management regarding contracts, payment, etc. |
ESG | Compliance risks related to environment, labor, safety and health, and ethics |
Geopolitics | Risks of supply chain issues and supply disruption due to disputes |
Conduct online ESG assessments to measure suppliers’ ESG risk management
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Suppliers demonstrate an overall higher ESG level than the benchmark group, and no negative environmental or social impacts were found
Supplier ESG Assessment Process
Selecting Target Companies
Conducting ESG Assessment
Assessment Result Management
ESG Assessment Item
Category | Details |
---|---|
Environment | Environmental management system, GHG, water/effluent, waste, air quality |
Human Rights·Labor | Human rights/labor standards and practices, workplace safety and health, human rights/labor within supply chain |
Ethics·Governance | Ethical management, ESG management/information disclosure, corporate governance |
Product·Service Responsibility | Responsible management of chemical and hazardous substance, raw material sourcing, use of renewable energy, etc. |
The ESG risks identified through on-site verification are clearly explained to partners and mutually identified for the need for improvement
No supplier has identified significant risks that need immediate improvement, but many tasks need improvement in various areas such as human rights, labor, safetyand Health, ethics, etc.
Provide consulting for ESG-related opinions and questions and answers by partner companies to discuss improvement directions
Category | Improvement Tasks (Examples) |
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ESG System |
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Governance |
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Social |
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Environment |
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Category | Details |
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Responsible Mineral Sourcing Policy |
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Conflict Minerals Management Policy |
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Supplier Code of Conduct (Article 6) |
1. Establishment of a policy to prevent the use of raw materials procured illegaly, with negative environmental impact or by unethical methods 2. Conflict minerals provisions should be included in the supply chain policy, and establishment of a system to ensure that the minerals used in raw materials, parts, and products supplied to LX Semicon (tantalum, tin, tungsten, gold: hereinafter 3TG) do not directly or indirectly provide financial resources or benefits to armed forces that seriously violate human rights in the Democratic Republic of the Congo or neighboring countries 3. Efforts to check the origin and supply chain of 3TG minerals in raw materials, parts, and products supplied to LX Semicon 4. Cooperate in providing relevant data such as the origin of 3TG minerals, information on smelters and refiners, and others upon request from LX Semicon and LX Semicon customers |
Conflict Minerals Management Policy
Manage the non-use of conflict minerals (tin, tantalum, tungsten, and gold) that are mined and distributed unethically, including human rights abuses and environmental degradation
Manage conflict minerals based on our ‘Responsible Minerals Sourcing Policy’
Strengthen supplier monitoring and management to prevent the entry of conflict minerals into the supply chain
Implementing inquiries about the use of conflict minerals, requesting and verifying submissions of non-use confirmations from suppliers
Inspection on the status of conflict minerals
Verify the use of certified smelters
Supplier CMRT application/ review
Require the submission of CMRT and the Pledge Against Conflict Minerals and examine them
Creation of LX Semicon CMRT
Generate a CMRT that encompasses all of our products
Stakeholder response
Provide additional data as per stakeholder requests
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Illegal Response CenterPlease carefully read the terms regarding collection, use, and provision of personal information below and decide whether you agree on them.
[Purposes of collection and use of personal information] The company uses collected personal information for the following purpose: Collected personal information is not used for any other purposes than those stated below. If there is any change to the purposes, it will be notified of via the website. Membership for system use, one-on-one answer to an inquiry
[Personal information items to be collected] Name, e-mail, mobile phone no., company name
[Period of personal information use and retainment] For 3 years from the completion of handling the inquiry
[Disadvantages upon disagreement on the collection and use of personal information] A user may disagree on any of the terms and conditions and on the collection of personal information. In this case, the use of service may be limited.