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Direction of implementation of ethical management

Based on its corporate and management philosophy of an “upright company,” “a company that is awake,” and “a company that shares with customers,” KT&G is pursuing “management in principle that sees long and distantly” to contribute to customers, shareholders, the country, and society. This is declaring that all members should silently perform their work based on high morality and transparency to create outcomes and fulfill their responsibility and obligation to diverse stakeholders.

Establishment and development of ethical management

Introduction (2003~2004) : Introduction of ethical management thinking Construction of infrastructure such as organizations and systems  / Establishment  (2005 ~ 2009) : Work process auditing System supplementation such as organizations, regulations, and systems  / Reinforcement  (2010~현재) : Proactive management of threats to business Continuous development of practical programs Expanded practice by group companies

Ethical management implementation system

KT&G is constructing ethical management systems that upgrade ethical management and reinforce practice by implementing diverse activities centering on organizations dedicated to ethical management

Code of ethics

  • Ethics charter Value judgment criteria for
    executives and staff members

  • Code of Ethics Code of behavior for
    executives and staff members

KT&G enacted and has been following ethics charter and code of ethics as a criteria for righteous behavior and value judgment for all the executives and staff members

Practice program

Diverse programs such as an ethics oath, sexual harassment prevention activities, and the Think Twice campaign are continuously operated for KT&G personnel to establish ethical management.

Oath for ethics  / Sexual harassment prevention activities / Think Twice campaign

Oath for ethics

Promising that they will be sufficiently acquainted with the ethics norms and ethics practice guidelines and take the lead in ethical management when they perform their work in Korea or overseas, all personnel sign a written oath for ethics at the beginning of every year.

Sexual harassment prevention activities

Sexual harassment prevention activities are being conducted to lessen the perception and practice of sexual discrimination and to form a beautiful and healthy workplace culture. In particular, sexual harassment prevention measures are prepared based on an analysis of related laws, other companies’ cases, and in-house systems, and in-house cyber education is implemented once a year to enhance personnel’s sense of ethics.

Think Twice campaign

By sharing events and accidents by type every six months, the attention of personnel is aroused and the recurrence of similar cases is prevented.

Dedicated organization

To respond to ethical management issues quickly and efficiently, KT&G has installed an ethics management office. As a control tower, the ethics management office is implementing ethics diagnosis and diffusion, business risk monitoring expansion and reinforcement, event and accident investigation, and external activities.

The Audit Committee / Ethics management office  : Plays the role of the bridgehead in establishing a corporate culture of change and innovation and companywide outcome creation / Ethical management department : Propagates CEO management philosophy and core values and induces execution, Diffuses group-level ethical management corporate culture (education, etc.), Exemplary case discovery and propagating activities, Improves irrational practice and systems, Improves management efficiency  -> Induces the establishment of barrier-free, communication-oriented organizational culture  / Audit department  : Plans and implements periodic audits, Investigates and handles events/accidents and civil complaints , Members’ sense diagnosis and feedback -> Induces the establishment of virtuous circle structures for company outcomes
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