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Management dddd3dddd Suppliers dddd3dddd

Mutual Prosperity

Mutual Prosperity Win-Win Prosperity with Retailers
In 2016, we formed a dedicated organization for mutual prosperity to promote fair trade and mutual prosperity with our suppliers. Currently, we are conducting various activities to that end. As a result, we have achieved the following accomplishments based on the mutual prosperity index and assessment on implementation of fair-trade contract terms.

  • Obtained an excellent rating in the Mutual Prosperity Index

    (2017, 2018, 2020)

  • Won the Top-Performing Company Award based on an assessment on implementation of the fair-trade contract terms

    (2018, 2019, 2020)

Establishment of a Sustainable Control System for Supply Chains

We are building up a sustainable control system for our supply chains to provide economically, socially, and environmentally ethical products to customers. Recognizing the importance of ethical management among suppliers, we have instated our Supplier Code of Conduct, supporting them to carry out business according to general laws and ethical standards.

Establishment of Fair and Transparent Trade/ Order Transactions

In pursuit of mutual prosperity in fair trade with our suppliers, we are fully committed to promoting a transparent trade culture across the industry.

Constant Reinforcement of the Fair-Trade System

  • Operation of an anonymous reporting (whistleblowing) center → Prevention of unfair-trade practices such as bribery & price fixing
  • Adoption of an open bidding system for the first time among Korean confectionery businesses (2018)
  • Revised of Guidelines on Fair Selection (registration) of Suppliers (2021)
Adoption of 4 Major Fair-Trade Practices of the FTC

Seeking mutual prosperity with our suppliers through fair trade, we have enacted guidelines on fair-trade practices with subcontractors according to the 4 Major Fair-Trade Practices of the Fair Trade Commission (FTC), which we implement across the industry.

Guidelines on signing a desirable contract for mutual prosperity between large & small companies Guidelines on the fair selection (registration) of suppliers Guidelines on making and operating an internal audit committee for trade with contractors Guidelines on desirable issuance & preservation of documents on trade with contractors
Identification and Selection of Suppliers

When selecting suppliers, we evaluate whether the candidate duly fulfills its social responsibilities as follows.

  • Whether the candidate has a document confirming that it is a top-performing SME in terms of ESG practices issued by Korea Commission for Corporate Partnership
  • Whether the candidate has certificates (e.g. HACCP, ISO) with respect to sustainable management (ESG), the environment, & society at large
  • Whether it has the relevant professional license based on pertinent laws
  • Whether it is financially sound which is confirmed by an independent assessment agency
  • Whether it has violated relevant laws such as the Act of Suppliers for a given period
  • Whether it is equipped with facilities and a record of developing technologies related to the project
Supplier Support and Communication
Performance sharing system: We share performance from joint R&D activities.

[Development of eco-friendly packaging materials]

  • Green technology certificate from the Ministry of Environment: Reduces carbon emissions by 42%
  • Joint patent application: New technology on manufacturing ethanol ink
  • Sales of Orion suppliers soared from KRW 400 million in 2016 to 1.6 billion in 2020
Support Programs

We have an array of support programs that provide practical assistance to our suppliers aimed at enhancing competitiveness of the supply chain
1) Financial support : The mutual growth fund
ㆍWe donated KRW 10 billion to an inclusive growth fund and operated an inclusive growth payment system
2) Sales expansion Support : Promotion/ marketing event support

Support Programs
Programs Support details
Increasing sales channels Support for transportation & sample customs fees for entering overseas markets and export sales
Quality improvement Machine/ equipment support for quality improvement. Support for technology protection, including technology escrow
Energy reduction Support on introducing energy-saving machines & facilities, and obtaining eco-friendly certifications (e.g. ISO).
Education/ training Training on quality, sanitary practices, and food & safety. Offers technical guidance & an online training course website.
Communication consultation channel

We are committed to pursuing mutual benefits and securing sound development with our suppliers by running a mutual growth portal, holding meetings, and conducting satisfaction surveys.