Together with supply Chains
Together with Supply Chains
Sustainability Material Issues 9 Building Responsible Supply Chain Management
Basic Approach
The Lion Group regards the creation of responsible supply chain management through reinforced coordination with materials manufacturers and production contractors as a key issue in its supply chain initiatives. To reduce the negative environmental and social impacts of business activities and advance sustainable mutual business development, we must work with suppliers to evolve our sustainably initiatives based on our Procurement Principles. These principles clearly lay out Lion's policy of considering legal compliance, environmental conservation and respect for human rights when selecting suppliers.
Furthermore, Lion recognizes the importance of promoting the sustainable procurement of palm oil, a key plant-based raw material for the Company, and is advancing initiatives to that end.
Instituting the LION Anti-Bribery Principles
The Lion Group established the LION Anti-BriberyPrinciples in January 2019 in light of developments around the world related to strengthening legal regulations against acts of bribery and corruption.
Going forward, we will continue working to ensure that our business activities are fully compliant with the laws and regulations of the countries and regions in which we do business.
Overview and Implementation Framework
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Initiatives
Aiming for Sustainable Raw Material | |
Procurement |
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Together with Supply Chains
Promoting Sustainability with Materials Manufacturers and Production Contractors
Self-Checks Based on the Lion Group Supplier CSR Guidelines*1
To advance responsible procurement activities, each year the Lion Group asks that the materials manufacturers and
production contractors it works with implement self-checks based on the Lion Group Supplier CSR Guidelines . In this way, we are promoting the creation of frameworks throughout the supply chain to avoid risk related to human rights, labor practices, the environment, fair operating practices, consumer issues and compliance.
Since 2014, we have moved the self-checks entirely online, enabling suppliers to respond more efficiently. We also provide suppliers with feedback based on the self-check results. The result of these efforts is a system that continuously advances CSR procurement. We aim for a 100% response rate every year.
In 2018, Lion Corporation (Korea) requested self-checks from its 162 business partners, achieving a response rate of 75.3%.
In 2021, continuing from 2020, Lion Daily Necessities Chemicals (Qingdao) Co., Ltd., requested self-checks from its 49 suppliers (of which, 9 were also covered by Lion's self-check request), achieving a response rate of 100%.
In 2021, self-checks*2 were also conducted by 75 trading partners of Lion Engineering Co., domestic Group company.
We will continue to promote sustainability initiatives with our business partners.
*1 The Lion Group Supplier CSR Guidelines comprise 21 guidelines under the five categories (Human Rights/Labor Practices, The Environment, Fair Operating Practices, Consumer Issues, Compliance)
Lion Group Supplier CSR Guidelines and Glossary (English)
Lion Group Supplier CSR Guidelines and Glossary (Japanese)
Lion Group Supplier CSR Guidelines and Glossary(Japanese) (Lion Engineering Co. Ltd. version) Lion Group Supplier CSR Guidelines and Glossary (Chinese)
Lion Group Supplier CSR Guidelines and Glossary (Korean)
*2 Lion Engineering Co., Ltd.'s version of the self-check includes the addition of "Confrontation with antisocial entities: Cut off relations with antisocial entities and reject any unreasonable demands" to item 21.
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Timeline of Sustainable and Responsible Procurement Initiatives | |||
2005 | Instituted the Basic Policy Regarding Purchasing and implemented appropriate | ||
procurement of raw materials and products. | |||
2008 | Established the Procurement Principles, which clarify our social and environmental | ||
considerations. Conducted a questionnaire survey for domestic and overseas raw | |||
material manufacturers and production contractors about their corporate activities | |||
regarding legal compliance, product service quality and safety, environmental | |||
considerations, labor practices and human rights, and fair trade. | |||
2013 | Amended the Procurement Principles and clarified our stance of considering legal | ||
compliance, environmental conservation and respect for human rights when selecting | |||
business partners. Instituted the Lion Group Supplier CSR Guidelines | , which specify | ||
the sustainability initiatives we expect from raw material manufacturers and production | |||
contractors and asked our business partners to conduct self-checks of their | |||
sustainability initiatives. | |||
2014 | Introduced an online CSR self-check system. | ||
2018 | Lion Corporation (Korea) requested self-checks from its business partners, expanding | ||
the number of countries in which the Group implements self-checks. | |||
2019 | Established the LION Human Rights Policy and LION Anti-Bribery Principles to clarify | ||
our stance on initiatives for sustainable and responsible procurement. | |||
Established the Sustainable Material Procurement Policy to advance initiatives aimed | |||
at the sustainable procurement of palm oil derivatives and pulp and paper products, | |||
which are key raw materials for the Lion Group. | |||
Took part in the Supplier Ethical Data Exchange (Sedex)-headquartered in the United | |||
Kingdom-in order to further reduce social and environmental risk in purchasing. | |||
2020 | Overseas Group company Lion Daily Necessities Chemicals (Qingdao) Co., Ltd. | ||
requested self-checks from itssuppliers. | |||
2021 | Domestic Group company Lion Engineering Co., Ltd. requested self-checks from its | ||
suppliers | |||
The Lion Group does business with suppliers who have implemented self-checks based on the Lion Group Supplier CSR Guid
elines .
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PDCA Cycle for Supplier Sustainability Self-Checks
In order to ensure that our suppliers understand the importance of addressing sustainability-related issues, we include a section explaining the situation surrounding sustainability in our self-check request form. The self-check employs a three- step checking standard for each initiative and a detailed glossary.
Supplier Sustainability Self-Check Results (2021)
Number of Suppliers Evaluated and Response Rate (Target: 100% every year)
Suppliers | Response Rate | |
2017 | 625 | 99% |
2018 | 610 | 98% |
2019 | 585 | 99% |
2020 | 574 | 100% |
2021 | 502 | 100% |
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Lion Corporation published this content on 17 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2022 01:18:04 UTC.