Social Contribution

The Operation of Differentiated Human Resource system

Securing global diversity

LG H&H is strengthening its foundation for growth as a global luxury beauty company by actively expanding overseas businesses, mainly in China, Japan, and the Americas. According to this, we have made various efforts to secure global talent with an understanding of local culture and language skills. In particular, to expand the global market and develop online businesses targeting the MZ generation, we have been operating global internships for students enrolled in leading universities worldwide since September 2020. Reflecting the ideas of global interns, we are achieving various outcomes such as product and PR strategies from the MZ generation's perspective, as well as global hair care brand research and marketing strategy planning. We plan to continuously manage the talent pool to encourage outstanding talents discovered through global internships to continue to work after graduation.

Leveraging capable female talent

LG H&H is actively recruiting female talents with excellent senses, considering the characteristics of the consumer goods industry, such as cosmetics, household goods, and beverages. As of 2021, women accounted for 52.9% of all our employees. We are continuously improving related systems, such as expanding parental leave to help the secured talent pursue a work-life balance. Through this, we are ensuring that female employees can continue their careers long-term without any disruptions due to marriage and child-rearing(caring) issues. In addition, we appoint female talents with global sense and expertise as executives. In particular, we strive to foster and select outstanding female talents by appointing a new female independent director in 2022.

Promoting employment for the socially disadvantaged

LG H&H established and has been operating ‘Bright Nuri,’ a standard workplace for the disabled, in 2015 to promote employment of the dis abled, who are socially disadvantaged. As of the end of 2021, out of its 95 workers, 62 were disabled workers, and 53 of them were severely disabled. Disabled employees works at shops and cafes located in the Gwanghwamun headquarters, and Cheongju Business sites. Where they wash cars, beautify the environment, pack cosmetic products, as well as manage parking. In addition, we participated in the ‘2021 Chungbuk Vocation al Fair for Disabled Students’ hosted by the Special Education center under the Chungcheongbuk-do office of Education and provided mock interview consulting through the metaverse plat form.. We continue to operate the Bright Nuri Cosmetics Packaging Experience Booth at the ‘Chungbuk Developmental Disability Training Center’ in partnership with the Korea Employment Agency for the Dis abled to revitalize the employment of people with disabilities. In July 2021, Coca-Cola Beverage, our subsidiary, and the Korea Employment Agency for the Disabled signed an agreement to establish ‘Gounnuri,’ a subsidiary-type standard workplace for the disabled. As of the end of 2021, 10 out of its 12 workers are severely disabled and working at shops and cafes in Anyang and Gwanghwamun workplaces.

Fair Recruiting Process

LG H&H introduce a one-to-one intensive evaluation interview to develop a fair recruiting process that evaluates an applicant’s practical competence and capacity rather than educational background. In the three-stage interview, we take enough time to evaluate each of applicants and verify their capacity that can fit each job of the company, thereby hiring employees through a challenging process. This system has been well-received by applicants because they can take sufficient time with interviewers during which they are evaluated in a fair process in a comfortable atmosphere and they can increase their awareness of the company and check how well they are matched to the job. We will continue to subdivide the requirements and capacities for each job and conduct a more challenging verification process to increase the fairness of the recruiting procedure.

Operating the Performance-Based
Fair Compensation
System

The provision of fair compensation dependent on the type of work is a most fundamental value that enables employees to concentrate on their work, motivating employees and increasing their satisfaction with the company. In this expanded system, field work leaders have discretionary power, and the system has been extended to all office and technical staff. Sales employees are also paid, depending on their capabilities and performance under this merit-based system. In this way, our company has laid the groundwork for fair compensation for performance.

HR Process Led
by Line-managers

While the HR department was in control of HR processes with an emphasis on seniority previously, our current HR system enables line-managers to take not just profit-making but also HR-centered perspectives into account in hiring, compensating and fostering talent. In so doing, we further drive ourselves to change and enhance operational flexibility.

Strenghtened Global Capabilities

Global Consolidation & Self-initiated Subsidiary Operational System

We undertook wide-ranging due diligence activities due to the acquisition of overseas companies and the creation of joint ventures while increasing the speediness of our organizational structure to contribute to quickly stabilizing our global operations. Specifically, systemic HR strategies were adopted to allow locallyhired staff with deep knowledge of their local culture and market to take the lead in operating overseas subsidiaries.

As we recognized that the previous operational system led by Korean expatriates could not effectively reflect local conditions in HR management, we actively fostered manager-level local employees to ensure an efficient division of labor between overseas subsidiaries and the Korean headquarters.

Fostering global professional talents

글로벌 사업역량을 갖춘 임직원 육성 이미지

LG H&H is operating a variety of global talent development programs to nurture talents with the necessary competencies for global busi ness. We provide 1:1 English education with English foreign coaches to cultivate global business and language skills and offer ‘GEC(English)’ and ‘GECC(Chinese)’ courses to intensively support English and Chinese competencies that consider our characteristics as a lifestyle company. We are also preparing to expand our global business by operating the ‘Global MBA’ course, the ‘Chinese·Japanese business conversation course,’ and short-term overseas training. In addition, we are strengthening our employees' basic competency to help more members participate in the global professional talent development process in the future by providing basic language courses in Chinese and Japanese. Besides education, we provide various opportunities, such as assigning our employees to departments related to overseas business and operating project organizations to help them acquire the necessary competencies for overseas business.

Global Training in 2021 - English coaching class 43Persons, GEC(Global Expertise Course) 17Persons, Global MBA 3Persons, GECC(Global Expertise Course in Chinese) 6Persons

Community-driven Labor Relations

Active Communication with Working-level Employee

For a cooperative relationship with smooth communication between labor and management, LG H&H operates the communication channel for each department, business site and job category to receive complaints from employees, and suggest rational solutions. Thanks to these efforts, we can improve working conditions, address complaints, enhance welfare, and promote the balance between work and personal life.

Columbus Project

We have run the Columbus Project since 2015 to build a dynamic corporate culture of pursuing challenges. Participants are selected through the submitted documents and executive interview processes, and use up to three months of free time and KRW 10 million of support funds for their challenges. In 2019, we selected a total of five themes for this project: the research of the ‘development in distribution market utilizing new-concept launderette’; ‘proposal of vegan-friendly cosmetics concept’; ‘development of functional sports cosmetic brand concept’; ‘study of the current status of convergence technology development of cosmetics and textile industry and proposal of application’; and ‘market search and proposal for customized cosmetics’. With the proposal of various ideas, participants contributed to developing the company and had a meaningful time for growth by carrying out the project related to their interest.

Reverse Mentoring

We conducted the 'Reverse Mentoring' to encourage executives and team leaders to think, play and consume like the employees of the millennial generation, who were born in the 90s. Mentoring was carried out six times in a two-to-one setting, in which two team members played mentor for one leader. With this mentoring activity, the millennial team members introduced the YouTube channels to which they subscribed, while also watching other channels that were suitable for the leaders. They also came to popular places together and shared their young sensibility. For instance, they shared how to experience small but certain happiness by visiting famous bakeries, and experienced the young generation's leisure culture such as escape rooms and craft shops. In terms of work, team leaders listened to the ways in which the young members preferred to work and engaged in communication. As the mentoring created a chance to exchange opinions from different generations and find something in common to empathize with, we will continue to conduct Reverse Mentoring so that employees of different generations can relate to each other.

Labor-Management Relations

LG H&H aims to establish reasonable labor-management relations in compliance with laws and principles based on mutual trust and communication through various channels between the management and employees. We hold a company meeting to share the management performance and direction and swiftly deliver business-specific major projects and strategies, which are presented by team leaders at a conference call, to all employees. We also operate various communication channels to listen to diverse opinions such as the labor-management council meeting, company-wide and divisional Employees’ Committee and What If I Board to enhance the working environment to allow employees to focus on their work and improve the quality of life. We also launched a YouTube channel called 'LG H&H TV' to form mutual trust and promote communication with employees beyond different positions and generations, and issue the 'CEO Message' to share the CEO’s management philosophy. The company also issues the newsletter 'LG H&H Family' and delivers it to employees’ houses so that their family members can share in the company news and issues. With such twoway communication, we share the company’s vision and policy to help build understanding between employees. We also carry out various other activities such as expanding support for family events (funerals for maternal grandparents) for gender equality, increased support funds for purchasing a house to improve residential life, and continuous operation of the counseling program to enhance work concentration. With such activities, we collect various wishes and opinions from employees, reflect the opinions in the system and create partnerships as a community based on trust.

Labor-Management Communication Channels
Category Frequency Description
Company-wide Employees' Committee Quarterly Listen to VOE through the representatives of employees
in each group, identify issues and find solutions
Divisional
Committee
Bimonthly Identify the atmosphere of the workplaces of
each division by channel and listen to VOE
Meeting for each position level in sales and sales promotion Quarterly Listen to VOE related to sales and promotion,
identify issues and find solutions
Labor-management committee at each
business site
Quarterly Improve the working environment of each business site, conduct surveys regarding safety and health issues, summarize results, and give feedback with solutions
Employee meeting in
each division
Yearly Conduct an employee meeting led by the leader of
a division and give feedback for each agenda