Social (S)

Hyundai is committed to delivering greater value to all stakeholders and employees.

Respecting Human Rights

Hyundai complies with the International Bill of Human Rights and the declarations of the International Labor Organization (ILO), and respects the human rights of not only its employees but also all stakeholders, including suppliers. Furthermore, as a member of the United Nations Global Compact, we support the Ten Principles concerning human rights, labor, the environment, and anti-corruption. We do not tolerate inappropriate language or behavior such as verbal abuse, violence, and sexual harassment that violate the spirit of harmony, both within the company and in our relationships with our suppliers, and problematic behavior can be reported to the Internal Reporting Center. In the event of an incident involving human rights violations, the Human Resources Committee takes prompt action in accordance with the regulations and provides education to prevent recurrence and raise awareness of human rights. We also provide labor-management relations education to executives and employees to improve communication.

Declaration of Human Rights Management

Greetings,  I'm Choi Cheol-gon, Chairman of the ESG Management Committee of HD Construction Equipment.

To practice human rights management, Hyundai will respect and uphold the values of human rights, labor, the environment, anti-corruption, etc. set forth in various international human rights standards, including the Universal Declaration of Human Rights (UDHR) and The UN Guiding Principles on Business and Human Rights (UNGHR), and will actively strive to implement them.

Hyundai will dedicate its efforts to preventing human rights violations from occurring in all business operations that directly or indirectly affect the company, form a governance system in which the Board of Directors, Chief ESG Officer, and related organizations are connected at all times, and introduce and implement human rights management practices with the establishment of human rights management policies, operation of the Human Rights Management Committee, execution of human rights impact assessment, and remediation for human rights violations.

In recognition of the safety and health of employees at workplaces, coexistence and mutual growth with suppliers, and responsibilities and contributions to the environment and local communities as key human rights issues in light of the nature of our industry, we will manage and monitor the list of human rights with a focus on these issues.

We will take the lead in strengthening human rights management to ensure that this human rights policy of ours is applied and observed with respect to not only our employees, but also all stakeholders, including customers, shareholders, business partners, communities, and governments. Thank you.

July 20, 2022

Choi Cheol-gon,

President and CEO of HD Construction Equipment

Human Rights Management Promotion System

In 2022, Hyundai established the Human Rights Management Regulations and formed a dedicated organization for advanced human rights management. The executives and employees implement the Human Rights Management Declaration as a code of conduct and value judgment, while the dedicated organization develops and enforces policies to promote human rights, in addition to conducting training and human rights impact assessments. Furthermore, the Human Rights Management Committee has been incepted under the ESG Management Committee, and the members meet twice a year to discuss the Human Rights Management Declaration, establishment and revision of internal regulations, and establishment of human rights management plans. Major deliberations on human rights are reported to the ESG Committee and the ESG Management Committee under the Board of Directors.

Category	Operation	Key Roles

Human Rights Management Committee	Chairperson: Human Resources Officer  Members: Team leaders of related organizations Meeting held twice a year (ad hoc committee meeting held when necessary)	1. Establishment of basic human rights management plan 2. Matters related to human rights impact assessment, human rights education, and recommendations for improvements 3. Remedy procedures in case of human rights violations and matters to promote human rights protection

Related organizations	Human Resources, Purchasing, Legal, etc.	1. Establishment of basic human rights management plan

Human Rights Education

In accordance with the Equal Employment Opportunity and Work-Family Balance Assistance Act and the Act on the Employment Promotion and Vocational Rehabilitation of Persons With Disabilities, we provide training to prevent sexual harassment in the workplace and improve disability awareness at least once a year for all employees, in addition to the mandatory training to prevent workplace harassment and human rights violations.

Human Rights Impact Assessment

At Hyundai, we conduct human rights impact assessments to identify and prevent actual and potential human rights risks that may arise in connection with our business activities in advance. The Human Rights Management Committee was established to improve human rights management, and human rights impact assessments are conducted based on the standardized form of the National Human Rights Commission. In conducting human rights impact assessments, we take into consideration our stakeholders, including employees, customers, shareholders, business partners, local communities, and the government, and we have conducted human rights impact assessments at our business sites in Korea. In 2022, we conducted human rights impact assessment through self-diagnosis, but in order to improve upon it, we plan to develop human rights impact assessment indicators specifically tailored to our company and engage external experts for objectivity and substantiality.

Human Rights Impact Assessment Procedure

STEP 1

Identify and assess key human rights issues

STEP 2

Establish a mitigation and remediation plan

STEP 3

Implement violation mitigation measures for the list of human rights

STEP 4

Disclose the results externally

Operate grievance reporting channels and monitor human rights risks at all times

Human Rights Impact Assessment Results

Human Rights Grievance Channels and Processes

Hyundai operates an internal grievance handling committee to prepare for and promptly respond to verbal and physical abuse including sexual harassment and workplace harassment. The committee consists of at least two members from labor and management each. Various online and offline channels are utilized to receive grievance reports, and if a risk of human rights violation is found among the grievance reports received, we work to protect the human rights of employees by pursuing improvement activities. The grievance reporting system guarantees confidentiality for the complainant, and our human rights regulations stipulate measures to ensure that the complainant does not suffer any reprisal for filing a report.

Grievance reporting channels

Reporting channels	Organization representing the employees

Organization representing the employees	Wages and benefits, systems, organizational culture, working hours, infrastructure, environmental safety, etc.

Intranet	HR, compensation, education and training, general affairs, welfare, job duties, safety and health, computing, etc.

Hotline	Workplace harassment, etc.

Offline	Employee grievance handling status

Grievance Handling Process