LG Electronics

LG contributes to access to technology through its IT Power Plant programme, which creates spaces at child welfare institutions around the world to support digital learning for underprivileged children. The company demonstrates best practice in its approach to making technology accessible for users with disabilities, for example, by including audio guides and audio descriptions in TVs, and soliciting feedback from accessibility experts. The company also discloses the number of people with disabilities it employs. Additionally, LG discloses how the economic value it generates is distributed among its stakeholders.

LG supports basic digital skills development through its Coding Genius initiative in the Republic of Korea, which teaches coding to middle school students from low-income households or living in remote areas. The company also supported three schools in the Democratic Republic of Congo through the installation of solar-powered charging systems.

LG meets industry norms for monitoring, responding to and reporting on information security incidents. It also discloses a high-level commitment to cybersecurity and makes a commitment to child online safety.

LG has a high-level commitment to open source initiatives, supported by a number of projects. It also supports the tech start-up ecosystem through its venture capital fund. Furthermore, the company commits to supporting the UN Sustainable Development Goals (SDGs) and uses them as a framework for its reporting.

LG has an opportunity to introduce a programme to support digital opportunities for women and girls. The company should also consider undertaking third-party impact assessments for its IT Power Plant initiative to understand how children are benefitting from the programme. There is also an opportunity for the company to disclose the taxes it pays and its employment in its main markets.

LG can undertake a third-party impact assessment for its Coding Genius programme. Also, while it has some basic digital skills programmes, the company can look at expanding these or introducing new initiatives focused on developing intermediate and technical digital skills.

LG should publish a document on how cybersecurity is handled within the group, as well as demonstrate high-level accountability for its cybersecurity matters. While the company reports having an information security management certificate, it should consider making this public to enhance transparency. The company should also develop a group privacy policy.

LG has an opportunity to support social or non-profit start-ups and entrepreneurs from underrepresented backgrounds. The company should also disclose the number of women it employs in tech roles and how it applies ethical principles to its research and development (R&D).

LG publicly commits to respecting human rights in a policy document. However, the company’s commitment to respect the ILO core labour rights can be stronger. For example, the company does not provide a public statement that it requires its business relationships to respect the rights to freedom of association and collective bargaining. LG does, however, have a grievance mechanism accessible to both workers and external stakeholders to raise human rights concerns and complaints. LG has included human rights issues in its corporate social responsibility risk assessment. However, it does not disclose a process to identify, assess and act on the salient human rights risks associated with its own operations and with its business relationships. Furthermore, the company describes the different stakeholders it engages with in general, but it does not specify whether it engages with stakeholders whose human rights could be affected by its activities.

LG publicly commits to respecting worker health and safety. It also places the same expectation on its business relationships. However, the company has no publicly available policy commitment stating that it does not require workers to work more than the regular and overtime hours. It also does not explicitly state that it requires its business relationships to make this commitment. LG discloses the percentage of its workforce covered by collective bargaining agreements in Korea but does not provide this information for its global workforce. The company also states that it offers wages that are higher than the minimum prescribed by local law in each region, but it is not clear whether this is enough for an employee and their family to maintain a decent standard of living. LG does not publicly commit to promoting gender equality and women’s empowerment. The company also does not provide a breakdown of workforce diversity per employee category.

LG has a policy prohibiting bribery and corruption, but it can include anti-bribery and anti-corruption clauses in its business relationship contracts. The company has a global tax strategy. However, it does not disclose its income tax payments made in individual tax jurisdictions. Further, LG does not disclose its approach to lobbying and political engagement. Specifically, the company has no public statement indicating that it does not make political contributions, and it does not disclose its lobbying expenditures.