Supplier Conduct Guidelines

The LY Corporation Group is dedicated to addressing social issues through its business activities, aiming to achieve both a sustainable society and corporate growth. Achieving these goals requires LY Corporation (the “Company”) and its suppliers to work together and make continuous efforts toward their realization.
To this end, the Company has established its Basic Policy on Procurement and conducts procurement activities in accordance with this policy. The Company has also established the Supplier Conduct Guidelines, which sets out the matters that suppliers are expected to address. The Company asks all suppliers to carefully read, understand, and follow these guidelines.

1. Environmental Considerations

  • In conducting business, strive to conserve the global environment while taking into consideration the impact of business activities on local communities and ecosystems.
  • Climate change: Improve energy efficiency and reduce greenhouse gas emissions.
  • Natural capital: Conserve biodiversity, consider the impact of business activities on air, soil, and river pollution, and reduce water consumption.
  • Resource recycling: Make effective use of resources and reduce waste.
  • Comply with environmental laws and regulations.

2. Information Security

  • Strictly manage and protect the personal information of your company, your customers, and third parties.
  • Establish systems to strictly manage and protect information obtained through business activities, and do not disclose such information to third parties without the Company’s permission.
  • Implement cybersecurity measures and establish systems for managing and protecting data.

3. Anti-Corruption and Fair Competition

  • Do not make improper monetary payments to employees or engage in any other form of bribery.
  • Comply with laws, regulations, and ethical standards concerning fair business practices, including the Antimonopoly Act and the Act on Proper Transactions with Small and Medium-Sized Entrusted Business Operators.

4. Ensuring Quality and Safety

  • Supply products that meet safety standards stipulated by laws and regulations.
  • Maintain high standards of quality and safety and continuously strive to improve technical capabilities.
  • Provide accurate information on products and services.

5. Occupational Health and Safety

  • Provide employees with a healthy and safe working environment in accordance with international standards* and laws and regulations.
  • Provide employees with appropriate information and training on health and safety, and provide appropriate support in the event of an occupational accident.
  • Comply with applicable laws and regulations regarding employees’ working hours and ensure that employees do not work excessive hours.
  • Consider what constitutes reasonable working hours based on the type of work, job duties, and circumstances in the country where the work is performed.

6. Human Rights

  • Prohibit child labor and do not employ anyone under the working age permitted by laws and regulations.
  • Prohibit forced labor and do not engage in forced, bonded, or indentured labor. Employees must also be free to terminate their employment upon giving reasonable notice.
  • Prohibit discrimination and inhumane treatment, and do not discriminate against employees in employment on the basis of gender, race, religion, or other characteristics.
  • Ensure that employees are treated with respect and dignity and are not subjected to physical or verbal abuse, any other form of harassment, threats, or intimidation of any kind.

7. Fair Compensation

  • Ensure that employees understand their terms and conditions of employment and provide fair and reasonable wages and employment conditions.
  • Ensure that employees receive a living wage exceeding the statutory minimum wage in the country where they work.

8. Respect for Freedom of Association and the Right to Collective Bargaining

  • Respect employees’ rights under applicable laws and regulations to freely choose whether or not to associate and to engage in collective bargaining.

9. Screening for Persons Subject to Economic Sanctions

  • Ensure that your company (including its officers) and your business partners are not subject to economic sanctions (including designation as sanctioned individuals or entities) under applicable laws and regulations, and eliminate any transactions or relationships with such sanctioned persons or entities.

10. Coexistence with Local Communities

  • Promote social contribution initiatives toward achieving coexistence with local communities.
*Refers to the Universal Declaration of Human Rights, the United Nations Guiding Principles on Business and Human Rights, the Children’s Rights and Business Principles, and the ILO Declaration on Fundamental Principles and Rights at Work.
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