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Framework for Local Community Engagement

Framework for Local Community Engagement

Part 1. Framework Background of Establishment of Framework and Purpose

  1. Definition of Local Communication Engagement
    1. Local community engagement aims to ensure that the company understands and addresses problems in local communities. In particular, it aims to encourage engagement with local communities in several decision-making processes and to utilize ideas from the local community to make better-informed decisions.
    1. Local community engagement includes the following activities:
      1. Providing and sharing information on major issues with local communities
      2. Measures to deal with local community issues
      3. Diverse communication methods
    1. Local community engagement as a guideline for decision-making means collecting opinions and information from local communities to achieve sustainability in management decision-making.
  1. Purpose of Local Community Engagement and Framework Development
    1. The key purposes of local community engagement are as follows:
      1. To strengthen decision-making in connection with stakeholders
      2. To support a local community committee on communication
      3. To improve relationships with local communities and various stakeholders
      4. To encourage the participation of local communities in dealing with major issues in projects
    1. The framework for local community engagement aims to achieve the targets through the following means:
      1. Procedures for listening to and identifying the opinions of local communities and reflecting them in the decision-making process
      2. Taking a consistent approach to local community engagement
      3. Understanding from employees regarding business decisions that impact local communities
      4. Communication between local community stakeholders and the decision-makers (management)

Part 2. Principles of Local Community Engagement

  1. The six main principles of local community engagement are prior engagement, transparent information disclosure, selection and execution of proper engagement methods, inclusivity of information and period of local community engagement, as explained below.
Prior engagement A pledge to provide local communities or key stakeholders with information at the early stages of project development and to enable local communities to influence decision-making and strategy planning
Transparent information disclosure Communication with local communities in which relevant information and data are provided to ensure transparency and effective consultation
Inclusive engagement Providing opportunities to all people for consultation on relevant issues in addition to the entire local community and key stakeholders
Selection and execution of proper engagement methods Communication with local communities in which relevant information and data are provided to ensure transparency and effective consultation
Inclusivity of Information Efforts by the company to consider all kinds of information before making a decision that can impact a local community and to provide honest feedback
Period of local community engagement The period during which a local community, its residents or their way of life could be impacted

Part 3. Local Community Engagement Framework

  1. The framework for local community engagement is organized and operated according to the following process:
Providing information Providing objective information to help local communities understand the issues, measures or solutions proposed
Collecting opinions Procedures to collect opinions from local communities regarding decisions made by the company
Engagement activities Engaging with local communities to identify its members’ opinions on major issues directly
Cooperation Including cooperation with the local community in each aspect of decision-making, such as the development of alternatives and the identification of preferred solutions
Authorization Giving local communities authority to make decisions directly in the final decision-making process
  1. Process of Local Community Engagement
    1. Identify local community’s needs
    2. Decide on a purpose for local community engagement
    3. Determine the community members to be engaged
    4. Determine an engagement method
    5. Confirm the measures subject to local community engagement
    6. Engage with the local community
    7. Collect and analyze the opinions of the local community
    8. Disclose information and reflect opinions in the decision-making process

Part 4. Communication Channels for Major Stakeholders in Local Communities

Communication Channels for Major Stakeholders in Local Communities
Major Stakeholders Definition Point of contact Communication channel Major issue Communication cycle
Customer companies The basis for the creation of economic and corporate value Blast Furnace Business Division, Electric Furnace Business Division, AP Steel Pipe Business Division, Business Management Division, Innovation Strategy Division Department meetings, technology seminars, customer satisfaction surveys, customer portal sites, websites, newsletters Expanding customer communication, Enhancing customer satisfaction Protecting information frequently
Employees Key members for sustainable growth Business Management Division, Innovation Strategy Division Intranet, GWP, Future Board, education programs, labor-management cooperation Encouraging communication among employees and departments, Strengthening employee capabilities, Work-life balance frequently
Suppliers Partner cooperation for win-win growth based on stability Business Management Division, Procurement & Logistics Division, Major business sites(domestic/overseas) growth agreements, meetings, procurement system, technology exchange meetings, websites, newsletters Operating fair supply chain management process, Advancing activities to support win-win growth, Establishing a win-win growth culture quarterly, frequently
Shareholders and investors Providing financial capital as a source of corporate management Financial Management Division General shareholders' meetings, performance presentations, NDRs and conferences, 1:1 meetings, visits to worksites, public announcement materials Enhancing value of Hyundai Steel, Securing new growth engines quarterly, frequently
Local communities Local communities and their members interacting through business operations Business Management Division, Major domestic and overseas worksites Major social contribution cooperatives, feedback discussions on CSR activities, webpage, integrated reports Engaging in communication with stakeholders, Supporting socially disadvantaged and vulnerable people, Performing continuous social contribution activities quarterly, before and after social contribution activities
NGOs, government and media Proposals for the company's direction All domestic and overseas worksites Worksite visits, press releases Responding to and participating in government policy, Making transparent business announcements, Creating jobs frequently
  1. Current Information of community consultation
    1. Current production assets required community consultation : 7 asset
    2. Number of development projects in the process of community consultation : 0
      (there are no development project revenues from mining minerals)

Record on Enactment and Revision
Framework Enacted in March, 2019
Framework Revised in June, 2020
Framework Revised in May, 2021

See the History of Policies