Framework for Local Community Engagement

Part 1. Framework Establishment and Objective

1. Definition of Local Community Engagement
1. The objective of local community engagement is for the company to understand and resolve, in cooperation with local communities, the diverse issues that may arise in such communities. In particular, this involves the inclusion of local community stakeholders in a variety of decision-making processes, enabling decisions based on better information through the consideration of local community opinions. Local community engagement includes the following activities.
  1. Provision and sharing of information relating to key issues with the local community.
  2. Action plans to respond to issues arising within the local community.
  3. Diverse communication channels.
1. Local community engagement is used as a decision-making guideline that facilitates sustainable management through decisions based on a diverse collection of opinions and information.

2. Objective of Local Community Engagement and Framework Development
1. The main objectives of local community engagement are as follows.
  1. Enhancing decision-making through engagement with stakeholders.
  2. Supporting local community councils to promote communication with local communities.
  3. Improving relationships between local communities and a broad range of stakeholders.
  4. Mutual cooperation within local communities to facilitate resolution of key project-related issues.
1. To achieve the above objectives, a Local Community Engagement Framework was developed to cover the following.
  1. A process to listen to, and acknowledge, local community opinions, and to reflect these opinions in the decision-making process.
  2. Operations with a consistent approach to local community engagement.
  3. Employees’ understanding of corporate decisions that impact local communities.
  4. Communication between decisions-makers (senior management) and local community stakeholders.

Part 2. Principles of Local Community Engagement

Definition of the Principles of Local Community Engagement
1. The Principles of Local Community Engagement consist of a total of six principles (preliminary engagement, transparent disclosure, inclusive engagement, selection and implementation of appropriate engagement methods, information inclusivity, local community engagement period), which are described as follows.
  1. 1) Preliminary Engagement
    1. A commitment to provide local communities or key stakeholders with actual opportunities to influence decision-making and strategy through the provision of information in the early stages of project development.
  2. 2) Transparent Information Disclosure
    1. Ensuring transparency and effective cooperation by communicating with local communities through the provision of relevant information and materials.
  3. 3) Inclusive Engagement
    1. Providing all individuals – outside of local communities or key stakeholders – impacted by relevant issues with the opportunity for negotiation.
  4. 4) Selection and Implementation of Appropriate Engagement Methods
    1. Prior to making any final decisions, we shall provide local communities with the appropriate information, tools, engagement methods, and other such relevant details.
  5. 5) Information Inclusivity
    1. Prior to making any decisions that may impact the local community, we shall consider all available information and strive to provide honest feedback.
  6. 6) Local Community Engagement Period
    1. 6) Whenever an issue arises which impacts, or may potentially impact, local communities, local residents, or their lifestyles.

Part 3. Local Community Engagement Framework

Article 1. No Discrimination or Harassment
1. The Local Community Engagement Framework is comprised of the following items, and is managed in accordance with the relevant processes.
  1. 1) Provision of Information
    1. Providing helpful, balanced, and objective information that enables local community stakeholders to better understand the issues, alternatives, and solutions presented by the local community.
  2. 2) Collection of Opinions
    1. Implementing a process to collect local community feedback on decisions made by the company.
  3. 3) Engagement Activities
    1. Implementing diverse engagement activities to directly collect local community opinions on key issues.
  4. 4) Cooperation
    1. Promoting cooperation with local communities on each aspect of decision-making, including the development of alternatives and confirmation of preferred solutions.
  5. 5) Delegation of Authority
    1. Empowering local communities with the authority to make direct decisions during final decision-making.
  6. ※ Implementation Process for Local Community Engagement
    1. Identifying local community needs → Deciding the objectives of local community engagement → Deciding the subjects of engagement → Deciding the method of engagement
      → Local community engagement
      Confirming a plan → Implementing local community engagement → Collecting and analyzing local community opinions

Part 4. Engagement Channels for Key Stakeholders

Part 4. Engagement Channels for Key Stakeholders
Stakeholder	Definition	Responsibility	Communication Channel	Key Issues	Frequency
Client companies	The source of economic and corporate value creation	Each business division	Discussions, technology seminars, customer satisfaction surveys, customer portal site, corporate homepage, etc.	• Enhancing customer satisfaction • Expanding communication with customers • Information Protection	Ongoing
Employees	The key to sustainable growth	Business Management Division, Strategy Planning Division	Intranet, Future Board, training programs, labor-management cooperation, etc.	• Work-life balance • Strengthening employee capabilities • Promoting communication between employees and departments	Ongoing
Suppliers	Partners for shared growth, based on trust	Procurement and Logistics Group, each business division, domestic and overseas business sites	Shared growth agreements, discussions, procurement system, technological exchanges, corporate homepage, etc.	• Fostering a culture of shared growth • Promoting activities for shared growth • Operating a fair supply chain management process	Quarterly, ongoing
Shareholders & investors	Individuals and groups that, through the provision of economic capital, are the source of corporate management	Financial Management Division	Annual general meeting of shareholders, performance meetings, public disclosures, non-deal roadshows, conferences, on-site visits, etc.	• Enhancing Hyundai Steel’s corporate value • Securing new growth engines	Quarterly, ongoing
Local communities	Local groups and constituents that interact as a result of business operations	Business Management Division, domestic and overseas business sites	Social contribution council within local communities, feedback on social contribution activities, corporate homepage, integrated report, etc.	• Supporting the socially disadvantaged and vulnerable groups • Continuously implementing social contribution activities	Quarterly, before/after social contribution activities
NGO, government, media	Individuals and groups that propose directions for corporate progress and that engage in policy setting	Business Management Division, Strategy Planning Division, domestic and overseas business sites	On-site visits, press releases	• Engaging with, and responding to, government policies • Transparent management disclosures • Job creation	Ongoing

Record on Enactment and Revision
Framework Enacted in March, 2019
Framework Revised in June, 2020
Framework Revised in May, 2021
Framework for Local Community Engagement Revised in August, 2023