Hanbal Masstech Co.,Ltd.

In managing an organization or a company, ethical management refers to a method of conducting business that goes beyond the original purpose of profit generation, by emphasizing values of ethics, fairness, and rationality, and aiming for practices that benefit society as a whole. In its classical sense, management refers to the pursuit of efficiency in resource utilization and effectiveness in achieving goals.

However, in modern times, doubts have arisen regarding whether this classical meaning of management indeed has efficient and effective impacts. As a result, a new concept, corporate ethics, has emerged as a factor for organizations to gain competitiveness. Ethical management involves applying principles, values, and beliefs that assess right from wrong to managerial principles, making it an essential principle to consider in planning, systematizing, leading, and controlling an organization.

Corporate social responsibility

Modern businesses are not only expected to pursue profit but also to adhere to the social order as entities integral to society. Recognizing that a company's profits are generated from society, it is imperative to understand that a company can only survive when it fulfills the responsibilities demanded by society.

The factors determining the survival of a business

Ethical decision-making is fundamental for the survival and reputation of a company. A single unethical decision can lead a company to face catastrophic consequences, including bankruptcy or substantial losses. Even if business activities are legally compliant, they can cause societal uproar if they clash with public sentiment, potentially leading to condemnation. Ethical management practices are crucial for a company's existence. Such practices not only ensure legal compliance but also consider the ethical implications of business decisions, fostering trust among stakeholders and preventing situations that could lead to societal backlash. Ethical business conduct should be ingrained as a fundamental principle within the operations of every company, as it not only safeguards against legal repercussions but also upholds the company's reputation and sustainability within society.

Management Ethics is global standard

The OECD's International Anti-Bribery Agreement and the Corporate Ethics Management Standards set by the Ethics Officers Association (EOA) in the United States are significant global norms promoting ethical conduct. These regulations and standards demand ethical responsibility and transparency from companies, contributing to enhancing the business environment and fostering social values. The Korean government is also establishing various systems to strengthen corporate ethics management. These initiatives encourage companies to adhere to ethical behavior and fulfill their social responsibilities, emphasizing the importance of ethical management. Consequently, in a global landscape where ethical management is emphasized, companies that do not adhere to ethical standards may face severe sanctions in the business environment. Non-compliance with societal expectations could result in the loss of business opportunities and potentially undermine a company's sustained competitiveness. Therefore, ethical management plays an increasingly pivotal role in a company's success and longevity.

Providing additional opportunities to businesses

Practicing ethical management not only incurs costs for businesses but also presents new opportunities. Ethical companies not only expand business prospects but also offer intangible assets, such as a positive corporate image gained from society, resulting in potential excess profits. Only companies respected by citizens, customers, partners, and society can ensure sustained growth.

Minimizing risk costs

The practice of ethical management fosters an active mindset among company members, minimizing risks and protecting corporate assets, thereby enhancing the company's profits.

Cultivating cultural assets necessary for businesses

One of the crucial assets of a company is its corporate culture. Implementing ethical management helps establish a proper cultural consensus among company members, instilling pride and confidence, thus nurturing the human assets necessary for corporate activities.

• 01 I do not issue unfair work orders and diligently comply with laws and regulations, handling tasks transparently and fairly.
• 02 I have not solicited superiors, subordinates, colleagues, or department members for personal favors related to work evaluations, awards, etc.
• 03 I have neither accepted money nor offered bribes or favors from individuals involved in work matters.
• 04 I consistently maintain a friendly disposition toward customers and actively strive to provide solutions.
• 05 I do not avoid or delegate work responsibilities; I actively and assertively drive assigned tasks and take full responsibility for the outcomes.
• 06 I have not used work-related expenses, corporate cards, etc., for personal use or purposes unrelated to work.
• 07 I actively participate in charitable activities such as community service, donations, or blood donations.
• 08 I do not hold biases based on delay, relationships, educational background, gender, etc.
• 09 During work hours, I have diligently performed my duties without engaging in personal matters like stock investments or unauthorized absences.
• 10 I refrain from inappropriate behavior such as drinking and driving, violence, gambling, or harassment, maintaining an exemplary life as a public official.