Prohibiting all forms of child labor in its operations, HMC strictly adheres to all domestic and international laws regarding the practice of child labor. In compliance to local and international regulations, HMC bans the employment of those below the minimum legal age. In addition, HMC prohibits forced labor as the indemnity for employee labor is regulated under HMC's corporate wage policy, and relevant laws and regulations.
In compliance with the Gender Equality Employment Act, HMC operates a Sexual Harassment Counseling Center. In addition, the center provides education on sexual harassment prevention to all employees on a regular basis.
HMC assigns a mentor, similar to the Big Brother program, to new employees for their first 6 months on-the-job. The program aims to help new employees become better accustomed to their new surroundings and to resolve any potential problems through peer networking.
In June, 2005, HMC issued and distributed the Employees Code of Conduct, which includes the Charter of Employees' Ethical Conducts as well as detailed bylaws, rules, and regulations regarding employee conducts. The code has been prepared in order to provide detailed criteria for the ethical and moral behavior of each and every one of the employees.
HMC is working toward a more transparent management of its business. Through the operation of a Compliance Program, HMC aims to better conform to regulations and laws and to minimize economic losses. Along with these initiatives, HMC makes concerted efforts to enroot ethical culture into the company through employee wide fair trade compliance training.
The Cyber Audit Office and the Whistleblower Hotline play a key role as HMC's office of the ombudsman in ethics and management. Upon receiving reports on unethical or unfair business practices, it orders corrective actions and conducts disciplinary training to prevent recurrences. With confidentiality policy on the report, corrective actions and conduct disciplinary training are ordered when unethical or unfair business practices are reported.
HMC complies with all domestic and international labor-related laws and regulations assuring the freedom of association. Domestically, all new employees are required to join the labor union in accordance to domestic labor laws and the collective labor agreement. In terms of overseas operations, the Labor Management Association in HMI and the Public Association in BHMC are utilized as channels for communication between the union and management.
Valuing the views of indigenous employees in its overseas operations, HMC continues to reflect the views of local employees in all management decision making processes. With respect to BHMC, 3
Chinese directors and 3 Korean directors are teamed together to participate during HMC's Board of Director meetings. In addition, HMC's global operations have implemented policies reflecting the view
of the local people in order to ensure the diverse reflection of values in corporate decision making activities.
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