POSCO Establishes Dedicated 'Corporate Citizenship' Organization in Group Companies

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[Asia Economy Reporter Hwang Yoon-joo] POSCO has established a 'Corporate Citizenship Office' organization in its major group affiliates. Following the creation of the Corporate Citizenship Office within POSCO, the group recently set up dedicated organizations in its affiliates to fully expand the corporate citizenship activities, which are the management philosophy of POSCO Chairman Choi Jeong-woo, and to reflect these activities in management evaluations.

According to industry sources on the 6th, POSCO group affiliates such as POSCO International, POSCO Engineering & Construction, POSCO Energy, POSCO Chemical, and POSCO ICT have established Corporate Citizenship Offices. The remaining affiliates have set up dedicated teams at the team level.

Corporate Citizenship is a new management philosophy declared by Chairman Choi after his inauguration. It embodies the philosophy of actively participating in solving social issues beyond economic profit generation.

In December last year, Chairman Choi said at the 'Corporate Citizenship POSCO Performance Sharing Event,' "This year (2019), we laid the foundation for the corporate citizenship management philosophy through the proclamation of the Corporate Citizenship Charter," and added, "From next year (2020), we will make it a year to fully practice the charter and achieve results."

POSCO’s separate establishment of a corporate citizenship organization is interpreted as a determination to produce concrete results related to corporate citizenship activities starting this year. Since Chairman Choi’s inauguration, corporate citizenship activities have been led by the group, but from this year, the intention is to expand the scope and responsibility company-wide.

Until now, group affiliates planned corporate citizenship activities together through publicity or other organizations. Going forward, the Corporate Citizenship Office will be responsible for related activities. Each group affiliate already submitted corporate citizenship activity plans to Chairman Choi in the second half of last year. These plans are mainly focused on POSCO’s six major corporate citizenship representative projects, such as win-win growth and venture platform establishment.

As part of this, POSCO launched a new corporate citizenship website on the 2nd to allow confirmation of a series of activities in one place.

POSCO is also establishing an evaluation system for corporate citizenship activities. Recently, through personnel and organizational restructuring, the ESG (Environment, Social, Governance) group newly established within POSCO’s Corporate Citizenship Office is developing a corporate citizenship evaluation index, which will be used to reflect in the management evaluations of affiliates.

A POSCO official explained, "In the third year since the proclamation of the corporate citizenship management philosophy, we have organized the affiliates to practice the management philosophy according to the characteristics of their businesses," and added, "This year, the group affiliates will also produce concrete results in corporate citizenship activities."

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