Establishing Internal Control Systems and Strengthening Dedicated Teams
Accelerating 'Trust Recovery'... Leaping Toward a 'Sustainable Company'
Namyang Dairy Products announced a high-intensity reform plan focused on "strengthening compliance and ethical management" on the 16th. The aim is to break away from the wrong practices of the past management system and regain trust from shareholders and consumers through transparent and ethical management.
Namyang Dairy Products will introduce advanced systems to strengthen internal controls. These include ▲Audit Service to prevent illegal issues in finance and accounting ▲Financial Management Internal Control Rule Book to strengthen company fund management and prevent financial accidents ▲Security Management Internal Control Rule Book to enhance company security and protect information assets. Through these measures, the company plans to minimize potential incidents and establish a system for proactive prevention, thereby fostering autonomous internal control.
Additionally, the company will establish the "Compliance Control Standards" as a systematic internal control guideline. Based on this, continuous monitoring will be conducted to detect abnormal transactions or inappropriate behavior, thereby reinforcing compliance. An ethics management hotline reporting channel will also be activated to allow employees and stakeholders to consult at any time and report violations.
An ethical code for a fair and clean corporate culture will also be established. To ensure implementation, guidelines for employee conduct have been prepared, including ▲prevention of corruption such as solicitation and acceptance/provision of money or valuables related to duties ▲compliance with fair trade and international trade laws ▲use, management, and security of company confidential information.
To support this compliance and ethical management reform, Namyang Dairy Products recently established a dedicated organization. In May, the "Compliance Management Office" was created directly under the CEO, with Lee Sang-wook, former chief prosecutor of the Seoul Central District Prosecutors' Office, recruited as the head. Furthermore, to strengthen management and supervision, the position of "Compliance Officer" was elevated from team leader to executive level, appointing Lee as the Compliance Officer.
Moreover, Namyang Dairy Products plans to establish a "Compliance Committee" this month to oversee compliance and ethical management. The committee will include external experts to ensure it functions effectively and substantively. This committee will review Namyang Dairy Products' compliance and ethical management policies and internal control systems, monitor compliance on major issues, and serve as the compliance control tower.
In addition, the company plans to solidify the Fair Trade Compliance Program introduced last December by strengthening internal compliance systems and codes of conduct to adhere to fair trade laws. Various educational programs on compliance and ethical management, fair trade, anti-corruption, and win-win growth will be operated to enhance employees' compliance awareness and spread a culture of compliance.
Lee Sang-wook, head of Namyang Dairy Products' Compliance Management Office, stated, "We will establish norms and systems for compliance management to prevent unethical and illegal issues in advance. When illegal or unethical acts by employees are detected, we will strictly apply a zero-tolerance principle without exception, including personal accountability of the perpetrators, managerial responsibility, and legal liability." He added, "By operating various compliance and ethical management education programs, we will raise employees' compliance awareness and integrity sensitivity, promote win-win growth with partners, and do our best to become a trusted and sustainable growth company for our customers."
Meanwhile, Namyang Dairy Products ended its 60-year owner system, and at the end of January, the largest shareholder changed to Hahn & Company. The company maintains a leading position in the market with key products such as milk (Mat-itneun Uyu GT), infant formula (I Am Mother), fermented milk (Bulgaris), processed milk (Choco Emong), tea (17 Cha), and protein (Takefit). Through efforts for mutual growth with dealerships, it was selected as a "Dealership Partner Company" by the Fair Trade Commission last year. The company also continues activities to fulfill corporate social responsibility, such as producing and distributing special infant formula for children with epilepsy and congenital metabolic disorders.
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