Introduction:
POSCO Group has publicly declared its commitment to upholding human rights through the establishment of a structured, global-standard human rights management system. The announcement, made on February 20, marks a pivotal moment for the company as it sets out to address human rights concerns within its global operations. The Group Human Rights Commitment aims to create a unified framework that aligns POSCO Group’s practices with international human rights standards, focusing on respect, protection, and continuous improvement.
At the center of this initiative is the establishment of a Group Human Rights Management System, which will be implemented across POSCO Group’s global business locations, including its subsidiaries and branches worldwide. This new approach signals a major shift in how the company will manage its relationships with employees, partners, and other stakeholders, embedding human rights principles into its corporate culture.
POSCO Group’s Human Rights Commitment
POSCO Group's new commitment is the result of increasing demands from global investors, regulatory bodies, and stakeholders for greater accountability on human rights issues. It also stems from the growing importance of sustainable growth and ethical management in the company’s future direction.
The official proclamation ceremony took place at the Seoul POSCO Center, attended by POSCO Group Chairman In-hwa Chang, CEOs from multiple POSCO subsidiaries, and Sung-taek Lim, the representative attorney of Jipyong LLC. The ceremony also included a congratulatory message from the UN Global Compact Korea Association, reinforcing the significance of the announcement.
During the ceremony, Chairman Chang highlighted that respect for human rights is the foundation for POSCO Group’s sustainable growth and emphasized that the company intends to evolve from simply being a model for human rights management into an organization where all stakeholders, including employees, are respected and valued equally.
Framework for Human Rights Management
To achieve this ambitious goal, POSCO Group has set up a Human Rights Management Task Force (TF), launched in October of the previous year in collaboration with Jipyong LLC and the UN Global Compact Korea Network. The task force was created in response to several critical factors:
• Expansion of the company’s business domains and global supply chain.
• The growing demand for human rights accountability from investors and regulators in advanced countries.
• The increasing importance of human rights due diligence in global business operations.
As a result of the task force's work, POSCO Group has crafted an integrated human rights management framework that includes:
• Human Rights Governance Framework – To ensure consistent and effective management of human rights policies across all business divisions.
• Human Rights Due Diligence Methodology – To evaluate potential risks and prevent human rights violations.
• Integrated Grievance Mechanism – To handle complaints and concerns related to human rights issues.
This strategic framework is aimed at addressing both present and future human rights risks across the group’s operations. The system is designed to be proactive, enabling the company to mitigate any potential negative impacts on human rights and rectify issues promptly.
Standardization and Monitoring of Human Rights Management
One of the core aspects of POSCO Group’s new human rights approach is the standardization of its management system across the entire organization. The Group Human Rights Management Council, led by POSCO Holdings, will ensure that all subsidiaries, branches, and affiliates adhere to a consistent set of human rights standards. This council will work to establish a real-time monitoring system that can identify potential human rights issues as they arise across the company’s business activities, helping to detect issues early and take corrective actions when necessary.
Additionally, POSCO Group is committed to assessing the human rights risks of its global operations and stakeholders. This involves conducting regular human rights risk assessments across its business sites, identifying risks, and implementing preventive measures. The company plans to regularly update and refine its system, ensuring it stays ahead of emerging human rights challenges and remains aligned with global best practices.
Transparency and Global Dialogue
As part of POSCO Group’s dedication to transparency, the company has pledged to release a Human Rights Management Report in June, alongside the POSCO Holdings Sustainability Report. This report will provide stakeholders with clear insights into POSCO Group’s human rights management initiatives, including progress updates on the implementation of its human rights management framework.
The report will serve as a valuable tool for fostering ongoing dialogue with global investors and ensuring that POSCO’s operations align with the expectations of its stakeholders. By actively sharing the status of its human rights management system, POSCO Group aims to maintain an open channel of communication with the broader international business community and human rights advocates.
Broader Impact and Vision
POSCO Group’s human rights commitment extends beyond regulatory compliance. It is part of a larger vision to create a corporate culture of respect and equality, where the rights of all employees, customers, and partners are safeguarded. The group seeks to serve as an example for other multinational companies by integrating human rights principles into every facet of its operations and decision-making processes.
This commitment aligns with the growing global trend of corporate responsibility, where companies are expected to play an active role in protecting human rights and contributing to social justice.
Key Takeaways:
• POSCO Group has launched a Group Human Rights Commitment to implement a global-standard human rights management system across its operations.
• The company’s new human rights management system includes the establishment of a Human Rights Governance Framework, due diligence methodology, and an integrated grievance mechanism.
• POSCO Group is working with Jipyong LLC and the UN Global Compact Korea Network to ensure the system is aligned with international human rights standards.
• A Group Human Rights Management Council will oversee the standardization of human rights management across POSCO’s subsidiaries and branches.
• The company plans to establish a real-time monitoring system to track potential human rights issues in its operations.
• POSCO Group intends to conduct regular human rights risk assessments to prevent, mitigate, and address negative human rights impacts across its global supply chain.
• The company will release a Human Rights Management Report in June, as part of its upcoming Sustainability Report.
• POSCO’s commitment to human rights aims to foster a corporate culture of respect and equality for all employees, stakeholders, and partners.
