A company that fulfills its social responsibility for a fair market order
Lotte Rental introduces and operates Fair Trade Compliance Program for transparent and fair transactions throughout the industry
Compliance Program (CP)
The Fair Trade Compliance Program is a system that allows employees to voluntarily improve their compliance awareness and ethical awareness by providing concrete action standards to comply with relevant laws and compliance with ethical standards.
Seven Elements of Fair Trade Compliance Program (CP)
- CEO’s willingness to compliance with fair trade
- Designation / Operation of executive compliance officer with substantial authority and responsibility
- Establishment of supervision system to prevent violation
- Document management system construction
- Create case-centered manuals for fair trade compliance
- Minimum 2 hours of education per half-year differentiated for each department / class
- Sanctions against violations
CEO’s Declaration of Voluntary Compliance
Lotte Rental aims to grow as a trustworthy company through business management in compliance with laws and ethical standards in our society.
Voluntary compliance management is beyond just sticking to laws and regulations but rather taking full responsibility for our business activities and honoring ethical standards. This is a pivotal condition for the sustainable growth of Lotte Rental and earning trust from our stakeholders.
As our business expands, we are facing greater demands on strict compliance with fair trade laws and practices so that our stakeholders, including customers, can be protected under the principle of free and fair competition.
Accordingly, Lotte Rental will provide our officers and employees with continuous education and training with the goal to have all of our officers and employees fully understand the importance of voluntary compliance and implement it in their daily life at our company.
We therefore strongly encourage our officers and employees to actively participate in such education and training and put efforts into acquiring knowledge applicable to their work.
Lotte Rental has internally built the anti-bribery management system and the compliance management system and successfully obtained the relevant certifications ISO 37001 and ISO 37301.
We will continuously operate and manage these compliance management systems in accordance with the global ISO management standards that verify transparency of our corporate activities.
We urge our officers and employees to understand the necessity of voluntary compliance with fair trade practices and be fully aware of our company’s internal policies and procedures so that any violation of fair trade laws and regulation can be avoided in the course of their work.
Through these efforts, Lotte Rental will always take the initiative for our legal and social environments while providing our own competitive services balanced with compliance management.
Professionalism toward our business and ethical management are, and will continue to be, the key principles of our corporate culture. Through full realization of such principles, Lotte Rental will always seek sustainable growth in our business.
August 2024
CP operating organization
- CEO
- Compliance Manager
- Compliance Manager
(Compliance Division)
- Voluntary Compliance Council
- Compliance manager for each business sector
2016.
-
Oct
Introduction of the Lotte Rental Compliance Program
Representative director’s declaration of voluntary compliance
Appointment of the voluntary compliance officer
Establishment of the operating rules and regulations on the voluntary compliance program
Production and distribution of the handbook for voluntary compliance with fair trade practices
2018.
-
Jan Creation of the organization in charge of Lotte Rental Compliance Program (Compliance Management Team)
-
Jun Implementation of fair trade education to the department managers in the first half year
-
Jul Statement of oath for compliance provided by all officers and employees
-
Aug Establishment of the compliance guidelines for selecting and managing business partners
-
Dec Implementation of fair trade education to the department managers in the second half year
2019.
-
Mar Amendment of the handbook for voluntary compliance with fair trade practices
Representative director’s re-declaration of voluntary compliance
-
Jun Implementation of fair trade education to the department managers in the first half year
-
Aug Statement of oath for compliance provided by all officers and employees
2020.
-
May Implementation of fair trade education to the department managers in the first half year
-
Aug Implementation of fair trade education to the executive officers in the first half year
Statement of oath for compliance provided by all officers and employees
-
Oct Implementation of fair trade education in work sites
-
Nov Implementation of fair trade education to the department managers in the second half year
-
Dec Obtainment of the external evaluation on Lotte Rental’s operation of the compliance program (through the grade evaluation by the Korea Fair Trade Mediation Agency)
2021.
-
Mar Amendment of the operating rules and regulations on the voluntary compliance program
-
Apr Establishment and operation of the council for voluntary compliance
Implementation of fair trade education to the executive officers in the first half year
-
May Implementation of fair trade education to the department managers in the first half year
-
Jul Statement of oath for compliance provided by all officers and employees
Amendment of the handbook for voluntary compliance with fair trade practices
-
Sep Publishment and distribution of the handbook for voluntary compliance to all employees
-
Oct Establishment of the internal policy and guideline for reviewing contracts and laws
2022.
-
Apr Establishment of the department of compliance management
-
Jul Implementation of risk evaluation for fair trade practices
-
Sep Implementation of fair trade education to the voluntary compliance officer of each department
Implementation of compliance education to the executive officers
Introduction of the compliance management portal system
-
Dec Reformation of the compliance management bulletin board at the website of Lotte Rental
Reformation of the whistleblowing system for fair trade practices
Official enforcement of the company-wide rules
2023.
-
Jan Statement of oath for maintaining integrity provided by the executive officers
-
Mar Evaluation of major risks related to the company-wide compliance system
-
Apr Delivery of the compliance letter to the executive officers
-
Jun Implementation of the compliance management campaign
Amendment of the operational rules of the Transparent Management Committee
-
July 1st meeting of the Compliance Committee
-
Sep Statement of oath for compliance provided by all officers and employees
-
Oct 2nd meeting of the Compliance Committee
-
Nov Status review of litigations involved by overseas subsidiaries
Amendment of the standard form of the forklift lease agreement
-
Dec Establishment of the guidelines on legal matters including appointment legal counsel
2024.
-
Jan 3rd meeting of the Compliance Committee
-
Feb Establishment of the internal policies on procedures for donation and sponsorship
Report to the board of directors of the 2024 annual compliance plan
Distribution of the CEO letter regarding Lotte Rental Lunar New Year Clean Campaign
-
Mar onitoring of the processes for managing contractual documents
-
Apr Establishment of the standards for compliance cooperation with overseas subsidiaries
4th meeting of the Compliance Committee
-
May Establishment of the ISO 37301 & 37001
management system and obtainment of the ISO certifications
Amendment of the operational rules on the anti-bribery and compliance management system
Introduction of the management system for compliance keywords (banned words)
-
Jun Implementation of the campaign for the month of compliance (June-beob)
-
July Statement of oath for compliance provided by all officers and employees
Fair Trade Compliance
In order to establish a transparent and fair corporate trading culture, Lotte Rental selects suppliers with fair evaluation based on criteria and procedures under the principle of fair trade compliance.
Selection of suppliers and business processes
- with Subcontractor
- Non-subcontractor
Range of Small Business
Category, Employees, Financial Scale Range of Small Business
| Category |
Employees |
Financial Scale |
| Manufacturing |
Under 300 |
Capital of less than 8 billion KRW |
| Publising/
Visualization |
Under 300 |
Revenue of less than 30 billion KRW |
| Finance/
Insurance |
Under 200 |
Revenue of less than 20 billion KRW |
| Education service industry |
Under 100 |
Revenue of less than 10 billion KRW |
Small Business Lookup
SME status information system(http://sminfo.smba.go.kr/)
- Possible to view the type of industry, the number of permanent employees, capital, sales
Scope of service during service charging : See attachment
- Bidding
- A private contract
Bidding
Competition, nominated competition, limited competitive bidding
Vendor contract processing standard
- ① In case of natural disasters, emergency disasters, urgent business promotion or events, etc.,
- ② If you can not compete due to technology, service or specific location structure, quality, performance, efficiency etc.
- ③ If it is judged to be advantageous to the company's profits or is deemed necessary for marketing activities
- ④ If necessary for the protection of the company's confidentiality
- ⑤ In addition, if it is judged to be reasonable by the private contract for the purposes and nature of the contract
- Subcontractor
- Non-Subcontractor
Written documents for subcontracting transactions
A table width No, Documents, Remarks
| No |
Documents |
Remarks |
| 1 |
Basic contract |
Subcontracting Act Article 3 |
| 2 |
Subcontract Confirmation |
Article 3 Clause 6 of the Subcontract Act |
| 3 |
Reduction Document |
Article 11 of the Subcontract Act |
| 4 |
Technical Data Request |
Article 12-3 of the Subcontract Act |
| 5 |
Certificate of receipt |
Article 8 of the Subcontract Act |
| 6 |
Notice of inspection result |
Article 9 of the Subcontract Act |
| 7 |
Contract Change Notice |
Article 16 of the Subcontract Act |
- Subcontractor
- Non-Subcontractor
Fair Trade Hotline (Internal Accusation System)
-
Compliance Manager
Address : 9F, 422, Teheran-ro, Gangnam-gu, Seoul (06193)
-
Fair Trade Hotline
Tel.(02) 3404-9916
Objects to Report
·Unfair joint activities of stakeholders, such as bidding collusion for the purpose of trading with the Company
·Exceeding the Code of Conduct for Fair Subcontracting Transactions
·Unfair trade practices such as abuse of other trading positions
·Disadvantaged treatment disclosure of legitimate claimants
·Unfair trade practices violating Fair Trade Act, Display Advertising Act, and unfair customer incentives.
·Report of complaints from partner companies and reporting of unfair trade practices
·Receiving unfair gifts, hospitality, and convenience from stakeholders
·Those who have been involved in bribery or embezzlement
·Using the position or the job to gain unfair advantage or to damage the company
·Interfere with other employees’ fair work for the benefit of themselves or others
·Unauthorized disclosure of company secrets and customer information
Informant Protection
·Confidentiality of the identity of the informant and the content of the notification
·Prohibition of identity leaks of the informant and detection of the informant
·Prohibition of discrimination and disadvantage treatment
ISO 37001 & ISO 37301
(Anti-Bribery Management System &
Compliance Management System)
In addition to the ISO 37001(Anti-Bribery Management System) certification obtained in 2023, Lotte Rental has
successfully obtained in 2024 the ISO 37301 (Compliance Management System) certification by systematically
running the compliance management system.
We are delighted to have such official recognition on the reinforcement of Lotte Rental’s ethical management system.
- ∙ ISO 37001: Certification that the company has established and is operating an anti-bribery management system to the level required by global society
- ∙ ISO 37301: Certification that the company has established a system whereby it can identify, control and manage compliance obligations in all areas of its business activities and management
ISO 37001 Certification
ISO 37301 Certification
Anti-Bribery Policy
Lotte Rental is committed to becoming an exemplary company serving our customers at all times with the
highest standards of humanistic capitalism, mature corporate citizenship and practical business ethics. To realize
such commitment, the following is established and implemented
1. All of our directors, officers and employees (“Lotte Rental Personnel”) will comply with all international and local anti-bribery laws and Lotte Rental’s internal anti-bribery policies.
2. Lotte Rental will establish and continuously improve internal anti-bribery policies and compliance management systems, due compliance of which will lead to the implementation of ethical and transparent management.
3. In case any Lotte Rental Personnel becomes aware of any violation of laws or internal policies, including any corruptive behavior, such person shall immediately report it to Lotte Rental. We will strictly protect the identity of the whistleblower and will not retaliate or treat such whistleblower unfairly.
4. Lotte Rental adopts a zero tolerance policy toward any violation of laws or internal policies, including any corruptive behavior by Lotte Rental Personnel.
5. Lotte Rental will make this policy publicly available and expand communication channels so that any changes in our business landscape and anti-bribery and compliance demands from our stakeholders can be timely reflected in our policies.
6. Our anti-bribery compliance officer will have independent responsibility and authority regarding anti-bribery and compliance management and provide advice and guidance to all Lotte Rental Personnel for the resolution of any relevant issues.
May 2024
