We at Lotte believe that competitive suppliers are the driving force behind sustainable management, and we are exerting our utmost efforts in nurturing small yet highly competitive suppliers. To this end, we have established a Executive office of win-win growth in 2010 which sets group-wide mutual growth strategies/directions and reviews the related work processes and terms of business. The Lotte win-win growth academy, enables suppliers to access Lotte’s online and offline training infrastructure, which we hope will help build a sturdy foundation for sustainable growth. Lotte became the first corporation in Korea to publish a public report on its mutual growth results titled, “Lotte win-win growth report” to organize and openly share its subsidiaries’ mutual growth-related performances. Meanwhile, we constantly check on the implementation of ‘fair trade and mutual growth agreement’ at our subsidiaries and introduce customized mutual growth programs that encourage greater participation by the employees.
The Excutive office of win-win growth was founded within the corporate headquarters so as to oversee win-win growth activities at the group level. In construction of the Office of Mutual Growth Promotion in each affiliate company, having CEO as the chair, the members in full responsibility take charge for the promotion of win-win growth while regularly monitoring and improving achievement, taking the initiative by the chair. In each Office of Mutual Growth Promotion, the competent divisions including purchase, production, R&D, support, and sales are contained in the form of a task force to execute win-win growth in every division and function within the group.
We at Lotte reflect win-win growth performances in the management evaluation of the subsidiary and performance of the CEO. The CEO and executive performance standards have added win-win growth as another criteria in the ‘values’ category, which allows win-win growth to become a factor in company and executive performance assessments. In particular, we introduced win-win growth as a KPI (key performance index) for the purchasing and win-win growth executives at Lotte Shopping, Lotte Chemical, and Lotte Engineering & Construction. Under this system, win-win growth accounts for more than 10 % of total points in executive evaluation, which gives greater incentive to promote practical win-win growth policies. Furthermore, we have introduced a group-wide win-win growth performance assessment standard to review the win-win growth results at each subsidiary unit during annual performance reviews.
The Lotte Group has developed the ‘Growing Up Together’ online education curriculum that offers 12 lectures required to be taken by all employees of the group. The curriculum includes lectures on the necessity of win-win growth, current win-win growth activities within the company and externally, and win-win growth directions by strategy. This curriculum is designed to spread awareness on the importance of win-win growth and create a corporate culture based on common understanding of the need for win-win growth – which will aid future implementation of win-win growth strategies.