Social - Supply Chain

To fulfill our social responsibility in the tourism supply chain, we seek to embed sustainability in our suppliers as well. For this purpose, we established the Code of Conduct for our suppliers and assess their sustainability to support improvement actions.

We have established the Code of Conduct that reflects key pillars to help our suppliers understand and implement sustainability in their business operations.

• 
  Ethics

  Transparency and anti-corruption, conflict of interest, fair trade practices, and information security

• 
  Environment

  Environmental management of suppliers

• 
  Labor Rights

  Non-discrimination, standard working hours, respect and dignity, anti-child labor

• 
  Safety and Health

  Safety and health management, emergency response

• 
  Management System

  Risk assessment, training and communication

We conduct annual sustainability assessments for major suppliers and reflect the results in our overall supplier assessment. We request improvements where risks are found and verify the remediation measures if necessary.

• Step 1. ESG Assessment Annual assessment Determine if relevant issues have arisen
• Step 2. Recommendations Issue requests and recommendations for improvement Request issues to be fixed
• Step 3. Verification Verify the outcome of remediation actions Confirm results and provide feedback

Hanatour’s ESG Committee conducts discussions on supply chain concerns and makes appropriate decisions. Our framework ensures that resolutions and insights are delivered to the responsible parties for implementation.

Operational Governance

• ESG Committee
• CEO
  • Merchandising – Service supply chain
  • Supply – Hotel service management

Supply Chain Flow

• Enrollment Screening for: - Service competitiveness - Financial strength - Industry reputation - Sustainability awareness - Transparency in management - Other issues, etc.
• Assessment Assessment for: - Service competitiveness - Customer satisfaction - Compliance with the operating guidelines - VOC handling - Financial strength - ESG risk management
• Management Management for: - Warnings to poorly performing suppliers - Remediations - Inspections - Support policies - Penalty system - Suspension in case of major issues

Supply Chain Assessment

• Step 1. Periodic Assessment VOC assessment HCSI ESG issues
• Step 2. Self-improvement Request suppliers to remediate issues voluntarily Request suppliers to demonstrate remediation results
• Step 3. Comprehensive Assessment Accumulate periodic assessments Derive a summative assessment
• Step 4. Follow-up Reward excelling suppliers Warn poorly performing suppliers Provide support for improvement (training)

We conduct risk assessments and various activities to strengthen the competitiveness and sustainability of the supply chain.

Risk Assessments for the Supply Chain

We define risks as poor quality and deficiencies in the overall service, such as negative changes in customer service metrics and lack of safety services. We select and monitor risk factors using data collected through post-trip customer surveys and communicate the findings to suppliers to implement remedies if necessary.

Actions for Supply Chain

The competitiveness of our supply chain is a key element of Hanatour’s tourism services. We provide various support programs to ensure competitiveness and risk management, striving to foster win-win relationships.

Regular Meetings

We hold meetings with our global suppliers to exchange views and gather feedback. Their suggestions and proposals are carefully considered and discussed, and then actively integrated into our business plans and service improvements.

Training Programs

Hanatour has established the Cyber Training Center to provide training programs and strengthen the competitiveness of our suppliers. We deliver necessary insights such as core values and critical issues to nurture our suppliers’ capacities.

Specialized Programs

We run intensive training programs to ensure high quality service and customer safety by enhancing the strengths of our suppliers. We also share with suppliers know-how on the latest tourism trends and travel issues in Korea to increase customer satisfaction and create better travel experiences.

Periodic Assessments

Our annual supplier assessments are designed to gain full visibility of the strengths of our suppliers, find new potential suppliers, and offer more opportunities to those with excellent evaluations. Based on customer feedback, we identify and communicate deficiencies and provide support for improvement and remediation.