[Activities for growing together with local communities and to achieve the Sustainable Development Goals (SDGs)]
(3) POSCO Group Indonesia's OVOP (One Village One Product) activities
Overview Strengthening of the self-sustainability of Indonesian local communities through local OVOP activities in cooperation with KOTRA
Duration of activities October 2019 - September, 2020 (1st year’s activities currently in progress)
Target region of activities Villages near Cilegon City, Banten Province, Indonesia
Input cost 10,000 USD (for machinery purchases, packaging improvement, etc.)
Beneficiaries Local community residents
Activity details
Provision of medical programs for the improvement of the basic medical environment
- ㆍAn MOU for one-year cooperation between the local co-op, KOTRA and POSCO's representative Indonesian affiliate/KP was signed on September 10, 2019 in the conference room on the first floor of Cilegon Kp’s main building.
- -The signing event was attended by Indonesia's Ministry of SMEs, the region's local government, the CSR professor at National University of Indonesia and local press.
- ㆍSupport for the local co-op's efforts to increase production: secured a site for production and purchased crushing, mixing, and packaging machinery.
- -Previously, 30kg of produce was produced entirely by hand each day.
- ㆍPioneering overseas markets by improving product packaging and utilizing KOTRA's overseas network: improved packaging design, additional provision of English information on packaging, promotion of product exhibitions, etc.
- -Previously, all produce was sold 100% domestically via existing traditional markets, local grocery stores, etc
- ㆍ For more effective operation of the co-op, the following new measures were implemented: POSCO's regular visits to the co-up, POSCO's monthly performance reviews in conjunction with KOTRA, and Indonesia's Ministry of SMEs’s interim and final performance reviews.
- -Rather than serving as one-off support, the activities are intended to help lay the foundation for the co-op’s self-sustenance, thereby securing the ability of self-support for the local community.
Results
- -Activities intended not as simple support but to increase the local community’s ability to self-support.
- -Provided practical support to the local community through the improvement of its residential environment as well as improving existing public facilities and even building new ones.
- -SecuredIncreased the production capacity of the local co-op by 4 times (target production capacity) and a consequent increase in sales.
- -Cemented the image of POSCO as a company willing to respond to requests from local communities and to grow together with them.
※ Pictures of activities
(4) Establishment and operation of the social enterprise “KPSE”
Overview A project aimed at reinforcing the foundation for local economic independence through the promotion of employment
Duration of activities 2015 - present (ongoing)
Target region of activities Cilegon City, Indonesia
Input cost 1.4 billion KRW (700 million KRW by POSCO and 700 million KRW by KOICA)
Beneficiaries Residents (youth) of the target region
Activity details
- ㆍProvision of vocational education and jobs to young people living near POSCO's business site, and returning profits to society
- -Education consists primarily of a personality change program developed by South Korea’s COPOIN.
- ㆍSince its founding in 2015, KPSE has provided education to 230 local youths over the course of 4 years, with 160 of them having since found employment.
- -Project details: Performs work outsourced by KP (Achieved sales of 15.4 billion INR and an operating profit of 4.8 billion INR in 2018)
- ㆍIn the year 2018, over 8 billion INR (about 550,000 USD) was given back to the local community.
- -Job creation (employees hired by POSCO, wages given to day laborers), youth education expenses and CSR activities
- ㆍDiversification of education programs designed to create local jobs and the holding of small-scale startup idea competitions
- ㆍStrengthening of networks with communities in the region, e.g., village leaders, youth associations, local government offices, NGOs, and women's communities.
- -Discovery of activities in connection with CSR strategies and joint participation in activities, and expansion of youth education and job opportunities at the related complexes
- ㆍProgram breakdown (6-month course)
※ Pictures of activities
1. Recruitment notice and written testing
2. Adaptation to the organization and personality training (5 days), and job training (6 weeks)
4. Volunteer activities for the local community
Results
- -Established a sustainable CSR model (SDGs) within Indonesia through public-private cooperation
- -Resolved environmental complaints from the local community in relation to steel mill operations and forged friendly relations with the local community.
- -Raised the position of POSCO Group Indonesia as a local company by conducting win-win cooperation with the local community as its member.
[Cultivating future leaders for Indonesia]
(5) The study-in-South Korea program for young leaders in Indonesia
Overview Running a study-in-South Korea program and a related community for young leaders in Indonesia
Duration of activities 2006-2020 (16th year’s activities currently in progress)
Beneficiaries Students with the potential to grow into future leaders for Indonesia
(A total of 36 persons selected since 2006)
Activity details
- ㆍA course that supports young talented Indonesian individuals to complete their master's and doctoral programs in South Korea (full tuition and living expenses paid by POSCO)
- ㆍWhile completing their master's/doctoral programs, young talented Indonesians will be given the opportunity to increase their knowledge of the economy, culture and society of South Korea so that they can, based on their increased intimacy towards and understanding of South Korea, grow into leaders of Indonesia and also global leaders who are friendly towards South Korea.
- ㆍEligibility criteria for beneficiaries are loose so that a wide variety of young Indonesian talents can apply for the program through advertising taken out via Indonesian universities, media, and social networks.
- ㆍStrengthening of beneficiaries' bonds with South Korea and POSCO by engaging them in community activities during their studies in South Korea and by letting them continue to do community activities on a regular basis even after their return to Indonesia. Securing of forces who are friendly towards South Korea and POSCO by maintaining the network with them.
- -Program beneficiaries, after being nurtured into forces friendly towards South Korea, are expected to play a role in the future that bridges South Korea and Indonesia in the two countries’ relations.
- -Visits to POSCO's global business sites
- -Holding of regular meetings, holiday (Lebaran) gatherings and year-end events
Results
- - Program beneficiaries, after being nurtured into forces friendly towards South Korea, are expected to play a role in the future that bridges South Korea and Indonesia in the two countries’ relations.
- - Contribution to national and social advancement by fostering future young leaders for Indonesia.
(A high proportion of those who have completed the program are currently officials in Indonesia’s central government departments * Presidential Secretariat, Ministry of Trade, Ministry of Transportation, etc.)
※ Pictures of activities
Regular meetings between international students and POSCO employees Graduation event
(6) The scholarship program for local university students in Indonesia
Overview This program selects excellent students from local universities in Indonesia and supports them to concentrate on their studies.
Duration of activities 2006-2020 (16th year’s activities currently in progress)
Input cost 52,500 USD per year
Beneficiaries Cooperation partner universities (National University of Indonesia, Bandung Institute of Technology and University of Sultan Ageng Tirtayasa)
Activity details
- ㆍScholarship students are selected jointly by POSCO and the school from among those with excellent academic performance and those recommended by the school. (Selection takes place in April-May at the cooperation partner universities.)
- ㆍIn order to strengthen bonds with newly selected beneficiaries of the program, POSCO participates directly in the selection process and provides support to those selected from among freshmen until they graduate provided certain conditions are maintained.
- ㆍStrengthening of bonds with program beneficiaries and the expansion of opportunities to communicate Korean culture to them by providing them with internship opportunities and the opportunity to participate in our global volunteer activities (Steel Village, etc.) and to visit our business sites.
- ㆍNumber of students selected for each university
- -National University of Indonesia (UI): 15 students (1,500 USD per year)
- -Bandung Institute of Technology (ITB): 10 students (1,500 USD per year)
- -University of Sultan Ageng Tirtayasa (UNTIRTA): 15 students (1,000 USD per year)
Results
- - Provided support for our company's localization and social contribution activities in Indonesia and took advantage of pools of manpower provided by POSCO affiliates operating in Indonesia.
- - Selected and supported talented individuals from universities in Indonesian local communities and Indonesia's best universities so that they could grow to serve as stepping stones for exchanges between South Korea and Indonesia.
- - Cultivated forces who are friendly towards South Korea and South Korean companies by maintaining relations with selected beneficiaries and engaging them in community activities.
※ Pictures of activities
Scholarship certificate awarding ceremony
Participation in POSCO’s global volunteer activities
(7) The Out of School Children (OOSC) Program for Indonesia
Overview A special program aimed to support unschooled children in severely underprivileged households in Indonesia (in connection with UNESCO)
Duration of activities November, 2019-December, 2021 * Some adjustments made to the schedule due to the ongoing COVID-19 situation
Target regions of activities Jakarta City, Cilegon City and Karawang Regency in Indonesia
Input cost 600,000 USD in total
Beneficiaries Unschooled children in severely underprivileged households in each target region and associated teachers.
Activity details
- ㆍKey activities
(1) Selection of 10 CLCs (Community Learning Centers) in each target region (January, 2020)
* A CLC is an institution established in a region to raise the region's level of education. CLCs are one of the top 10 types of alternative schools intended for those who cannot receive public education due to poverty, distance, the necessity to work, etc. CLCs are operated with governmental support, but their operating conditions are very poor due to shortage of funding, etc.
.Jakarta (2 locations), Cilegon (6 locations) and Karawang (2 locations)
(2) CLC environment improvement, support for educational equipment and conduct of teacher education/training (planned)
(3) Conduct of seminars to publicize and promote the issue of “out-of-school children” issue (planned)
Plans set for POSCO employees to directly participate in activities in connection with connected with POSCO Group affiliates’ social responsibility activities
※ Pictures of activities
Preliminary on-site inspection visit to a CLC
Visit to and meeting at the Jakarta's State Office of Education
[Support for emergency relief activities]
(8) Provision of COVID-19 relief supplies to Indonesian local communities
Overview POSCO Group’s head office and POSCO Group's Indonesian affiliates jointly provide COVID-19 prevention equipment (infection prevention face masks and quick test kits) to the local communities that house POSCO business sites.
Duration of activities May, 2020
Target regions of activities Cilegon City, Karawang Regency and Merauke Regency in Indonesia
Input cost 1 million USD in total
Beneficiaries POSCO employees and residents of the local communities that house POSCO business sites
Activity details
- ㆍ Support details
(1) POSCO Group's head office and POSCO Group's Indonesian affiliates jointly provide 32,227 infection prevention face masks (worth about 900,000 USD) to employees of partner companies and their family members in local communities.
(2) POSCO Group's Indonesian affiliates jointly donate 3,180 quick test kits (worth about 100,000 USD) and relief supplies to local governments and local communities.
(3) POSCO employees jointly produce emergency relief kits and deliver them to vulnerable groups. (A total of 2,000 kits produced; 1,550 kits for vulnerable groups, 250 kits for orphanages, 100 kits for the people with disabilities association and so on, with the addition of funds worth 20,000 USD raised jointly by POSCO Group affiliates and partner companies, including those donated by employees through POSCO 1% Foundation.)
- - These activities are intended to protect the safety of local communities (particularly the local community of Cilegon City, the center of the Indonesian steel industry), people working in the steel industry and their families amid the ongoing spread of COVID-19 while practicing the management philosophy of “a Corporate Citizen Who Grows Together with Society.
Results
- - Strengthened POSCO Group's mutually appreciative, trustful relationships with Indonesian local governments and local communities
- - Promoted POSCO's corporate citizenship activities via coverage by state-wide press and local press and raised the corporate image of POSCO affiliates operating in Indonesia and South Korean companies operating in Indonesia in general. (The activities have been covered by some 10 Indonesian domestic media platforms.)
※ Pictures of activities
Event celebrating the delivery of quick test kits to Cilegon City Government
Delivery of infection prevention face masks to employees
(9) Delivery of relief funds to and provision of relief supplies to disaster areas in Indonesia
Overview Delivery of relief funds and relief supplies to local communities for cases of national disasters in Indonesia
Duration of activities August, 2018, October, 2018, and January, 2019
Input cost 1.1 million USD in total
Beneficiaries Indonesian Red Cross Society and Indonesia’s regional Red Cross offices
Activity details
- ㆍ POSCO Group’s head office and POSCO Group's Indonesian affiliates jointly raise and deliver relief funds to local communities.
- - January, 2019. Delivered funds worth 500,000 USD raised for repair of damage caused by the Sunda Strait tsunami together with relief supplies.
- - October, 2018: Funds worth 500,000 USD raised for repair of damage caused by an earthquake in Central Sulawesi were delivered.
- - August, 2018: Delivered funds worth 100,000 USD raised for the repair of damage caused by an earthquake on the island of Lombok.
Results
- - Shared the hardships of Indonesia's local communities and fulfilled social responsibility in Indonesia.
- - Promoted our company via coverage by Indonesia's state-wide press and local press and enhanced the corporate image of our company and South Korean companies in general for our primary interested parties.
※ Pictures of activities
Delivery ceremony for funds raised to repair damage caused by the Sunda Strait tsunami
Delivery ceremony for funds to repair damagecaused by the Lombok earthquake
[Supporting activities in the fields of culture and sports]
(10) Sponsorship for Bandung Philharmonic concerts
Overview Provision of sponsorship for concerts by Bandung Philharmonic, Indonesia's first-ever local symphony orchestra.
Duration of activities 2018-2019 * Concerts scheduled for 2020 have been canceled due to the COVID-19 outbreak
Input cost 10,000 USD in 2018 and 10,000 USD in 2019
Activity details
- ㆍ Sponsored a cello night concert and a Bandung concert held for Jakarta's local community (February, 2018).
- ㆍ Sponsored a chamber music concert held as part of social contribution activities for Bandung's local community (April, 2019).
Results
- - Contributed to enhancing the cultural competence of Indonesia where classical performances are scarce and thus enhanced the image of South Korea and of POSCO Group by sponsoring concerts with the participation of South Korean performers.
※ Pictures of activities
Concert by Bandung Philharmonic
(11) Sponsorship for Taekwondo Championship events
Overview Provision of sponsorship for Indonesia's Sacti Grand Championship 2018
Duration of activities 2018-2019 * No events planned for 2020 due to the COVID-19 outbreak.
Target region of activities Jakarta, Indonesia
Input cost 5,000 USD in 2018 and 7,000 USD in 2019
Results
- - Promoted the Korean-originated sport of taekwondo and enhanced the corporate image of POSCO Group.
- - Practiced the management philosophy of “a global corporate citizen” and enhanced the corporate image of POSCO Group.
※ Pictures of activities
POSCO logo inserted onto a certificate of merit
/ Uniform for operations personnel
[POSCO Group affiliate-specific CSR activities for local communities]
(12) [POSCO] The “Ayo Semangat – Dream School” project
Overview Improvement of the educational environments of sister elementary schools in the target region and the provision of services to them
Duration of activities June, 2019-present (ongoing)
Target region of activities Areas near Cilegon City, Indonesia
Input cost Approx. 10,000 USD in 2019 (activities completed) and approx. 110,000 USD in 2020 (budget for the year).
* 1% of employees’ salary shared and donated and POSCO Group's own funds donated
Beneficiaries One elementary school in the target region (Al-Khairiyah Gesin)
Activity details
- ㆍ A volunteer corps of Korean employees (Ayo Semangat, with 130 members) from POSCO affiliates and local partner companies has been organized to conduct volunteer activities.
- - Conduct of regular volunteer activities once a month (on a Saturday)
- - Improvement of educational facility environment through skills donation, and the construction of a hope library and rides.
- ㆍ Volunteer activities continue to be conducted under infection prevention rules even amid the ongoing COVID-19 outbreak.
- - Delivery of infection prevention supplies, paving of the entrances to classrooms in the school, installation of a small library, painting murals, etc.
- ㆍ Linking with the project of making Gwangyang Street a regional tourist attraction (roadside trees, flower beds, and symbolic sculptures). * Gwangyang Street: an area officially designated by Cilegon City to mark the establishment of its sisterhood relationship with Gwangyang City in South Korea.
Results
- - Won the CSR Citra Award in the education category from Cilegon City in 2019
- - Practiced the management philosophy of “a corporate citizen” and enhanced the corporate image of POSCO Group.
- - Enhanced the image of South Korea in Indonesia by improving the environment of a street symbolic of a South Korean city (Gwangyang Street) in its sister city, etc.
※ Pictures of activities
Launching ceremony for a hope library
Arranging of newly purchased desks and chairs
School environment improvement activities
Production of COVID-19 relief kits
(13) [POSCO Chemical] CSR activities for local communities
Overview Activities to improve the environments of local communities, and support for and donations to local residents.
Duration of activities January 2018-present (ongoing) (2018: 5 instances. 2019: 18 instances. 2020: 7 instances.)
Target region of activities Areas near Cilegon City, Indonesia
Input cost 1.5 million USD in 2018 and 1.8 million USD in 2019 (activities completed). 0.4 million as of June 2020
Activity details
- ㆍ Improvement of the environments of a nearby village (Kubangsari) and the coastal area, the installation of convenience facilities for local residents, and so on.
- ㆍ Donations of goods and provision of services to orphanages and schools in the region
Results
- - Practiced the management philosophy of “a global corporate citizen” and enhanced the corporate image of POSCO Group.
※ Pictures of activities
Improved the environment of the coastal area, installed sports facilities for local residents and provided relief supplies to local residents
(14) [POSCO ICT] CSR activities for local communities
Overview Activities to improve the environment of the target local community and to improve the educational environments of schools in the region
Duration of activities January 2017-present (ongoing) (2017: 7 instances. 2018: 7 instances. 2019: 8 instances. 2020: 4 instances.)
Target region of activities Areas near Cilegon City, Indonesia
Input cost 60,000 USD (2017-19)
Activity details
- ㆍ Employee participation activities intended to improve the educational environment of nearby schools and activities intended to improve the local community environment
Results
- - Practiced the management philosophy of being “a global corporate citizen” and enhanced POSCO's corporate image.
※ Pictures of activities
Provision of relief supplies to local residents
Environmental clean-up activity
Building environment improvement activity