LG Group CEOs Hold Ethical Management Lectures

“Whatever the reason, when an executive appears on the front page of the New York Times, he or she should never be ashamed.”

At a special lecture titled “Chief Executive Officers and Ethical Leadership,” for business administration students at Seoul National University and Yonsei University held in the beginning of May, the president of LG Household and Health Care, Cha Seok-yong, introduced P&G’s “New York Times Rule” he learned while working at the multinational company P&G.

As a CEO, even if his or her actions are publicized, he or she should not be ashamed of them.

President Cha emphasized, “Like pilots need a sufficient visibility range to fly securely, in a corporation, the priority should be placed on transparent management, and executives must be the most ethical of all.”

Recently, CEOs of LG Group’s major affiliates have been receiving requests to hold special lectures concerning ethical management by universities and government departments.

Vice Chairman of LG Electronics Kim Ssang-su recently asserted the importance of transparent management and ethical management as requirements of the “right people,” LG Electronics’ desirable individuals, at a lecture held by the Korea Chamber of Commerce and Industry and the Ministry of Foreign Affairs and Trade.

Vice Chairman Kim asserted, “To run a corporation smoothly, a transparent management system centered around professional managers and the board of directors needs to be implemented,” adding, “To create a sympathetic atmosphere of executives and employees, corporations must transparently share management performance with the labor union.”

LG Chem President No Ki-ho has introduced at every lecture his management philosophy, saying, “If you follow virtue, it will always flow as if it was water.”

Recently, at consecutive lectures at the Korea Advanced Institute of Science and Technology, Pohang University of Science and Technology, and Yeosu National University, President No emphasized to students, “Executives must always practice ethical management with virtue, and additionally students dreaming of becoming a successful executive must always follow virtue in all their endeavors.”

The LG Group explained the reason that LG Group’s CEOs have become popular lecturers is the fact that LG’s conversion into a holding company was successful, and after the proclamation of the “LG WAY,” a management principal of transparent management, universities have become more interested in the management culture of LG.

Kim Gwang-joong, the deputy general director of LG Integrity Management Task Force Team, said, “We are constantly investigating any unfair actions of executives and employees such as wrongful business dealings with fellow corporations and even receiving reports by the internet.”

Koo Bon-moo, chairman of LG Group, has recently emphasized to executives and employees that “by being too conscious of our performance, we may undermine the partnership of small and middle-sized fellow companies,” and that “do your best to make LG the most desirable corporation to believe in and to do business with.”

Young-Hae Choi yhchoi65@donga.com