Accolade for Sharing Growth with SMEs
POSCO has been rated as “Excellent,” the highest grade, in the 2019 Win-Win Growth Index evaluation announced by the National Commission for Corporate Partnership (NCCP).
NCCP held its 63rd commission on Sept. 8 and announced the result of the 2019 Win-Win Growth Index evaluation.
POSCO has been well-received for actively implementing its management philosophy, ‘Corporate Citizenship,’ among group companies through seven major shared growth programs. POSCO is the only company in the steel industry to receive the highest grade.
POSCO's shared growth programs include open-type sourcing (e-catalog), fairly and timely payment, benefit sharing and POSCO-type productivity innovation.
The Win-Win Growth Index shows the level of shared growth between large companies and SMEs. Since 2011, NCCP has been announcing the INDEX once a year.
NCCP measures the Win-Win Growth Index based on the following: 1) comprehensive evaluation of shared growth by NCCP, and 2) evaluation of fair trade implementation by the Fair Trade Commission (FTC). The companies, subject to the index evaluation, include those that are among the top companies in domestic sales and are receiving high social interest from the public. The target companies for the 2019 Win-Win Growth Index reached a total of 193.
POSCO has been subject to evaluation since the beginning of the index announcement. The company set up a separate organization dedicated to shared growth from 2005 and has been committing to share growth with SMEs and to create a sound industrial ecosystem where economic and social values are in a virtuous circle. Recently, POSCO has branded its shared growth program under the name “Change Up Together” and is operating 33 related programs, including the seven major programs. The target of the shared growth activities includes primary suppliers, partner companies, and clients, as well as secondary suppliers and companies that have no direct business with POSCO.
In addition, POSCO co-created the ‘Steel Shared Growth Fund’ worth 100 billion KRW in June with Hyundai Steel to support SMEs in the steel industry suffering from the aftermath of the COVID-19 issue. The fund offers a loan rate that is 1.05 percent point lower than the market, providing practical support to companies that are struggling with liquidity.