AmorePacific wins Presidential Citation at the 3rd Sustainable Management Award - AMORE STORIES - ENGLISH
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2010.06.28
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AmorePacific wins Presidential Citation at the 3rd Sustainable Management Award

Suh Kyung-bae (45-years old), President and CEO of AMOREPACIFIC Corp. achieved Presidential Citation Award for entrepreneur at the 3rd Sustainable Management Award held in the Korea Chamber of Commerce and Industry (KCCI) on October 30, 2008. Sponsored by Ministry of Knowledge Economy (MKE) and organized by KCCI and the Institute for Industrial Policy Studies (IPS), this Award aims to discover and share best practice models of "sustainable corporation" and entrepreneurs fulfilling their social responsibility in favor of propagating a culture of sustainable management nationwide. 
President Suh Kyung-bae won the honorable recognition in appreciation of his leadership in AmorePacific that has led Korean cosmetics market over last 6 decades, in an effort to build up a relationship of trust and love with customers through cosmetics inspired by Korean beauty and values, so that AmorePacific has grown up from Korean leading cosmetics maker in "Beauty & Health" market to global corporation. He has been constantly exerting his leadership in pioneering overseas markets with remarkable achievements in China, France and America, contributing to national industrial development. Moreover, AmorePacific has rolled out sustainable development in such a way that it has carried out social contribution activities for women with a view of business development along with customers and local community, and has cultivated about 331 m2 of wasteland into green tea farm over last 3 decades to overcome economic downturn with fruits from nature and practice green management for living with nature. 
AmorePacific has already played a role of corporate citizenship under the slogan of "unlimited corporate responsibility" since 1993 before other global companies began to openly discuss sustainable management index (SMI). In November 2007, AmorePacific joined the UN Global Compact (UNGC) for the first time in Korean cosmetics industry and has applied 10 Principles on Human Rights, Labor, Environment and Anti-corruption stage by stage to all aspects of business activities for improvement. 
Thus, the grant of the Sustainable Management Award signifies that Mr. Suh is the proven leader of AmorePacific as he has practiced a variety of economic, social and environmental activities with his green leadership among others under the management philosophy of "Corporate Citizenship". "We are working to establish a framework of sustainable management for AmorePacific to become a global company to take further steps forward over coming 100 years," said President Suh Kyung-bae, "Also, we will continue to commit ourselves to be "a smarter company", for instance, by publishing Sustainable Management Report in the latter half of next year to encompass existing environment reports, white paper on social contribution activities and more." 
* A reputable cosmetics maker keeping precious relationships of trust with customers
Historically, the late Mr. Jangwon, Suh Sung-whan, former chairman and founder of AmorePacific took over and began to pursue his father's business managing home handicrafts of cosmetics in Gaeseong more than 80 years ago. Over 6 decades since the Liberation of Korea in 1945, he has committed toward his dream for "AmorePacific to present people around the world with pleasure and happiness in its own esthetic creations", and has contributed the development of beauty industry of Korea. With this in mind, AmorePacific prepares to take a further and stronger leap in coming years than in the past in order to fulfill the mission of "opening up unreached areas of innovative esthetics with Asian profound wisdom towards nature and mankind, and thereby reestablish its positions as "Asian Beauty Creator" cherished into the people's mind worldwide based on trust and love from Koreans". 
The history and raison d'etre of AmorePacific have meant a series of footprints left in constantly seeking and providing with the very real wants of customers. It is not too much to say that the cosmetic history of AmorePacific is the history of Korean cosmetics, which is demonstrated by a great list of its best selling products and long seller brands beloved and trusted by customers, such as Sulwhasoo, HERA, Laneige and IOPE. AmorePacific has made a series of investments in R&D sector for more reliable and valuable products. For instance, the company plans to establish a new plant in Osan, Gyeong-gi province by 2010 and ensure eco-friendly production of cosmetics, so as to contribute to the environment and set the stage for sustainable management on global standards. Additionally, it also plans to invest a total of 50 billion won in new establishment of the 2nd laboratory on the scale of 25,000 m2 and employ more researchers from 330 up to 500 by 2015. In this way, AmorePacific expects to have the best cosmetics R&D center to focus on developing products reflecting the needs of customers from both domestic and across Asia. 
AmorePacific is a company selling relationships as well as cosmetics to customers. It always listens carefully to customers' opinion, advises them how to keep their beauty and health at the best condition during the lifetime, and carries out various activities to present best solutions. In early days, AmorePacific introduced door-to-door sales in domestic market and has led revolutionary distribution system for customized services. In line with this, on September 1, 2008, the company launched a brand of total beauty solution shop, Aritaum, to provide customized services to the channel of cosmetics on the market. Aritaum is a pure Korean expression meaning "a place for beautiful people" and provides one-to-one customized solutions to relieve customers from 12 types of skin problems. With a sense of belonging and pride, the shop owners and staffs of Aritaum keep working to reinforce the competitive edges in domestic cosmetics market and to satisfy customers concurrently with AmorePacific. 
In October, AmorePacific has introduced "AmorePacific Membership" as a comprehensive mileage system for the first time in cosmetics industry to provide more convenience to customers. Based on the needs of customers' for convenience of receiving and using mileages, AmorePacific has integrated mileages managed separately by distribution channels such as department stores, brand shops and marts into a single system called "Beauty Point" that is easily available in all membership stores. More than 10 million customers are expected to benefit from this Beauty Point system once it is applied to door-to-door selling channels as well in the first half of next year. This will also be further applied to health & personal care shops and affiliated businesses including ETUDE. Number of "Amore Counselor" (door-to-door salesperson) have established and maintained valued relationships with customers over last 44 years. Now, there are about 32,000 Amore Counselors working nationwide with constant support from 3 million customers. Although they do not use their big cosmetics bags any more and use up-to-the-minute PDA to manage the customers relationship instead, Amore Counselors always try to work for beauty and health of customers and society with the spirit of "affectionate bridge" among people as well as sharing. 
* Implementation of social responsibility through service activities for women 
Corporate exists and lives in society. AmorePacific is meant to live and grow along with customers and society. The late Suh Sung-whan (died in 2003), former chairman and founder of AmorePacific, has enthusiastically practiced a series of social projects to improve women's social status and donate some amount of corporate profit to society as well as to improve welfare of underprivileged low-income class. Back in the early 1960's in Korea, there were many widowed or working women who lost their husband or father during the Korean War. AmorePacific provided a job opportunity of "Amore Counselor" (door-to-door salesperson) for those women to participate in wider areas of socio-economic activities which were limited in those days. This helped to break down the conservative prejudices against women and spread the culture of beauty. Naturally, such activities have led the company to support marginalized women with economic difficulties. 
Taking care of outer beauty for women is an essential duty entrusted to AmorePacific as a main agent of economic activities, while taking care of inner beauty to set an example to share and practice love for neighborhood is the ideal value pursued by AmorePacific as a member of corporate citizenship. AmorePacific's special affections for women have returned with greater love from customers, contributing mainly to become No. 1 company in cosmetics and health products industry, and as much again giving more social responsibility to the company as corporate citizenship. AmorePacific has expanded the scope of its social interests from women's life challenges through cultural and environmental aspects, which is demonstrated by its participation in activities such as "Women's Health Keeper of Korea Breast Cancer Foundation (KBCF)" (e.g., Pink Ribbon Campaign), "Self-support Assistants for Single Mother Family (Hope Store)" and "Assistants for Women Who Make Their Dreams Come True (AmorePacific Woman Scientists Award)". 
* Planting and growing trees provides you with fruits in return to overcome economic slump. 
The most promising way to get over economic slump is to understand customers and provide what they want. Sustainable growth can be achieved through competitive products and services in market as well as cost-saving efforts to improve business practices. Particularly, "environmental management is essential to sustainable business administration". 
AmorePacific began to cultivate a green tea farm on a large wasteland sized about 495,868 m2 with no water or electricity facilities in Seogwang-ri, Jeju Province 30 years ago. This cultivation could be realized through persistent and deep-rooted efforts of Suh Sung-whan, former chairman and founder of AmorePacific, who was concerned about the decline of traditional tea culture of Korea. Over the 30 years, now this green tea farm becomes a role model for national land reclamation, and green tea is already cultivated as an alternative crop for Korean mandarin, contributing to new income source of Jeju islanders. AmorePacific has so far reclaimed 3.31 km2 of wasteland into green tea garden. Sulloc tea, a type of green tea grown up in the clean nature of Jeju Island over 3 decades, is highlighted as wellness beverage nationwide which is secure and reliable compared to significant amount of imported foods on the market these days without evidence of safety.
Meanwhile, O'sulloc Tea Museum opened in 2001 in Jeju Seogwang Tea Farm, is open to the public with no admission fees and is beloved as a good destination to advertise Korean tea culture to Koreans and the world. O'sulloc plays a major role as "cultural origin" that attracts about 500 thousand visitors to enjoy every year (totaling 2.3 million since opened) with 50 thousand visitors among them from China, Japan and Europe. Also, AmorePacific is committed to its mission of "reputable cosmetics maker" by promoting "Asian beauty" in American market with its exclusive "spirit" to cultivate tea farm and its flagship cosmetics brand titled "AmorePacific" containing the essence of green tea with the first-water. 
Besides, 5.7 million green tee plants in the tea farm absorb CO2 via carbon dioxide assimilation which contributes significantly to reduce greenhouse gas emissions. 
AmorePacific pursues to contribute to beauty and health of customers, and takes multilateral efforts to make balance between its products, services and business activities with environment in order to fulfill its mission. Since declaring motto of unlimited corporate responsibility for environment in 1993, AmorePacific has endeavored to identify potential phased environmental impact from initial conception and research for product development process through production, distribution and consumption to disposal stage while researching possible ways of material selection, production and distribution to minimize such impact so as to contributing to improving ecological and economic efficiency. 
>> Extra information
- Efforts of AmorePacific, a reputable cosmetics maker to fulfill the basic - 
Efforts of AmorePacific to make the very cosmetics customers need in fulfilling the basic principles can be proven in "Ginseng SAMMI" as original model of Sulwhasoo and the first oriental medicinal cosmetic in Korea. Adhering to researches on Korean native plant like Gaeseong ginseng and Jeju green tea, AmorePacific acquired a patent for extraction of effective ginseng substance in 1972 and released "Ginseng SAMMI" containing the essence of ginseng which had been used for herbal medicine only. In keeping with these efforts, AmorePacific has made collaborative researches with College of Oriental Medicine of Kyung Hee University and has released "Sulwhasoo" (1997) as a representative prestigious cosmetic brand of Korea. Recently, it has reaped a series of botanical research findings through a proven organic cosmetics "Innisfree Ecorecipe Line", "Happy Bath" containing natural ingredients, and more.
Additionally, AmorePacific has continued to release a series of innovative cosmetic products including "IOPE Plant Stem Cell Line" containing botanical stem cells for the first time in the world and "HERA Derma Clear Kit" with a good combination of cosmetic and IT technology, so it provides differentiated values for customers and extends its expertise on beauty into wider applications. 
- Social contribution activities - 
With a view to advocate the awareness of breast cancer ranked the top among women's cancers in 2000, AmorePacific established Korea Breast Cancer Foundation (KBCF) and has been conducting Pink Ribbon Campaign in collaboration with KBCF for preventing breast cancer, which involves Pink Ribbon Love Marathon meet, national health care classes, free examination and financial supports for operation of breast cancer for the underprivileged, and financial supports for academic researches in breast cancer. This campaign is not a simple one-off event, but is annually rolled out as a program that can actually help beneficiaries. Since the establishment of KBCF, a pile of financial donations and auspices totaled 7.5 billion won, and 20 thousand people have benefited from the free examination of breast cancer as supported by KBCF. 
Furthermore, from this November, AmorePacific will to launch "MAKE UP YOUR LIFE", another program for supporting women suffering breast cancer to overcome their sense of loss from changing appearance. AmorePacific plans to develop educational programs to inform breast cancer patients with beauty care techniques for their looks and support the entire manpower and equipments needed including makeup products, so as to support them to dealing with their lost feeling due to their changing figures during cancer treatment for the benefit of their self-motivated recovery. 
Moreover, AmorePacific supports working women with financial problems through "Hope Store" in cooperation with the Beautiful Foundation. As a part of activities coming from conventional corporate efforts of AmorePacific to improve the quality of life for Amore Counselors many of whom were working women for the living of their home in the post-war days, Hope Store is run by "Beautiful World Fund (a type of microcredit fund)" established in 2003 in obedience to the will of the late Mr. Suh Sung-whan, former chairman and founder of AmorePacific - "Company must be a public organ". There have been total 34 Hope Stores opened with ongoing interests and supports including consultation, initial expenses and post-opening management to help the actual self-support of low-income working women. And there will be 100th Hope Store opened in 2010. Hope Store owners are required only to repay regular installment of unsecured initial establishment fund for 7 years after opening store, plus only 1% interest which symbolizes the practice of sharing with neighborhood. This money, in return, is reused to financially assist other working women in opening their stores to create a virtuous cycle of hope. 
Considering the rapidly changing Korean society into a multicultural state community, AmorePacific has supported immigrant women for international marriage and multicultural families both having difficulties in adapting to Korean society and culture. AmorePacific has donated financial contributions titled "Women's Development Fund" (totaling 1 billion won for 5 years) to the Ministry of Women's Affairs (MWA) (currently the Ministry of Gender Equality and Family) for the first time in Korean cosmetic industry, which is used to support activities for better quality of immigrant women's life, such as Korean language education, life counseling on family relationship and childcare issues including medical assistance. 
In 2005, AmorePacific has also established "AmorePacific Woman Scientist Award" to support scientific and technological advancements as well as to promote and nurture woman scientists. Winners of this Award are nominated annually under the sponsorship of MWA and Ministry of Education, Science And Technology (MEST), and obtain prize money totaling 70 million won, which is highest reward for merit of woman scientists in Korea. This Award opens up a ground of festival for encouraging woman scientists to enthusiastically fulfill their roles with remarkable accomplishment despite the inadequate research environment. The history of AmorePacific is also based on hidden but great academic achievements of woman scientists and technicians. In 1932, Ms. Yun Dok-jeong started manufacturing and distributing camellia oil (Korean hair conditioner for women), cosmetics and general products for women. Recognizing importance of quality products, she made special efforts to develop new technologies and built a foundation of technology-oriented business. Especially, the camellia oil purified in her original technology was an innovative product that could not be imitated by Japanese merchants. Ms. Yoon was such an experimental woman that she didn't stop with camellia oil, but make new attempts such as production of dyes and mordant (a kind of chemical helpful to dyeing) using camellia petal. Former chairman Suh Sung-whan was grown up in helping his mother's business and established AmorePacific under its management philosophy based on living teachings from Ms. Yoon. In manufacturing and distributing camellia oil, Suh learned quality-oriented business philosophy. Also, he learned how to spend business profits in his mother Ms. Yoon's broad-minded assistance for neighborhood and cultivated a viewpoint of human resources in respect of women when seeing her energetic activities. "I sincerely give applause to woman scientists who made great academic achievements despite the challenging circumstances," said AmorePacific's CEO Suh Kyung-bae, "As health and beauty creator, AmorePacific will generously invest in woman scientists on the basis of its spirit for respect of women as well as its tradition of technology-driven business to lead innovative technical development." 
- Environmental management - 
AmorePacific has developed an environmental management system on global standards and has constantly focused on developing eco-friendly raw materials and clean production technologies, managing environment-friendly distribution network and implementing green marketing based on development of eco-friendly products. AmorePacific also takes part in motivating green package design, eco-friendly packaging and consumer culture. In last July, it has released "Innisfree Ecorecipe Line", "Primera Recovery Essence" and "Happy Bath Organic Chamomile Baby Shampoo & Bath" which are all proven organic products developed for the first time in Korea in cultivation, production and post-production process of raw cosmetic materials to comply with eco-friendly and organic agriculture management standards. In this way, AmorePacific plans to continuously expand the developing of green and safe products. 
For a total body care brand "Happy Bath Body Cleanser", AmorePacific has adopted a low-temperature production process to reduce energy consumption in production by innovating manufacturing process for reducing greenhouse gases, so that it has already reduced as much as 34.5% of CO2 emissions than in existing production process. In addition, AmorePacific plans to set the goals to reduce CO2 emissions for each production sector within this year, and promote company-wide "Low Carbon" campaign for saving energy. AmorePacific plans to promote whole construction process of a new plant in Osan (to be completed in 2010) as a cutting-edge eco-friendly plant from its design process, so that it will be established as a green plant that consists of energy-saving design, alternative energy facility using solar energy and rainwater, and natural ecology park as well. 
- Present of AmorePacific - 
AmorePacific has developed as a robust corporate with annual sales revenue of 1 trillion 463.3 billion won and operating profit of 232.1 billion won as of 2007, and aims to take a great leap forward to a global top 10 cosmetics maker with 10 megabrands (including 5 global super-megabrands) and annual sales revenue of 5 trillion won (3 trillion 800 billion won at home, 1 trillion 200 billion won overseas) by 2015. To this end, AmorePacific allows for growth potential and cultural distance, setting China and Asia as its current focus market and key emerging areas of business growth to make profitable advancement. In France, the company focuses on promoting a perfume brand "Lolita Lempicka" with a solid position of world top 5 perfume brands and plans to strengthen its business efficiency and improve its profitability as a part of worldwide megabrand. And in America, AmorePacific places emphasis on raising popular awareness of its own brands and building up its overseas business capacity.

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