A healthy coexistence of people and the surrounding environment is essential for sustainable business growth in the global market. In today's market whose competition structure has changed from between companies to between ecosystems, the fastest way to achieve sustainable growth is to create synergies between each member of the ecosystem, for example the capital strength and infrastructure of large companies and the technological edge of small businesses. Amorepacific believes that shared growth is the basis on which it can improve its competitiveness and promote qualitative growth for the ultimate goal of creating a beautiful world where nature, humans and the company coexist in harmony.

Amorepacific works to promote harmonious coexistence and shared growth with partners in the organic ecosystem. As part of our active and comprehensive efforts to strengthen the basis for shared growth and improve our competitive edge, we provide full support to our partners in terms of funding and education for their growth. Such efforts are combined with investment into infrastructure development to contribute greatly to strengthening mutual trust as well as competitiveness.

Amorepacific will continue to work and grow together with members of the ecosystem. As a responsible corporate citizen much loved and supported by customers, we will act upon the value of altruism as we fulfill our vocation of making the world beautiful.

The benefits sharing system provides incentives to partners participating in the joint innovation project whenever goals are achieved. By doing R&D together, it helps both partner and Amorepacific to improve competitiveness. Through this system, Amorepacific has shared benefits worth KRW 200 million (11 projects) in 2015 and provided funds for 41 patent applications as one means to protect the ownership of technology developed by partners. We have a funding policy amounting to KRW 24.5 billion, including a Shared Growth Fund providing support directly to partners and an Agreement for the Shared Growth Initiatives with large and small foundations to make investments in technological development and partner facilities. Furthermore, we have established a fair trade culture in the business ecosystem for the growth of secondary and tertiary partners as well. Our Win-Win Payment System enables the primary partner to use credit loans granted by large companies to pay subcontractors, i.e., secondary and tertiary partners, without the risk of bankruptcy. This is thus expected to help partners improve their competitiveness, develop infrastructure and support shared growth.

Amorepacific puts considerable effort into developing a skilled workforce, which will contribute to improving the business ecosystem as a whole. Above all, we take part in the National Human Resources Development (HRD) Consortium Project, which provides education infrastructure for staff members of small and medium sized businesses who tend to lack sufficient learning opportunities. Through Consortium Learning Center built as part of the project for mutual growth of large and small, medium sized businesses, 32 educational programs were provided to 1,275 employees across 142 companies in 2015. The Consortium Learning Center will continue to improve the competencies of lecturers and fulfill its role in providing support for education and training of partners through enhanced experience-oriented programs under three principles: field curriculum, technology-oriented program and practical vocational education.

Active communication and participation are essential for promoting mutual growth across the business ecosystem. Amorepacific holds an annual Shared Growth Meeting and Win-Win Seminar for better communication with partners. The Shared Growth Meeting is held at the beginning of each year to present Amorepacific's annual business strategy and discuss cooperation across every industry, while at the year-end Win-Win Seminar, we share business performance for the year and express our appreciation for partners. We also have meetings with secondary partners to listen to what they have to say, accept their request and resolve problems. In other words, Amorepacific strengthens the relationship with partners based upon mutual respect and trust through communication.

As a member of business ecosystem and a responsible corporate citizen, businesses of all sizes ought to fulfill their responsibility in the social areas – environment, safety, labor and ethics – to help influence the business value chain. Amorepacific in this regard encourages partners to demonstrate their social responsibility and work toward sustainable management.
Last year, Amorepacific analyzed the level of 92 partners' sustainable management and derived improvement points. We will offer incentives to outstanding partners who fulfill their social responsibility, share best practice, make up for the weak points through continuous monitoring and improvement efforts and, by doing so, build healthier business ecosystem together with partners.