Skip to main content

News

Transparent Management Award

2003-07-22

Amorepacific was chosen as the most transparent firm from among 700 listed, domestic companies at the 3rd Transparent Accounting Award ceremony sponsored by Korea Accounting Association. The award is given to the firm, which announces transparent accounting and responsible financial statements, and has contributed to promoting a transparent accounting practice in the market. The award was established to foster accounting transparency in the market, sound growth of Korean economy, and advance the condition and realization of corporate transparency. An accounting transparency evaluation model was developed on the basis of newly researched theories this year, which were used over the older evaluation methods to award the winner. The selection criteria were, 1) transparency of corporate management and enhancement of professional management structure, 2) ERP system and internal inspection policy and transparency of internal business affairs, 3) transparency of tax administration and management results, 3) advancement of management and social responsibility, 4) cooperation with outside inspection systems, and 5) stability and profitability of financial structure. For 2 months beginning in April the listed firms, excluding the financial firms, were judged through six stages of analysis, and a poll survey rating was taken on public accounting firms and on financial and credit analysis firms, which evaluated these companies. Amorepacific, Korea Electric Terminal, and Wiscom were recognized for their excellence and awarded. Amorepacific was highly rated on its “digitalization” of business affairs to raise accounting information transparency. Amorepacific is working since 2000 under the banner of “Digital Dream Company” to digitalize the business affairs and core systems, by uniting and optimizing information and business affairs in the areas of production, distribution and business, through the use of SCM (Supply Chain Management) activity. The DDP (Digital Dream Project) office was set up from April 2001 and all the systems in the company were reconstructed using ERP (Enterprise Resource Planning) system. The production plan was built by immediate analysis of sales information through ERP, and through spot analysis of inventory data the inventory management became more efficient. An internal system of inspecting and promoting improved policy and transparency was adopted, and a board of inspectors was established centered on a director outside of the company as a watchdog of management infrastructure. Amorepacific is working together with an accounting firm to analyze and rate critical financial processes of Value Chain such as purchase, production, and raw material cost to realize a financial management revolution and to achieve accounting transparency. This project is expected to bring about a reevaluation of accounting transparency policy and system once fully and successfully implemented.