SKMS and Pursuit of ‘Stakeholder Happiness’
According to SK Group’s management philosophy, SKMS (SK Management System), the concept of stakeholder happiness means “A corporation must consistently achieve stability and growth to persevere and advance. In doing so, a corporation must also create greater happiness for customers, employees, shareholders, and society.”
We are actively engaged in sustainable management rooted in this concept. SK Group also designated 2018 as ‘Year One for a New SK’ and is pursuing enhanced social value (SV) as a vital corporate strategy for survival. Ultimately, we seek to realize sustainable growth together with society.
DBL(Double Bottom Line)
DBL is SK’s management principle which states all SK business activities should create economic value and increase social value so that society can share in the company’s growth.
SK Networks recognizes the pursuit of social value is indispensable to the sustainable growth of the company and its employees. In 2018, it selected the pursuit of social value as one of the management policies supporting the beginning of DBL (Double Bottom Line), Furthermore, it sought to identify the social issues associated with each business division and made a quantitative measure of the fundamental impact of all SK-led business activities from the environmental, social, and governance aspects. Going forward, we will continue research and monitoring to expand the range of indicators for measuring social value and develop a more sophisticated methodology. We will also uncover ways to create social value and cultivate business models based on the measure of social value.
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Economic Value
Financial outcomes
created through business activitiesrevenue and operating income, etc.
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Social Value
Contribution to solving social issues
through business activitiesindirect economic contributions
environmental achievements
social performance
SK DBL Key Strategies
Expand the scope of SV creation beyond CSR to overall concept of Biz Value Chain
Actively review ways to grow SV during decision-making process (Decreasing (-)SV, generating (+)SV)
Increase economic value and social value to pursue happiness in harmony and balance for all stakeholders
SV Management Organization
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BOD
- ESG Management Committee
- CEO
- Management Supporting Division
- Sustainable Management Division
- SV Implementation Team
- Environmental CoE
- Company-wide ESG Implementation Committee
- SV meet up
- Management Supporting Division
SK Networks operates a dedicated SV Implementation Team to concentrate its company-wide capabilities on creating social value and securing communication channels for each business. The Board of Directors, as the highest decision-making body, deliberates on, decides, and supervises agenda items reviewed in advance by Strategy∙ESG Committee. Furthermore, ESG management is promoted through the Company-wide ESG Implementation Committee, which includes the CEO, executives, and subsidiary representatives.
Since 2019, SK Networks has been operating SV Meetup, a social value council. The SV Meetup, led by the Head of Management Support Division, includes members from the Strategy Team, each business unit, and the SV-related departments within subsidiaries. This meetup serves as a platform to discuss and share updates on domestic and international trends related to sustainability disclosures, RE100, and other SV-related issues. Additionally, it features SV-BM* workshops and discussions on the current status and challenges of social value initiatives across different business units.