Managing Business for
a Sustainable Society

Stakeholder Happiness

Scroll Down

Stakeholder Happiness

Stakeholder Communication

SK Networks defines all entities that directly and indirectly impact and are affected by our management activities as our stakeholders. Stakeholders include customers, employees, suppliers, the government, shareholders/investors, and local communities. We aim for successful communication with our stakeholders through various engagement channels. By conducting surveys to collect stakeholders’ opinions on our sustainability management policies, we are committed to actively integrating them into our management activities.

Stakeholders Channels, Issues and Response Roadmap

The table provides stakeholder channel, issue, and response roadmap information and consists of stakeholder, engagement channel, engagement channel, short-term plan (2022 to 2023), short-term plan (2022 to 2023), and long-term plan (2027 onwards).
Stakeholders Engagement Channels Key Issues Short-term
Plan(2023)
Mid-term
(2024 ~ 2026)
Long-term
(2027)
Customers
  • VOC channels
  • Customer satisfaction
  • Increasing customer satisfaction
  • Ultimately resolving pain points which undermines customer satisfaction and enhancing customer value through BM innovation / creation of new BM
  • Improving customer’s ESG assessment items for each brand (including a review of measures to diversify survey targets)
  • Customer contact at agencies / branches
  • Customized solutions for customers
  • Developing new products / services
  • Creating social value through products / services
  • Questionnaires and customer satisfaction surveys
  • Personal information protection
  • Improving customer contact service
  • Website, SNS
  • Analyzing and improving brands (adding / modifying ESG assessment items)
  • Analyzing customer’s ESG assessment trends for each brand
Employees
  • Culture Survey
  • Identifying and resolving factors that hinder employees’ happiness and enhancing the ability to execute happiness strategies following the process of [challenge- performance-growth]
  • Creating an environment to listen to the opinions of employees and practice ambition by utilizing Culture Surveys
  • Improving the happiness diagnosis / measurement system and establishing a sharing system
  • Evolve into a platform for innovation in working methods and corporate culture
  • Conversation with management
  • Strengthening commitment to the management philosophy and activities through communication with the top-level management
  • Providing a regular communication channel for sharing CEO messages and management philosophy and building trust
  • Providing a channel for direct communication between CEO and employees (Regular communication)
  • Expanding the channel for direct communication between CEO and employees (Expanding regular communication)
Suppliers
  • Extend financial support to suppliers
  • Support continuous improvement of business conditions for suppliers
  • Expand the shared growth fund
  • Extend other financial support in addition to the shared growth fund (financial support for ESG-excellent suppliers, etc.)
  • Continue to upscale such support and expand its scope
  • Enhance communication with suppliers
  • Continuously monitor suppliers’ VOC and incorporate it into corporate policies
  • Identify and implement shared growth initiatives
  • Design / introduce programs for visiting suppliers and listening to their VOC
  • Establish online communication channels
  • Visit and listen to VOC - major suppliers (once/year)
  • Reflect VOC on purchase policies
  • Increase the number of suppliers covered by the VOC program as well as the frequency of the VOC visit
  • Support ESG improvement of suppliers
  • Improve and internalize ESG practices in suppliers
  • Promote the awareness of the needs for and criticality of ESG management
  • Provide consulting for ESG evaluation and improvement by suppliers
  • Introduce an incentive program for ESG-excellent suppliers and expand support
  • Support training programs of suppliers
  • Enhance the capabilities of suppliers’ employees
  • Conduct pilot online training programs for suppliers’ employees
  • Expand online training program content for suppliers’ employees and establish it as a regular practice
  • Expand offline training for suppliers’ employees concurrently
Shareholders/
Investors
  • General shareholders' meeting
  • Strengthening two-way communication between the company and shareholders
  • Creating an environment for shareholders to ask questions and securing sufficient time
  • Diversifying communication channels using online platforms such as conversations with shareholders and live broadcasting of general shareholders' meetings
  • Meetings with corporate and private investors
  • Expanding the scope and frequency of exposure to SK networks Financial Story
  • Communicating with investors frequently and publishing reports
  • Conducting online and offline IR events tailored to the needs of investors
  • Establishing awareness of ESG leading companies and securing ESG investment Demand
  • Executing IR in South Korea and overseas for potential investors
Local Community
  • Local governments
  • Activating programs for the vulnerable (securing safety nets, providing benefits of cultural programs to the underprivileged, etc.)
  • Updating social contribution system (2022)
  • Operating social contribution system
  • Upgrading social contribution system
  • Community social security council
  • Managing risks of local community
  • Identifying community-related risks and deriving pools, and establishing risk management system
  • Upgrading community-related risk management system
  • Persons in charge at district welfare centers and community centers
  • Realizing contribution to local community and sustainable environment friendly cities
  • Securing community consultation channels - Signing of business agreement (MOU) for community contribution (2022, Walkerhill-Gwangjin-gu Office)
  • Activating content channels for revitalizing culture/tourism (Walkerhill)
  • Developing and operating community contribution content
  • Developing and implementing win-win program for local community
  • Activating win-win program for local community, measuring and managing performance

Shared Growth with Suppliers

This is the image of joint growth of partner companies. Please refer to the details below for more information. This is the image of joint growth of partner companies. Please refer to the details below for more information.
  • 3 Key Strategies for SK Networks to Grow Together with Suppliers
  • Providing Fair Opportunity and Maintaining Procedural Transparency
    • Declaring ethical purchase
    • Continuously searching for suppliers and providing fair trade opportunities
    • Ensuring procedural transparency of fair trade throughout supplier selection - contracting – payment settlement
  • Enhancing the Cooperation System for Shared Growth
    • Building communication channel and listening to VOC
    • Discovering projects for shared growth
    • Selecting suppliers with good ESG/SRM assessment results and enhancing the cooperation
  • Improving Suppliers’ Competitiveness
    • Creating Shared Growth Fund
    • Preparing support programs for suppliers

*SRM : Supplier Relationship Management

Fair Opportunity and Procedural Transparency

SK Networks' supply chain management performance is reported to the Strategy∙ESG Committee under the Board of Directors, which deliberates on key issues. To ensure the appropriateness of supplier selection and maintain fairness and transparency in purchasing activities, we operate a Purchase Deliberation Committee. The purchasing department convenes the committee to deliberate on applicable purchase transactions*.

* Purchases subject to deliberation include direct contracts worth KRW 500 million or more and competitive bids worth KRW 1 billion or more

Procurement Review SK Networks Audit Division Head(1 person), Head of RM Division(1 person), Key Management Executives*(3 persons) Procurement Review SK Networks Audit Division Head(1 person), Head of RM Division(1 person), Key Management Executives*(3 persons)

* Head of Strategy Planning Division, Head of Corporate Culture Division, Head of Sustainability Management Division

Support for Business Partners’ Employee Training

In 2024, SK Networks encouraged active participation from business partners by providing online ESG training and funding for training expenses. We expanded our educational content beyond the existing human rights and ethics courses implemented in 2022 to include environmental issues, anti-corruption, and the four major statutory training programs. This initiative aimed to alleviate the educational burden on business partners and support their participation in ESG management. In 2024, 132 employees from 21 business partners voluntarily participated, completing a total of 411 courses (100% completion rate). Moving forward, SK Networks is committed to continuously realizing the value of mutual growth by developing and providing diverse and effective training programs to our business partners.

Protection of Our Partner Companies’ Information

Information is the most critical asset for business survival. SK Networks respects the intellectual property rights and trade secrets of our partners and does not force them to pass over technical data or use intellectual property rights when selecting or transacting. Going forward, we will all the more strengthen our information protection system so that the tangible and intangible information of our partner companies can be managed more safely.

Reinforcing the Win-Win Cooperation System

SK Networks deeply empathizes with the hardships faced by suppliers and strives to help them adapt to the rapidly changing business environment. Every year, we visit our suppliers to listen to their views on-site and analyze their opinions to minimize any risks that suppliers may experience. We visited the sites of 48 key suppliers in 2023 and 47 key suppliers in 2024. In 2025, we plan to visit approximately 50 suppliers. Additionally, we share information on matters related to cooperation through the communication forum available through the new procurement system (www.skbuyone.com). We collect opinions and grievances from suppliers through various channels. In 2023, a total of 271 cases were received, and 262 of them were handled (96.7% completion rate) while a total of 132 cases were received and 127 cases were handled (96.2% completion rate) in 2024. Going forward, we will actively incorporate the opinions and requests of our suppliers to enact improvements

Shared Growth Fund : Improving Suppliers’ Competitiveness

SK Networks is actively participating in SK Group’s shared growth fund and mutual growth programs (CEO seminars, MBAs, etc.). Established in an agreement with IBK, the SKN Shared Growth Fund grants low or no-interest loans to suppliers experiencing economic difficulties due to COVID-19 and the economic downturn, a program that provides funds to partners and reduces loan interest. Particularly, we have expanded the scope to the suppliers of subsidiaries since 2021. We supported Fund of KRW 830 million in 2021, KRW 2.19 billion in 2022, and the maximum level of KRW 4.15 billion in 2023, increasing by more than five times compared to 2021. We plan to continue to maintain the current level

Status of the Shared Growth Fund
This table provides information on the status of the Shared Growth Fund and consists of year, number of partners, and performance.
Year Number of Suppliers Performance
2021 3 KRW 830 million
2022 9 KRW 2.19 billion
2023 15 KRW 4.15 billion
2024 15 KRW 3.77 billion

* As of the End of December 2024

Support of shared growth with business partners

2025
  • Expand the Shared Growth Fund
    - Increase by 10% or more compared to 2024
  • Expand and operate additional financial support programs
  • Identify and implement initiatives for mutual growth
  • Support leadership training for middle managers at suppliers
2026
  • Support invested subsidiaries in implementing the shared growth system
  • Establish a foundation for the systematic implementation of the shard growth system.
  • Expand the Shard Growth Fund
  • Support leadership training for middle managers at suppliers
2027
  • Re-establish key strategies for shared growth
  • Complete the systemization of the shared growth
  • Develop new financial support programs beyond the Shard Growth Fund

Supply Chain ESG

SK Networks seeks to establish sustainable, ethical procurement in terms of ESG (Environment, Society, Governance) as a hedge against possible ESG risks with suppliers and increase corporate value. We have prepared a Supplier Code of Conduct that contains regulations regarding corporate ethics, respect for human rights, safety & health, environment protection, etc. We also provide the Guideline for Sustainable Supply Chains and reflect the aspect of social responsibility in the supplier selection and appraisal process.

Guideline for Sustainable Supply Chains

All suppliers of SK Networks should comply with its Guideline for Sustainable Supply Chains. The Guideline defines basic principles related to labor, human rights, safety, health, ethics, fair trade, and general management.

Supplier ESG Risk Assessment Results

SK Networks commissions external evaluation agencies to conduct annual ESG assessments of its suppliers to strengthen ESG risk management. Evaluation targets are selected based on transaction volume, frequency, and business impact. Suppliers with insufficient ESG performance are subject to separate consulting support for improvement to help them set improvement targets and implement improvement measures the following year. These activities led to a reduced ratio of high-risk suppliers to 4% in 2024 (vs. 48% in 2023). Key improvement factors include establishing health and safety policies, building an environmental management system, and implementing energy-saving campaigns. SK Networks will continue to upgrade suppliers’ ESG risk measurement, evaluation, and management system, helping suppliers prevent ESG risks and practice sustainable management.

Supplier ESG Risk Assessment Criteria
Environment
  • Environmental Strategy
  • Environmental Management
  • Environmental Performance
Social
  • Job Security
  • Terms of Employment
  • Employment Equality
  • Social Contribution
  • Ethical Management
  • Health and Safety
  • Safe Investment
  • Supply Chain Management
  • Education
Governance
  • Business Stability
  • Accounting Transparency
  • Management System
Distribution of Suppliers by ESG Risk Group
This is an image explaining the distribution of partners by ESG risk group. This is an image explaining the distribution of partners by ESG risk group.

Severe(RM-7), Weak(RM-6) 2 Suppliers(4%) High Risk Focus Improvement Area. Moderate(RM-5), Good(RM-4), Excellent(RM-3) 46 Suppliers (92%) Medium Risk. Outstanding(RM-2), Top-tier(RM-1) 2 Suppliers(4%) Low Risk. Lowest 1.19, Overall Average 4.86, Highest 9.34. 2023 ClickESG Average 3.55. Overall ESG Risk 4.86, ESG-Risk Good(RM-4). * 2023 ClickESG Results(Third-party verification Criteria) Average Score : 3.55, Highest Score : 9.83

Business Partners’ ESG Risk Management Roadmap

2025
  • Helping suppliers improve ESG performance
    • Maintain 100% diagnostic coverage*
    • Reduce high-risk suppliers to below 10%
    • Reduce suppliers close to high risk to below 40%
    • Provide improvement consulting for the previous year’s high-risk suppliers
  • Consider expanding ESG incentives for outstanding suppliers
  • Support subsidiaries in establishing an ESG-based purchasing management system
2026
  • Helping suppliers improve ESG performance
    • Maintain 100% diagnostic coverage
    • Reduce high-risk suppliers to below 5%
    • Reduce suppliers close to high risk to below 20%
    • Provide improvement consulting for the previous year’s high-risk suppliers
  • Consider a penalty system for high ESG risk suppliers
  • Support subsidiaries in implementing an ESG-based purchasing management system
2027
  • Helping suppliers improve ESG performance
    • Maintain 100% diagnostic coverage
    • Achieve zero high-risk suppliers
    • Reduce suppliers close to high risk to below 10%
    • Provide improvement consulting for the previous year’s high-risk suppliers
  • Implement a penalty system for high ESG risk suppliers
  • Support subsidiaries in implementing an ESG-based purchasing management system (continued)

* Percentage of suppliers under intensive management that have undergone ESG assessment and diagnosis for the past two years

Social Contribution Policy

Based on its three principles of ʻHappy Participation, Happy Coexistence, and Happy Changes,’ SK Networks conducts various social contribution activities and strives to contribute to the better changes and sustainable growth of the local community. We pursue social contribution activities in which employees can voluntarily participate through effective support based on core competencies and businesses of employees by making it aligned with our BM. We are expanding the scope of our social contribution to all stakeholders who can be affected by our business activities throughout the supply chain, not just the local community near the business site

Local Community Support Roadmap

2023
  • Upgrade of SK Networks social contribution programs(2022)
  • Annual volunteer work hour target per employee : 20 hours
  • Plan and roll out of SK Networks probono service programs
  • Development of measures for impacts of social contribution activities
  • Conduction of regular surveys on SK People
2024 ~ 2025
  • Roll out of SK Networks social contribution system
  • Expansion of probono service coverage
    - Linking social contribution performance with BM
  • Upgrade of the impact measurement from social contribution activities
  • Conduction of regular surveys on SK People and improvement of social contribution programs
  • SK Networks(head office) achieved a participation rate of 85% or more of its employees in social contribution programs
2026 ~
  • Upgrade of SK Networks social contribution system
  • Upgrade of the performance of probono activities
    - Linking social contribution performance with BM to a greater degree
  • Forging partnership model with external stakeholders (public organizations, local communities, NGOs, etc.)
  • SK Networks(head office) achieved a participation rate of 85% or more of its employees in social contribution programs

Activities and Performance for the Local Community

SK Networks strives to support local community development and various vulnerable groups through the “Happiness +” social contribution program. The company engages in multiple programs such as meal distribution at Myeongdong Babjib, Namsan Park and Yeouido Saetgang Park clean-up, sheltered workshop assistance, and non-contact kit-making to encourage members to participate in community support activities. Through these programs, all members totaled 2,433 hours of participation in 2024. Furthermore, SK Networks has donated over KRW 100 million annually for the past four years by supporting briquette/kimchi-sharing, supplies for cubbyhole dwellers, and Gwangjin-gu Food Market. In particular, Walkerhill has been supporting the Gwangjin-gu Food Market program since 2021 and continues to contribute to the program’s expansion by providing 3,250 items free of charge to 714 people in 2024 through cash and goods donations worth approximately KRW 18.5 million. SK Networks will remain committed to sustainable community development through various support activities by expanding linkages to business models.

Supporting SE* Ecology

SK Networks vows to leverage business to address social challenges and innovate business models with focus on social values, supporting the SE ecosystem in so doing. In particular, SK Networks has persistently endeavored to bolster up a social safety net, support for less-advantaged social classes having potential for future growth (youth education programs, mom-and-pop business support packages) and resolve challenges facing local communities in connection with SK business sites.

As a part of its business, SK Networks seeks to forge partnerships and facilitate shared growth with social enterprises that share common aspirations with it, trying to help social enterprises rise on their own and create opportunities for joint business innovation by leveraging SK Networks people’s expertise. SK Networks also plans to gradually expand collaboration with external stakeholders to promote SE ecosystem.

* Social Enterprise

Goals for supporting SE ecosystem Roadmap

2023
  • Development of strategy to support SE ecosystem
  • Operation of SK Networks’ probono programs
    - Target-type probono / Spot-type probono
  • Conduction of regular surveys on social enterprises with questions on SE ecosystem promotion activities
  • Participation in consultative bodies/alliances forged in the SK Group
2024 ~ 2025
  • Expansion of the scope of support for SE ecosystem and performance measurement
  • Fostering of participation in probono programs
  • Improvement of SE ecosystem support programs as feedback from participating SEs and SK Networks people
  • More active participation in consultative bodies/alliances forged in the SK Group
2026 ~
  • Upgrade of the SE ecosystem support strategy and performance
  • Boosting up of probono program performance
  • Expansion of collaboration with external stakeholder

SK Networks probono