Governance
Creating Future Value through Transparent Management
Activities
Code
SK Networks developed in 2007 a code of ethics modeled from SKMS (SK Management System) epitomizing SK Group’s management philosophy and has continued to update it ever since. The code of ethics contains provisions governing good practices and decisions to be upheld by SK Networks people in terms of customer relations, basic employee ethics, accountability to shareholders, relations with business partners, and roles to play in favor of the society at large. In addition, SK network has rolled out a guideline for ethical practices to ensure that the code of ethics is correctly understood and complied with as intended. The guideline for ethical practices spells out practices to be upheld by SK Networks people in terms of anti-corruption, mutual respect, protection of corporate and customer data, avoidance of conflict of interest, arm’s-length transaction, safety/environment/health responsibilities, obligations to report irregularities and protect whistleblowers among others In particular, the guideline contains a series of provisions to monitor and eliminate non-compliance of anti-corruption laws including the Improper Solicitation and Graft Act (Anti-graft Act in short). The code of ethics and the guideline for ethical practices are shared with not only SK Networks people but also business partners, with ethical practice training programs provided and compliance agreements from them required. Furthermore, SK Networks had its anti-corruption management system certified (ISO 37001) in December, 2022 to promote ethical compliance, vowing to bolster up ethical practices ever more.
Compliance
Ethical Management Council
Since 2018, SK Networks has operated an ethical management council chaired by its CEO to build a system to ensure effective implementation of ethical business practices between the head office and subsidiaries and stimulate compliance with such practices. Working-level employees of each company in charge of auditing serve as ethics commissioners in the council and the working-level ethical management council is convened in each quarter to jointly plan and execute ethical training programs and workshops and perform a variety of activities, establishing a code of ethics per company, assisting with audit processes, investigating ethical violation cases, and developing the capabilities of staff members in charge of ethical compliance. The Ethical Management Working-Level Council convened in Q1, 2023 to announce the Ethical Management Working-Level Council operation plan, plan major ethical management initiatives and share performance data across subsidiaries in Q2, organize lectures on internal accounting control system by independent third party experts in Q3, and share highlights in ’23 ethical management practices. SK Networks will continue to leverage the ethical management council as a platform on which subsidiaries will enhance their own ethical management functions.
Ethical Management Reporting Channels
To monitor and manage our status of ethical management, SK Networks operates channels through which all stakeholders can report ethical misconduct. The reports received through these channels are investigated by the Internal Audit Team and the ethical management teams of each subsidiary and are transparently and systematically handled.
Ethical Management Reporting Channels
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Web
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Address
SK Networks Internal Audit Team, 85, Cheonggyecheon-ro, Jongno-gu, Seoul, 03190, Republic of Korea
To submit questions on product quality and services
Go to websiteSelf-Regulatory Examination System
SK Networks is conducting an annual in-house examination to enhance autonomy in practicing ethical management. A checklist has been created for ethical risks covering a range of areas, including HR management, cost management, purchasing/business partner management, sales/receivables management, investment management system, inventory management, and unusual risk management. The checklist is designed to assess and evaluate risks specific to each business area.
Consensus
Ethics Education
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Ethics Education Policy
SK Networks provides ethics education annually to its people including contractors and part- timers, aiming to ensure that all of them attend and finish the ethics education programs. A separate ethics education program has been available for management leaders and board members since September 2021, with another ethics education program intended for business partners rolled out from 2022 to boost awareness of ethical management practices. The ethics education programs cover major ethical management issues in SK Networks, including anti-corruption, office bullying, and work ethics. We also survey the ethics education program takers on the effectiveness, difficulty and logistics of the education programs to inform our efforts to improve the programs and contents of feedback from SKN people. SK Networks also plan to upgrade the ethics education programs for management leaders, board members and business partners annually in quantitative/qualitative terms in line with the rapidly changing business landscape both at home and abroad.
Ethics Training History
이 표는 윤리경영 교육 시행 성과를 제공하며 구분, 단위, 2019, 2020, 2021, 2022로 구성되어 있습니다. Category Unit 2019 2020 2021 2022 2023 SK Networks, subsidiaries,
and second-tier subsidiaries*No. of employees completed training** person 4,635 4,922 4,866 4,913 4,862 Percentage of employees completed training % 98.4 97.8 98.5 99.2 99.4 Partner companies*** Implementation Y/N N N N Y Y No. of partner companies completed training number 32 19 * From 2019 to 2021, ethics training has been implemented in six companies (SK Networks (incl. Walkerhill), SK Networks service, SK Magic, SK Magic service, SK Rent-a-car, SK Rent-a-car service). The training was expanded to eight companies (the existing six companies + MINTIT and Cartini starting in 2022.
** Independent directors and non-regular employees were included from 2022.
*** Business partners in direct transactions with SK Networks headquarters have been subject to a pilot ethics training program since 2022.
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Ethics Practice Survey
SK Networks conducts an Ethics Practice Survey for employees at the headquarters and its subsidiaries to assess compliance with the Code of Ethics and the level of ethical practice culture. Ethical management for employees is supported by handling critical implications from survey results, including mutual ethics among employees, inspection of SV-degrading elements, and continuous improvement of the ethical management practice system.
Ethics Practice Survey History
이 표는 윤리경영 교육 시행 성과를 제공하며 구분, 단위, 2019, 2020, 2021, 2022로 구성되어 있습니다. Category Unit 2019 2020 2021 2022 2023 SK Networks, subsidiaries,
and second-tier subsidiaries*No. of participating employees person 3,705 3,537 4,125 3,985 3,963 Percentage of participating employees % 76.0 68.8 82.1 79.7 81.8 * From 2019 to 2021, the Ethics Practice Survey has been implemented in six companies (SK Networks (incl. Walkerhill), SK Networks service, SK Magic, SK Magic service, SK Rent-a-car, SK Rent-a-car service). The Survey was expanded to eight companies (the existing six companies + MINTIT and Cartini starting in 2022.
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Ethics Management Practice Pledge
On the first business day of each year, all employees are encouraged to participate in the Ethics Practice Pledge. Along with the employees’ voluntary actions, we aim to enhance awareness of ethical management and establish a transparent corporate culture.
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Ethics Practice Workshop
Each year, SK Networks holds an Ethics Practice Workshop for all employees to elevate the level of their ethical management. During the Ethics Practice Workshop, participants watch videos or have discussions after reviewing pre-distributed materials related to ethical issues such as workplace bullying and conflict of interest at work, followed by sharing areas of improvement for practicing ethical management. In addition, organizations are selected and awarded the Ethics Management Workshop Excellence to internalize the ethical practice culture in each company, including subsidiaries.
Ethics Practice Workshop History
이 표는 윤리경영 교육 시행 성과를 제공하며 구분, 단위, 2019, 2020, 2021, 2022로 구성되어 있습니다. Category Unit 2019 2020 2021 2022 2023 SK Networks, subsidiaries,
and second-tier subsidiaries*No. of participating organizations number 414 393 549 419 393 Percentage of participating organizations % 95 98 98 98 99.8 * From 2019 to 2021, the Ethics Practice Survey has been implemented in six companies (SK Networks (incl. Walkerhill), SK Networks service, SK Magic, SK Magic service, SK Rent-a-car, SK Rent-a-car service). The Survey was expanded to eight companies (the existing six companies + MINTIT and Cartini starting in 2022.
Ethical Practice Audit
In line with the MSCI1) recommendation, SK Networks aims to regularly audit itself and subsidiaries’ businesses once every three years2). Prior to the regular audit, risks relevant to all business and supporting organizations are assessed early in the audit year. The annual internal audit plan is developed for businesses/organizations assessed to be exposed to high risks; and the audit plan is reported to and approved by the audit committee. In addition, rather than simply stopping at performing audits, actions to address audit findings are systematically monitored and regularly reported to the audit committee to ensure that such findings are followed up on.
1) MSCI (Morgan Stanley Capital International): a global assessment firm organized by Morgan Stanley that has assessed companies on 35 ESG elements and released assessment reports since 2009.
2) All businesses of SK Networks’ head office and subsidiaries from 2020 to 2022 have been fully audited (excluding Mintit and Cartini that are still in early days of business and are not two years old in full as of the end of ‘22).
Activities
| Year | Audit Scope | Audit Coverage |
|---|---|---|
| 19 | Accounting audit | Account closing & internal accounting control |
| Group audit | Business at large | |
| - Global division | Business at large | |
| - IT division | Business at large | |
| - MOST business division (gas station retail) | Business at large | |
| - Speedmate business division | Business at large | |
| - Car rental division | Business at large | |
| - Walkerhill | Business at large | |
| - SK Magic | Business at large | |
| - Information security | Operations at large | |
| - SHE (safety, health & environment) | Operations at large | |
| Subsidiary management status | Efficient/effective management of subsidiaries | |
| 20 | Accounting audit | Account closing & internal accounting control |
| Global division | Credit transaction process | |
| IT division | B2B business | |
| Speedmate business division | Regular audit (Business at large) | |
| SK Rent-a-car | Used car business | |
| Walkerhill | Purchase (inspection) process | |
| 21 | Accounting audit | Account closing & internal accounting control |
| SK Magic | Regular audit (Business at large) | |
| Walkerhill | Regular audit (Business at large) | |
| SK Rent-a-car | Progress monitoring in the used car business | |
| 22 | Accounting audit | Account closing & internal accounting control |
| SK Networks service | Regular audit (Business at large) | |
| IT division | Regular audit (Business at large) |