- Corporate Social Responsibility
Growth and Development based on Corporate Social Responsibility (CSR)
The growth and development of SK Telecom requires constant loyalty from customers, commitments from employees, as well as support and encouragement from stakeholders including shareholders and business partners. SK telecom is committed to fulfilling its corporate social responsibility to earn trust and support from those diverse stakeholders.
SK telecom focuses on five CSR areas, such as Environmental Management, Win-Win Growth, Customer Satisfaction, Social Responsibility, and Ethics & Compliance, in fulfilling the corporate social responsibilities. We established our CSR strategies for these five areas, based on the opinions and requirements from inside and outside the company regarding our corporate citizenship, as the no.1 mobile network operator in Korea.
SK Telecom is committed to carrying out CSR activities, which help us minimize potential risks in our major businesses, enhance competitiveness of the existing businesses and discover new business opportunities. Details of our CSR performance and plans are available in our Annual Sustainability Report that is published at the beginning of the year.
- Customer Satisfaction
- Social Responsibility
- Win-Win Growth
- Environmental Management
In May, 2007, SK telecom’s Board of Directors unanimously approved the company to join UN Global Compact (UNGC), for the first time among four major SK affiliates.
SK telecom publicly announced its commitment to fulfilling corporate social responsibilities to meet the global standard, in compliance with ten UNGC principles for labor, human rights, environment and anti-corruption. In May, 2008, SK Telecom created Corporate Citizenship Committee, as one of the five sub-committees under the Board. The Corporate Citizenship Committee composed of four Outside Directors and one Inside Director monitors and advises on our CSR strategies and performance as well as on our communication with interested parties outside the company. We also exert diverse efforts to make corporate social responsibility an integral part of our corporate DNA, for example, by creating a consultative group to assist the Corporate Citizenship Committee and reflecting major CSR performance indicators in our internal Key Performance Indicators (KPI).
< SK telecom’s CSR Framework >
Board of Directors
Corporate Citizenship Committee
SK telecom was named the Mobile Communications Sector Leader for three consecutive years in the Dow Jones Sustainability Index (DJSI) assessment made by Dow Jones and SAM(Sustainable Asset Management), and was listed in the DJSI World Index for six straight years. This further boosted our position in the global market, as Korea’s representative mobile communications service provider that fulfills its corporate social responsibility. Based on the transparent and responsible management practices, SK telecom will continue its efforts to become the global ICT leader by carrying out CSR activities in accordance with UNGC 10 Principles. Also, through CDP(Carbon Disclosure Project), SK telecom has gained global recognition in the area of climate change strategy since 2010. In addition, SK Telecom has been participating in Integrated Reporting Pilot Program initiated by IIRC(International Integrated Reporting Council) since 2012.
SK Telecom examines diverse strategic, social and environmental issues, discovers the material issues that influence the company’s mid- to long-term development and is reflecting them in management decisions. By the ‘materiality’ of material issues, SK Telecom refers to relevance from the perspective of the impact on the business and stakeholders as well as the actual level of impact that it has on SK Telecom’s ability to create sustainable value. After the material issues have gone through the technical analysis process, SK Telecom’s Corporate Citizenship Committee decides upon the priority of the issues. The economic, environmental and social issues refer to global political-social issues including the UN Sustainable Development Goals (SDGs), global regulations, mid- to long-term social trends, issues raised by international organizations and non-governmental organizations (NGOs) as well as externalities that became known in the company’s business process. These issues are managed in an issue pool and on the basis of the annual stakeholder participation process, the results of the relevance assessment and results of assessing the financial impact from the cost, revenue and risk perspectives are integrated through the industry level (analysis of similar businesses) and individual company level (such as collection of internal opinions) and the priorities are deduced.
- 1) Refer to the stakeholder engagement channels in the Governance section on p.62 of the SKT Annual Report 2015
- 2) Refer to the Non-Financial MD&A section on p.91 of the SKT Annual Report 2015 for detailed engagement guidelines
- 3) Business Strategy Issues - Refer to the business performance and analysis section on p.26-30 of the SKT Annual Report 2015, Risk Issues - Refer to the Risk Management Report section on p.64-67 of the SKT Annual Report 2015
- 4) Refer to the Context on Material Issue section on p.36-37 of the SKT Annual Report 2015
- 5) Reflects the research and expert opinions of a 3rd party expert institution
Result of Selecting the Key Reporting Topics for the 2015 Annual Report
In 2015, SK Telecom selected nine material issues and among these, the company discloses the management methods, results and goals regarding ICT Convergence, Social & Business Innovation, Climate Change & Paris Convention in Part 2 ‘Business Cases,’ and regarding the remaining material issues in Part 4 ‘Non-Financial Statements’ in the 2015 Annual Report.
Materiality Assessment Results
|Level||Material Issues||GRI Aspect||RelevanceHigh||Impact|
|Core||ICT Convergence||Economic Performance||High||V|
|Network Quality & Risk Mgt||Non-GRI||High||V|
|Customer Retention & Responsible Marketing||Marketing Communications Product & Service Labeling||High||V|
|Moderate||Social & Business Innovation||Indirect Economic Impact||Moderate||V|
|Climate Change & Paris Convention||Energy / Emissions||Moderate||V|
|Data Privacy||Customer Privacy||High||V|
|Relevant||Supply Chain Assessment & Assurance||Supplier Assessment||Relevant||V|
|Business Partner Mutual Growth||Non-GRI||Relevant||V|
|Human Capital Development||Employment||Relevant||V|
Believing that customers are the key to growth, SK telecom conducts all business activities from customer-oriented perspectives.
With the adoption of Customer Experience Management (CEM) system, SK telecom has developed and implemented improvement projects aimed at increasing positive customer experience and reducing negative customer experience. This helps us deliver unique and innovative services to our customers.
Thanks to these efforts, SK telecom has claimed the top ranking in the mobile communications category of Korea’s three major customer satisfaction surveys (National Customer Satisfaction Index (NCSI), Korea Customer Satisfaction Index (KCSI), Korean Standard Service Quality Index (KS-SQI)).
Expansion and reinforcement of customer information protection
Maximization of customer satisfaction through best call quality and service
Improvement of customer value through benefits and rate plans tailored to the lifestyle of individual customers
Ranked the first for
19 consecutive years
- Competitor A 2011 73 2012 71 2013 72 2014 72 2015 74 2016 74 Key achievements
- Competitor B 2011 70 2012 69 2013 71 2014 72 2015 73 2016 73 Key achievements
Ranked the first for
18 consecutive years
- Competitor A 2011 61.9 2012 64.7 2013 71.1 2014 71.1 2015 71.8 Key achievements
- Competitor B 2011 56.2 2012 59.5 2013 68.8 2014 67.8 2015 70.1 Key achievements
Ranked the first for
16 consecutive years
- Competitor A 2011 70.1 2012 66.5 2013 69.6 2014 70.6 2015 72.0 Key achievements
- Competitor B 2011 71.1 2012 66.3 2013 71.2 2014 70.0 2015 74.1 Key achievements
SK telecom launched diverse fixed rate plans to ease the burden on customers who are worried about their service charges due to their over-use of contents.
We send text messages to customers regarding their service usages to help them predict their spending. We also offer various anti-spam services free of charge to protect customers from damages caused by spam and voice phishing. In addition, SK telecom has a set of risk management system, where we manage the entire process from product planning to disposal. We launch products or services only after the relevant risk review and approval by our internal experts.
Free Anti-Spam Services
- SMS Spam Filter
- Prevention of SMS Spam
- Blocking of Spam SMS
- Blocking of SMS whose
numbers start with 060 or 030
- Blocking of ARS
whose numbers start with 060
- Blocking of calls
whose numbers start with 060
- Blocking of ARS
- Blocking of Spam ARS+
- Blocking of calls whose
numbers start with the ones
designated by customers
- No Spam, Rejection of Spam
- Blocking of advertising SMS
- No Spam, Rejection of TM
- Rejection of diverse TM
SK telecom aspires to achieve win-win growth and share happiness with the business partners by creating a healthy corporate ecosystem in the ICT industry.
In 2003, SK telecom became the first company in the ICT industry to create a team dedicated to win-win growth and collaboration with business partners, reflecting its strong commitment to promoting win-win growth. SK telecom also continues to provide full support for ‘SK Win-Win Growth Committee’, which was launched in 2008 to promote shared growth with business partners at SK Group-level.
SK telecom aims to build win-win partnership with business partners through fair and transparent transactions based on mutual trust. To this end, we comply with the four fair transaction guidelines set by Korea Fair Trade Commission and strive to prevent any unfair transaction or unethical behavior.
SK telecom will continue to improve the business transaction culture, in order to ensure that both the company and its partners abide by the basic transaction principles and respect each other’s capabilities and technologies.
Since 2005, SK telecom has held one-on-one meetings and win-win growth camps with business partners to listen to their voices and solve their grievances.
We also notify the business partners of our demand forecast to help them better prepared for our demand and manage their businesses in a more stable manner.
In 2012, we launched CEO Win-Win Council mainly composed of the CEOs of our representative business partners to have official and unofficial communication with each other about how to promote and support the win-win growth culture.
In 2012, SK telecom opened ‘T open Lab’ that offers our business partners the infrastructure necessary for their technology development.
‘T open Lab’ helps us achieve win-win growth with our business partners, by combining SK telecom’s high-quality R&D infrastructure with the creativity of small and medium (SME) business partners and individual developers, which will then lead to stronger technological competitiveness.
SK telecom offers appropriate financial assistance for our business partners to solve their financial problems through the Win-Win Fund, which was created with KRW 95 billion in 2009 and then increased to KRW 167.5 billion in 2015. We also provide our SME business partners with diverse online and offline training programs that they may find it difficult to operate on their own. Approximately 20,000 employees of our business partners attend those training programs on an annual basis. We also provide sexual harassment prevention training and ethics management training to our business partners so that they can voluntarily improve their awareness on human rights and anti-corruption. Going further, we evaluate the business partners’ performance in CSR categories (environment, labor, human rights) when we assess their individual value as a partner, in order to encourage them to carry out their own CSR activities.
In 2012, SK telecom adopted a performance-sharing scheme, where it signs an agreement with the business partners on business collaboration projects and shares performance results from such projects together in various forms, if the agreed goals were met. We aspire to make the performance-sharing program an integral part of our win-win growth culture. In addition, we plan to invest intensively in advanced convergence businesses such as Healthcare, B2B, and future-oriented R&D, as well as to create new business models by opening and sharing our big data with the business partners. This will enable us and our business partners to create and share new values of growth together.
SK telecom carries out diverse social responsibility activities by leveraging its ICT technologies. Our key social responsibility programs include various mobile services for the public, support for revitalization of Korean traditional markets, and assistance for baby boomers to start up their own businesses.
SK telecom will continue to fulfill its social responsibilities by sharing its ICT technologies with the community, in order to resolve diverse social issues, create new opportunities and values for the society, and to bring more happiness to the community members.
Platform for Opportunities
Support for baby boomers to start up ICT-based businesses
Support for the youth to start up ICT businesses
Establishment and operation of social enterprises
Platform for Sharing
ICT-based support for revitalization of Korean traditional markets
Development of new ICT-based solution for the public
Assistance to bridge the digital divide for the disadvantaged
- ICT-based support for revitalization of Korean traditional markets
Conducted traditional market vitalization projects for Junggok Jeil Market and Shingi Market
Offered ICT solutions such as Myshop and ELR, membership connected to OK Cashbag, as well as marketing support using our sports teams(including SK Wyverns)
- Support for baby boomers to start up ICT-based businesses
Combined the experience and knowledge of baby boom generation with the ICT capabilities of SK telecom, to help the baby boomers start up and manage a successful, high value-added business based on ICT
Vitalized the start-up ecosystem by building up a comprehensive start-up supporting system
- Support for the youth to start up ICT businesses
Provided mobile test beds for potential start-ups in ‘D. Camp’, the local hub fostering youth start-ups under the Youth Entrepreneurship Foundation
- Establishment and operation of social enterprises
‘Happy ICT Foundation’, a social enterprise that is specialized in ICT services and develops information system for the public
stablished and supported the operation of ‘Happy Eco Phone Foundation’, a social enterprise that promotes recycling of used mobile phones through evaluation and commercialization of the used devices
- Development of new ICT-based solution for the public
Developed and operated the donation platform ‘GiveU’, the mobile volunteering platform ‘WithU’, and the smartphone app with audio contents for the visually impaired ‘Happy Audio Library’
- Assistance to bridge the digital divide for the disadvantaged
Hosted IT Challenge Contest for teenagers with disabilities, and provided the elderly/North Korean refugees /visually impaired people with training about how to use mobile phones
Ethics & Compliance refers to the ethical and responsible corporate management where the company not only fulfills its economic and legal responsibilities but also applies the ethical standards required by the society to its decision-making process and actions. The concept of Ethics & Compliance also includes corporate sustainability management where the company carries out its discretional responsibility(social responsibility) as a sound corporate citizen.
Values of Ethics & Compliance
the starting point of profit creation
the main players of corporate management activities
the win-win partnership
potential customers, potential employees, potential shareholders
the main investors
foundation for sustainable growth
Organizations in charge of Ethics & Compliance
SK Telecom will continue to implement fair and transparent ethics management through its Corporate Citizenship Committee, Ethics Management Group and Ethics Management Agent.
- Monitor ethical risks at team-level.
- Offer first-stage counseling for team-level ethical issues.
- Disseminate corporate ethics management policies and action plans.
- Verify additional factual information for the counseling.
- Collect opinions from each team for establishment of ethics management infrastructure.
- Send official request of cooperation to the interested parties that provided or received unethical proceeds, valuables or donations (direct reporting, when required)
- Coordinate with the company’s internal volunteering group for the community.
SKT’S Code of Conduct Framework
- All employees
- Detailed guidelines for ethics, society, environment, human rights, labor and anti-corruption
- All employees
- Detailed guidelines for employment, evaluation, compensation and anti-discrimination
- All employees
- Money laundering/insider trading
- Anti-monopoly/anti-competition behavior
- All business partners
- No bribe/customer privacy protection/fulfillment of SK telecom’s social and environmental responsibilities
- All employees managing customer information, all employees under the application of the company’s internal customer information protection policies
- Privacy pledge
- Universal Declaration of Human Rights
- UNGC 10 Principles
- Ruggie Guiding Principles on Business & Human Rights
Code of Ethics
Establishment and compliance with the Code of Ethics, the criteria for ethical behaviors and judgment of SKTizens (SK telecom’s employees)
Code of Ethics Implementation Guidelines
Criteria for ethical behaviors and judgment to help employees correctly understand and implement Code of Ethics
- CEO Statement on Human Rights
Introduction Help line
Help Line is a place where employees can report and seek advice about unfair allocation of workload or wrongful requests, monetary and service bribery, and accounting complaints (accounting, internal management, auditing) and other wrongful acts. The privacy of the employee and the contents of the consultation are kept confidential, and any private or slanderous information that deviate from the facts will be dismissed.
SK telecom abides by Korea’s Political Fund Act, which prohibits companies from making political contributions. It is also an active supporter of government policies on anti-corruption, fair competition, job creation, gender equality, and low carbon, green growth.
SK telecom faithfully fulfills its responsibilities as taxpayer by 1) strictly complying with applicable tax regulations, laws and rules both domestic and overseas in all of its transactions with stakeholders, and 2) accurately calculating its tax liability to report and paying the exact amount due in a timely manner.
- 1.Compliance with tax regulations
- In compliance with applicable tax regulations both home and abroad, SK telecom accurately calculates its tax liability to report and pays the exact amount due in a timely manner.
- 2.Cooperation with tax authorities
- SK telecom spares no efforts to cooperate in good faith with tax authorities to further develop the tax system based on mutual respect.
- 3.Information transparency
- SK telecom makes full disclosure of its tax liabilities to its stakeholders to assure transparency.
- 4.Maintaining the right prices and business structures
- SK telecom conducts transactions at prices set in the ordinary course of trade with all of its business partners regardless of their relationship with the Company, and maintains business and investment structures that comply with all relevant tax regulations.
With the rising threat of climate change, information communications companies are required to take on more critical roles in contributing to low carbon, green growth. The growth and development of SK Telecom requires constant loyalty from customers, commitments from employees, as well as support from stakeholders including shareholders and business partners. SK Telecom is committed to fulfilling its corporate social responsibility to earn trust and support from the diverse stakeholders.
In 2009, SK Telecom established Green ICT Committee that is attended by executive-level managers representing all business areas of the company, in order to promote green management. We also offered all employees the online beginner’s course training on eco-friendly management, acquiring ISO14001 (Environmental Management System) certification for all of our business areas in 2011. We will continue to raise employees’ awareness on environmental management.
Social Greenhouse Gas Reduction
Aiming to prevent climate change, SK Telecom has conducted the ‘research on reduction of social greenhouse gas＊emissions through ICT services’ since 2011. This research found that ICT services can help reduce about 14.57% (118 million tCO2e) of the 2020 potential emissions (800 million tCO2e) of Korea. Based on this study result, we will encourage customers to join us in our efforts to make the environment greener through the use of ICT services in their daily lives, and will contribute to the fight against climate change.
＊ Social Greenhouse Gas
Social greenhouse gas refers to the greenhouse gas emissions (Scope3) generated by customers when they use services and products offered by a company.
Efforts for Reduction of Greenhouse Gas Emissions
Besides the research on reduction of greenhouse gas emissions, SK telecom has set reduction targets for greenhouse gas emission/energy consumption per employee. This is part of our efforts to reduce any negative impact on the environment and to promote green culture across the company. We have also established other company-wide systems and practices to reduce greenhouse gas emissions. Through these efforts, we over-achieved our greenhouse gas reduction target for 2015; The total emission amount for 2015 amount for 2015 was 686,118tCO2e, which is lower than our target 782,000tCO2e.
- SK telecom ESG Policy covers all suppliers who transact with SK telecom. It also requires suppliers to comply with Business Principles and Practices of SK telecom in their transactions with sub-suppliers.
II. Processes for Responsible Supply Chain Management at SK Telecom
The phrase “Supplier” in this Supplier Policy shall, where relevant, also include all employees, contractors, subcontractors and agents of Supplier.
As one of the world’s leading ICT companies, SK telecom has adopted Business Principles to ensure that trust and that SK telecom behaves to the highest standards of integrity.
SK telecom, thus, requires all of its suppliers to adopt SK telecom’s Business Principles and Practices as their code of conduct. Under the Business Principles, suppliers shall faithfully abide by the code of conduct to prevent risks that may arise in finance, reputation and business concerning SK telecom and suppliers themselves, and shall realize win-win partnership for mutual benefits. SK telecom ensures its suppliers to achieve sustainability by managing their environmental and social performances based on the ESG Policy, and to apply such policy to their subcontractors under the overarching goal of realizing the sustainable supply chain management as defined by SK telecom.
- Supplier shall act with honesty, integrity and fairness in its dealings both internally and externally. Supplier shall not tolerate any form of bribery, including improper offers of payments or gifts to or from employees. Supplier shall avoid any contracts that might lead to, or suggest, a conflict of interest between personal activities and the business. Supplier shall neither give nor accept hospitality or gifts that might appear to incur an obligation. Supplier shall pursue mutually beneficial relationships and seek to promote the application of SK Telecom’s Business Principles with relevant business partners and suppliers.
- Suppliers shall actively participate in SK telecom’s endeavor for fair trade compliance and shall conduct business in compliance with fair trade laws and systems to ensure fair competition. Supplier shall comply with the provisions of all applicable domestic and international laws and appropriate standards and principles.
- Suppliers shall protect the information they acquire in the course of the business operation related to SK telecom, and shall not use such information for purposes other than for carrying out the Company’s rightful business activities, unless otherwise it allowed under the relevant laws. Suppliers shall not acquire or use the SK telecom’s or other companies’ information or trade confidential information in an illegal or improper manner.
- SK telecom will provide the best possible return for its shareholders over the longer term. Suppliers recognize that SK telecom will maximize corporate value through transparent and efficient business management as it continues to pursue management innovation, and shall share its profits with its shareholders but will also take into account social and environmental considerations.
- Suppliers recognize that SK telecom will voice its opinions on government proposals and other matters that may have an impact on SK telecom and its stakeholders. Suppliers recognize that SK telecom will not make gifts or donations to political parties or intervene in party political matters.
- Suppliers recognize that SK telecom shall maintain the quality of products and services that customers expect, and create an environment in which customers can use the products and services safely and beneficially, thereby using its best efforts to increase its customer value.
- Suppliers shall practice environment-friendly business management and abide by international standards and laws pertaining to environmental protection, and the internal regulations. Suppliers are also advised to establish an environment management system which includes an independent audit by a third party.
- Suppliers shall institute systems, and provide regular education and training that promote Employees’ health and safety, and comply with relevant international standards, laws and internal regulations governing employee health and safety. Suppliers shall exert its utmost efforts to encourage their Employees to present a spirit of challenge and creativity based on mutual trust and pride, and help the Employees pursue happiness together with their colleagues.
- Suppliers recognize that SK telecom will actively participate in social contribution activities including volunteer activities and disaster relief as a responsible corporate citizen in the community.
- Suppliers shall not engage in any form of discrimination against their stakeholders including but not limited to customers, employees, and community members in all locations where they conduct business based on race, ethnicity, religion, gender, disability and etc. Suppliers, in all locations where they conduct business, recognize and protect basic human rights through various activities including but not limited to underage protection and customer privacy protection. Suppliers also make the utmost efforts to maintain the optimum working conditions for their employees including work-hour compliance, a guarantee of minimum wage, and etc.
2. Fair-Competition & Compliance
3. Privacy Protection
4. Financial integrity
5. Public policy
6. Customer Value
8. Health & Safety
9. Contribution to Community
10. Human Rights
- The phrase “Supplier” in this Supplier Policy shall, where relevant, also include all employees, contractors, subcontractors and agents of Supplier.