SK proudly supports Busan's Bid to host the World EXPO 2030. SK proudly supports Busan's Bid to host the World EXPO 2030.
  1. Company
  2. Portfolio
  3. Investor Relations
  4. Sustainability
  5. News

Sustainability

SK Square aims to become a sustainable investment company based on ESG management.

Ethical Management

Project Background

SK Square believes that ethical management constitutes the company's competitive edge and pursues sustainable happiness for all its stakeholders, including employees.

Code of Ethics

SK Square has enacted the “Code of Ethics” to implement and promote ethical management, and has used it as a criterion for decision-making and behaviors in all business activities.

Code of Ethics

Scope of Application

SK Square employees - It refers to all employees (including non-regular workers) as the subject of management activities. Subsidiaries - All subsidiaries that can effectively exercise management rights Business partners - Suppliers, subcontractors, consulting firms, investment partners, etc. Other applicable stakeholders

Status of Pledge to Practice Ethical Management

Percentage of employees signing on the pledge
Unit %
2021 -
2022 98
2023 99
Category Unit 2021 2022 2023
Percentage of employees signing on the pledge % - 98 99

Ethical Management System

Goal

Practicing Corporate Ethical Management That All Stakeholders Can Trust

Implementation System

Code of Ethics
  • Specify the duties, responsibilities, and roles for employees, the company, customers, business partners, shareholders, and society based on SKMS (SK Management System), which is SK management philosophy and principle of conduct
  • Implement the regulations of the “Code of Ethics Implementation Guide” to promote a correct understanding of the Code of Ethics and specific directions
  • Encourage the application of social responsibility, including SK ethical management, to business partners in contractual relationships
Code of Ethics Implementation Guide
BP Pledge of Ethical Practice (required to sign up to Open4U and attached to the standard agreement for contracts)
Implementation Organization
  • (BOD) Audit Committee
  • (Directly reporting to CEO) Ethical Management
Audit Committee
  • Accounting supervision, management work supervision, risk management, etc.
Ethical Management
  • Support for ethical management practice for all the company employees
  • Management diagnosis and investigation of reported unethical behaviors
  • Operation of the subsidiary auditing organization’s working-level consultative body and support for the Audit Committee
Spreading Awareness
  • Conducting the online ethical management practice training and company-wide ethical management practice workshop
  • Pledge to practice ethical management for employees, including leaders (once a year)
  • Operating the SK Group’s integrated reporting channel and in-house ethical management portal

Policy of Ethics and Anti-corruption Education

SK Square regularly conducts ethics education to internalize ethical management and spread an ethical culture. Moreover, it institutionalized compulsory ethics education for all employees(including part-time and contract work). It is reported that 97% of its employees attended ethics education in 2022.

Ethics Education Implemented

  • Online education (basic education) The educational content focuses on what employees must be familiar with in the Code of Ethics and Code of Ethics Implementation Guide
  • Education for new/experienced employees The educational content focuses on what new employees should be familiar with in performing their duties, such as legal processes and conflicts of interest
  • Ethical Management Practice Workshop (intensive) The educational content customized to respond to ethical issues and prevent incidents in ethically vulnerable areas

Status of Ethics and Anti-Corruption Education

Percentage of participation in ethics and anti-corruption education
Unit %
2021 -
2022 (Q2) 97
2023 Target 100
Category Unit 2021 2022 (Q2) 2023 Target
Percentage of participation in ethics and anti-corruption education % - 97 100

Management Diagnosis (Audits)

SK Square conducts regular internal management diagnosis (audits) on ourselves and all subsidiaries under practical control of SK Square to eliminate ethical risks in advance and practice ethical management centered on prevention. In addition, we continue to improve the level of internal control on each major functions of the company through self-regulation system monitoring.

Management diagnosis (audit) checklist
  • Support decision-making in business strategy direction
  • Compliance with regulations and relevant laws in business operation
  • Identify business operations that conflict with customer value
  • Improve the working process and efficient/effective operation of resources
  • Presence of compliance system and continuous improvement of its operation
  • Validity of accounting, financial statements, reports and its compliance with financial reporting standards
  • Violations of ethical standards and anti-corruption policies
Management diagnosis (audit) cycle
  • At least once in three years(for SK Square and our subsidiaries subject to diagnosis)
Self-regulation system monitoring
  • Monitors once a year for a total of six areas, including human resources, purchases, and costs (including subsidiaries’ self-regulation system monitoring results derived by themselves)
Management diagnosis
(audit)
checklist
  • Support decision-making in business strategy direction
  • Compliance with regulations and relevant laws in business operation
  • Identify business operations that conflict with customer value
  • Improve the working process and efficient/effective operation of resources
  • Presence of compliance system and continuous improvement of its operation
  • Validity of accounting, financial statements, reports and its compliance with financial reporting standards
  • Violations of ethical standards and anti-corruption policies
Management diagnosis
(audit) cycle
  • At least once in three years(for SK Square and our subsidiaries subject to diagnosis)
Self-regulation system monitoring
  • Monitors once a year for a total of six areas, including human resources, purchases, and costs (including subsidiaries’ self-regulation system monitoring results derived by themselves)

Management Diagnosis(audit) Status

Number of management diagnosis (audit)
2021 -
2022 2 (two subsidiaries)
2023(plan) 3 (three subsidiaries)
Number of self-regulation system monitoring areas
2021 -
2022 6
2023(plan) 6
Category 2021 2022 2023(plan)
Number of management
diagnosis (audit)
- 2 (two subsidiaries) 3 (three subsidiaries)
Number of self-regulation
system monitoring areas
- 6 6

Counseling and Reporting System

SK Square operates various channels that enable stakeholders to freely consult and report on ethical management in order to establish transparency and trust in ethical management. Reports received through the ethical management consultation and reporting system are handled promptly and fairly. The guidelines are also established and applied to protect whistleblowers.

Ethics Violations Reporting and Handling Process

  • Receiving reports Ethics Consultation Report Center (Online)
  • Investigation and Verification Review of details followed by investigation and verification
  • Notification of results Notification of results to the whistleblower
  • Actions Internal actions to prevent repetition

Status of Reporting and Handling of Corruptions

Number of violations of anti-corruption regulations
Unit Case
2021 0
2022 0
Number of ethical management issues reported
Unit Case
2021 0
2022 5
Percentage of valid reports (investigated cases)
Unit %
2021 0
2022 100
Number of disciplinary actions due to unethical behavior
Unit Case
2021 0
2022 0
Category Unit 2021 2022
Number of violations of anti-corruption regulations Case 0 0
Number of ethical management issues reported Case 0 5
Percentage of valid reports (investigated cases) % 0 100
Number of disciplinary actions due to unethical behavior Case 0 0