Ethical 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
Status of Pledge to Practice Ethical Management
Percentage of employees who signed the pledge | |
---|---|
Unit | % |
2021 | - |
2022 | 98 |
2023 | 99 |
Category | Unit | 2021 | 2022 | 2023 |
---|---|---|---|---|
Percentage of employees who signed the pledge | % | - | 98 | 99 |
Ethical Management System
SK Square is committed to building trusted relationships with stakeholders and creating a desirable corporate culture. For this, we have developed an ethical management system to ‘practice corporate ethical management that all stakeholders can trust.’ We systematically implement ethical management and internalize transparent, ethical awareness within the company. Major ethical management plans and the results of the plans are managed by the Ethical Management Officer under the Audit Committee, and the Audit Committee under the BOD is in charge of the final review and approval.
Goal
Practicing Corporate Ethical Management That All Stakeholders Can Trust
Implementation System
Code of Ethics |
---|
|
Implementation Organization |
---|
{Board of Directors} > {(Audit Committee - Ethical Management) - 4 Subcommittees(Including the Governance Committee)}
|
Results of Audits conducted by Audit Committee |
Spreading Awareness |
---|
|
Code of Ethics |
|
Code of Ethics Implementation Guide | |
ISO37001(Anti-bribery Management System Certification) | |
BP Pledge of Ethics Practice Anti-corruption activities, such as providing money, hospitalities, and other non-financial benefits, are strictly prohibited, and sanctions are implemented when they occur BP Pledge of Ethics Practice is mandatory when registering with Partner Portal(Open4U) The document is attached to each contract to strengthen compliance for all business partners |
|
Anti-Corruption Policy
Anti-Corruption Policy
|
|
Implementation Organization |
{Board of Directors} > {(Audit Committee - Ethical Management) - 4 Subcommittees(Including the Governance Committee)}
|
Results of Audits conducted by Audit Committee | |
Spreading Awareness |
|
Metrics and Targets for Anti-Corruption Management
Number of Corruption Issues | |
---|---|
Unit | Case |
2022~2023.5 | 0 |
2023~2024 Target | 0 |
Assessment Methodology | Number of cases detected |
Completion Rate of Ethical Management Online Training | |
---|---|
Unit | % |
2022~2023.5 | 97 |
2023~2024 Target | Over 95 |
Assessment Methodology | Including part-time and contractors |
Completion Rate of Ethical Practice Workshops | |
---|---|
Unit | % |
2022~2023.5 | 100 |
2023~2024 Target | 100 |
Assessment Methodology | Implementation rate of executive-level organizations |
Implementation Rate of Ethical Pledges with Anti-Corruption Guidelines | |
---|---|
Unit | % |
2022~2023.5 | 98 |
2023~2024 Target | Over 98 |
Assessment Methodology | Including part-time and contractors |
Completion Rate of Compliance Training | |
---|---|
Unit | % |
2022~2023.5 | 67 |
2023~2024 Target | Over 70 |
Assessment Methodology | Including part-time and contractors |
Metrics | Unit | 2022~2023.5 | 2023~2024 Target | Assessment Methodology |
---|---|---|---|---|
Number of Corruption Issues |
Case | 0 | 0 | Number of cases detected |
Completion Rate of Ethical Management Online Training |
% | 97 | Over 95 | Including part-time and contractors |
Completion Rate of Ethical Practice Workshops |
% | 100 | 100 | Implementation rate of executive-level organizations |
Implementation Rate of Ethical Pledges with Anti- Corruption Guidelines |
% | 98 | Over 98 | Including part-time and contractors |
Completion Rate of Compliance Training |
% | 67 | Over 70 | Including part-time and contractors |
Policy of Ethics and Anti-corruption Training
SK Square regularly conducts ethical training to internalize ethical management and spread an ethical culture. Moreover, it institutionalized compulsory ethical training for all employees(including part-time and contractors). It is reported that 100% of its employees attended ethical training in 2023.
Ethical Training Implemented
Status of Ethics and Anti-Corruption Training
Percentage of employees who have completed training | |
---|---|
Unit | % |
2022 | 97 |
2023 | 100 |
2024 Target | 100 |
Full-time employees | |
---|---|
Unit | % |
2022 | 96 |
2023 | 100 |
2024 Target | 100 |
Part-time employees | |
---|---|
Unit | % |
2022 | 100 |
2023 | 100 |
2024 Target | 100 |
Contents | |
---|---|
2022 |
- No harassment in workplace - No false or exaggerated reporting |
2023 |
- Mutual respect among employees - Reporting anti-corruption and unethical behavior, whistleblower protection |
2024 Target | - |
Category | Unit | 2022 | 2023 | 2024 Target | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||||
Contents |
- No harassment in workplace - No false or exaggerated reporting |
- Mutual respect among employees - Reporting anti-corruption and unethical behavior, whistleblower protection |
- |
Portfolio(subsidiary) Training Performance
Company | Unit | 2022 | 2023 | 2024 Target |
---|---|---|---|---|
FSK L&S | % | 93 | 100 | 100 |
TMAP mobility |
% | 100 | 100 | 100 |
Incross | % | 97 | 96 | 100 |
Dreamus Com- pany |
% | 98 | 98 | 100 |
ONE store |
% | 100 | 100 | 100 |
11 STREET |
% | 100 | 100 | 100 |
SK planet |
% | 100 | 100 | 100 |
Company | Unit | 2022 | 2023 | 2024 Target |
---|---|---|---|---|
FSK L&S | % | 93 | 100 | 100 |
TMAP mobility | % | 100 | 100 | 100 |
Incross | % | 97 | 96 | 100 |
Dreamus Company | % | 98 | 98 | 100 |
ONE store | % | 100 | 100 | 100 |
11STREET | % | 100 | 100 | 100 |
SK planet | % | 100 | 100 | 100 |
Roadmap for Expanding Anti-corruption Training for Employees
Internal Audits
SK Square regularly conducts internal management diagnosis(audits) for the company and all subsidiaries where it exercises substantial management rights to prevent risks related to unethical behaviors and practice prevention-centered ethical management. In addition, SK Square continuously improves the internal audit level for the company’s major functions through self-checking systems.
Regular Audits of Ethical Standards
Category | Description |
---|---|
Key checklists |
|
Frequency |
|
Internal monitoring system |
|
Category | Description |
---|---|
Key checklists |
|
Frequency |
|
Internal monitoring system |
|
SK Square aims to conduct regular audits of all our businesses and subsidiaries every three years based on the standards by MSCI.1)2) For regular audits, we conduct a risk assessment of all business and supporting organizations of SK Square and our subsidiaries at the end of the previous year and establish an annual internal audit plan for businesses, organizations and subsidiaries with high risk, which is then reported to and approved by the Audit Committee. In addition, we enhance the execution of ethical management by not only performing audit but also continuously following up the implementation of recommendations and regularly reporting to the Audit Committee.
1) MSCI(Morgan Stanley Capital International) : A global corporate and market analysis services and investment information provider; has been assessing corporate sustainability and publishing results since 2007
2) Completed regular audits of all businesses of SK Square and our subsidiaries in 2022 and 2023(annually conducted since 2022 after the company’s establishment in November 2021)
Company | Scope of Audit | Results of Audit |
---|---|---|
2022 | ||
SK Square Accounting |
Account closing & internal accounting control | Satisfactory; no issues were found |
SK Square Financial |
Group self-correcting system expenses | 137 recommendations for improvement, including the need to strengthen evidence of usage when processing expenses |
11 Street | Business management system | Recommendation to strengthen standards for evaluating and managing business performance |
Dreamus Company |
iRiver business and receivables management | Recommendations to secure business soundness and strengthen receivables management |
FSK L&S | Effectiveness of ethical management system and internal control | Recommendation to enhance internal rules and regulations, operation of grievance reporting channels and hotlines, and control of ethical standards for its global businesses |
SK Shieldus |
Purchasing and internal accounting control | Recommendation to enhance purchasing and accounting system |
Tmap Mobility |
Effectiveness of ethical management system and internal control | Recommendation to enhance internal rules and regulations, operation of grievance reporting channels and hotlines, and control of ethical standards for its global businesses |
2023 | ||
SK Square Financial |
Group self-correcting system expenses | 447 recommendations for improvement, including the need to strengthen evidence of usage when processing expenses |
SK Square Accounting |
Account closing & internal accounting control | Satisfactory; the internal accounting management system is operating properly |
SK Square Self- correcting system |
Purchasing and supplier management | Satisfactory; no violations of employees’ dual/occupational activities |
Dreamus Company |
Purchasing procedures, Implementation of iRiver business and receivables management | Recommendation to enhance supplier pool management, purchasing inspection and inventory asset management |
FSK L&S | Purchasing procedures | Recommendation to enhance supplier pool management, arbitrary decision regulation management |
Incross | Purchasing procedures | Recommendation to enhance purchasing inspection management |
SK Square Americas |
Business at large | Recommendations to enhance controls over budgets, funds, asset contracts, and investment management |
2024 | ||
SK Square Financial |
Group self-correcting system expenses | in progress |
SK Square Accounting |
Account closing & internal accounting control | in progress |
SK Square Investment manage- ment |
Investment management process | in progress |
Dreamus Company, FSK L&S, Incross |
Implementation of purchasing procedures | in progress |
Incross | Purchasing procedures | in progress |
SK Square Americas |
Implementation of business at large | in progress |
Tmap Mobility |
Business at large and investment management | in progress |
Year | Company | Scope of Audit | Results of Audit | |
---|---|---|---|---|
2022 | SK Square |
Accounting | Account closing & internal accounting control | Satisfactory; no issues were found |
Financial | Group self-correcting system expenses | 137 recommendations for improvement, including the need to strengthen evidence of usage when processing expenses | ||
11 Street | Business management system | Recommendation to strengthen standards for evaluating and managing business performance | ||
Dreamus Company | iRiver business and receivables management | Recommendations to secure business soundness and strengthen receivables management | ||
FSK L&S | Effectiveness of ethical management system and internal control | Recommendation to enhance internal rules and regulations, operation of grievance reporting channels and hotlines, and control of ethical standards for its global businesses | ||
SK Shieldus | Purchasing and internal accounting control | Recommendation to enhance purchasing and accounting system | ||
Tmap Mobility | Effectiveness of ethical management system and internal control | Recommendation to enhance internal rules and regulations, operation of grievance reporting channels and hotlines, and control of ethical standards for its global businesses | ||
2023 | SK Square |
Financial | Group self-correcting system expenses | 447 recommendations for improvement, including the need to strengthen evidence of usage when processing expenses |
Accounting | Account closing & internal accounting control | Satisfactory; the internal accounting management system is operating properly | ||
Self-correcting system | Purchasing and supplier management | Satisfactory; no violations of employees’ dual/occupational activities | ||
Dreamus Company | Purchasing procedures, Implementation of iRiver business and receivables management | Recommendation to enhance supplier pool management, purchasing inspection and inventory asset management | ||
FSK L&S | Purchasing procedures | Recommendation to enhance supplier pool management, arbitrary decision regulation management | ||
Incross | Purchasing procedures | Recommendation to enhance purchasing inspection management | ||
SK Square Americas | Business at large | Recommendations to enhance controls over budgets, funds, asset contracts, and investment management | ||
2024 | SK Square |
Financial | Group self-correcting system expenses | in progress |
Accounting | Account closing & internal accounting control | in progress | ||
Investment management | Investment management process | in progress | ||
Dreamus Company, FSK L&S, Incross |
Implementation of purchasing procedures | in progress | ||
Incross | Purchasing procedures | in progress | ||
SK Square Americas | Implementation of business at large | in progress | ||
Tmap Mobility | Business at large and investment management | in progress |
*We utilize a unique ethical management system of SK Group (which can be found on pages 28 and in the sustainability report of SK Inc. at https://sk-inc.com/resources/download/esg/sustainability/ENG_SK-Inc_SR_2022_Interactive_Final.pdf to prevent unethical behavior and ensure compliance with the highest standards of ethics.
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. In the event of reporting(real name reporting is also possible), the confidentiality of whistleblower is protected, and identification of whistleblower is prohibited based on the Code of Ethics Implementation Guide
Ethics Violations Reporting and Handling Process
Status of Reporting and Handling of Corruptions
Number of violations of anti-corruption regulations | |
---|---|
Unit | Case |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Number of ethical management issues reported | |
---|---|
Unit | Case |
2021 | 0 |
2022 | 7 |
2023 | 4 |
Percentage of valid reports (investigated cases) | |
---|---|
Unit | % |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Number of disciplinary actions due to unethical behavior | |
---|---|
Unit | Case |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Category | Unit | 2021 | 2022 | 2023 |
---|---|---|---|---|
Number of violations of anti-corruption regulations | Case | 0 | 0 | 0 |
Number of ethical management issues reported | Case | 0 | 7 | 4 |
Percentage of valid reports (investigated cases) | % | 0 | 0 | 0 |
Number of disciplinary actions due to unethical behavior | Case | 0 | 0 | 0 |