We make social contributions in various fields including social enterprises,
education, regional co-growth and the environment.
SK considers maximizing the happiness of its stakeholders as its business value, which implies that all business activities have the ultimate aim of happiness.
SK innovation (“SKI”) exercises its best care so that there may be no human rights violations in its conduct of business or business relations. To fulfill its social responsibilities and duties as a corporate citizen, SKI joined UNGC (United Nations Global Compact) in October 2007, a global sustainable management initiative, and proclaims its support of the 10 principles in the four sectors of human rights, labor, the environment, and anti-corruption. Thus, SKI endeavors to formulate talent recruitment and training strategies, safety, health and environment (SHE) policies, and ethics norms and thereby strictly comply with the principle of human rights protection in its business activities.
Human Rights Due Diligence is defined as the due diligence that a company must perform in order to identify and prevent potential adverse effects related to governance, workers, human rights, environment and bribery in operating a business. SK Innovation periodically implements the human rights due diligence process provided by the international guidelines for effective protection of human rights of employees and business partners and sincerely reports the results on this to stakeholders. Human Rights due diligence is carried out in the following order: 1) human rights impact assessment, 2) identification of impact, 3) establishment of improvement goal, 4) proceeding of processing complaints 5) monitoring, 6) external reporting and disclosure and through these, we continuously manage the human rights impact that can occur at each business site.
*The corresponding human right due diligence is planned and implemented based on the opinions of officers, employees and external experts.
*The corresponding human rights due diligence is for all officers and employees of SK Innovation and members of the key partner companies.
*Actively protect to ensure that no disadvantage occurs to anyone through the corresponding human right due diligence
SK Innovation is conducting a company-wide human rights due diligence based on the basic human rights declaration. It is the principle to form a self-assessment checklist for human rights impacts by referring to internal management indicators such as working environment, working conditions, manpower management and systems, and global guidelines, and conduct online survey once per year to all members. Our company select key partner companies in accordance with our company’s purchasing guidelines, and conduct human rights due diligence to the partner companies and recommend all partner companies to carry out human rights due diligence on their own. The corresponding inspection checklist shall be prepared in Korean and English by considering diversity, and if there is a request from members, the company provides it in the corresponding language.
|Category||1) Regular evaluation||2) Temporary evaluation|
|Time||Every year(recommended)||Occurrence of major risk factors and change in external environment|
|In charge||Sustainability Planning Management & Human Resources Strategy Team|
|Scope of Due Diligence||SK innovation & all of its affiliates, SK innovation’s Top-Tier Supply Chainm|
|Self- assessment||Conduct online self-diagnosis for all members based on the check list The checklist consists of 20 to 30 items and it is necessary to additionally add and develop periodically|
|On-site check||Conduct on-site inspection related to major risk factors (one-on-one meetings with employees) Conduct on-site due diligence on site infrastructure, sampling investigation of major partners|
SK Innovation selects and manages potential human rights risk based on the human rights impact assessment conducted. SK Innovation identifies human rights risks that are directly or indirectly related to our business activities in accordance with the process, determine the relative importance of risks, control the assessed risks by implementing physical control and regularly(1 to 2 times per year) checks on the status of standard compliance. Potential human rights issues derived from the major international guidelines include: 1) working conditions; 2) discrimination in doing work; 3) discrimination in employment; 4) recognition of freedom of association and collective bargaining rights; 5) prohibition of forced labor;5) guarantee of occupational safety 7) Supply network impact, and 8) environmental impact.
“Frequency of risk occurrence” x “risk level assessment according to risk severity level”
Risk / (Category) / (high) / (medium) / (low)
Risk severity/ Grave risk / Significant risk / Minimal risk
Frequency of occurrence of risk / frequent occurrence, 10 times or more per year /more than usual occurrence, less than 6 times per year Occurs insignificantly, less than twice a year
*The frequency of occurrence is difficult to quantify, so opinions from the risk evaluator and the whole department are collected and the grade is selected
High (Terminate or Transfer): Establish emergency measures and taking corrective actions
Medium (Terminate, Transfer or Treat): Establishment of corrective action plan and managerial measures and countermeasures Low (Treat or Tolerate): Monitor to ensure the management state is maintained
*Conduct risk management according to 4T below depending on the risk severity
① Terminate (Remove the risk factor)
② Transfer (Substitution and transfer of risk factor)
③ Treat (Risk factor management)
④ Tolerate (Risk factor observation, and education)
SK Innovation categorizes the result of human rights due diligence by issue. In addition, SK Innovation has established improvement goals depending on issues, and systematically carried out implementation plans for achieving the goals, and detailed practice plan and conducted periodic reviews.
1) Linking improvement goals with KPIs when risk is found 2) Operating improvement TFT when needed
Review the corrective action and provide feedback on the corrective action status (completed/insufficient/delayed).
SK Innovation operates grievance channels such as hotline, online, and offline according to the characteristics of each business site based on the global standard grievance procedure. In addition, SK Innovation traces the complaint type, process progress status, and processing results, and has defined the processing period compliance rate and the satisfaction rate of officers and employees by channel in order to manage them.
|Stakeholder||Key communication channels|
|Members||SK Ethics Management Report Website, inter-company Intranet, Harmonia|
|Customers||SK Ethics Management Report Website, Customer happiness center (call center), SK Innovation website|
|Local Community||SK Ethics Management Report Website, Various local group meetings, local residents autonomous committees around the business site|
|Partner companies||SK Ethics Management Report Website, Regular council of partner companies, meeting of CEOs of partner companies|
SK Innovation is actively monitoring human rights risks through corrective actions based on the improvement goals. All human rights risks and corrective actions are regularly reported to management and relevant departments, and SK Innovation is conducting training for officers and employees and establishing countermeasures to prevent such risks from recurring.
SK Innovation discloses the relevant human rights policies and human rights due diligence results transparently through the Sustainability Report and the SK Innovation website.
|SK innovation Human Right Due Diligence Report|