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SK Networks defines all entities that directly and indirectly impact and are affected by our management activities as our stakeholders. Stakeholders include customers, employees, suppliers, the government, shareholders/investors, and local communities. We aim for successful communication with our stakeholders through various engagement channels. By conducting surveys to collect stakeholders’ opinions on our sustainability management policies, we are committed to actively integrating them into our management activities.

SK Networks' supply chain management performance is reported to the Strategy∙ESG Committee under the Board of Directors, which deliberates on key issues. To ensure the appropriateness of supplier selection and maintain fairness and transparency in purchasing activities, we operate a Purchase Deliberation Committee. The purchasing department convenes the committee to deliberate on applicable purchase transactions*.

* Purchases subject to deliberation include direct contracts worth KRW 500 million or more and competitive bids worth KRW 1 billion or more

*Head of the Strategy Planning Division, Head of the Accounting Division, Head of the Sustainability Management Division

In 2023, SK Networks encouraged active participation from business partners by providing online ESG training and funding for training expenses. We expanded our educational content beyond the existing human rights and ethics courses implemented in 2022 to include environmental issues, anti-corruption, and the four major statutory training programs. This initiative aimed to alleviate the educational burden on business partners and support their participation in ESG management. In 2023, 225 employees from 19 business partners voluntarily participated, completing a total of 685 courses (100% completion rate, up from 96.6% in 2022). Moving forward, SK Networks is committed to continuously realizing the value of mutual growth by developing and providing diverse and effective training programs to our business partners.

Information is the most critical asset for business survival. SK Networks respects the intellectual property rights and trade secrets of our partners and does not force them to pass over technical data or use intellectual property rights when selecting or transacting. Going forward, we will all the more strengthen our information protection system so that the tangible and intangible information of our partner companies can be managed more safely.

SK Networks deeply empathizes with the hardships faced by suppliers and strives to help them adapt to the rapidly changing business environment. Every year, we visit our suppliers to listen to their views on-site and analyze their opinions to minimize any risks that suppliers may experience. We visited the sites of 46 key suppliers in 2022 and 48 key suppliers in 2023. In 2024, we plan to visit 44 suppliers. Additionally, we share information on matters related to cooperation through the communication forum available through the new procurement system (www.skbuyone.com). We collect opinions and grievances from suppliers through various channels. In 2022, a total of 42 cases were received, and 37 of them were handled (88.1% completion rate) while a total of 271 cases were received and 262 cases were handled (96.7% completion rate) in 2023. Going forward, we will actively incorporate the opinions and requests of our suppliers to enact improvements

SK Networks seeks to establish sustainable, ethical procurement in terms of ESG (Environment, Society, Governance) as a hedge against possible ESG risks with suppliers and increase corporate value. We have prepared a Supplier Code of Conduct that contains regulations regarding corporate ethics, respect for human rights, safety & health, environment protection, etc. We also provide the Guideline for Sustainable Supply Chains and reflect the aspect of social responsibility in the supplier selection and appraisal process.

All suppliers of SK Networks should comply with its Guideline for Sustainable Supply Chains. The Guideline defines basic principles related to labor, human rights, safety, health, ethics, fair trade, and general management.

* Ratio of high-priority partners that underwent ESG assessment and diagnosis

Based on its three principles of ʻHappy Participation, Happy Coexistence, and Happy Changes,’ SK Networks conducts various social contribution activities and strives to contribute to the better changes and sustainable growth of the local community. We pursue social contribution activities in which employees can voluntarily participate through effective support based on core competencies and businesses of employees by making it aligned with our BM. We are expanding the scope of our social contribution to all stakeholders who can be affected by our business activities throughout the supply chain, not just the local community near the business site

SK Networks vows to leverage business to address social challenges and innovate business models with focus on social values, supporting the SE ecosystem in so doing. In particular, SK Networks has persistently endeavored to bolster up a social safety net, support for less-advantaged social classes having potential for future growth (youth education programs, mom-and-pop business support packages) and resolve challenges facing local communities in connection with SK business sites.

As a part of its business, SK Networks seeks to forge partnerships and facilitate shared growth with social enterprises that share common aspirations with it, trying to help social enterprises rise on their own and create opportunities for joint business innovation by leveraging SK Networks people’s expertise. SK Networks also plans to gradually expand collaboration with external stakeholders to promote SE ecosystem.

* Social Enterprise