SK Group Chairman Chey Tae-won (SK Group)
SK Group announced on Sunday that the total social value generated by its key affiliates last year was 20.5 trillion won ($15.6 billion), up 1.6 trillion won or 8.6 per hundred more than the previous year.
Social value refers to the degree to which companies have contributed to solving or alleviating social problems faced by stakeholders.
The country’s second largest conglomerate has disclosed the value of its social impact every year since 2018.
Economic input, consisting of employment, dividends and tax payments, accounted for the largest share at 20.7 trillion won in value last year. Meanwhile, social contribution, consisting of products, services, labor and shared growth with suppliers, was worth 2.5 trillion won.
In terms of environmental contribution, the group gave 900 billion won to environmental products and services, but generated 3.6 trillion won of negative impact, largely due to its operation of petrochemical plants.
SK noted that the group has established an evaluation system to assess the progress of socially responsible management among its subsidiaries under the leadership of SK Group Chairman Chey Tae-won.
For example, SK Innovation’s “Carbon to Green” strategy helps its key affiliates SK On, the electric vehicle battery maker, and SK IE Technology, the battery separator maker, launch green products.
The petrochemical unit is also looking to foster a new business model for the recycling of used chemical materials such as plastics, battery metals and lubricants.
In terms of social value, the figure exceeded 1 trillion won for the first time last year, more than five times that of 2018. In particular, progress in the security and welfare sectors was more evident, generating 76.8 billion won and 57.3 billion won. won, respectively.
“We are finding new business models as we look for ways to address or alleviate social issues together with stakeholders,” said an SK official. “Social impact is being integrated into the business models of all affiliates.”
By Kim So-yeon (sera13@heraldcorp.com)
