SK D&D has established a Code of Ethics to fulfill our corporate social responsibility with a strong sense of ethical and philanthropic duty, in addition to our economic and legal obligations. This code serves as a standard for decision-making and behavior in all management activities. Our Code of Ethics undergoes regular reviews by the Internal Control Part and is revised following discussions with relevant management support departments, ultimately receiving approval from the CEO. All employees at the domestic headquarters and subsidiaries participate in the 'Ethical Management Practice Pledge,' as outlined in Chapter 4, Article 22 of the Code of Ethics, conducting business honestly, fairly and transparently with key stakeholders such as customers, employees, and suppliers. SK D&D manages all ethical management risks through a 'Prevent-Detect-Respond' process, aiming to proactively prevent ethical risks, continuously monitor them, and promptly respond as necessary.

Code of Ethics

SK D&D endeavors to cultivate ethical awareness of our employees through the Internal Control Part, which annually conducts ethical practice training, workshops, and solicits pledges for ethical management practices. Additionally, as the lead department under the Audit Committee, the Internal Control Part oversees external audits, internal accounting management systems, internal audits, and related risk assessments. It formulates an annual plan for internal audits and ethics/anti-corruption audits, and reports these to the Board of Directors' Audit Committee. The Audit Committee reviews these plans and outcomes related to ethical management, ensuring the implementation of improvement measures, thereby contributing to establishing and advancing a transparent and responsible culture of ethical management.

SK D&D is dedicated to promoting a robust ethical culture across all employees, including contract workers, through our ethics and anti-corruption training programs. These initiatives cover mandatory annual training on disability awareness, sexual harassment prevention, and workplace bullying prevention. Additionally, SK D&D offers various other training modules, including guidance on using the SK Ethical Management Reporting System and case studies on workplace bullying incidents. Achieving a 100% participation rate annually, executives and employees alike internalize ethical management practices through these sessions.

Furthermore, SK D&D hosts an annual Ethical Management Practice Workshop to reinforce ethical awareness among employees of all levels. This workshop encourages cross-hierarchical and cross-organizational discussions on effective decision-making in ethical dilemmas. In 2023, workshops tailored by position and department were held for a total of 265 employees and executives, representing approximately 91% of eligible attendees. Moreover, SK D&D actively promotes awareness through its quarterly distribution of ethical management letter via email, and prohibits holiday gift exchanges with business partners, promoting ethical practices and fostering a consensus on their importance.

SK D&D operates 'SK Ethical Management,' the SK Group-wide ethical management reporting channel for all stakeholders and its ‘Sotong Hotline' to investigate unethical behavior, such as disrespect toward internal employees. Through these channels, we receive anonymous reports on unethical behavior and unfair transaction practices by employees. We strictly protect the identity and confidentiality of whistleblowers to prevent any disadvantages to them and operate a whistleblower protection system to ensure whistleblowers do not suffer any disadvantages or discrimination for making legitimate reports. The Sotong Hotline is operated by an independent third-party organization to minimize contact among employee, ensuring objective and transparent investigations.