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Human Rights Management

Human Rights Management Framework

Human Rights Policy

SK D&D supports and adheres to domestic and international standards and principles related to human rights, including the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the conventions of the International Labor Organization.

To actively promote and protect the human rights of all stakeholders, including employees, customers, local communities/environment, and shareholders, SK D&D revised its Human Rights Policy in 2024 and made it publicly available throughout the organization and to the public. The Policy applies to our employees, domestic and overseas affiliates, and our business partners are also encouraged to understand and put into practice our principles of respect for human rights. In addition, we regularly monitor global human rights standards and conduct human rights impact assessments to incorporate key issues identified into the revision process. The recently updated version of SK D&D’s Human Rights Policy is disclosed externally after consultation with the relevant departments, reporting to management, and approval by the CEO.

Human Rights Management Organization

To systematically implement human rights management, SK D&D has established and operates a human rights management governance framework based on a reporting system to the Board of Directors. The human rights working-level departments consist of the ESG Part and the P&C Part (People & Culture Part), which collaborate with the Internal Control Part as needed.

The ESG Part develops a comprehensive group-wide human rights management system, regularly reviews and revises SK D&D’s Human Rights Policy, and conducts human rights impact assessments across the company's value chain to identify human rights risks and corresponding improvement initiatives.

The P&C Part executes improvement initiatives identified through human rights impact assessments, provides feedback on Policy revisions, and conducts employee training on human rights (including topics such as prevention of sexual harassment and workplace bullying). It also collaborates with the Internal Control Part under the SK Autonomous-Responsible Management Support Group for ethical management, ensuring the implementation of procedures to protect and remedy reporters in handling human rights grievances.

The plans and outcomes of human rights management activities are ultimately reported by each working-level department to the ESG Committee, which monitors group-wide human rights management performance, including major human rights risks and improvement tasks.

Human Rights Management Organization

Human Rights Risk Management

Human Rights Impact Assessment

Overview

To prevent and mitigate human rights risks, SK D&D has established a human rights due diligence system based on global standards such as the UNGP, OECD Due Diligence Guidelines, and GRI Standards, and regularly conducts human rights impact assessments. When establishing human rights impact assessment plans, we consider group-wide human rights issues, focusing particularly on vulnerable groups such as people with disabilities, non-regular workers, women, and the elderly. Human rights impact assessment involves reviewing existing human rights management policies and systems and utilizing methods such as surveys, checklist-based self-assessments, and focus group interviews (FGIs). For each human rights risk identified through the impact assessment, we establish mitigation and prevention plans, implementing policy revisions and awareness-raising initiatives when necessary.

SK D&D has established a mid- to long-term roadmap to progressively expand assessments to all business partners within the value chain (2024-2025), as well as key stakeholders within new business model and the value chain (2026 and beyond), and will continue to actively work towards enhancing the management of potential human rights risks.

Human Rights Impact Assessment Process
Human Rights Management Implementation Roadmap

Results and Corrective Actions

In 2023, we conducted a human rights impact assessment for employees at our headquarters and subsidiaries, identifying issues within eight human rights categories, including working conditions, labor relations, work-life balance, and grievances handling. For each issue identified, we established and implemented corrective actions, effectively mitigating all significant human rights risks within the organization.

2023 Human Rights Impact Assessment Results

Key IssuesCorrective Actions
Temporary employment
  • Provide detailed guidance on regulations and standards for temporary employees
Working hours management
  • Provide training on the working hour management for all employees
  • Create a work immersive environment based on DX
Labor relations
  • Disclose the Management Development Council’s operational regulations
  • Provide guidelines for employee feedback collection and consideration
Work-life balance
  • Provide guidance on childcare policies, expanding the scope of support
  • Implement labor-management agreement procedures when designating collective annual leaves
  • Conduct awareness activities to establish a culture of respect for privacy
Assistance for vulnerable groups
  • Provide guidance on assistance programs for vulnerable groups and expand the range of recipients
  • Secure communications channels for vulnerable groups’ members
Communication with subsidiaries
  • Expand personnel exchange programs with subsidiaries
Workplace bullying/sexual harassment
  • Strengthen disciplinary measures through internal policy revisions
Grievances handling
  • Utilize third-party professional institutions for complaint reception and investigation

Human Rights Training Program

SK D&D conducts annual human rights training for all employees to internalize a culture of human rights management and minimize human rights risks. In 2023, we enhanced the effectiveness of these efforts through diverse media channels such as human rights campaigns and group-wide messaging. We provided legally mandated training including anti-sexual harassment, workplace bullying prevention, and disability awareness improvement. In addition to legal requirements, we conducted offline human rights training sessions on corporate human rights management twice a year in 2023 to promote awareness of human rights respect among employees.

Human Rights Training Performance

CategoryUnit202120222023
Legally mandated trainingNo. of participantsPersons224205191
Completion rate%100100100
Total hoursHours224170560
Additional training*Total hoursHours1,7891,831158
  • *Two training sessions were conducted during ESG trainings for employees. (① 'Business and Human Rights', what to do? ② What are Human Rights for Business?)

Grievance Channel for Human Rights

SK D&D operates various grievance channels to prevent and address human rights-related issues for internal and external stakeholders. We utilize the Management Development Council, an internal reporting channel, and a communication hotline to strengthen human rights protection for our internal employees. Additionally, through the SK group-wide online reporting channel 'SK Ethical Management,' we aim to identify and resolve human rights issues of all stakeholders, including employees, business partners, and local communities.

Reports may include issues such as verbal abuse, assault, sexual harassment, work exclusion, and inappropriate work directives as well as human rights violations like bullying of suppliers and disregard for the socially disadvantaged. Reports can be submitted anonymously or with identification, with strict confidentiality maintained for both the reporter’s identity and the content. Moreover, we have established procedures to protect reporters from retaliation or discrimination, and we ensure that the handling procedures for their reports are transparently disclosed.

Disciplinary measures and corrective actions for reported issues are deliberated on and decided by the HR Committee. In 2024, we strengthened the disciplinary standards for addressing human rights violations. Following decisions by the HR Committee, the Grievance Committee discloses the results of report handling to all employees at least once a year, aiming to minimize secondary harm, and conducts monitoring and additional measures to prevent recurrence.

In 2024, we introduced the 'Sotong Hotline', an online internal reporting system, that minimizes direct contact with employees and allows them to report through an external third-party agency (Jipyong LLC). This initiative aims to enhance the transparency and objectivity of our procedures for addressing human rights issues that victims may find difficult to report on their own, such as sexual harassment or workplace bullying. Incidents reported through the Sotong Hotline undergo objective investigation by a third-party organization and are forwarded to the relevant personnel. Serious incidents may involve an external investigative agency.

Human Rights Grievance Reported and Resolved Status

CategoryUnits202120222023
ReportedResolvedReportedResolvedReportedResolved
Lack of respect for colleaguesCases000000
Sexual harassmentCases000000
Workplace bullyingCases11*0000
Other (non-administrative reports, such as complaints)Cases667744
Resolution rate%100100100
  • *In cases of workplace bullying in 2021, investigations were conducted directly through a labor attorney, and disciplinary resolutions were taken by the HR committee