We have created the SCM Part to bolster shared growth and win-win cooperation with business partners while minimizing relevant risks. We will increase the competitiveness of our products along with our top-notch business partners by strengthening our cooperative relationships and implementing programs focused on improving and supporting ESG for business partners, thereby creating a mutually-beneficial ecosystem.

We have included ESG considerations (non-compliance with ethics or in relation to occupational health and safety) for assessment in the Business Partner Management Procedure to raise the bar on our business partner selection criteria.

We have improved our private contract process for the fair and transparent signing of contracts. Whereas the department that was requesting procurement led the entire business partner selection process - order awarding, bidding and contract signing, now the bidding and contract signing operations have been transferred to the dedicated procurement organization to resolve compliance issues and advance our business partner selection process.

We have improved our private contract process to supplement our existing private contract methods. As such contracts could be vulnerable in transactional fairness and transparency, our Internal Screening Committee performs evaluations on business partner selection and price appropriateness to reflect evaluation results in signing procurement contracts. We will continue to stipulate clear standards and procedures to establish fair transaction principles and create win-win partnerships with business partners.

We have established four guidelines to ensure fair transactions that are more transparent and impartial and to bolster mutual cooperation to create a shared growth system. These guidelines concern contract signing, business partner selection and operation, the establishment of the internal screening committee, and document retention and issuance, and will drive our efforts to build a win-win partnership model on the back of trust-based shared growth.

We provide fair trade training to all our employees to ensure they voluntarily observe fair trade principles and prevent non-compliance with such principles or any reoccurrences of non-compliance. SK D&D conducted trainings in relation to our procurement system, fair trade laws, and unfair trading practices to help our employees raise their awareness on fair trade, further elevating our fair trade training.

We operate a range of communication channels to fully integrate feedback from business partners and pave the way for win-win partnerships in so doing. To make these channels more accessible, we provide phone, fax, e-mail and online channels that can be used either under one’s true name or anonymously. Issues submitted are directly communicated to responsible departments depending on their level of significance and impact for prompt handling. For issues raised in relation to non-compliance with ethics, the dedicated ethical management department reviews such issues and takes action accordingly to protect the whistleblower. We also ensure that the identity and details of such whistleblower reports remain strictly confidential in accordance with whistleblower protection regulations.