SK D&D advances sustainable management to establish transparent and fair transactions and pursue shared growth with business partners. In selecting business partners, we assess them on factors that are non-financial as well as technical performance assessments to contribute to disseminating an ESG-driven culture and preemptively respond to non-financial risks. We have also presented four guidelines to follow for engaging in fair transactions to establish robust win-win growth with business partners.
Win-Win Growth System
SCM Part has been organized to bolster shared growth and win-win cooperation with business partners and minimize relevant risks. We are enhancing the product competitiveness of excellent suppliers while implementing programs focused on ESG improvement and support for our suppliers by strengthening partnerships. In the future, we aim to establish a win-win ecosystem through development of win-win programs.
Win-Win Growth Implementation System
Code of Conduct
We enacted Code of Conduct for business partners to maintain sustainability in supply chain management and create a successful win-win ecosystem. We have established compliance requirements regarding environment, safety and health, business ethics, human rights and labor, and management system to internalize and implement ESG management while complying with the laws and regulations applicable to business management activities of business partners. SK D&D with its business partners is aiming to keep a fair and transparent relationship, fulfill its social responsibilities, and grow into a more respected company based on mutual trust by complying with a code of conduct.
Code of Conduct Process
Supply Chain Management
Business Partner Selecting Process
We are strengthening our ‘business partner management procedures’ by including ESG related factors (whether there has been unethical behavior, violations related to occupational safety and health act).
Business Partner Data
- Unit: units, KRW 100 million
Advancements of Purchase and Private Contract Process
We operate a purchase and private contract process to conclude fair and transparent contracts. The organization which manages purchasing is in charge of bidding and contracting process of purchasing process, resolving any compliance issues. Private contracting process is carried out through deliberation of Internal Screening committee for fairness and transparency. The Internal Screening committee evaluates appropriateness of supplier and validity of price, reflecting the results in purchase contract. We will continue to stipulate clear standards and procedures to establish fair trade order, building a system of win-win cooperation with our business partners.
Private Contract Process
Private Contract Screening Committee
Communication Channels for Business Partners
We operate various communication channels to secure the framework for win-win management with our business partners. Reports are received with real names or anonymously by phone, fax, e-mail, and online to increase channel accessibility. Received reports are sent to related organization according to seriousness and level of impact for prompt handling. In case of reports on unethical incidents, organization handling ethical management reviews the matter to protect the informant, and the identity and the details of the report can be protected according to informant protection regulations. In particular, safety supervisors have been placed at construction sites in 2022 to collect and actively communicate on-site.
|Inadequate response / lack of guidance
|Delay in handling / Unfriendly staff
|Unethical business (identity theft, etc.)
Corruption Report of Employees/Partners
|Corruption report of employees/partners
|Acceptance of money / entertainment
|Asset embezzlement / diversion
|Harassment / sexual harassment
|Other wrongful acts
Four Guidelines for Fair Transaction
We are promoting a fair and transparent trading environment and enhancing mutual cooperation through the four major guidelines of fair trade. 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 growth model on the back of trust-based shared growth.
Four Guidelines for Fair Transaction
|Guidelines for the establishment and operation of the internal screening committee
|Guidelines for sound contract practices
|Guidelines for issuance and retention of documents
|Guidelines for vendor selection and management
|Contribute to establishing fair transaction principles and create a mutual cooperation system based on trust with business partners
|Minimize non-compliance with subcontract regulations, legal mandates and other applicable laws, develop reasonable and fair transaction practices
|Improve awareness on issues related to document issuance legally required under subcontract regulations, establish fair and reasonable subcontract practices
|Establish autonomy, transparency, and fairness in selecting vendors and operating a pool of vendors
Fair Trade Compliance
Compliance with fair trade-related compliance control standards were inspected in order to prevent violations of the Fair Trade Act and establishment of an internal compliance system. 7 tasks were identified through internal interviews, inspection of contracts by type, and legal review. We plan to reflect these tasks in a timely manner to relevant organization in 2023. After reviewing the private contract deliberation process and subcontracting transaction status, it was confirmed that there were no issues in 2022. We are thoroughly managing related compliance issues through pre-inspection of contract amount increase issues and legal support related to new businesses. Also, as corporate ESG management demands intensify, we plan to review relevant laws and risk factors, revise relevant internal operating regulations and training systems from 2023, and design an internal monitoring system for pilot operations in 2024.
Fair Trade Training
We provide fair trade training to all our employees to ensure employees’ voluntary compliance with fair trade, prevention of violations, and prevention of recurrence. In 2022, we conducted a total of 58 hours of training to raise employees’ awareness of fair trade, and we are striving to elevate our training every year.