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Win-Win Growth

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 partnerships with business partners.

Win-Win Growth

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.

Win-Win Partnership System

Supply Chain Management System

SK D&D manages its supply chain in the following three different procurement phases to build sustainable supply chains.

Business Partner Selection Criteria

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.

Business Partners and Procurement Amount

Business PartnerNo. of companies191150184
Procurement AmountKRW 100 million3,1111,8202,254

Separating the Procurement Request and Procurement Processes

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.

Procurement Process Improvement

Improving the Private Contract 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.

Private Contract Process

Guidelines for Fair Transactions

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.

Four Guidelines for Fair Transactions

Bolstering Fair Trade Training

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.

Fair Trade Training

Fair trade training Hour-20339

Operating Communication Channels with Business Partners

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.

Communication Channel with Business Partners

Whistleblower Protection Mechanism
  1. You will face no disadvantage or discrimination for whistleblowing if done with good intention.
  2. If you are treated unfavorably for whistleblowing, you may turn to the ethical management department for protection or corrective action. The ethical management department will take every measure possible to minimize any disadvantage you may face.
  3. Your identity and the whistleblowing report you submitted will not be disclosed against your will and will be strictly confidential.
  4. Those who have cooperated with the investigation by providing their statement or necessary information during the verification process will be equally protected.
  5. Even if you engaged in unethical or illegal practices, you may be exempt from punitive action on the condition you voluntarily reported your involvement in such misconduct.