SK chair emphasizes value of sustainability in business

25-Jun-2020 Intellasia | KoreaTimes | 6:02 AM Print This Post

SK Group Chair Chey Tae-won stressed the significance of environmental, social and corporate governance (ESG) factors in running businesses, demanding unit CEOs consider them as major components of company value.

“The corporate value we have to improve is not confined to financial achievements or shareholder policies,” Chey said during a meeting with the CEOs of SK affiliates at the group’s management strategy research centre in Icheon, Gyeonggi Province. “What we have to pursue is the improvement of total value which embraces ESGs, sustainability and customer trust, as well as intangible assets such as intellectual property and corporate culture.”

The meeting was presided over by Chey and attended by Senior vice Chair Chey Jae-won, SK SUPEX Council Chair Cho Dae-sik and CEOs of SK Innovation, SK Telecom, SK hynix and SKC.

A number of other chiefs of SK affiliates attended the meeting through video conferencing due to the COVID-19 pandemic.

During the meeting, Chair Chey underscored the CEOs’ role in each unit’s pursuit of greater corporate value.

“CEOs should not be complacent by only promoting economic achievements on the market, but should come up with their own stories (strategies) to overcome structural obstacles” Chey said. “In this process, they should reflect multiple stakeholders’ voices and opinions.”

SK Group officials said this means CEOs should stay committed to maintaining communication with shareholders, institutional investors, pension funds and other financial partners.

Unlike Chey, SK SUPEX Council Chair Cho was more critical of each unit’s business, demanding CEOs come up with promising business models and make tangible changes. The SUPEX Council is a consultative committee of SK Group comprised of CEOs.

“Many global companies are exploiting their advantages to expand their business portfolios, while startups are recognised for their corporate value with innovative technologies. However, SK companies are still confining themselves to the conventional business domain,” Cho said.

During the meeting, refining and battery unit SK Innovation presented its strategy on refreshing its portfolio by moving toward the eco-friendly energy business. This came after the company posted a 1.78 trillion won operating loss in the first quarter, when its refining business was hit hard by faltering oil prices and the coronavirus pandemic.

SK Telecom showcased its vision for new projects based on artificial intelligence and other advanced telecommunication technologies.

SK Group has been holding the meeting between its CEOs once a year to share each unit’s management strategies. During last year’s meeting, the group highlighted the “maximum happiness” of SK employees, customers and other stakeholders, and each affiliate came up with strategies to achieve that aim.


Category: Korea

Print This Post