Asia Fintech

SK Telecom Announces Social Value Output for 2019

 For year 2019, SK Telecom has created social value worth KRW 1.685 trillion in Economic Contributions, KRW 147.5 billion in Business Performance and KRW 38.3 billion in Social Contributions.

– Plans to further improve its performance in social value creation by offering innovative ICT-based services that reflect the needs of the society

SK Telecom (NYSE:SKM) today announced that, according to SK’s measurements on social value creation, SK Telecom generated a total of KRW 1.871 trillion worth of social value last year, which is an 8.3% increase from KRW 1.727 trillion recorded in 2018.

Based on the ‘Double Bottom Line Management,’ which pursues both economic value and social value, SK has been measuring social value created by its affiliates since 2018. It measures social values in terms of their ‘Economic Contributions’ referring to indirect contribution of corporate activities to the Korean economy, ‘Business Performance’ capturing values created by development, production and distribution of products and services, and the ‘Social Contributions’ delivered by social contribution activities for local communities. In addition, each SK affiliate, including SK Telecom, allocates 50 percent of key performance indicators (KPI) to social value creation to bring social conscience into business decisions.

Against this backdrop, SK Telecom has been making all-out efforts to maximize its social value creation through the use of its advanced information and communication technologies and infrastructure.

For year 2019, SK Telecom has created social value worth KRW 1.685 trillion in Economic Contributions, KRW 147.5 billion in Business Performance and KRW 38.3 billion in Social Contributions.

SK Telecom’s social value output in ‘Economic Contributions’ stood at KRW 1.685 trillion, up 0.7% from last year’s KRW 1.673 trillion as employment and dividend grew by 11.3% and 1.8%, respectively, while tax payment dropped by 25.7% due to decreased income caused by its large scale investment in 5G.

The amount of social values generated in Business Performance reached KRW 147.5 billion, representing a 627% increase compared to KRW 20.3 billion recorded in 2018. The company’s Business Performance reflects its achievements in quality of life, labor, mutual growth and environment.

The biggest rise came from social value generated by enhancing quality of life, which grew by 282% YoY to KRW 161.8 billion. In particular, SK Telecom’s T Map, an advanced mobile navigation service, has more than doubled its social value output compared to the previous year by inducing more subscribers to join the special option that rewards safe driving habits with insurance discounts.

Moreover, the company’s performance in building a social safety net has been newly reflected in 2019. It includes emergency assistance and reduced feeling of loneliness brought about by ‘Artificial Intelligence Care,’ a senior care service; and prevention of traffic accidents through T Map’s feature that alerts drivers when a foregoing vehicle suddenly hits the brakes.

Social value created in areas of labor and mutual growth stood at KRW 24.2 billion and KRW 60.8 billion, respectively, affected by the establishment of a standard workplace for the disabled, introduction of 80 working hours per fortnight, nurturing of ICT startups, and opening up of technologies to partner companies.

Meanwhile, for the ‘processes’ category within the area of environment, SK Telecom’s losses increased from KRW 95 billion in 2018 to KRW 104.5 billion in 2019. The company plans to improve its performance in this area by developing environmentally-friendly technologies and equipment, and expanding the application of Building Energy Management Systems (BEMS).

SK Telecom’s social value output in Social Contributions grew by 13% to KRW 38.3 billion in 2019 driven by the company’s expanded donations as well as disaster relief activities such as deployment of emergency communication networks in areas stricken by forest fires and typhoons.

To improve its social value performance, SK Telecom has recently conducted a survey of diverse stakeholders to understand the needs of the society and steer its efforts towards that direction.

The survey results showed that SK Telecom’s stakeholders – i.e. customers, partners, shareholders and employees – think that the company should focus more on activities related to quality of life, employment, tax payment and environment.

Taking the results into consideration, SK Telecom will strengthen its social value activities targeted at resolving social problems, building a social safety net and expanding non-face-to-face services.

“We will promote social value activities that meet the needs of people living in this new world brought by the coronavirus,” said Park Jung-ho, President and Chief Executive Officer of SK Telecom. “To help our society overcome this crisis, we will develop innovative services that can serve as a new type of social safety net by fully leveraging our cutting-edge ICT.”

Author

  • Editorial Director of the The Fintech Times

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