SK discovery established a Code of Ethics and Ethical Management Guidelines, published on our website, as we move forward with practicing ethical management.
Code of Ethics and Ethical Management Guidelines
Key Principles of the Code of Ethics and Ethical Management Guidelines include:
| Highlights of the Code of Ethics (Best Practices) | Included |
|---|---|
| Non-discrimination | Yes |
| Prohibition of officer or employee private gain when conducting company business | Yes |
| Prohibition of embezzlement and breach of trust of officers and employees | Yes |
| Prohibition of corruption of officers and employees | Yes |
| Prohibition of money laundering and insider trading by officers and employees | Yes |
| Prohibition of bribery and solicitation of officers and employees | Yes |
| Promotion of fair trade and fair competition (likewise, prohibition of acts that support monopoly or limit competition) | Yes |
| Compliance with nondisclosure of confidential information, including confidential and internal information of the company or its customers | Yes |
| Prohibition of unfair acts that use undisclosed internal information | Yes |
| Promotion of knowledge about the environment and workplace safety and health issues | Yes |
| Consistent responsibility to shareholders and customers | Yes |
| Responsibility to report illegal or unethical conduct | Yes |
| Protection of internal reports and whistleblowers in the event of illegal or unethical conduct | Yes |
Operation of the Compliance Officer System
In accordance with provisions of Article 542-13 of the Commercial Act, SK discovery appointed a Chief Compliance Officer to avert and/or manage legal risks throughout company activities. Appointed by the Board of Directors, the Chief Compliance Officer conducts compliance training and oversees the company’s compliance record.
Role of the Chief Compliance Officer
Implementation of Education Programs
To advance ethical management and prevent problems, we provide online education programs for all officers and employees, including contract or part-time employees, that define transgressions in 10 areas, including anti-corruption, discrimination, solicitation, workplace harassment, sexual harassment and abusive language. All programs also include information about internal reporting processes.
Consultation Requests and Handling Reporting
In accordance with the ethical management and internal accounting management regulations, we receive consultation requests and reports from stakeholders. Our ethical management department oversees a consultation and reporting center that stakeholders may access via the company’s website. We also receive stakeholder reports via telephone, email and in-person visits.
Anti-Corruption and Anti-Competitive Behavior
| FY 2019 | FY 2020 | FY 2021 | |
|---|---|---|---|
| Number of anti-corruption cases | 0 | 0 | 0 |
| Number of violations of laws for anti-monopoly and anti-competitive acts | 0 | 0 | 0 |
| Number of violations of laws and regulations of social and economic issues | 0 | 0 | 0 |
Moving forward, we aim to maintain zero cases of anti-corruption. For consultation requests and reports, the center identifies the issues in accordance with internal response procedures and follows up with any necessary measures.
Compliance Assistance Office
| Organization in Charge | Composition (years of experience and responsibilities) |
|---|---|
| Legal Office | Chief Compliance Officer (head of compliance practices) Project leader (15 years, supporting compliance practices) Manager (6 years, supporting compliance practices) |
Tax Management
By following appropriate procedures and prices for all transactions, SK discovery thoroughly complies with all relevant laws and regulations of the tax authority to prevent transfer pricing issues at home and abroad. We faithfully fulfill tax obligations, including accurately calculating and paying all taxes. We also assess any tax risks that may arise from business activities. When dealing with serious and complex tax issues, our decisions rely on the advice of tax experts, responses from queries to the tax authority and relevant authority interpretations.
From a consolidated company viewpoint, SK discovery and its subsidiaries generate revenues and operating profits in South Korea, China, Japan and other Asian countries, the Americas, Europe and other markets. To ensure tax transparency, we disclose detailed statements of sales, tax-free revenues, net profit before deduction of corporate taxes, corporate tax costs, tax adjustments and tax amounts in South Korea, where our principal operations are located.
Tax Management Policy
We believe that complying with tax laws and managing tax risks contributes to national finances, secures customer profits and maximizes shareholder profits. Tax compliance also is an essential foundation for sustainable management. We have prepared detailed strategies in order to actively identify and manage tax risks and to fulfill our social responsibilities.