SK seeks innovation in social work

SK Innovation CEO Koo Ja-young, right, delivers coal briquettes to low-income households in central Seoul with employees on Dec. 7. / Courtesy of SK Group

By Cho Mu-hyun

SK Group is seeking to create a new culture in social contribution work by adopting innovative approaches and turning itself into a social enterprise.

“A truly social enterprise, unlike traditional social activities such as donations and charity that results in tripling the social and economic value of others, creates a value worth tens times more,” said an SK Group official

That is the paradigm promoted by group leader Chey Tae-won, who claims the “SK model for social contribution” is teaching those in need how to fish rather than catching fish for them.

SK Innovation, the oil refining arm of SK Group and one of its oldest subsidiaries, claims that it has been upholding that motto for the past seven years.

The firm launched a childcare business in 2006, in which it opened up jobs for age groups that have difficulty in finding employment, taking its first step to become a socially responsible company.

After accumulating know-how, it started to take corporate social responsibility (CSR) seriously in 2008 and drew a roadmap to become a company that helps social development in the long run.

In collaboration with the Ministry of Unification and NGOs, it founded a box making company called Mezzanine I-Pack. The firm hires middle aged women and senior citizens that have difficulty finding jobs, and makes durable boxes at reasonable prices.

Mezzanine Ecowon was launched a little later that makes environmentally-friendly blinds and serves the same purpose. Another eco-friendly shoe and glove maker called Grateful Hand was founded in 2009. These firms were all setup in collaboration with various charity foundations and are still very active, according to SK Group officials.

Following the success of the three firms, it decided to look at becoming a social enterprise more directly and opened Happy Farm in 2011. It plants flowers and trees with the main funding coming from refiner SK Innovation, while SK Group’s tree planting subsidiary SK Forest helps teach about operations. The operations are planned and currently managed by SK Innovation.

Following some modest success, SK is planning to export some of its social enterprise model abroad. SK Innovation, following its teaching of agricultural technology to Peru’s liquefied natural gas refining sector.

“I hate the phrase ‘returning corporate profits to society’, because it suggests that we are in debt to society rather than having responsibility for it. The truth is, corporate profits belonged to society in the first place,” said SK Group’s former chairman Chey John-hyun.

SK Group claims that Chey’s words were the root of its “unique value” that puts “human happiness” above all else when starting projects. It said Ulsan, which use to known as an industrial center with smog in the air has now turned into an eco-friendly city as the result of that approach. SK Innovation has converted some of its plants there to use the latest refining technology that emits less carbon.

But there are other visible accomplishments that have boosted the lifestyles of Ulsan citizens. In 1995, the former chairman vowed to secure 10 billion won every year for a decade and make a public park in the city. Construction started that year but was delayed due to Chey’s passing in 1998 and the Korean financial crisis.

Ulsan Grand Park was formally opened in 2006, costing 102 billion won and sits on 360,000 square meters of land. Current chairman Chey dedicated it to the 1.1 million residents of the city.

SK Innovation, as an energy business, actively launched educational programs aimed at elementary students to teach them energy conservation. They are called Energy Talk, where high-scoring students can receive certificates from the Ministry of Environment.

Along with the program, the oil refiner launched a coal briquette donating foundation in 2005. Employees of SK Innovation, including senior executives, visit low-income households every winter to give out free briquettes. The latest activity took place on Dec. 7, in which CEO Koo Ja-young and employees distributed 2100 briquettes.

“As Korea’s representative energy company for the past 50 years that leads in social contributions and has helped the nation’s economic development, we will continue for the next 50 years to actively participate in upholding social responsibility,” SK said in a statement.