SK Holdings reveals monetary value of social contributions

SK Holdings released a sustainability report Thursday, unveiling how much social value it thinks the company created last year.

Under the leadership of SK Holdings CEO Chey Tae-won, the de facto head of SK group, affiliates have been asked to reveal a so-called double bottom line, which includes a social bottom line on top of an economic bottom line, since this year. It is the first time SK Holdings has revealed the social value it generated.

SK Holdings measured social value in three categories: economic contribution, business performance and social contribution.

Economic contribution, according to SK, refers to a company’s contribution to society through employment, dividend payouts and tax payments. Business performance measures the impact of a company’s operations, production and sales on the environment and society. Social contribution measures the impact of corporate social responsibility activities and donations.

The holding unit said it generated 773.4 billion won ($669.1 million) in economic contributions, 55 billion won in business performance and 6.4 billion won in social contributions.

The company said its wholly-owned subsidiary SK Forest largely contributed to boosting business performance values, as its forestry business helps the environment and also benefits nearby farms.

The holding unit, which also engages in investment activities, said it will encourage companies that it is investing in to also measure a social bottom line.

“We will link our social bottom line with our business model innovation and increase sustainability,” said Jang Dong-hyun, CEO of SK Holdings.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]