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Corporate Social Responsibility
            Section A Group 2
SK Telecom
 Part of SK Group
 One of the 4 major family conglomerates in
 South Korea
 23 million customers, 50.5% market share in
 South Korea
SK Telecom’s CSR
              Dedicated CSR function created
Year 2003
     2006     First Korean company to
              promote employee
     2007
              volunteerism
     2008
              Main CSR activity involved
     2009
              community involvement
              programs
SK Telecom’s CSR
                                              Spent over 2 percent of pretax
Year 2003                                     benefits on CSR
                                              Highest contributor to CSR
     2006                                     revenues(upto 80%) amongst the
     2007                                     subsidiaries of SK group
     2008                                     Integration of core principles across
     2009                                     business units
                                              Shut down USD 70 Mn adult content
                                              service business for CSR aimed
                                              towards youth protection.


       Competency Based                       Brand Relevant

                          Core Principles

     Stakeholder Engagement                 Integrated Approach
SK Telecom’s CSR
              Till 2006 CSR activities were limited
Year 2003     to regional social challenges and
              community activities
     2006     Published first SK Telecom
     2007     Sustainability report
     2008     Established SK Nanum foundation to
     2009     direct Happy Doshirak Program to
              provide meals to underprivileged
              teens
SK Telecom’s CSR
Year 2003          Nam’s appointment by CEO to
     2006          enlarge the scope and increase the
                   visibility of engagement with society.
     2007
                   Two separate teams for CSR activities
     2008
                   Separation resulted in lack of
     2009          commitment and confusion



                                       Ethics Management
                   SK Telecom
                                              Team
    SK Group
               Corporate Community
                   Involvement
SK Telecom’s CSR
Year 2003     Joined United Nations Global
     2006     Compact Initiative
     2007     Instituted SK Telecom Corporate
              Citizenship Committee
     2008
              Instituted SK China Corporate Social
     2009     Responsibility Committee
SK Telecom’s CSR
                                                 SKMS came with a philosophy
Year 2003                                        of commitment to contribute
                                                 to happiness of all
     2006                                        stakeholders
     2007                                        Important parameter in SK
        2008                                     Telecom’s Corporate
        2009                                     Citizenship and Sustainability
                                                 Policies
                                                 Ethics Management
                     Ethics                      committee renamed as
                                                 Corporate Citizenship
  Customer
  Protection
                                   Environment   Committee.
                                                 Initiative to imbibe social
                                                 investment into sustainability.
        Win-Win                Community         5 Key focus areas of CSR
       Partnership            Involvement
SK Telecom’s CSR
            Ethics
Year 2003       Looked at ethics management
     2006       practices at SK Telecom
     2007   Environment
                Focused on 3 areas: Green
     2008       Process, Green Products, Green
     2009       Culture
            Community Involvement
                Using mobile/ IT convergence to
                increase volunteerism for various
                community activities
            Win-Win Partnerships
                Involving suppliers in CSR
            Customer Protection
                Forming a portfolio of socially relevant
                mobile communication services
SK Telecom’s CSR
Year 2003                     Composed of 3 independent
     2006                     businesses
     2007                     Top management focused on 2
     2008                     strategic priorities: Convergence and
                              Globalization
     2009                     Merging of PR office and ethics
                              management teams.


                       SK Telecom



   Mobile Network        Global        Convergence and
  Operator Business   Management       Internet Services
       (MNO)          Service (GMS)          (C&I)
Structure in 2009
                                                           Board of Directors




                                                                     CEO




                            GMS                                                  MNO               C&I



                                               Corporate Relations
Office of Corporate      Management                                        Customer Oriented
                                                and Legal Affairs
      Culture           Support Center                                     Management Office
                                                    Division



                          Win-Win                                              Customer
Ethics Management                               CCI/ Environment
                         Partnership                                           Protection



    Ethics Management      Business Relation                                   Customer Oriented
                                                        CSR Team
           Team                 Team                                           Management Team
Key Issues
 Corporate Community Involvement and Ethics Management
 Team cater to different division which are autonomous business
 units.
 Lack of coordination and synergy between the units.
 Units in charge of 5 focus areas under corporate citizenship
 dedicated to three different business units.
 No clear mission or vision statements for the units to preform
 on a common ground.
 No co-ordination between the business units in terms of CSR
 activities, they were rather on a competing ground.
 No trained workforce in place to carry out CSR business strategy
Advantages of the Current CSR strategy
  Ability to concentrate on specific CSR activities
  Can respond to fast change in environment
  Ease of measurement of unit performance
  Decentralized decision making
  Scope for management to focus on strategy
  Clear division of responsibilities and focus areas
  Sustainable growth
Disadvantages of existing CSR strategy
  Conflict between goals of divisions
  A low alignment of value with work practices in terms of win-
  win partnerships with suppliers, community involvement and
  customer protection
  Duplication of functions between divisions
  Complexity of inter-divisional coordination
  Managing the corporate-divisional relationship: finding the
  balance between centralization and decentralization
  Coordination problems between divisions: divisions start
  competing for resources and rivalry prevents cooperation
  Bureaucratic costs: multidivisional structures are very
  expensive to operate
  Low stakeholder involvement
Creating Value
 Restructuring was not the solution
 Mission and vision statements needed to be chalked out first
 A common vision and mission statement for all global business
 units
 A cross cultural team CSR team needs to be formed sharing
 common mission and vision
 More freedom in budget allocation and equity to all business
 units globally
 The global CSR team should report to BoD which would
 facilitate higher participation and a sense of ownership
 Budget approvals to be made centralized
 More focus on human element
 Alignment of business objectives with organizational goals
Sktelecom

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Sktelecom

  • 2. SK Telecom Part of SK Group One of the 4 major family conglomerates in South Korea 23 million customers, 50.5% market share in South Korea
  • 3. SK Telecom’s CSR Dedicated CSR function created Year 2003 2006 First Korean company to promote employee 2007 volunteerism 2008 Main CSR activity involved 2009 community involvement programs
  • 4. SK Telecom’s CSR Spent over 2 percent of pretax Year 2003 benefits on CSR Highest contributor to CSR 2006 revenues(upto 80%) amongst the 2007 subsidiaries of SK group 2008 Integration of core principles across 2009 business units Shut down USD 70 Mn adult content service business for CSR aimed towards youth protection. Competency Based Brand Relevant Core Principles Stakeholder Engagement Integrated Approach
  • 5. SK Telecom’s CSR Till 2006 CSR activities were limited Year 2003 to regional social challenges and community activities 2006 Published first SK Telecom 2007 Sustainability report 2008 Established SK Nanum foundation to 2009 direct Happy Doshirak Program to provide meals to underprivileged teens
  • 6. SK Telecom’s CSR Year 2003 Nam’s appointment by CEO to 2006 enlarge the scope and increase the visibility of engagement with society. 2007 Two separate teams for CSR activities 2008 Separation resulted in lack of 2009 commitment and confusion Ethics Management SK Telecom Team SK Group Corporate Community Involvement
  • 7. SK Telecom’s CSR Year 2003 Joined United Nations Global 2006 Compact Initiative 2007 Instituted SK Telecom Corporate Citizenship Committee 2008 Instituted SK China Corporate Social 2009 Responsibility Committee
  • 8. SK Telecom’s CSR SKMS came with a philosophy Year 2003 of commitment to contribute to happiness of all 2006 stakeholders 2007 Important parameter in SK 2008 Telecom’s Corporate 2009 Citizenship and Sustainability Policies Ethics Management Ethics committee renamed as Corporate Citizenship Customer Protection Environment Committee. Initiative to imbibe social investment into sustainability. Win-Win Community 5 Key focus areas of CSR Partnership Involvement
  • 9. SK Telecom’s CSR Ethics Year 2003 Looked at ethics management 2006 practices at SK Telecom 2007 Environment Focused on 3 areas: Green 2008 Process, Green Products, Green 2009 Culture Community Involvement Using mobile/ IT convergence to increase volunteerism for various community activities Win-Win Partnerships Involving suppliers in CSR Customer Protection Forming a portfolio of socially relevant mobile communication services
  • 10. SK Telecom’s CSR Year 2003 Composed of 3 independent 2006 businesses 2007 Top management focused on 2 2008 strategic priorities: Convergence and Globalization 2009 Merging of PR office and ethics management teams. SK Telecom Mobile Network Global Convergence and Operator Business Management Internet Services (MNO) Service (GMS) (C&I)
  • 11. Structure in 2009 Board of Directors CEO GMS MNO C&I Corporate Relations Office of Corporate Management Customer Oriented and Legal Affairs Culture Support Center Management Office Division Win-Win Customer Ethics Management CCI/ Environment Partnership Protection Ethics Management Business Relation Customer Oriented CSR Team Team Team Management Team
  • 12. Key Issues Corporate Community Involvement and Ethics Management Team cater to different division which are autonomous business units. Lack of coordination and synergy between the units. Units in charge of 5 focus areas under corporate citizenship dedicated to three different business units. No clear mission or vision statements for the units to preform on a common ground. No co-ordination between the business units in terms of CSR activities, they were rather on a competing ground. No trained workforce in place to carry out CSR business strategy
  • 13. Advantages of the Current CSR strategy Ability to concentrate on specific CSR activities Can respond to fast change in environment Ease of measurement of unit performance Decentralized decision making Scope for management to focus on strategy Clear division of responsibilities and focus areas Sustainable growth
  • 14. Disadvantages of existing CSR strategy Conflict between goals of divisions A low alignment of value with work practices in terms of win- win partnerships with suppliers, community involvement and customer protection Duplication of functions between divisions Complexity of inter-divisional coordination Managing the corporate-divisional relationship: finding the balance between centralization and decentralization Coordination problems between divisions: divisions start competing for resources and rivalry prevents cooperation Bureaucratic costs: multidivisional structures are very expensive to operate Low stakeholder involvement
  • 15. Creating Value Restructuring was not the solution Mission and vision statements needed to be chalked out first A common vision and mission statement for all global business units A cross cultural team CSR team needs to be formed sharing common mission and vision More freedom in budget allocation and equity to all business units globally The global CSR team should report to BoD which would facilitate higher participation and a sense of ownership Budget approvals to be made centralized More focus on human element Alignment of business objectives with organizational goals