SEOUL, May 21 (Korea Bizwire) – Energy-to-telecom conglomerate SK Group on Tuesday unveiled a system to measure the social value created by its affiliates, emphasizing its new business philosophy to share benefits with society.
Social value refers to the achievements of a company in resolving various social issues, such as pollution and jobs, through its business activities, according to SK Group.
Like their earnings on a balance sheet, SK Group said it will to convert its social value into a currency so that it can be unveiled to the public in the form of a financial statement.
“In order for a company to create more social value, we need an index and standard to measure it,” said Lee Hyung-hee, who leads the social value committee on the SUPEX Council, the group’s top decision-making body.
SK Group Chairman Chey Tae-won has been urging the group’s affiliates to come up with business models that can contribute to society. Since 2017, the group has been working with experts to develop a system that can measure social value.
SK Group said its social value will be measured in three areas: indirect contributions to the economy, such as tax payments and employment; business activity, which includes environmental pollution; and social contributions, which measures donations and volunteer activities.
SK Group, however, admitted its system is not perfect, adding that it still needs to make improvements in some areas, including measuring damages due to consumer-related accidents and the infringement of laws.
SK Group said it will cooperate with 13 multinational companies to make its social value measurement model the global standard.