Ethical Risk Audits and Assessments

SK Chemicals conducts various activities as part of ongoing ethical and compliance management, including operating ethical management programs for employees, providing ethics training to prevent misconduct, investigating whistleblower reports, and diagnosing work processes. To enhance the level of ethical management, we conduct internal audits led by dedicated teams such as the Compliance Team, consisting of regular audits, compliance audits, self-monitoring systems, and whistleblower investigations. We conduct regular audits and compliance inspections annually, categorizing risks by organization and function for all domestic and international business sites. For key risk areas, we have established a self-monitoring system to perform periodic checks. For whistleblower reports received at any time, we conduct investigations within the designated timeframe while protecting the anonymity of whistleblowers. We handle the investigation process transparently and fairly, thereby enhancing employee trust in internal audits.

Regular Audits and Compliance Audits

SK Chemicals conducts regular audits (targeting a three-year cycle) for all business units and subsidiaries, and all audit plans and results are regularly reported to the CEO and the Audit Committee by the audit officer. In addition, non-regular audit results are reported to the CEO on an as-needed basis. SK Chemicals conducts regular audits based on a risk pool derived from company-wide risk factors and performs compliance audits to ensure improvements identified in regular audits are implemented. In 2023, compliance audits were conducted for the two regular audits carried out the previous year, verifying the implementation of 7 and 6 corrective actions, respectively. Additionally, in collaboration with the Group's Autonomous Responsible Management Support Team, we conducted a company-wide management diagnosis, identified areas for improvement, and issued recommendations to the relevant departments to implement corrective measures and follow-up actions.

Self-Monitoring System

SK Chemicals conducts self-monitoring system checks to swiftly respond to changes in internal and external regulations and societal demands. The self-monitoring system checks cover six areas — cost, procurement/BP, HR, sales/receivables, investments, and unique risk management — with a total of 92 items, based on internal inspection guidelines. As a result of the 2023 self-monitoring system check, one corrective action was identified and recommended for implementation.

Whistleblower Investigations

SK Chemicals receives and manages whistleblower reports through various channels, including the website, phone, mail, email, and in-person interviews. In 2023, investigations were conducted for 10 whistleblower reports submitted through these channels that were deemed to require a detailed investigation. As a result, among these reports, two cases related to workplace harassment and one case related to employee bribery were confirmed as factual, leading to a total of three internal disciplinary actions.

Anti-Corruption Reporting Results