Sktelecom
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SK Telecom is South Korea's largest mobile network operator with over 23 million customers. In 2003, SK Telecom created a dedicated CSR function and was the first Korean company to promote employee volunteerism. By 2009, SK Telecom's CSR activities were handled by separate teams within its three business units, which led to a lack of coordination and focus. Restructuring was not seen as the solution; instead, a common CSR mission and cross-cultural team were needed to align CSR efforts globally and create shared value for all stakeholders.
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Sktelecom
- 1. Corporate Social Responsibility Section A Group 2
- 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 Telecomās 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 Telecomās 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 Telecomās 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 Telecomās CSR Year 2003 Namās 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 Telecomās 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 Telecomās CSR SKMS came with a philosophy Year 2003 of commitment to contribute to happiness of all 2006 stakeholders 2007 Important parameter in SK 2008 Telecomās 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 Telecomās 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 Telecomās 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