The ‘Social Performance Incentive’ program proposed and promoted by SK Group Chairman Chey Tae-won received favorable reviews at this year’s Davos Forum.
According to SK Group on the 24th, the Secretariat of the World Economic Forum (WEF), which hosts the Davos Forum, published an article titled ‘How cooperation with social enterprises is becoming a sustainable innovation plan for large corporations’ on the Internet homepage as a representative achievement example. SK’s social performance incentives and the world’s largest beer company Anheuser-Busch InBev’s startup and social innovation company funding program were introduced.
The Secretariat said, “Global advanced companies are breaking away from traditional social responsibility (CSR) and working to create social impact and achieve environmental, social, and governance (ESG) management goals through partnerships with social enterprises.” We have successfully operated an original and effective partnership program that provides financial incentives in proportion to the social value of the business.”
“SK has helped social enterprises in various fields, from information technology (IT) to agriculture, create a greater social impact for a sustainable society,” he said. We developed a value measurement methodology, and as a result of this measurement, the total amount of social value creation by SK Group in 2021 increased by 60% compared to the previous year.”
Previously, Chey Tae-won, chairman of SK Group, first proposed the ‘Social Performance Incentive’ program at the Davos Forum in 2013, which provides ‘cash incentives’ in proportion to the ‘social performance’ created by social enterprises.
As a result of operating social performance incentives with 326 social enterprises participating from 2015 to last year, SK Group achieved a total of 327.5 billion won in social performance in four areas: job creation, social service provision, environmental problem solving, and ecosystem problem solving. said to have created A total of 52.7 billion won was paid as incentives to social enterprises. It was financed by donations from ‘Happy Narae’, a social enterprise established by SK, and SK member companies.
The international management academic world is also paying attention to SK Group’s achievements. ‘Harvard Business Review (HBR)’, published by Harvard Business School, published a case study of ‘SK Group: Social Performance Incentives’ in January 2020. A thesis on the effectiveness of social performance incentives by Dongguk University professor Jung Seon-moon (accounting) and Seoul National University professor Shin Jae-yong (business administration) was also published in the world’s most prestigious management science last October.
Reporter Ryu Tae-woong [email protected]
