Sustainability is the core of ESG management. The company not only pursues corporate sustainability but strives to apply its principles to society at large. We weigh the benefits and happiness of different stakeholders, as well as the quality of life for next generations. Beyond focusing on immediate profits, we must evaluate long-term and productive decisions that consider stakeholder communications and voices. The spine of this change is governance. Governance innovation enables companies to successfully respond to a range of risks, including climate crises and human rights issues, and to seize opportunities while creating new value.
Governance innovation, the path to happier stakeholders
Board-centered management—the core of governance innovation
Our belief in governance innovation led us to create the Corporate Governance Charter, which spells out how we will protect the rights of all stakeholders. Moving forward, we adopted Board-centered management to strengthen the role and authority of the Board of Directors, our highest decision-making body. And, exercising that authority, the Board established the Nomination and Compensation Committee and the ESG Committee. We are setting and amending Board and subcommittee rules and regulations to ensure ongoing authority.
Our powerful Board-centered leadership will help us accelerate ESG management, which will, in turn, dispel market concerns and realize greater stakeholder happiness. Such steps align with the SK Double Bottom Line initiative: We think deeply about issues of trust and win-win growth across the value chain rather than simply seeking profits. Going forward, SK bioscience will simultaneously pursue and manage sustainable economic value as well as sound social value.
Ethical management informs a rational and transparent company
By establishing firm ethical management, we will ensure legal, transparent and rational business operations. As we establish monitoring and problem-solving processes, principled management also nurtures a positive corporate culture. We have identified 10 ethical management areas for officer and employee training. After training, we periodically check for any problems and receive reports via an anonymous reporting channel. Our comprehensive preparation and follow-up strategies are designed to address any issues.
Thoughtful stakeholder management increases engagement and support
We believe governance innovation for ESG management can only be implemented with fully engaged and supportive shareholders and stakeholders, who must receive frequently communications. We are making sure our changes do not infringe on shareholder interests. We will disclose any information that affects shareholder interests in a timely manner so it may be reviewed in advance. We will also identify and improve any issues about disclosing information and operating shareholder meetings. We plan to continue better communications with all of our stakeholders via the company website.
SK bioscience will lead effective change supported by three pillars: Board-centered management; ethical management; and stakeholder management. By disclosing and improving our shortcomings, we will take governance innovation from plan to operation.