SK bioscience pursues a high-performance organizational culture in which warm-hearted professionals create their growth and company performance through immersion. We are convinced that happiness is a prerequisite for immersion, which is essential for high performance. Thereby, we make various efforts to create an environment where warm-hearted professionals can be fully engaged in their job.

The CEO-employee “Happy Man Talk” is conducted 100 times a year to establish a virtuous cycle of communication, and we also actively implement happiness management led by employees by appointing ‘OHB(Our Happy Bioscience)’ members to define happiness and develop Anchor Programs.

In addition, the SK Culture Survey is conducted every year to diagnose the level of organizational culture and identify matters that need improvement. This way, we will create a healthy organizational culture where employees feel happy in corporate life and derive the best results by being fully immersed in work.

In employee recruitment and promotions, we do not discriminate based on gender, disability, sexual orientation, age, race, place of origin or education. To maintain equal treatment, we set and disclose management indicators, including gender wage ratio, gender ratio by position, turnover rate and percentage of employee contract types. We are improving problems identified by the indicators and promptly respond to any reports of discrimination or unethical acts.

SK bioscience strives to create an organizational culture where competent female talent can fully demonstrate their abilities to grow into next-generation leaders and become role models. We strive to ensure women’s participation in the decision-making process and fair opportunities for leadership. In addition, we foster next-generation female leaders by increasing the number of female executives and providing female leadership training and mentoring.

<Disabled and Veterans Employee Ratio>

GRI 405-1

<Disabled and Veterans Employee Ratio>It provides a detailed breakdown of the number and proportion of disabled and veteran family members from 2019 to 2021.

Catogry	Unit	2019	2020	2021
Disabled	Persons	10	21	43
	%	2.1	2.5	3.9
Veterans	Persons	0	0	1
	%	0	0	0.4

SK bioscience puts forth ceaseless efforts to realize social value through active ‘job creation and employment for the disabled.’ As of the end of 2021, we recorded 3.91%, surpassing the compulsory employment rate for the disabled.

Moreover, we strive to create jobs by continuing job development activities in connection with the Employment Agency for the Disabled to provide new jobs and various learning experiences. We will set an example by making continuous efforts and carrying out more activities to provide new jobs and learning experiences in various fields.

SK bioscience operates a KPI (Key Performance Indicator) based performance evaluation system so that employees can set goals on their own, consult with leaders throughout the year, and participate in the evaluation process on their own. Additionally, the core competencies required for SK bioscience are defined and managed by employees, employees. And competency evaluation is conducted based on behavioral examples.

Absolute evaluation is conducted to prevent unnecessary internal comparisons and excessive competition, and to create an atmosphere that supports mutual success. Employees set challenging goals and continuously strive to create performance and improve capabilities. Real-time communication and feedback are implemented together with regular performance management that emphasizes process management, and review sessions are held by executives and subordinate leaders to ensure a fairer evaluation.

At the beginning of the year, we host a goal session where employees share and agree on their goal level and competency development plan. At the end of the year, an evaluation session is held to enhance transparency and fairness by confirming the opinion submitted by the team leader. Rather than making a fragmented judgment, the primary goal of the SK bioscience evaluation system is to assist employees in improving their actual performance and competency.

We conduct a peer review once a year to provide an opportunity to look back at ourselves through the eyes of our co-workers. We demonstrate teamwork and collaboration by assisting our employees to explore their attributes, enhance their strengths, and improve their weaknesses.

SK bioscience’s compensation system is customized for each organization and individual, focusing on market value. We strive to create an environment where employees can immerse themselves in their work by setting the standard annual salary reflecting individual capabilities and operating an incentive system that reflects organizational and individual performance.

<Diversifying Ways to Work>

GRI 401-2

<Diversifying Ways to Work>It indicates various work system policies and explanations, as well as whether non-regular employment is provided.

System/Program	Detail	Availability for non-regular employees
Staggered commute times Flexible work system	Staggering commute times and offering flextime hours in accordance with the monthly limit gives employees greater control over plans and work hours.	Available
Work from home (working outside company offices)	We operate a work-from-home system to support everyday needs, such as family crises, childcare or social or health emergencies, such as the spread of infectious diseases.	Available
Mobile office	We operate a mobile office in Seolin-dong, Jongno-gu, Seoul that employees can easily access when needed.	Available

SK bioscience operates a Flextime policy to balance the work and life of its employees and create an immersive workplace. Employees can adjust their schedules to suit their life-style or circumstances and decide when to focus on their work.

Also, we promote smart working for flexibility and immersion in the workplace. We respect employee autonomy and support a healthy work-life balance so that all employees can immerse themselves in a happy work environment.

SK bioscience practices a labor-management culture of shared growth and harmony through various sincere communication channels based on the SKMS(SK Management System).

A labor-management consultative body has been established to improve working conditions and company productivity by conducting collective bargaining negotiations with the L HOUSE-centered labor union(121 employees as of March 2022). In addition, we strive to establish a culture of respect and improve the work environment.

In 2021, we adopted and proclaimed a shared growth cooperation declaration. Under the declaration, we will promote growth of the company, happiness of our employees and competitiveness via securing the global top-tier product quality. At the same time, we will devote our efforts to become a company admired by society and the people through various philanthropic activities based on co-prosperity and cooperation.

Along with cooperative communication with the labor union, we operate OHB(Our Happy Bioscience). This company-wide labor-management joint committee gathers employees’ pain points and plans happiness programs. It also listens to employees’ opinions frequently and reflects them in management activities and organizational operations. Meanwhile, our quarterly management briefing sessions BS+, which are attended by all employees, elevate their understanding of the overall management, and offer both labor and management an opportunity to actively participate in the company’s growth.

We take various measures to create a safe and satisfactory work environment. First, our labor management grievance ombudsman resolves conflicts among our employees. Also, we have established guidelines on the prevention of workplace harassment to raise awareness of human rights violations and reinforce our preemptive measures against potential human rights issues. Last but not least, we operate the Labor-Management Safety and Health Committee to ensure that our employees are staying safe and content.

SK bioscience aspires to foster global talent through value training to enforce common core values, leader training programs for future preparation, global capacity building training, Hi-Po(High-Potential) training, and expert training for each field.

Starting in 2022, SK bioscience will be establishing the BS Academy and developing a training system that supports value and competency acquisition to help employees grow into warmhearted professionals. In addition, by reestablishing the job system, we plan to consider developing the career path for each position and improving the course development and training system.

Based on human-centric management principles, SK bioscience has established a SHE(Safety, Health & Environment ) management system. We will continue to advance the SHE management system by adhering to SHE management values and policies that prioritize the happiness of our stakeholders and solidify our position as the industry’s SHE leader.

SHE management policy serves as the foundation of SK bioscience’s safety and health management system. We constantly maintain a zero-accident workplace by creating a voluntary safety culture, in addition to complying with relevant laws and standards and improving risk factors.

SK bioscience specifies the removal of SHE risk factors as a significant process in implementing the management system and conducts risk assessments for all operations to prevent accidents and improve workers’ health. The company hereby discovers potential risks, including those arising from operation, secures safety and health measures, and manages so that workers can work in a safe environment.

SK bioscience evaluates the entire work, beginning with the preliminary preparation step of assessing the subject and scope of the risk assessment. Then, the risk factors for each unit task are assessed by identifying harmful risk factors, and the work is separated based on the risk factors.

In the risk estimation and determination stage, the magnitude of the possibility and severity of injury or disease is estimated for each hazard and risk factor. Then the significance of the risk is calculated to determine whether it is acceptable.

When establishing and implementing risk reduction plans, we devise measures to mitigate the unacceptable risks to include them in the reasonably practicable range. Then, through consistent monitoring, we confirm that the evaluation was conducted on-site, and we look for emerging risks in the new work environments.

SK bioscience has established a joint Occupational Safety and Health Committee between labor and management at the head office and L HOUSE, respectively, for the health of workers and accident prevention in the workplace. The Occupational Safety and Health Committee is held on a quarterly basis. It listens to the opinions of workers on changes to major safety and health regulations, including the basic safety and health management system, and strives to reflect them in practice.

The number of workers and business operators participating in each Occupational Safety and Health Committee was paired at both sites; HQ(seven employees) and L HOUSE(six employees). We believe this structure of the committees will provide the groundwork for improvement and follow-up measures for workers’ safety.