Chairman Chey Tae-won: "Confirmed Incentive Effects... Efforts for Future Policy Implementation and Internationalization"

[Asia Economy Reporter Hwang Yoon-joo] 'Solving problems by using problems.'

Founded in 2017, StarsTech produces eco-friendly de-icing agents using starfish extract components. This idea was inspired by the problem that starfish are becoming a 'nuisance' domestically and internationally by preying on shellfish in aquaculture farms and destroying coral reefs. Existing de-icing agents made from calcium chloride and others also pose environmental issues by damaging concrete and causing street trees to wither. StarsTech creates social value by making de-icing agents from starfish, thus 'saving the environment with waste.'

On the 24th, SK announced that 200 companies, including StarsTech, participated in the 2019 Social Performance Incentive program, generating social performance worth approximately 59.8 billion KRW, and that incentives totaling 10.6 billion KRW would be paid as compensation.

The Social Performance Incentive program measures the 'good deeds' (social performance) of companies pursuing social value creation, such as social enterprises, in monetary terms and provides cash incentives proportional to this. It was first established in 2015 based on the philosophy of SK Chairman Chey Tae-won: "If companies that do good deeds are rewarded, they can achieve financial stability and create a virtuous cycle of generating more social performance."

The Social Performance Incentive, initiated by Chairman Chey, plays a significant role in achieving the dual goals of financial stability and social performance creation for participating companies.

From its launch in 2015 through 2019, participating companies generated a total social performance of 168.2 billion KRW and received incentives amounting to 33.9 billion KRW. The average annual sales per participating company increased from 1.61 billion KRW in 2015 to 1.7 billion KRW in 2019, and the average annual social performance per company also rose from 240 million KRW in 2015 to 300 million KRW in 2019.

The Social Performance Incentive selects social enterprises and others through fierce competition with a ratio exceeding 5 to 1 each year, measuring the social performance they create in four areas: ▲job creation ▲provision of social services ▲environmental problem solving ▲ecosystem problem solving. Selected companies receive incentives for three years. The funding is provided by 'Happiness Narae,' a social enterprise established by SK to support social enterprises, and donations from SK affiliates. The Social Value Research Institute, a nonprofit research foundation established by SK, oversees measurement and evaluation.

Meanwhile, this year's Social Performance Incentive event will be held online from the 25th to the 29th via SK and the Social Value Research Institute's official YouTube channels to encourage social distancing amid the COVID-19 pandemic.

In a video message released on the first day of the event, the 25th, Chairman Chey said, "Initially, there were many external concerns about measuring social performance in monetary terms, but now domestic public institutions, Chinese government agencies, and global companies are researching monetary value measurement."

He added, "Having established the measurement system and observed the operation of the measurement and reward system over the past five years, we will spend the next five years researching policy measures for the Social Performance Incentive and efforts to expand it overseas," encouraging participating companies and stakeholders with the words, "By encouraging more participation, let's strengthen and tighten the social safety net of our society."

Among the award-winning companies, UpDream Korea plans, manufactures, and distributes products that help solve social problems. They plan and sell sanitary pads under the brand 'Sandeul Sandeul,' and when consumers purchase the product, the same quantity is donated to vulnerable groups. Since the product launch last year, nearly one million sanitary pads have been donated to about 39,000 people as of this month.

Oh My Company is a financial social enterprise that helps companies striving to create social value raise funds through a crowdfunding platform. Anseong Medical Welfare Social Cooperative was recognized for contributing to creating a healthy local community by providing healthcare services to vulnerable groups in the local community.

Additionally, on the 26th, a relay congratulatory video featuring professional golfer Choi Kyung-ju and Lee Bo-mi, professional gamer 'Faker' Lee Sang-hyeok, and professional basketball player Kim Sun-hyung of SK Knights will be delivered. On the final day of the event, the 29th, a special video titled 'If We Don't Start Now, It Will Be Too Late' will be released, emphasizing the need for solutions like the Social Performance Incentive to address global social problems.

This content was produced with the assistance of AI translation services.