SK Group, in addition to being the country’s third-largest conglomerate, has been one of the staunchest supporters of social enterprises with its chairman Chey Tae-won taking part in related activities.

“The chairman believes that simple donations have limited efficacy in solving social problems,” a SK Group official said.

“At the core of his belief is that social enterprises are the answer that can ensure continued satisfaction of all those concerned.”

 

 

Chey has expressed such views on the international stage.

At the United Nations Global Compact Leaders Summit last June, he said that one-off donations from corporations have limitations and stressed the need to expand the application of the social enterprise model, which aims to create value for society in general.

As such, the group’s corporate social responsibility projects have focused on social enterprises in recent years.

While most local conglomerates run social contribution programs in some form, SK Group has been at the forefront of fulfilling its corporate responsibility.

The conglomerate’s programs for social enterprises in particular have gained much attention and praise including that from UN Secretary General Ban Ki-moon who described SK Group and its chairman Chey Tae-won’s efforts regarding the issue as the “spearhead for corporations’ social contribution activities,” at a recent meeting in Seoul.

One of the more recent projects conducted by SK Group was a school founded in January 2010 in collaboration with the Seoul city government.

The school employs out-of-work teachers with the aim of helping underprivileged children to study, and to contribute to curbing private education costs in Korea.

In August, the company announced plans to convert MRO Korea – a maintenance, repair and operations company set up in partnership with U.S.-based Grainger International in 2000 – into a social enterprise, setting a new precedent in resolving issues regarding such operations.

The group’s efforts regarding the issue go back further than most.

The group drew up a roadmap for creating jobs in 2005, and has since launched a number of social enterprises and a diverse range of projects supporting social enterprises

In January last year, SK Group set up a division dedicated to carrying out projects regarding social enterprises within its Happy Nanum Foundation and established a 50 billion won ($46 million) fund for its operations.

“Since 2005, SK Group has created about 6,000 jobs through various projects and by supporting social enterprises,” a SK Group official said.

“SK Group will continue to set up and support several forms of social enterprises in an effort to tackle social problems.”

By Choi He-suk (cheesuk@heraldcorp.com)