SK Group is stepping up efforts to standardize its social value measurement internationally. SK Group has joined hands with South Korean public corporations, public organizations and social enterprises as well as China's state-owned asset supervision and management committee and Germany's BASF in various activities to establish a social value measurement system.
The standardization work of such a measurement system is based on SK Chairman Chey Tae-won's opinion that it can be managed only when it is measurable, and evolution and development is possible.
According to SK Group, the opening ceremony for the Center for Social Value Enhancement Studies (CSES), the non-profit research foundation, was held in Hannam-dong, Seoul on July 30.
About 40 experts from public institutions, accounting firms and academia who decided to join the process of standardizing social values as members of CSES attended the opening ceremony.
With the addition of 40 outside experts to 20 existing researchers, the number of internal and external researchers who decided to join CSES in standardizing social values has increased to 400.
"In a complex business environment where social problems occur faster than the speed at which social problems are solved, it cannot be sustainable if companies pursue only economic values," Chairman Chey said, adding, "We created CSES because social value measurements must precede in order to solve social problems systematically."
"The process of standardizing social value measurements can be faster if various entities discuss and consult," Choi said. "We hope that the opening of the relocated CSES will serve as a platform and communication ground for global standardization as well as academic establishment of social value measurement."
CSES is a non-profit research foundation that was established by SK Group in April last year with 15 billion won. It is carrying out a project to define social values created by various organizations, including social enterprises and public institutions, and measure their value in monetary units.
It is currently working with 25 public organizations such as Korea Land & Housing Corp. and Korea Highway Corp. to produce social value indicators that can be applied in common.
In addition, CSES is also conducting research to develop and upgrade the social value measurement system, and training social value-related rising scholars.
Separately, SK Group has formed a consultative body to develop a social value measurement system with eight global companies, including Germany's BASF, Novartis and Bosch, and is conducting research to quantify social values.
Four major global accounting firms -- PricewaterhouseCoopers (PwC), KPMG, Deloitte and EY -- and the Organization for Economic Cooperation and Development (OECD) are working together.