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kt Sustainability Report 2012 kt Sustainability Report 2012 We have a dream About This Report This 2012 Sustainability Report is the seventh report that covers kt’s commitment and perfor- Contents mance related to building a sustainable society. This Report includes kt’s key business information, Dream with Customers Dream with Suppliers long-term strategy, economic performance, social 35 Customer Satisfaction (CS) System 69 Win-Win Partnership Policy responsibility, and environmental contributions 36 Service Innovation 71 Supplier Infrastructure and Financial Support and discloses its sustainability activities to com- 41 Providing Reliable Telecommunications 02 BOD Chairman Message Services 72 Extending Win-Win Partnerships municate with its stakeholders. kt will continue to 03 CEO Message work with the stakeholders to create more value 42 Stronger IT Security and Privacy Protection 74 Creating a Green Ecosystem 04 Stakeholder Engagement and reinforce sustainability activities. 43 Resolving Negative Effects of Information 75 Innovative Procurement Plan Society 05 Materiality Assessment 76 Fair Trade Report Framework 77 Supplier Communication This report covers kt’s economic, social, and envi- 2012 kt Highlight-Special Issue ronmental performance by stakeholder group. The 06 olleh Management 2.0 company’s stakeholders are classified into share- 09 2012 kt Report Content holders, customers, environment, employees, 10 Business Innovation and Smart Working suppliers, and society. The Report also includes through BIT 11 Green Business kt’s value-creation strategy that takes account of Dream with Employees details on olleh Management 2.0. The company’s 12 Win-Win Partnerships through Start-up Support 45 Great Workplace CSR Team was responsible for preparing this 13 Extending kt’s CSR: Creating social value Dream with Society through IT 47 Fairness of Human Resources 79 Social Responsibility Strategy report in collaboration with other officers from Programs related departments. 81 IT Sharing Sustainability at kt 48 Human Resources Development 83 Love Sharing 51 Safety and Health 14 At a Glance 86 Culture Sharing Reporting Standard and Assurance 52 Welfare Benefits 15 kt’s Value System This report was prepared in accordance with the 88 Universal Service and Bridging 53 Respecting Human Rights 16 Corporate Governance Digital Divide GRI (Global Reporting Initiative) G3.1 Guidelines, 54 Employee Communication 17 Sustainability 89 CSR of kt Group Companies and discloses information with reference to the 55 New Creative Labor Relations contents of ISO 26000, which were announced 18 Innovation through Sustainability in November 2010. This Report was externally 19 Business Ethics 20 Risk Management assured by an independent agency based on Dream with Environment Appendix the principles of inclusiveness, materiality, and 57 Environmental Management System 96 External Assurance Statement responsiveness. Dream with Shareholders 58 Climate Change Response 98 GRI Index 60 Efficient Energy Use 99 ISO 26000 Contents Reporting Period and Scope 23 Creating Growth Engines 25 Global Businesses 62 kt’s Energy-Saving Practices 100 Memberships Status, This Report covers the activities and performance Key Performance Indicators 26 Brand Value 63 Recycling Resources of the company’s business units operating in South 101 2011 Awards and Recognition 64 Green Products and Services Innovation Korea from January 1 through December 31, 2011. 29 Innovative Management 65 Policy Engagement and Certificates It also includes certain activities conducted in 31 Economic Performance 67 Green Business Products 2012 where necessary. Each year, kt will continue 33 Shareholder Communication to publish a Sustainability Report. 02 03 BOD Chairman CEO Message Message We will do our best to continue to make kt believes that the world can be a better place innovative changes and fulfill our dream than the world we see today. of becoming a global media distribution corporation. Originally founded as the Korea Telecommunication Associa- managers, infusing new energy into executive suites in a gen- Countless academic articles in the field of management have tection must be at the core of a corporation’s social respon- tion in 1981, kt’s evolution mirrors Korea’s rapid development der friendly manner. By doing so, kt has created a more inno- commented that the goal of any corporation should be to find sibility. in the telecommunication technology. kt initially provided vative and customer friendly service environment. sources of sustained competitive advantage. It is with sus- telephone services, which paved the way to its new busi- tained competitive advantage that companies are able to pre- In the end, companies that survive and prevail the longest are nesses, including high-speed internet service and IPTV. Since The innovative changes kt made over the past three years has vail over their competitors. I believe that companies with a the most distinguished. Only a company that is recognized a 2009 merger with KTF, kt provides the world a convergence now become its core. We look forward to kt playing the lead- history stretching over a hundred years can be considered as for its continuous development, innovation, and active con- of fixed and mobile services. Now, building on its foundation ing role as a global media distribution corporation in the near truly prestigious. tribution to society can continue to compete for long periods of the “smart device revolution,” kt announces the second future. kt promises to be socially responsible, reaching out to of time. The kt family wants to see kt become a great corpo- phase of “olleh Management”. those who are neglected and left behind by the digital divide. Throughout history, corporations have not only provided jobs ration with a history that stretches far beyond one hundred and social welfare, but also have delivered innumerable years. We have already taken on that challenge: we are tack- During the first phase of olleh Management over last three 2012 will be a year in which kt’s competitive advantage will benefits to the communities in which they operate. There ling social inequality by providing a more stable and creative years, kt significantly improved worker-management relation- contribute to the economy and the society. We ask for your are numerous stories of how inventions designed to gener- working environment for our employees. ships, implemented the Smart Working system for a more continued interest and encouragement. Our board of direc- ate company profit have actually contributed to the welfare efficient working environment, and developed cutting edge tors, executives, and staff promise to lead the company with of society. I recall reading an article that described how the As we pave the way into the “Smart-convergence” era, we technologies, such as Cloud computing, search technology, honesty and integrity. dishwasher was the best invention of all time, and in many will contribute to every aspect of society. kt will be directly and the use of “smart” devices. ways, this is no exaggeration. It demonstrates that a corpora- involved in the fields of energy and environmental protection, tion’s history is not only defined by profits and margins, but health, education, and even the artistic and cultural fields. It kt also successfully promoted its partnership with small and Chairman of the Board of Directors, by how they have contributed to society. I believe companies is kt’s dream that the world will become a better place than medium enterprises, sharing the benefits of joint efforts in a Eung Han Kim today must endeavor to support society and re-engage with the one we are living in now and I believe that this is the fair and equitable way. We believe mutually beneficial part- the communities that surround them. responsibility of a 21st century company and the essence of nerships with small and medium companies are the key to corporate social responsibility. evolving into a true global media distribution corporation. On the other hand, as globalization has progressed, a darker side to corporations has become apparent. Though often unin- This report embodies kt’s vision and goals. We will continue kt employs bright, talented people. A new generation of young tended, some companies have negatively impacted the envi- on with our journey, exercising these beliefs that are benefi- and powerful leaders are working with our CEO to advance kt ronment and deepened social inequalities. As social polariza- cial both to kt and society. into the global market place. We are proud to say that kt has tion intensifies and environmental damage begins to threaten been successful in recruiting numerous high ranking female nature’s balance, corporate responsibility will become more important than ever before. This means that the success of Seok-Chae Lee, CEO a company will go beyond mere creativity and innovation. A precedent of full compliance with the law, ethical manage- ment, contribution to the community and environmental pro- 04 05 Stakeholder Communication Stakeholder Communication kt classifies key stakeholder groups into customers and shareholders, who are in business relation- Through ‘Materiality Assessment’, kt identifies and constantly monitors key issues, taking into ships with the company, employees and suppliers, who are co-leaders in innovation and growth, consideration the interests of stakeholders and their business impact. The materiality assessment Stakeholder and communities in which the company conducts business. The

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