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, long-term strategy, economic performance, social responsibility, and environmental contributions and discloses its sustainability activities to com- 02 BOD Chairman Message municate with its stakeholders. kt will continue to 03 CEO Message work with the stakeholders to create more value 04 Stakeholder Engagement and reinforce sustainability activities. 05 Materiality Assessment Report Framework 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 kt’s value-creation strategy that takes account of 11 Green Business details on olleh Management 2.0. The company’s 12 Win-Win Partnerships through Start-up Support CSR Team was responsible for preparing this 13 Extending kt’s CSR: Creating social value report in collaboration with other officers from through IT related departments. Sustainability at kt 14 At a Glance Reporting Standard and Assurance 15 kt’s Value System This report was prepared in accordance with the 16 Corporate Governance GRI (Global Reporting Initiative) G3.1 Guidelines, 17 Sustainability and discloses information with reference to the contents of ISO 26000, which were announced 18 Innovation through Sustainability in November 2010. This Report was externally 19 Business Ethics assured by an independent agency based on 20 Risk Management the principles of inclusiveness, materiality, and responsiveness. Dream with Shareholders Reporting Period and Scope 23 Creating Growth Engines This Report covers the activities and performance 25 Global Businesses of the company’s business units operating in South 26 Brand Value Korea from January 1 through December 31, 2011. 29 Innovative Management It also includes certain activities conducted in 31 Economic Performance 2012 where necessary. Each year, kt will continue 33 Shareholder Communication to publish a Sustainability Report. Dream with Customers Dream with Suppliers 35 Customer Satisfaction (CS) System 69 Win-Win Partnership Policy 36 Service Innovation 71 Supplier Infrastructure and Financial Support 41 Providing Reliable Telecommunications Services 72 Extending Win-Win Partnerships 42 Stronger IT Security and Privacy Protection 74 Creating a Green Ecosystem 43 Resolving Negative Effects of Information 75 Innovative Procurement Plan Society 76 Fair Trade 77 Supplier Communication Dream with Employees 45 Great Workplace Dream with Society 47 Fairness of Human Resources 79 Social Responsibility Strategy Programs 81 IT Sharing 48 Human Resources Development 83 Love Sharing 51 Safety and Health 86 Culture Sharing 52 Welfare Benefits 88 Universal Service and Bridging 53 Respecting Human Rights Digital Divide 54 Employee Communication 89 CSR of kt Group Companies 55 New Creative Labor Relations Dream with Environment Appendix 57 Environmental Management System 96 External Assurance Statement 58 Climate Change Response 98 GRI Index 60 Efficient Energy Use 99 ISO 26000 Contents 62 kt’s Energy-Saving Practices 100 Memberships Status, Key Performance Indicators 63 Recycling Resources 101 2011 Awards and Recognition 64 Green Products and Services Innovation 65 Policy Engagement and Certificates 67 Green Business Products 02 BOD Chairman Message We will do our best to continue to make innovative changes and fulfill our dream of becoming a global media distribution corporation. Originally founded as the Korea Telecommunication Associa- managers, infusing new energy into executive suites in a gen- tion in 1981, kt’s evolution mirrors Korea’s rapid development der friendly manner. By doing so, kt has created a more inno- in the telecommunication technology. kt initially provided vative and customer friendly service environment. telephone services, which paved the way to its new busi- nesses, including high-speed internet service and IPTV. Since The innovative changes kt made over the past three years has a 2009 merger with KTF, kt provides the world a convergence now become its core. We look forward to kt playing the lead- of fixed and mobile services. Now, building on its foundation ing role as a global media distribution corporation in the near of the “smart device revolution,” kt announces the second future. kt promises to be socially responsible, reaching out to phase of “olleh Management”. those who are neglected and left behind by the digital divide. During the first phase of olleh Management over last three 2012 will be a year in which kt’s competitive advantage will years, kt significantly improved worker-management relation- contribute to the economy and the society. We ask for your ships, implemented the Smart Working system for a more continued interest and encouragement. Our board of direc- efficient working environment, and developed cutting edge tors, executives, and staff promise to lead the company with technologies, such as Cloud computing, search technology, honesty and integrity. and the use of “smart” devices. kt also successfully promoted its partnership with small and Chairman of the Board of Directors, medium enterprises, sharing the benefits of joint efforts in a Eung Han Kim fair and equitable way. We believe mutually beneficial part- nerships with small and medium companies are the key to evolving into a true global media distribution corporation. kt employs bright, talented people. A new generation of young and powerful leaders are working with our CEO to advance kt into the global market place. We are proud to say that kt has been successful in recruiting numerous high ranking female 03 CEO Message kt believes that the world can be a better place than the world we see today. Countless academic articles in the field of management have tection must be at the core of a corporation’s social respon- commented that the goal of any corporation should be to find sibility. sources of sustained competitive advantage. It is with sus- tained competitive advantage that companies are able to pre- In the end, companies that survive and prevail the longest are vail over their competitors. I believe that companies with a the most distinguished. Only a company that is recognized history stretching over a hundred years can be considered as for its continuous development, innovation, and active con- truly prestigious. tribution to society can continue to compete for long periods of time. The kt family wants to see kt become a great corpo- 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- benefits to the communities in which they operate. There ling social inequality by providing a more stable and creative are numerous stories of how inventions designed to gener- working environment for our employees. ate company profit have actually contributed to the welfare of society. I recall reading an article that described how the As we pave the way into the “Smart-convergence” era, we dishwasher was the best invention of all time, and in many will contribute to every aspect of society. kt will be directly 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 by how they have contributed to society. I believe companies is kt’s dream that the world will become a better place than today must endeavor to support society and re-engage with the one we are living in now and I believe that this is the the communities that surround them. responsibility of a 21st century company and the essence of corporate social responsibility. 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 tended, some companies have negatively impacted the envi- on with our journey, exercising these beliefs that are benefi- ronment and deepened social inequalities. As social polariza- cial both to kt and society. tion intensifies and environmental damage begins to threaten nature’s balance, corporate responsibility will become more important than ever before. This means that the success of Suk-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 Stakeholder Communication kt classifies key stakeholder groups into customers and shareholders, who are in business relation- ships with the company, employees and suppliers, who are co-leaders in innovation and growth, Stakeholder and communities in which the company conducts business. The company gathers and takes into Engagement consideration the stakeholders’ opinions through regular committee meetings or surveys. Specifically, the company holds regular meetings to talk with the stakeholders, including the