S-OIL endeavors to meet the needs and expectations of various stakeholders and fulfill its social responsibilities to consumers, employees, and local communities as a responsible member of society. The Company delivers customer satisfaction through high-quality products and reasonable prices, as well as various communication and marketing activities. S-OIL has implemented a fair HR system that allows for performance-based compensation, and the recruitment and assessment process is conducted transparently. The Company has also developed systematic and diverse training programs designed to nurture future leaders of the Company, while its top-tier benefits system promotes a healthy work-life balance for employees. Furthermore, S-OIL is committed to making systematic contributions to the local community in line with its business strategy.
Customer Satisfaction
S-Oil focuses all its capabilities on enhancing consumer benefits and satisfaction by offering high-quality products and services at reasonable prices. S-OIL actively engage in communication with consumers to identify their needs and proactively integrate them into the Company's management activities. Consumer satisfaction is S-OIL's top priority, and the Company strive to customer engagement by making every effort to meet their expectations.
Fair and reasonable pricing
S-OIL strives to maximize consumer benefits by implementing a fair and competitive pricing policy. Although consumers may not directly experience the immediate impact of lower crude oil prices due to factors such as high taxes and market structures, the Company has developed a unique price adjustment system that takes into account various factors including global petroleum product prices, F/X rates, and domestic market trends. The Price Steering Committee promptly reflects these adjustment factors on a daily basis to establish reasonable reference prices for domestic light crude oil products. Moving forward, S-OIL will continue to uphold its current pricing policy to ensure that the Company provides high-quality products and services at reasonable and competitive prices, thereby maximizing consumer value.
Timely and Accurate Handling of Customer Complaints
To strengthen customer communication, S-OIL operates an integrated Voice of Customer (VOC) system. The system enables the Company to receive and analyze customer feedback from various channels, including the customer center, website, Automated Response System (ARS), and social media platforms, in an integrated and systematic manner. The turnaround time for handling VOCs is determined based on the type of feedback and is managed to ensure prompt resolution. Additionally, S-OIL conducts satisfaction surveys on VOC handling and uses the results to continuously improve the system. Customers and notified of the status of their VOCs through phone calls, SMS messages, and e-mails. Furthermore, S-OIL has implemented a VOC Awareness Raising Program, which serves as an incentive system to recognize customers who provided valuable feedback.
Furthermore, S-OIL actively engages with a prosumer group called GOODOIL Friends to collect valuable insights and facilitate two-way communication with customers. The Company has updated its customer management system to provide a more robust 1:1 chat consultation channel using KakaoTalk, as well as a 24/7 chatbot. Additionally, S-OIL has introduced a new membership tier system that offers differentiated benefits to VIP customers based on their usage.
S-OIL utilizes big data analysis to identify trends in customer complaints and takes preventive measures to address recurring issues. Moreover, the Company offers S-OIL Notification Service, which promotes interactive communication with customers through KakaoTalk.
Competitiveness Enhancement of S/Ss and F/Ss for Customer Satisfaction
S-OIL is committed to supporting its key customers and main customer contact channels, such as service stations (S/Ss) and LPG filling stations (F/Ss), to enhance their competitiveness through various on-site programs and proactive communication. Its commitment has been recognized through consistent first-place ranking in the S/Ss category of the "2021 Korea Net Promoter Score" by the Korea Management Association Consulting for seven consecutive years. Additionally, the Company has achieved first place in the S/Ss category of the "2021 National Service Awards" by the Institute for Industrial Policy Studies for five consecutive years.
To meet the increasing customer expectations, S-OIL operates YES Team, a group of experts with expertise in customer satisfaction, labor relations, and other areas related to S/Ss and F/Ss operations. The YES Team conducts on-site training sessions on customer service, demonstrations, and cleanliness practices. With a focus on minimizing customer inconvenience, S-OIL is strengthening its support activities to address customer complaints, including expanding training content for responding to complaints handling.
Furthermore, S-OIL provides a wide range of well-thought-out support programs, such as online training and consulting, to help S/Ss and F/Ss strengthen their management capabilities. Through its online training, the Company delivers up-to-date information on management practices, relevant laws and regulations, policies, major marketing activities, and support programs.
In response to dwindling profitability caused by intensified price competition and tightening regulations, S-OIL has developed competitive non-fuel businesses that S/Ss and F/Ss can adopt to diversify their revenue portfolio. The Company has partnered with emart24 to develop and launch a manned/un-manned smart convenience store model optimized for S/Ss. Additionally, S-OIL grants socially marginalized individuals the rights to operate Sunshine Sharing convenience stores, enabling them to become self-sufficient. The Company has also developed high-quality private label (PB) products, such as urea solution and ethanol washer fluid, which are supplied at competitive prices. S-OIL has introduced various vehicle-related services, including self-cleaning, hand-washing, polishing, and coating, with the aim of enhancing the value of S/Ss as multifunctional facilities and improving customer convenience.
Furthermore, in response to the growing trend of electric vehicles and to enhance the value as integrated energy stations, S-OIL is actively implementing electric vehicle charging stations.
Considering the increasing number of self-service S/Ss, the Company has expanded the nationwide "Star Oil Campaign". The campaign aims to provide fueling convenience services to drivers with disabilities who have limited access to self-fueling. By doing so, S-OIL improves the accessibility and convenience of self-service stations for individuals with disabilities while also raising awareness about disabilities.
Product Quality Assurance
S-OIL has implemented a quality management system in compliant with ISO 9001:2015 international standard. This system ensures the production of high-quality products that satisfy customers' expectations. The company places continuous efforts in R&D, eco-friendly product development, and quality control across all areas. S-OIL's goal is to provide consumers with top quality products in a stable manner while minimizing environmental and safety impacts.
Quality Management System (ISO 9001) Operation
S-OIL is committed to establishing a corporate-wide quality management system. The Company have implemented a quality management system in accordance with the latest standard ISO 9001:2015. S-OIL aims to continuously improve internal processes and further optimize the quality management system to provide excellent quality that satisfies customer needs and expectations.
Enhancing Quality Control for Consumer Satisfaction
"S-OIL has implemented a real-time quality monitoring system that proactively identifies any factors that may negatively affect product quality throughout the entire production process, from raw material procurement to product shipping and market distribution. This system ensures that only products that meet quality standards are supplied to customers. S-OIL emphasizes regular communication between the production and sales functions to incorporate customer requirements as much as possible during the production phase. The Company also closely monitors the distribution process to maintain excellent quality when delivering products to customers. As part of this effort, its quality control departments actively participate in inter-laboratory precision comparison tests organized by the American Society for Testing and Materials (ASTM) and the Korea Petroleum Quality & Distribution Authority (K-Petro) every year. This ensures the analytical reliability of the S-OIL's testing methods, and the Company continuously verify and improve its analytical methods for precision.
Adopting Latest Analytical Equipment and Techniques
In an effort to stably control product quality and ensure product reliability, S-OIL has adopted the latest analytical techniques and equipment to continuously manage product quality. The Company regularly calibrates its equipment through external accredited agencies and conducts periodic inspections of its analytical equipment through its own inspection program to improve analytical reliability. In addition, S-OIL offers various training programs to improve analytical skills, thereby improving the efficiency of its production process.
In additional, S-OIL is also making efforts to secure optimal analytical equipment and technologies for quality control of diversified products produced after the start-up of the Shaheen Project, the largest project since the Company's establishment.
Enhancement of Quality Management in Market Distribution Process
S-OIL is committed to systematic product quality management throughout the market distribution process, as well as in the production process. This commitment aims to prevent contamination or degradation of products at S/Ss and F/Ss and ensure customers' rights to purchase products with specified quality and quantity. The Company adopts a systematic approach to quality inspection at S/Ss and F/Ss and implements preventive measures. Various means such as injecting specific markers, using handheld analyzers on-site, monitoring abnormal symptoms, and verifying dealer information, are employed to ensure efficient quality control.
S-OIL operates the Product Quality Tracking System, which integrates product distribution and quality information across the Refinery, S/Ss, and customers, allowing for traceability of distribution routes. In addition, the Company strives to provide customers with the best quality products and imposes strict penalties, including de-branding, on S/Ss and F/Ss that sell fraudulent oil.
S-OIL's Trustworthy S/S Program guarantees the quality and quantity specifications of products sold at designated S/Ss, making it easier for customers to purchase high-quality products. To qualify as a Trustworthy S/s, a minimum of four quality inspections per year and periodic quantity specification inspections are required. Trustworthy S/Ss are easily identifiable through signs that help consumers recognize them.
Domestic Marketing Enhancement
S-OIL aims to steadily increase its domestic market share by making significant efforts to efficiently utilize its tangible and intangible assets, as well as effectively communicate with customers and meet their needs.
Continued Expansion of Domestic Market Share
S-OIL is continuously striving to increase its share in the domestic market. Through the expansion of sales networks, including S/Ss, F/Ss, and direct sales outlets, the Company has successfully secured stable new clientele. Additional S-OIL has implemented differentiated competitiveness building programs to reinforce ties with existing clients and boost sales. Despite declining demand due to economic slowdown, these efforts have resulted in high level of 26.2% market share of retail light oil in 2022.
Looking ahead, S-OIL plans to further expand its domestic sales share by implementing effective measures to increase existing sales. The Company will also engage in creative brand marketing and actively seek new business opportunities.
Expanding S/S Network Share and Enhancing Consumer Convenience
The number of service stations (S/Ss) operating throughout the country has been declining since 2011, mainly due to increasing competition and deteriorating profitability in a saturated market. Unless business conditions improve, this downward trend in the number of S/Ss is expected to continue. However, despite this situation, S-OIL successfully expanded its S/S network share through active acquisitions last year.
To increase access to the Company's products for domestic customers, S-OIL will continue to expand its S/S sales network.
Marketing-related Performance
In 2022, S-OIL won a total of nine awards, representing the best management performance in its history and recognition for its differentiated brand marketing activities, including advertisements, promotions, membership, and quality/service programs. These awards were granted by prestigious organizations such as the Institute for Industrial Policy Studies (IPS) and Korea Management Association (KMA), and they serve as validation for the Company's systematic and consistent brand activities. Winning these awards will further enhance S-OIL's brand reputation among stakeholders as the Company moves forward.
Brand Marketing as a Medium for Customer Communication
S-OIL has been promoting the GOODOIL character as a symbol of good oil through various marketing activities at S/Ss and F/Ss, events, promotions, and advertising campaigns. This approach allows the Company to establish closer connections with customers and relate to them on a more personal level.
S-OIL conducts brand marketing activities to promote purchase, synergy creation through collaborations with various partners, and social campaigns. In 2022, the Company launched an advertising campaign featuring commercial songs and GOODOIL characters to convey positive energy and encouragement to customers. S-OIL also strengthened communication with Generation MZ through creation of viral videos and social media events. S-OIL arranged joint marketing collaboration with professional baseball team KT Wiz and KORAIL company, allowing customers to experience the S-OIL brand firsthand.
S-OIL also builds a dynamic, friendly, and prestigious brand image through its support for various sports and cultural events. The Company hosts the KLPGA S-OIL Championship and sponsor S-OIL Championship Pro-Am to provide premium services and exclusive value to its customers. Furthermore, S-OIL organizes events such as Culture Date and Cinema Date to offer customers enhanced cultural benefits.
S-OIL carries out various promotional activities to provide practical benefits to customers who visit its S/Ss and F/Ss, aiming to increase their satisfaction. As part of these efforts, the Company holds annual sweepstakes at S/Ss and F/Ss nationwide, offering diverse free gifts such as mobile vouchers for fuel, GOODOIL characters, and daily goods. In 2022, as a gesture of gratitude to loyal customers who supported S-OIL during the challenging times of the COVID-19 pandemic, the Company held sweepstakes coinciding with holidays and the autumn outing season. Additionally, S-OIL expanded and upgraded its product offerings through the renewal of its point mall, providing customers with a wider range of choices. The Company also organized various events to offer greater benefits to its customers
In addition, S-OIL successfully completed the Customer Relationship Management (CRM) project and upgraded the Bonus Card mobile application, which began in early 2022. These enhancements significantly improved the customer experience by introducing additional features such as fuel payment, registration, accumulation, and redemption of mobile vouchers and points, as well as locating frequent stations through the application. Furthermore, as part of its ESG management, S-OIL introduced a mobile application to issue electronic receipt at S/Ss, and promoted the Company's efforts on environmental protection in cooperation with K-co to encourage customers to participate in environmental protection.
Creating a Friendly, Socially Responsible Corporate Image
S-OIL actively interacts with stakeholders through unique corporate image advertisements and various communication channels. Its goal is to establish a friendly company image that fulfills its social responsibilities through integrated public relations activities that are seamlessly linked to its marketing activities. Notably, S-OIL effectively utilizes various digital channels such as social media platforms, digital newsletters, and online advertising to communicate the Company's sincere commitment to sustainability and its ESG management performance to diverse stakeholders.
In 2022, in line with the recent changes in the media environment and communication patterns, S-OIL redesigned its digital public relations strategy and further strengthened stakeholder interactions by expanding tailored content for each social media channel. To further strengthen cultural and emotional bonds with the local community, the Company also installed a large message board on the exterior wall of its headquarter building, displaying messages of hope and encouragement.
Domestic Marketing for Lube Business
"Since 1981, S-OIL has been at the forefront as the first company in Korea to produce lube base oil. The Company has established itself as a market leader by providing reliable and high-quality products. Its strong foothold in the market is maintained through close relationships with customers and customized marketing strategies that leverage various product lines. Furthermore, S-OIL has expanded its loyal customer base by ensuring a stable supply capability. To effectively respond to the rapidly changing market, the Company hosts annual technology seminars, inviting customers to participate. Marketing department also collaborates with the Refinery and TS&D Center to continuously enhance the Company's customer services and product quality. These efforts enable us to maintain S-OIL's competitive edge in the market and solidify its position as the leading base oil supplier in the domestic market.
Domestic Marketing for Petrochemical Business
S-OIL has been making continuous efforts to strengthen petrochemical business to achieve long-term sustainable growth by enhancing competitiveness and expanding market share in the domestic market. For its aromatic and olefin monomer products, the Company has established partnerships with key domestic clients and maximized domestic sales by utilizing the pipelines infrastructure in the Ulsan Complex. This has provided S-OIL with a stable revenue base and enhanced the Company's position in coordinating supply and demand within the complex through various swap transactions.
With the successful completion of the RUC/ODC Project in 2018, S-OIL commenced mass production of polypropylene (PP) and propylene oxide (PO) products. Through active efforts to expand both domestic and overseas markets, the Company has entered the polymer field and secured new domestic customers in diverse industries such as consumer electronics, automobiles, and household products. Despite the uncertainties caused by the Russia-Ukraine war and the global economic recession in 2022, S-OIL's domestic market share of PP expanded to 12.2% thanks to the introduction of new product lines and the acquisition of new domestic customers. Additionally, PO sales have achieved stability through long-term supply contracts with major domestic companies. Moving forward, S-OIL plans to develop new petrochemical product lines through the TS&D Center, secure additional customers, and further strengthen its sales base to enhance profitability.
International Marketing Enhancement
S-OIL recognizes its corporate responsibilities and roles in the ESG area, from which the Company believes that the supply of eco-friendly products brings higher profits and satisfaction to shareholders, investors, and customers. Going forward, S-OIL will continue its efforts to expand eco-friendly growth, a strategic goal under Vision 2030, by broadening supply of eco-friendly low-sulfur products to end-consumers into key strategic markets, which exhibit high demand for eco-friendly products, as well as developing/intensifying marketing for new niche grade products.
Overseas Marketing for Fuel Business
S-OIL has leveraged its production capabilities for high value-added products to expand into major overseas markets such as Japan, Australia and others. This strategic move has allowed the Company to establish a strong customer base and increase brand awareness. The Company has demonstrated resilience in meeting the increasingly stringent product specification requirements in its key strategic markets. Through excellent export operations and improved logistics system, S-OIL has successfully met the diverse needs of customers and solidified its position as a key supplier in the region.
Given the intensifying competition in its key strategic markets, S-OIL is focused on securing stable customer networks by expanding direct transactions with core customers. The Company is actively pursuing opportunities to maximizing sales of highly profitable marine fuel oil (bunkering) and exploring new markets for heavy oil products such as light cycle oil and asphalt.
Additionally, S-OIL has strengthened business collaboration with its majority shareholder, Saudi Aramco, and its affiliates to enhance its marketing capabilities in the global market and explore new business areas for additional profitability. As part of these efforts, S-OIL signed a Refined Product Offtake Agreement (RPOA) with Aramco Trading Singapore (ATS), a subsidiary of Saudi Aramco, in September 202. This agreement aims to maximize synergies between two companies, ensuring smooth execution of the transactions and the stable and efficient operation of the business.
Recently, fuel oil industry has been experiencing tighter regulations and an increasing focus on the environmental impact of products, aligning with the global movement to reduce carbon footprints. In 2023, the International Maritime Organization (IMO) introduced stricter carbon emission regulations for marine fuel oil, and the International Air Transport Association (IATA) announced its commitment to achieving carbon neutrality by 2050. In this context, the Company will closely monitor the market and adjust its marketing programs accordingly, while continuing enhancing its sales capabilities.
Overseas Marketing for Lube Business
S-OIL is posting stable sales of the entire production stock of lube base oil by employing marketing strategies tailored to each market, while actively utilizing the world's second-largest lubricant base oil production capacity by single plant. Specifically, the Company is increasing its lubricant base oil trading volumes and market presence by collaborating internationally through the Aramco Base Oil Alliance, a group of Saudi Aramco's subsidiaries with lubricant base oil production capacity.
The lube base oil market remained robust in 2022, particularly for premium lube base oil (Group III) which experienced limited supply due to maintenance and overhaul activities at major production facilities worldwide. S-OIL responded swiftly and flexibly to these market changes, outperforming competitors and capitalizing its competitive edge.
S-OIL strengthens its capabilities in the lube base oil business through the TS&D Center with an increasing demand for premium lube base oil, the Company aims to enhance customer loyalty by ensuring a stronger and more stable product supply capacity and implementing rigorous quality control measures.
In the lubricant business, S-OIL has been steadily expanding its presence in domestic and overseas markets since the integration of the S-OIL SEVEN brand in 2014. In 2022, the Company achieved record-high export performance, successfully exporting lubricants to over 50 countries worldwide. Despite challenges such as the global shortage of additives, the sluggish economy in China following the 'Zero-COVID' policy, and logistics disruptions, S-OIL expanded its distribution network and established strong partnerships with local partners overseas. Notable achievements include the steady supply of genuine oil manufactured in India to Hyundai Motor India as factory fill oil and the supply of new service fill products in Hyundai Motor Indonesia, further solidifying the foundation for the lubricants business.
Overseas Marketing for Petrochemical Business
S-OIL diversifies its marketing activities to be optimized for each market through systematic market research and core customer development, considering the varying production processes and market characteristics for different petrochemical products. Moreover, drawing on its customer network and accumulated marketing experience in the Asian market, the Company taps into the global network of Aramco Trading Company (ATC) to gain competitiveness in petrochemical products in offshore markets outside of Asia. As such, S-OIL is broadening its customer base and strengthening market position in the rapidly changing petrochemical market through forward-looking investments, building stable logistics bases, and intensifying marketing efforts.
With the successful completion of the RUC/ODC Project in 2018, S-OIL commenced commercial production of polypropylene (PP) and propylene oxide (PO) products. To maximize mutual benefits, the Company established a strategic partnership with Saudi Aramco, which has strong marketing capabilities and diverse sales networks in overseas markets. Through this partnership, S-OIL secured a long-term export contract and leveraged Saudi Aramco's existing overseas sales channels to penetrate major global markets such as China and Southeast Asia. Starting in July 2021, the Company formed a strategic partnership to SABIC, a subsidiary of Saudi Aramco, expanding its export markets based on cooperation between two companies.
This collaboration has enabled S-OIL to expand direct export sales of PP products to destinations such as the Czech Republic, the US, and Mexico, in addition to its existing markets in China and Southeast Asia. In 2023, the Company focuses on diversifying its overseas markets outside of Asia, particularly in Europe and Latin America, and expanding direct exports to overseas factories of domestic companies. Regarding PO products, S-OIL has established a stable foundation for export sales through a long-term supply contract with a domestic company for its overseas plants in China. In 2023, the Company will continue to collaborate with SABIC to expand exports beyond China.
Fair Competition
S-OIL's commitment to fair competition in the market and protecting customer interests is upheld by its core value of Integrity, which is demonstrated through its ongoing training programs and compliance system.
Providing Fair Trade Training
S-OIL's commitment to compliance management is championed by its top management. The Company have published and continuously updated the "Fair Trade Compliance Manual" for employees to comply with in their business activities, and "Dos & Don'ts," which are detailed sales principles and guidelines to be followed in the field. In particular, the Company invites external expert to conduct fair trade training every year to enhance the understanding of fair trade laws for employees in charge of domestic sales.
Enforcing Ad-hoc/Regular Self-Checks through Compliance System
S-OIL conducts regular and ad-hoc self-assessments through its compliance system to identify any violation of fair-trade laws in its business operations. In addition, S-OIL actively supports employees compliance with fair trade laws by providing real-time legal updates on the latest legislation and revisions, conducting training sessions on major legal requirements, and regularly monitoring compliance with fair trade laws.
Promoting Fair Trade Relationships
In all business dealings with business partners, S-OIL utilizes standard contracts that incorporate the obligations outlined in the Act on Fairness in Agency Transactions and the recommendations provided by the Korea Fair Trade Commission. The Company is fully committed to complying with all laws and regulations related to fair trade.
Additionally, in 2020, S-OIL introduced the first blockchain-based electronic contract system in the oil refining industry. This system ensures fair transactions by enabling voluntary contract signing and ordering by business partners. The Company has also enhanced its business partner ordering system, the e-Biz system, to facilitate smooth and voluntary transactions.
Fair Performance Evaluation and Compensation
S-OIL actively promotes diversity among its employees and places great emphasis on creating a virtuous cycle where employees are empowered to unleash their creativity and autonomy, leading to new innovations for the Company's development. S-OIL is currently restructuring its compensation system to further reinforces a performance-oriented organizational culture.
Securing Talented Employees through Fair Recruitment Procedure
S-OIL is committed to securing talented resources from diverse backgrounds through a fair recruitment process that eliminates any discriminatory factors such as gender, age, region, academic background, or disability. The Company specifically focuses on creating inclusive working environments by proactively hiring individuals from socially marginalized groups, including the disabled and national meritorious people individuals.
To attract talented individuals who align with the Company's core values, S-OIL employs various channels such as campus recruitment, internship programs, and industry-academia scholarships. Throughout its recruitment process, S-OIL ensures that all applicants are evaluated solely on their competencies and qualifications. The Company does not request potentially discriminatory information during the screening process and implement a blind interview system to maintain fairness and objectivity. This transparent and equitable approach to recruitment has been instrumental in driving the Company's sustained growth in the face of increasing competition.
Reasonable and Fair HR System
S-OIL fosters a performance-oriented corporate culture that promotes employee motivation and enhances work efficiency through fair and objective evaluation and recognition. Its year-round appraisal program enables continuous feedback, leading to meaningful performance improvement, and the Company supports employees in proactively developing the skills necessary for their current role and future growth.
Under the year-round appraisal system, at the beginning of the year, employees discuss with their team leaders their performance goals and development objectives, which are aligned with the team goals, and they update and review their performance against goals to receive feedback from their supervisors on an ongoing basis. The Company provides a balanced evaluation of not only the results of their work, but also the process indicators that are required in the process of achieving results, such as safety, compliance, and teamwork. For this year-round evaluation system to function seamlessly, S-OIL has built and currently operates a new cloud-based e-HR system and provides necessary systematic support. To achieve procedural fairness and acceptance, the evaluation grade of an employee is determined based on detailed individual performance data built up through the year-round assessment as well as multi-faceted evaluation by peers. The evaluation results are referenced for various other HR processes, such as performance compensation, training programs such as capacity building, and leadership selection.
Top-notch Compensation System
S-OIL is rapidly shifting to a more performance-oriented compensation system away from a seniority-based one. While scaling back salary increases by seniority, the Company is increasing compensation differentials for individual job performance to recognize outstanding performers and encourage employee growth and motivation. S-OIL plans to further expand this fair, performance-oriented personnel management system in the future.
Employee Competency Development
S-OIL's competency development model consists of basic competency for all employees, leadership competency based on the leadership pipeline, and job competency for specific job positions. The Company strengthens the capabilities of human resources through a systematic education and training offered in accordance with employees' role level (job grade). In addition, S-OIL has been reorganizing the existing competency-based HRD system into a skill-based system for each organization to effectively achieve Vision 2030 in a rapidly changing environment.
In 2022, S-OIL drew out the hard and soft skills needed to accomplish Vision 2030 and to effectively secure and nurture these skills, creating a Skill Map that defines the level of each skill and related curriculum. Building onto this, the Company will provide related training as well as introduce a skill certification and evaluation system to bolster its skill-based HR system.
Operation of Effective Training System
Based on competency evaluation results, S-OIL offers not only in-house collective training but also various online training courses accessible via mobile devices so that employees can develop their competences anywhere and anytime. In the COVID-19 pandemic situation since 2020, in particular, S-OIL actively introduced online channels so that training could be effectively continued. S-OIL allows employees to take courses outside the Company as needed to meet increasing needs for more specialized training. S-OIL also operates Learning Cell, an open learning platform for employees who want to share their knowledge and experience while satisfying their own needs for learning. This program allows employees to form study groups on any topic they are interested in to meet for a small group lecture, group learning, or reading discussion. For global competency building, the Global Learning & Communication Center (GLC) provides targeted support for foreign language learning to encourage their active interaction and competency development.
S-OIL has been using the Learning Management System (LMS) to increase the efficiency of training programs and thus effectively develop the competency of employees. LMS provides Dashboard where users can check training plans and history in real time, and My Classroom, a community learning space, so that employees can search and access learning materials including videos and textbooks for self-driven study. E-learning courses from the LMS are available via both PCs and mobile devices. The spread of COVID-19 brought profound changes in the business environment, and S-OIL responded by strengthening its non-face-to-face work environment and providing tablet PCs to all employees to facilitate effective capacity building. The various training systems at S-OIL not only help employees to stay on competency development programs and benefit from them but also improve operational efficiency of educational administration for the company.
S-OIL set up the leadership pipeline that defines differentiated leadership competency required by position and cultivates leaders who will lay the groundwork for the successful accomplishment of Vision 2030. Based on the leadership pipeline, proper training programs are given to employees before their promotion. To ensure effective leadership training, S-OIL uses the flipped learning approach where online training precedes offline training so that employees can acquire knowledge first and then find ways to apply it through discussion. S-OIL selects talented resources and sends them to leadership training offered by universities and training institutions at home and abroad. Leader groups are also provided with the regular leadership assessment and a one-to-one coaching program for continuous monitoring and feedback.
In an effort to attain Vision 2030 and successfully execute its Digital Transformation (DT) roadmap, S-OIL also operates training programs designed to strengthen the DT capabilities of its employees. Since 2021, the Company has implemented a data scientist training and an internal certification program while also supporting the acquisition of related professional certifications to strengthen the organizational capabilities to analyze data and create business insights. In 2022, 3.2% (99 persons) of all employees completed the training, and S-OIL newly launched a data scientist intermediate course that allows trainees to solve real-world problems using machine learning by utilizing the project-based learning method.
S-OIL operates S-OIL Academy for specialized job training. S-OIL Academy for Marketing & Sales covers marketing-related content such as service station operation, negotiation, and sales skills in a systematic manner so that sales professionals can learn from actual cases of sales activities. As for S-OIL Academy for Operations, which is aimed at enhancing the job competency of engineers and operators, S-OIL introduced blended learning, which combines online and offline job courses. To establish a stable operational competency for start-up and shutdown of each plant and to develop emergency response capabilities, S-OIL offers Operation Training Simulator (OTS) training. The Cloud OTS system, which was introduced in 2021, enables training to be conducted effectively even in the field. In addition, an advanced program has been established to support the reskilling and upskilling of engineers in collaboration with the Engineering Development Research Center of Seoul National University. Leadership courses are also offered to field supervisors.
S-OIL operates Engineer Cultivation Program to support the systematic training of engineers. In addition, S-OIL implemented ACT-Eng. Program jointly developed by Saudi Petroleum Services Polytechnic and IFP Training to enhance the systematic development of engineers from 2019. The program is designed to help young engineers acquire in-depth knowledge of processes and apply it to their actual work in order to improve plant operational efficiency and contribute to production cost efficiency, and in 2022, 27.1% of all engineers (68 persons) completed the training. Additionally, overseas short-term intensive courses and short-term MBA courses are offered to foster engineers with international sensibilities and qualities. Starting 2022, S-OIL offers Process Engineer Training for Refinery Operation to help engineers learn about work processes in the field and acquire capabilities for production managers.
S-OIL is keen to strengthen the global communication skills of employees in order to drive the company's global expansion. By operating the GLC at the Head Office in Seoul and the Refinery in Ulsan, S-OIL offers training courses on foreign languages used at work, including English, Chinese, Japanese and Arabic, and courses to facilitate communication with overseas business partners, such as global cultures, business etiquette and speech training. In particular, the GLC operates effective programs catering to specific needs based on employees' roles, such as team leaders, new employees, engineers, and core talents. The GLC also takes various approaches to training, including group training and one-on-one courses, to make training more effective and convenient from the users' perspective. In 2019, S-OIL launched the S-OIL Toastmasters Club, where employees from various functions interact with one another to improve their leadership and English speaking skills, and in 2021, the Company received the Corporate Recognition Award from Toastmasters International in recognition of the club's achievements.
S-OIL actively responded to the changes in education and training due to COVID-19. Along with face-to-face lectures, the Company has further strengthened its e-Learning courses so that employees can safely learn in their offices or at home, and S-OIL has also developed contents utilizing new digital technologies to actively adapt to changes in the training paradigm. The Company is also proactively implementing ESG-related training, which is becoming increasingly relevant, to raise employees' awareness and understanding of ESG management.
Core Talent Development Program
With a firm belief that cultivating core talents will drive the Company's future success, S-OIL runs a systematic Potential Future Leader Program to nurture the next generation leaders. Potential Future Leaders, who are selected through a rigorous selection process, carry out leadership development activities and job expertise development activities in accordance with the Leadership Development Plan, and the Company ensures that training is conducted systematically through constant mentoring and monitoring. Trainees accumulate diverse work experiences through cross-functional job rotation, and the Company also supports them in pursuing MBA studies at home or abroad, or a master's degree in science and engineering at IFP School in France to build a pool of leaders with global business competency. Through this systematic nurturing process, Potential Future Leaders will grow into key talents who will drive the company's sustainable growth.
In parallel, S-OIL operates the Specialist Program to secure and nurture highly specialized human resources that are essential to maintaining the Company's competitiveness. S-OIL determines the Specialist Jobs based on their irreplaceability, developmental characteristics, and business impact, and select Potential Specialists by Specialist Job through a rigorous selection process every year. After being selected, the Potential Specialists are trained to become experts in their respective fields through systematic and high-quality professional development programs such as obtaining professional certificates and training at domestic or foreign specialized institutions in accordance with the expertise development plan. The Potential Specialists are then vetted and assessed again by a group of expertise evaluators to select the Specialists. Through this systematic cultivation, they are expected to grow into core talents that lead the Company's competitiveness.
Organizational Culture and Labor Relations
S-OIL has established a productive and healthy corporate culture based on vibrant internal communication. The Company operates leading benefit programs that reflect employees' needs and strives to provide employees with the best work environment to assure higher work efficiency. S-OIL is committed to laying the groundwork for sustainable growth by maintaining a harmonious labor-management relationship.
Changing Ways of Working to Increase Work Efficiency
S-OIL has instituted various programs to promote work-life balance for employees so they can immerse themselves in their work by voluntarily and actively performing their duties while keeping a harmonious balance between work and family life.
As part of this, S-OIL operates the two-week intensive holiday, summer vacation, and off-duty day, encouraging employees to utilize their whole annual leave quota and relieve work fatigue and spend more time with their families through sufficient rest.
As part of its efforts for improving work efficiency, S-OIL has also made enhancements to its electronic approval system to shorten the approval lead time, and started the PC-off campaign across the board to reduce unnecessary overtime work and support employees to voluntarily immerse themselves in work and ultimately improve work efficiency.
S-OIL has also established the "S-OIL Leaders' Way of Working" to bring about positive changes in the way leaders work, and shared and implemented the scheme in various ways. Along with this, the Company holds special lectures and workshops for employees to improve work efficiency.
In 2022, S-OIL executed a company-wide campaign to enhance business efficiency by simplifying meetings and streamlining and automating work processes. The Company will continue to make efforts to improve work efficiency by streamlining work processes and introducing new IT systems.
Efforts To Increase Employee Satisfaction
At S-OIL, strengthening communication is key to building a productive and healthy organizational culture that eliminates inter-functional and inter-personal barriers and enables all employees to engage.
S-OIL holds a company-wide management briefing session twice a year, where senior executives present the company's management performance, business outlook, and key points regarding its business to employees and answer their questions, in a bid to promote direct communication between the company and its employees. The Company also encourages activities that expand communication between leaders and employees and strengthen teamwork, and conduct various programs to vitalize vertical communication (between leaders and employees) as well as horizontal communication (between functions), such as the Junior Board, New Hire Communication Session, Dynamic Rookies Program, and other programs to stimulate communication.
From 2022, S-OIL rolled out New Healthcare Program, a wellness program that aims to build an organizational culture where employees can enjoy a healthy work life. The Company is also diversifying communication channels with employees by operating an internal anonymous message board from 2022. There are also a grievance office and grievance officers for each business site to help employees resolve any complaints or work-related grievances through reasonable procedures.
Employee Engagement Survey
S-OIL conducts employee engagement surveys on a biennial basis to measure employees' views on the company and their satisfaction and use the results as a basis for boosting employee morale and organizational culture. In the engagement survey in 2022, the scope included seven areas, including work, organization, supervisory leadership, communication, and management policy, and a total of 82.1% of the target employees responded to the survey. The results of the survey will be used to review various system improvement ideas that can increase employee satisfaction, and the Company will continue to conduct regular surveys to improve its systems and systems to strengthen communication within the organization and increase employee satisfaction.
Internalization of Core Value
S-OIL strives to achieve its Vision 2030 by ensuring that all employees fulfill their roles and responsibilities guided by its Core Values, which are the shared values that serve as the basis for decisions and actions, regardless of changes to the external environment.
S-OIL utilizes various media such as promotional videos, posters, and PC screen savers to raise employees' awareness of its core values and apply them to all work and decision-making processes. The Company is continuously focusing on recruiting and fostering talented people who fit its core values by incorporating them into the recruitment process for new hires and the competency assessment for office workers. S-OIL aims to further promote corporate ethics and value by continuously internalizing its core values through CEO messages, sharing and training on core value practices, and workshops.
Industry-leading Welfare Benefit Programs
To create a workplace where employees can feel deeply engaged in their work based on financial stability, S-OIL offers top-tier welfare benefit programs. In addition to the basic benefits package including four major public insurances and the congratulations & condolences support fund, S-OIL offers specialized welfare benefit programs tailored to the human life cycle to ensure that employees can fully engage in work as well as satisfy themselves in terms of housing, health, children's education, and leisure activities.
In preparation for the social phenomenon of aging populations, S-OIL pays full attention to ensuring a stable life for employees after retirement so as that they focus their capabilities on their work without having to worry about post-retirement life. In this regard, in 2015, S-OIL introduced the New Pension program, a matching grant scheme where the Company pitches in for employees' post-retirement resources. Currently, 99% of all employees have subscribed to the program. The program is designed in a way that employees can develop interest in S-OIL's growth in the mid- to long-term by accumulating pension funding commensurate with the mid- to long-term performance of the Company.
To help employees fully engage themselves at work and home with peace of mind, S-OIL established daycare centers at its Head Office and Refinery. Operation of the daycare center has significantly boosted the satisfaction of employees amid the shortage of public centers and widespread mistrust on private centers. It has helped alleviate the employees' burden of childcare and contributed to promoting work and family balance. In particular, the daycare center provides comprehensive educational programs that meet the interest and demand of children and maintains close communication between parents, the institute, and the Company.
S-OIL operates health clinics and nurseries at the Head Office and Refinery staffed by nurses at all times to swiftly respond to emergencies during work hours and promote employees' health during normal hours, and also provides ergonomic office furniture for expectant mothers. S-OIL also provides medical checkups at high-quality medical institutions every year and supports recovery from illness through medical expense allowances and sick leave benefits. S-OIL runs fitness centers at the Head Office and Refinery and conducts regular health campaigns. Mental stability as well as physical health is critical for full employee engagement. To this end, S-OIL runs the Employee Assistance Program, a comprehensive counseling service where outside professionals provide tips on job-triggered stress, interpersonal relationships at work, family relationships, childcare and more.
Best-in-Class Work Environment
S-OIL strives to provide employees with the best-in-class work environment by maintaining a pleasant workplace and delivering swift business support. In 2022, the Company operates a collaborative space "Vision Square" in its Head Office building, so that employees can freely exchange opinions and think innovatively through communication and collaboration, and the Company strives to improve the work environment by setting up dedicated spaces for external projects. S-OIL's efforts to provide employees a safe and pleasant work environment include thoroughly managing air purification systems as well as replacing upgrading office lights to LED, replacing AV/VC equipment in conference rooms, and providing comfortable office furniture for disabled and pregnant employees. S-OIL also remodeled the Head Office building to open a creative communication lounge that combines the library function, and the space has been used by many employees with great satisfaction.
In addition, S-OIL conducts emergency evacuation drills in case of building fires every year and preemptive preventive maintenance activities in the run-up to the heavy rain and typhoon season as part of its ongoing effort to create a safe working environment.
Harmonious Labor-Management Relation
S-OIL's labor-management relationship sets an exemplary precedent for the industry as there has been no single labor dispute for the past 43 years since the establishment of the labor union in 1980. This was possible based on mutual trust and cooperation between the labor union and the company. The management respects union activities and takes heed of the labor union's voices while complying with relevant laws and regulations. The labor and management work together to lift corporate competitiveness, improve the quality of employees' lives, and fulfill corporate social responsibility through a variety of communication channels including the Labor-Management Council, the Industrial Safety & Health Committee, and joint workshops as well as salary negotiations and collective bargaining. The content of labor-management negotiations is disclosed to all employees immediately.
Occupational Health and Safety Management for Employees and Contractors
S-OIL is committed to building a safety-first culture. Based on the top management's commitment to safety and the ISO 45001 safety and health management system, the Company is working to achieve an accident-free workplace. To this end, S-OIL takes various measures such as providing safety training to employees, suppliers, and visitors, and support to suppliers in improving their safety standards. In parallel, S-OIL periodically carries out drills to minimize damage to the Company and the local community in the face of unpredictable emergencies such as earthquake, fire, explosion, and leakage.
World-best Safety Culture
S-OIL received the certification to convert its existing safety and health management system OHSAS 18001 to ISO 45001 in 2021, and adopted Korea Occupational Safety & Health Agency's Management system (KOSHA-MS) in March 2023, to complement the existing ISO system. In addition, the Company continues to operate the Behavior-based Safety (BBS) Program to detect and eliminate unsafe behaviors or conditions that are often the root cause of accidents, and systematically manage and statistically analyze FAIs that are minor but potentially dangerous. S-OIL keeps track of the safety indicators for employees and contractors in real time, and improves performance and operational deficiencies through a points-based incentive program, risk orientation prior to turnaround & inspection work, and safety consulting services.
S-OIL mandates pre-job risk assessment for all activities in the fields and prevents accidents. Daily safety checks, joint safety walkthroughs with managers, and safety dialogues led by safety managers are carried out on a periodical basis, and the results are updated on the SHE dashboard for trending and monitoring. For nine production teams that are due for the process risk assessment cycle in 2022, S-OIL implemented risk detection and remediation activities with external experts over a period of four months to strengthen its management of process safety. The Company's efforts have paid off, as its Oil Movement Plant received the highest P grade in the PSM evaluation conducted by the Ministry of Employment and Labor in 2022, following the precedent set by the Aromatic Plant in 2021.
Continuous Reinforcement of Safety Management System
S-OIL received the certification to convert its existing safety and health management system OHSAS 18001 to ISO 45001 in 2021, and adopted Korea Occupational Safety & Health Agency's Management system (KOSHA-MS) in March 2023, to complement the existing ISO system. In addition, the Company continues to operate the Behavior-based Safety (BBS) Program to detect and eliminate unsafe behaviors or conditions that are often the root cause of accidents, and systematically manage and statistically analyze FAIs that are minor but potentially dangerous. S-OIL keeps track of the safety indicators for employees and contractors in real time, and improves performance and operational deficiencies through a points-based incentive program, risk orientation prior to turnaround & inspection work, and safety consulting services.
S-OIL mandates pre-job risk assessment for all activities in the fields and prevents accidents. Daily safety checks, joint safety walkthroughs with managers, and safety dialogues led by safety managers are carried out on a periodical basis, and the results are updated on the SHE dashboard for trending and monitoring. For nine production teams that are due for the process risk assessment cycle in 2022, S-OIL implemented risk detection and remediation activities with external experts over a period of four months to strengthen its management of process safety. The Company's efforts have paid off, as its Oil Movement Plant received the highest P grade in the PSM evaluation conducted by the Ministry of Employment and Labor in 2022, following the precedent set by the Aromatic Plant in 2021.
Reinforcement of Emergency Response Capabilityy
S-OIL operates an enterprise-wide Emergency Control Program (ECP) to contain accidents as early as possible to prevent them from escalating into major accidents and to provide the most effective response. To ensure the effective operation of ECP, the Company has established an Emergency Control Center (ECC) that operates 24/7 and monitors plant conditions using fire alarms, gas leak alarms, environmental TMS, emergency alarms, and emergency broadcasting systems. The ECC can cascade the situation in real time to the Head Office, Refinery, and respective business sites through a video conferencing system. In the event of an accident, the ECP operates an emergency command vehicle as a field command center to effectively communicate with the ECC and other stakeholders dispatched to the accident site, and ECC utilizes the information gathered from ECP to remotely command the situation in a timely manner.
Furthermore, S-OIL strives to build the enterprise emergency response capability to effectively handle large-scale disasters, such as fire, power outage, oil spill, earthquake, and tsunami. To this end, simulated emergency response drills are planned for and carried out more than 24 times each year, at both enterprise and business site levels. In addition, all employees are trained in basic firefighting equipment and cardiopulmonary resuscitation (CPR), and S-OIL regularly conducts emergency mobilization drills and fire scenario exercises as well to improve the initial response capability of its own fire brigade and joint response capabilities with external agencies. As such, S-OIL is striving to prevent accidents and minimize damage to personnel, the environment, and property from accidents.
Employee Health Management
S-OIL is engaged in various activities to protect and promote the health of its employees. Medical checkups are provided regularly to all employees, and in addition to the general tests provided, additional examination items including adult diseases and cancer are covered by the company. Furthermore, S-OIL prevents and manages occupational diseases through health examination, work environment assessment, asbestos control, and periodical site health observation under the Occupational Safety and Health Act. S-OIL also supports employees who have certain medical symptoms or need monitoring with periodic counselling and tests, and treatment for their speedy recovery. The Company provides employees and contractor workers guides to prevent heat illnesses, glucose, and ionic drinks during the summer months, and flu vaccinations along with guides to prevent cold illnesses in winter.
Medical services are also available at the in-house health care center, where employees can get basic medical supplies and health counseling, as well as professional psychological counseling sessions for employees and their families. In addition, various services designed to promote employee health are provided, such as anti-smoking program, obesity management program, and noise induced hearing loss prevention program.
Support for Safety Management of Contractors
S-OIL has in place various support programs to strengthen the autonomous safety management capabilities of its contractor workers. In 2022, 45 suppliers participated in the Safety and Health Cooperation Program, in which the Company provided various support programs for contractor workers, including regular safety council meetings, joint safety and health inspections, supervisor workshops, risk assessment training, and consulting for Korea Risk Assessment System (KRAS) certification. S-OIL also listens to its contractor workers through a variety of channels, including annual surveys, to make continuous improvements. In 2022, the Company addressed 83% of the comments received through contractor worker safety meetings.
Thanks to these activities, six new contractors acquired the KOSHA-MS for safety and health management system in 2022, bringing the total number of contractors to 43, while 41 suppliers have obtained the KRAS certification from the Korea Occupational Safety and Health Agency.
In 2018, S-OIL started a voluntary accident-free movement for contractor workers, and the Company actively support them by awarding certificates for achieving the goal of zero accidents, striving to create world-class safe workplaces. In addition, to ensure better safety management at work sites, the company established qualifications for contractors according to their roles, and ensured that only qualified people perform their duties for certain safety-critical positions, such as safety managers, supervisors, heavy equipment signalmen, and traffic signalmen, through post-training evaluations, to improve the quality of safety management.
At the same time, to enhance the sustainability of its contractors, S-OIL operates the Safety Health Bid Evaluation (SHBE) system, which comprehensively evaluates each contractor's fundamental capabilities as well as its capabilities in sustainability aspects such as safety and environment early on, so that only those with a threshold score or higher are allowed to participate in the bidding process, contributing to on-site safety management. Starting in 2022, the Company extended the scope to general contractors across the company, selecting safety-qualified contractors for all service contracts to induce improvement in safety management capabilities in its contractors. S-OIL also motivates autonomous safety management by monitoring the entire process and recognizing workers and contractors exhibiting excellent safety management behavior.
Support for Contractor Workers' Health Management
As an extension of health management efforts, S-OIL performs joint safety and health inspections with its contractors and offers health guidance. The Company also assesses work environments, monitors if health examinations are provided appropriately, and provides health management counseling to promote the health of contractor workers. S-OIL extends certain health promotion services available to its employees to contractor workers as well, including access to health care centers, medical supplies, first aid, and emergency medical treatment for injuries.
- S-OIL Safety, Health and Environment Commitment Statement
- PDF Download
Social Contribution Activities
In order to practice the Company's core value of Sharing, S-OIL conducts systematic and differentiated social contribution activities in accordance with its strategic goals of effectiveness, timeliness, and beneficiary-centeredness. The Company operates a social contribution program in line with its business to support fuel and heating oil, and collaborates with public institutions and non-profit organizations to promote shared growth with the communities in which its business sites are located. S-OIL also strives to address local community concerns such as job creation and economic revitalization through various support activities.
For Local Communities
S-OIL endeavors to contribute to the local communities where its offices are located, such as Seoul and Ulsan, and to improve the quality of life of local residents, while at the same time promoting the sustainable development of the Company.
In Mapo District, where the Head Office is based, S-OIL regularly holds free Culture & Sharing performances for residents, and also runs GOODOIL Cafe that provides free cold bottled water in summer and hot tea in winter, jointly with welfare organizations in the Mapo. The Company continues to make donations to the Mapo Welfare Foundation and the Mapo Talent Development Foundation as well.
In the local community of Ulsan where the Refinery is located, the Company is engaged in various community activities such as operating the Ulsan Welfare Foundation, sponsoring the construction of Taewha Pavilion and cultural events, and supporting welfare organizations in the area. Notably, the 2022 budget grew by 46% from the previous year, and the Company is planning to further expand the budget for the Ulsan community in 2023 to strengthen its community outreach efforts.
S-OIL have also continued community engagement activities around its terminals and TS&D Center.
For the Environment
S-OIL is implementing various activities to protect endangered natural treasures and preserve nature and ecosystem diversity for future generations. The Company launched the Endangered Natural Monuments Protection Campaign with the Cultural Heritage Administration in 2008 to sponsor the research and protection activities of professional organizations dedicated to protecting natural treasures such as otters, red-crowned cranes, Korean spotted barbels (Eoreumchi) and long-horned beetles. S-OIL also run natural monument classes with children from low-income families and the country's only college student natural monument protection corps. Although the Company had to suspend its participative programs in 2022 due to COVID-19 and social distancing requirements, it continued on with sponsorship of activities for conservation organizations. In 2022, S-OIL newly added Reeve's Turtle (Namsaengi), an animal that was once made into a royal seal during the Joseon Dynasty, to the list of conservation species, and received a commendation from the Korea Cultural Heritage Administration in recognition of its dedication to protecting the endangered animals for the past 15 years.
Another new program was also released, which is the support for eco-friendly social enterprises. Aimed at contributing to enhancing the competitiveness of eco-friendly social enterprises and creating environmental and social value through their growth, the program provides budgetary support, education on social value measurement, and management consulting.
In addition, S-OIL regularly conducts environmental clean-up activities around Mokdo Island, a natural monument adjacent to the Refinery, and is expanding green procurement to further contribute to environmental protection. Since 2021, the Company has also been involved in activities to preserve the biodiversity of Janghang Wetland in Gyeonggi Province, which is registered as a Ramsar site, and as part of the project, S-OIL is supporting the restoration of otters in the Han River. Through environmental stewardship activities, the Company restores part of the environmental impact caused by its business operations while at the same time vigorously communicating with various stakeholders regarding its endeavors to promote environmental protection and to minimize pollutant emissions.
For Needy People
S-OIL is engaged in many programs to help alienated neighbors stand on their own and contribute to society as healthy citizens with the continuous interest and support of society. For example, the Company sponsors scholarships for youths living in or discharged from orphanages; runs Sunshine Sharing Camp for families of children with rare diseases; provide customized assistive devices for learning to youths with disabilities; sponsors the Heart-to-Heart Orchestra consisting of the developmentally disabled; help low-income families recover from fire damage; support immigrant women who are victims of domestic violence; and provide medical expenses for burn victims of single-parent families.
As for its social contribution activities that are linked to business, S-OIL has also been carrying out the campaign to supply heating oil to lower-income families, a community sharing program partnered with 300 service stations nationwide, and the fuel donation program to young food truckers.
S-OIL communicates to stakeholders its efforts to fulfil social responsibility, and at the same time, handing out fuel products for free to needy neighbors generates the secondary effect of giving a warm image to fuel products.
Through continued sharing activities, S-OIL joined the "Community Contribution Recognition Program" administered by the Ministry of Health and Welfare and the Korea National Council on Social Welfare. The Company has been recognized as a business with outstanding community contributions since 2019, and maintains its status through annual review.
For Heroes
In order to support the righteous people in its society, S-OIL supports the Hero Firefighters who commit themselves to saving lives despite tough working conditions, Hero Coast Guard officers who are at the forefront of maritime crime control and sea-rescue operations, and Hero Citizens who selflessly help neighbors in danger with the spirit of sacrifice. These programs are contributing to building a brighter and healthier society. Also, S-OIL provides financial aid and scholarships to the surviving families of firefighters or coast guard officers who have passed away in the line of duty, as well as medical expense support to those who have been injured during work. Furthermore, firefighters or coast guard officers can participate in the healing camp program, and S-OIL selects and awards Hero Firefighters, Hero Coast Guard Officers and Hero Citizens every year.
Sunshine Sharing Public Service Corps
The Sunshine Sharing Social Volunteer Corps was launched in 2007 with the voluntary participation of employees, and the Company has since organized regular and team volunteering programs to carry out various practical programs. From 2020 to 2022, volunteer programs had been suspended because of COVID-19, but they resumed in 2023.
Employees have engaged in voluntary service and donation activities through the Sunshine Sharing Campaign. Prime examples are their support to the surgical expenses for 141 children with biliary atresia since 2009 through wage tail-cut contribution, as well as supporting children raised by grandparents through the One-Person-One Donation-Account Campaign.
Social Contribution Activities reflecting Stakeholder Opinions
In accordance with its three key CSR principles – Impact, Timing, and Beneficiary – S-OIL continuously develops and implements social contribution activities that are relevant to its business, bring out a productive and positive effect on society, and elicit stakeholder communication and participation. Given the growing emphasis on social contribution activities in the context of ESG management, the Company has recently developed evaluation indicators for social contribution programs through external consulting, while also complementing the strategic direction and system. Based on this, S-OIL aims to evaluate major programs from 2023 to identify and address areas for improvement.
In an effort to incorporate stakeholders' opinions and contribute to mutual cooperation and shared growth, the Company created a college scholarship program for children of small and medium-sized suppliers at the Refinery in 2022. Also, since 2019, S-OIL has supported the Regional Trauma Center of Ulsan University Hospital with the operation of the Doctor Car, which was on the verge of discontinuing the operation due to lack of budget, causing much worry about a medical service vacuum in the heavily industrialized city of Ulsan with many heavy chemical businesses that have higher risk of accidents.
CSR Strategy Aligned with Business
The CSR strategy of S-OIL has been established in consideration of the nature of its business so that CSR activities can maximize social and environmental benefits while generating positive business results. The Company's CSR activities contribute to creating positive brand value by fulfilling its social responsibilities while also promoting product sales through donations of its products. It is also the result of CSR activities as a medium to form constructive and cooperative relationships with local communities and to convey S-OIL's commitment to environmental protection to stakeholders. Since 2011, S-OIL have implemented the "Sharing N Campaign" jointly with S/Ss nationwide, and provided heating oil to lower-income households since 2015. In addition, S-OIL has provided fuel to food truckers in connection with its S/S business to help young entrepreneurs manage their businesses since 2018, in order to ease unemployment and create jobs for the youth. The Company strives to improve the welfare of the local community of Ulsan, where the Refinery is located, through the Ulsan Welfare Foundation, while fostering brilliant minds in the field of science and technology by establishing the S-OIL Science Prodigy and Culture Foundation.
Expansion of Base for Local Culture and Arts
S-OIL supports local cultural events in areas where it does business as a way to build a better quality of life including cultural exposure to local communities and to patronize artists. Since 2011, S-OIL has been promoting the Cultural Arts & Sharing campaign in Mapo. Diverse cultural arts events are held at the auditorium every month, inviting local residents to enjoy high-quality cultural arts performances for free. The family-oriented performances in a wide range of genres are received very well and enjoyed by more than 1,500 people every year. Local residents who enjoyed the cultural arts performances saw their participation in cultural and artistic activities increase more than twice a year, demonstrating that S-OIL is contributing greatly to the revitalization of local communities' culture and arts. In addition, the Company supports the Mapo Ferry Salted Shrimp Festival, which is a traditional cultural event in Mapo area, serving the role as guardian of local culture.
To expand the base of culture and arts in Ulsan area, S-OIL carries out various activities. The Company established one of Korea's most prestigious literary awards, the Oh Young-Soo Literary Prize, in 1993 in honor of the talented writer from the region. Additionally, S-OIL has been holding the Beautiful Eyes Art Festival since 1996, an arts event that mainly invites amateur artists from the region. Furthermore, the Company donated the total budget required for the Taewha Pavilion restoration project, boosting the pride of Ulsan citizens while giving them access to a comfortable public rest area. This restoration project was completed in 2014 and since then, S-OIL has supported cultural arts events held at the historic site. In addition, S-OIL has supported various culture events including the Cheoyong Cultural Festival and the Kyung-sang Daily Literary Awards for Young Writers.
The Company has participated in the "Excellent Enterprise Sponsors for Culture and Arts Certification Program" run by the Ministry of Culture, Sports and Tourism and the Arts Council of Korea. S-OIL have been certified since 2020, and maintain its status through annual review.
Efforts for Handling Grievances of Local Communities
S-OIL has been expanding its purchases of local products and services to invigorate the local economy in the Ulsan area. Particularly, S-OIL purchases rice and pear produced in local communities around the Refinery to support local farmers and donates those foods as part of its social contribution activities. S-OIL also supports farmers adopting organic farming by growing snails in rice paddles to increase the competitiveness of local farmhouses and to protect the environment. Moreover, S-OIL has continuously employed local talent to secure future growth engines, contributing to the increase in local job creation. To improve the educational environment for children in the local community, S-OIL has provided various support, including contributions to school development funds, scholarships, and book donations to seven elementary, middle and high schools, as well as nine local children centers in Ulsan.
Human Rights Protection
S-OIL is committed to protecting human rights of its stakeholders, including employees, suppliers, and local residents. The commitment is based on its human rights policies that are in line with global standards that prohibit discrimination based on race, color, religion, gender, national origin, age, disability, etc.
Human Rights Inspection Procedure
- 9 areas including working conditions, safety & health, harassment, etc.
- Target : the company, JVs, suppliers, local communities, etc.
- Creating an improvement plan for all identified human rights risks
- Monitoring progress after taking measures
Human Rights Inspection Matrix
Human Rights Inspection Matrix : Category, S-OIL, Affiliates, JVs, Suppliers, Local communities Table.
| Category |
S-OIL |
Affiliates, JVs |
Suppliers |
Local communities |
| Risks identified |
2 |
1 |
3 |
3 |
| Remediation rate |
100% |
100% |
100% |
100% |
| Safety and health |
- |
- |
O |
O |
| Work hours |
- |
- |
- |
- |
| Working environment |
O |
O |
O |
O |
| Harassment |
O |
- |
- |
- |
| Information security |
- |
- |
- |
- |
| Labor union activities |
- |
- |
- |
- |
| Quality education |
- |
- |
O |
- |
| Forced/child labor |
- |
- |
- |
- |
| Discrimination |
- |
- |
- |
O |
Systematic Human Rights Protection
S-OIL adopts a systematic approach to human rights protection. The Company shares its human rights policy with stakeholders through an internal process, while regularly conducting assessments to identify potential risk groups and issues. Once identified, these risk factors are address and monitored to prevent similar cases from recurring. When evaluating supplier qualifications, the assessment results of suppliers, in particular, are taken into consideration.
In 2022, S-OIL initiated a process to analyze the positive and negative impacts on local communities, a key stakeholders, as part of its efforts to enhance human rights management. Opinions were collected regarding the quality of life of local residents, human rights issues, and the Company's CSR activities. Based on the survey results, S-OIL plans to expand official communication channels with local residents and conduct seminars as necessary to address issues that may impact the safety and living environment of local residents, such as large-scale T&Is and constructions.
In 2022, a human rights inspection was conducted on 50 sites, including the Head Office, that were affected by the Company's business activities. Remedial measures were implemented for all identified 47 sites.
During the inspection, risk associated with the Company, JVs, and subsidiaries were identified, such as musculoskeletal disorders among employees working long hours, as well as communication channel issues, including grievances among employees. In response, the Company replaced employees' office chairs in consideration of their preferences, strengthened the internal grievance counseling procedure, and opened the GOODOIL Communication Yard, an anonymous communication space for internal employees to communicate and make suggestions.
In the supply chain, S-OIL discovered issues with working conditions at 43 suppliers and limited access to education for children of supplier employees. To address these issues, the Company implemented a total of 2,124 working condition improvements and introduced a program to provide scholarship to children of supplier employees, ensuring they receive quality education opportunities.
In the local community, concerns were identified regarding safety and living environment issues resulting from large-scale construction projects. Livelihood security issues were also noted among lower-income households, including migrant women. To address these concerns, S-OIL introduced the Sunshine Sharing Convenience Store Program to support the financial independence of migrant women and low-income residents. Regular meetings with representatives from local community organizations and residents were expanded to ensure their voices were heard and their concerns were taken into account during the construction work.
Preventing and Responding to Discrimination and Harassment
S-OIL maintains a zero-tolerance policy toward any forms of discrimination and harassment, as clearly stated in its Human Rights Policy, Code of Ethics, and other relevant regulations. In the event of a report, the Company conducts a thorough investigation as per its internal procedures in consideration of the severity of the case. Confidentiality is strictly maintained throughout the reporting and investigation process, considering the situation of the complainant and others involved.
Upon receiving a report, the designated grievance officer at each business site conducts a thorough investigation, which includes providing counseling and support to the victim. The result of the investigation is then submitted to the Personnel Administration Committee (PAC) for deliberation. The PAC takes appropriate actions based on the severity of the case, which may include disciplinary actions and protection of the victim. The Company notifies to employees of the disciplinary actions taken and provides relevant training to prevent any recurrence of similar cases.
Human Rights Policies
S-OIL shall respect human rights norms described in the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, the UN Global Compact's principles of human rights and labor, the UN Convention on the Rights of the Child, the ILO Declaration on Fundamental Principles and Rights at Work, and the laws and regulations of the country in which the Company has entered, etc. Therefore, the Company shall seek to protect the human rights of all communities affected by its business activities, as well as its business sites, and contribute to substantial improvements. To this end, the Company shall adhere to the following 8 human rights principles. In addition, suppliers of products or services, direct invested companies, and business partners should also share the Company's human rights policy and participate in the protection and improvement of the human rights of the community in accordance with the 8 principles.
- (Working condition) We shall respect and treat its employees with dignity, and provide over legal standards working conditions such as wages, working hours, and breaks. We shall grant the right to freedom of association and collective bargaining, and not take unfair treatment for this reason.
- (Safety & health) We shall provide workers with a safe working environment and continuously enhance the safety and health management system. We shall minimize the safety and health impacts of production processes or products and services provided by us.
- (Harassment) We shall protect all stakeholders, including employees, business partners, and local residents, from exposure to any kind of harassment (sexual, non-sexual) that violates human dignity.
- (Forced and child labor) We shall not engage in forced labor against the will of employees and not receive any labor in connection with employees' liability. We shall not directly employ children under compulsory education age or under the age of 15. Also, we shall respect and protect all basic rights such as education, rest, health, nutrition, hygiene, freedom from violence and exploitation of children.
- (Discrimination) We shall prohibit discrimination based on race, color, religion, sex, national origin, age, disability, and provides equal opportunity and treatment.
- (Personal information protection) We shall use personal information only for the purpose of obtaining. We shall continuously check to prevent leakage of personal information to the outside and strengthen management system.
- (Human rights of local communities) We shall prevent negative impacts on the human rights of local communities based on respect for their culture. We shall contribute to improving the quality of life of local residents by supporting economic, social and cultural development.
- (Human rights survey) We shall systematically monitor potential human rights risk groups and issues. If risks are found, we shall take immediate remedial actions and prevent similar cases from recurring. We shall continuously upgrade its human rights management system to prevent human rights issues from occurring throughout the supply chain.
