Sustainability management at S-OIL starts from understanding the expectations of C.E.O. (Customers, Employees, Owners & other stakeholders). Going forward, the Company will create economic, environmental, and social values reflecting the expectations of C.E.O. and contribute to the development of society and the nation.

S-OIL's performance-oriented corporate culture is further reinforced and supported by its transparent and reasonable HR system. S-OIL ensures transparency and fairness in its recruitment and evaluation process and provides employees with various training programs to cultivate core resources to drive its growth forward. S-OIL also offers an array of benefit programs to employees through its advanced compensation and benefit systems to promote a healthy work & life balance.

E1 HR Management / Fair Evaluation & Compensation

S-OIL pursues the diversity of its employees and strives to create a virtuous cycle where the Company encourages every employee to unleash their full potential, bring about innovation and contribute to the Company's growth.

Securing Talented Employees through Fair Recruitment Procedures (SDGs #5 and #8)

S-OIL strives to secure talented resources from diverse backgrounds by implementing a fair recruitment process that rules out any discriminatory factors such as gender, age, region, academic background, or disability. Also, S-OIL pays attention to socially marginalized groups by creating working environments without discrimination for non-regular employees and proactively hiring the disabled. The channels through which S-OIL reaches and attracts talented resources who also share its core values are extended to campus recruiting, internship, and scholarship support programs. S-OIL does not require potentially discriminatory information from applicants for the screening process and adopts a blind interview system in an effort to ensure that all applicants are evaluated solely on their competence and qualifications. S-OIL's transparent and fair recruitment process is a driving force for sustainable growth amid the current business environment of increasingly fierce competition.

Performance-based Evaluation and Compensation

S-OIL takes a fair and objective approach to employee performance evaluation so as to entrench a performance-oriented corporate culture. For performance evaluation, employees develop individual action plans based on organizational KPIs and team action plans to ensure that individual and corporate goals are aligned. And S-OIL encourages employees to attain their goals through periodic progress tracking. S-OIL ensures that fair appraisal is carried out for the actual performance against the action plan, and compensation is commensurate to the performance so as to motivate employees. Furthermore, S-OIL makes sure corporate policy adherence is encouraged throughout the process by factoring the achievement in areas associated with its core values into the evaluation. As for competency evaluation, S-OIL goes beyond granting an evaluation grade and works to give practical support to employees for developing and implementing an Individual Development Plan (IDP) based on their competence appraisal by following up their progress throughout the year. S-OIL also holds a Talent Review Session (TRS) to discuss and determine matters relating to job rotation and core talent recruitment and to provide employees with well-thought-out support in developing their careers.
As part of its performance-oriented organizational culture, S-OIL has instituted a performance-based rather than seniority-based reward and compensation program and extended it to include all office workers. The new performance-based pay structure where a wage increase in line with the service period for the same position was scaled down while that from promotion further expanded effectively motivates employees for higher performance. In addition, S-OIL introduced a merit-based system for office workers to differentiate the annual performance reward they receive in accordance with their evaluation results as a way to further encourage them to perform better at work.

E2 Talent Cultivation

S-OIL's competency development model consists of basic competency for all employees, leadership competency for leaders, and job competency for specific job positions. A systematic training program is offered in accordance with employees' role level (job grade).

Operation of Effective Training System (SDGs #4)

Based on annual 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, anytime. 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. S-OIL provides employees attending these programs with learning materials and expenses to promote their active interaction and competence development.
Since 2015, 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 analyzes the patterns of users who access the system and customizes the main page for individual users. It also features My Classroom for the community learning where users can search a wide variety of video clips and materials for self-driven study. E-learning courses from the LMS are available via both PCs and mobile devices. In 2018, S-OIL implemented micro learning into employee training by adopting a Smart-Learning system running on a mobile platform, significantly enhancing user convenience and enabling access anytime and anywhere. 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.
With the aim of cultivating leaders who will lay the groundwork for the successful accomplishment of Vision, S-OIL set up a leadership pipeline for different leader groups in 2017. This ensures proper training is given to officers and employees before their taking on a new role. 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.
S-OIL has been running S-OIL Academy for specialized job training since 2011. Particularly, the S-OIL Academy for Marketing & Sales covers service station operation, negotiation, and sales skills in a systematic manner so that domestic sales professionals can learn from actual cases of domestic oil product sales activities. As for the S-OIL Academy for Operations aimed at sharpening job competency of engineers and operators, S-OIL introduced the blended learning which combines online and offline job courses. In order to establish a stable operational competency for start-up and shut-down of each unit and to develop emergency response capabilities, S-OIL offers the Operation Training Simulator program. Also, an advanced program has been in place to support the reskilling and upskilling of manager-level engineers or above. Leadership courses are offered to foremen as well.
S-OIL has in place the Engineer Cultivation Program (ECP) to support the systematic training of engineers. Under this program, engineers draw up the Customized Personal Training Program (CPTP) by considering individual functions and career path every year based on interviews with their team leaders. The training outcomes and achievement are systematically managed through LMS. In addition to ECP, the Intensive Overseas Training Program cultivates engineers with a global mindset and competency. In 2019, in particular, S-OIL introduced the ACT Eng Program jointly developed by Saudi Petroleum Services Polytechnic and IFP Training to enhance the systematic development of junior engineers.
S-OIL looks to strengthen the global communication skills of officers and employees in order to propel the global expansion of the Company. 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 also 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, core talents, and candidates to be dispatched to overseas offices. 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 Toastmasters Club was created and employees from various teams and functions interact with one another to enhance their leadership and English speaking skills.

Nurturing Next-generation Leaders

With a firm belief that cultivating core talents will drive the Company's future success, S-OIL runs a systematic HR development program to nurture the next generation leaders. Under the Potential Future Leader program, S-OIL makes sure to select talented employees with great potential and has them accumulate diverse experiences through cross-functional rotation and leadership development plan. Also, S-OIL maintains a systematic means for monitoring performance throughout the program. S-OIL supports employees in pursuing MBA studies in Korea or overseas, and master's degree in science and engineering at IFP School in France. Fully aware of the important roles female leaders play to the organization, S-OIL also focuses on developing diverse female leadership programs.
In addition, S-OIL operates Specialist Program to secure, maintain and develop highly specialized resources that are critical to maintaining the Company's competitiveness. S-OIL determines the target jobs based on substitutability, developmental characters, and business impact, and select potential specialists through a rigorous selection process every year. After being selected, candidates are trained to become experts in their respective fields through high-quality professional development programs that involve expertise development planning, limited job rotation, and training at domestic and foreign specialized institutions.

E3 Corporate Culture / Labor-Management Relations

S-OIL has established a productive and healthy corporate culture based on effective and vibrant communication across functions. S-OIL operates industry-leading benefit programs that reflect employees' needs and makes continued efforts to promote the physical and mental well-being of employees. S-OIL strives to provide employees with the best work environment to assure higher work efficiency. Furthermore, S-OIL is committed to laying the groundwork for sustainable growth by maintaining a harmonious labor-management relationship.

Internalization of Core Values

At S-OIL, all officers and employees are taking on responsibilities and realizing their full potential to the fullest in order to achieve Vision, based on the core values that are common values that guide their decision and action under all circumstances. S-OIL is concentrating efforts to raising awareness of employees on the core values and applying them to business and decision-making processes. Furthermore, these core values are reflected in the recruitment process and evaluation criteria for office workers. S-OIL also recognizes employees who live up to the core values and continues efforts to hire and nurture talents who share its core values. S-OIL produces the CEO messages and video clips on cases that demonstrate the core values, and shares them across the organization as educational materials. S-OIL is committed to maximizing business ethics and core values by continuously internalizing them through programs such as core value workshops.
S-OIL promotes collaboration and communication as a way to break down the silo among individuals and teams and create a productive and healthy corporate culture. As part of such effort, surveys on work efficiency and satisfaction are conducted among all employees and the results are reflected in diverse activities aimed at bolstering internal communication. In addition, the Company-wide business explanation session is held twice a year, where the top management presents business performance, outlook, and critical issues, and all participants ask questions freely during a Q&A session. With the aim of expanding communication, both vertically between leaders and their members and horizontally among individuals or organizations, S-OIL encourages diverse team building activities and programs such as Junior Board, communication sessions for new employees, Dynamic Rookies program, and communication promotion program.

Employee Engagement through Work & Life Balance (SDGs #3)

Guided by a belief that employees who strike a balance between work and life can focus more on their work with creativity and passion, S-OIL continuously reviews and makes changes to its policies beyond the social expectations and legal requirements to ensure employees can relax and have quality family time away from work. As part of this, S-OIL runs various programs such as the two-week intensive holiday, summer vacation, off-duty day, and monthly refreshment day (MRD), encouraging employees to utilize at least 28 days from their annual leave quota. S-OIL provides resort facilities across the country for employees going on a vacation. Furthermore, employees can check in at hotels and resorts in popular tourist destinations at low cost in summer and winter, more than 50% of employees visit those facilities every year. In the meantime, S-OIL conducted surveys using a new diagnosis approach in 2018 to gauge the level of recognition and satisfaction of HR services and use the data as the base for improving organizational culture and performance. Going forward, S-OIL will continue to improve the HR system by monitoring the employees' HR recognition and satisfaction level.
In 2018, S-OIL started the PC-off campaign across the board to encourage employees to leave on time where possible, take breaks, and get a healthy work and life balance, which is a key to employees' focus, energy, and productivity at work. In addition, S-OIL established Leaders' Way of Working and implemented the scheme through various channels so that leaders can increase work efficiency. Efforts for greater work efficiency are also being made at all levels, bringing work diet and positive changes to the way of working through lectures and workshops on work efficiency improvement.

Industry-leading Employee Benefit Programs (SDGs #3)

To create a workplace where employees can feel deeply engaged in their work based on financial stability, S-OIL offers top-tier benefits and wellness programs. In addition to the basic benefits package including four major public insurances and the congratulations & condolences support fund, S-OIL offers an array of employee benefits 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, leisure activities, and financial planning after retirement.
In preparation of the social phenomenon of aging populations, S-OIL pays full attention to ensuring a stable life for employees after retirement. 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 a healthy organizational culture in terms of 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 the institute, parents and the Company.
S-OIL operates health clinics at the Head Office and Refinery manned by nurses at all times to swiftly respond to emergencies during work hours as well as promote employees' health at normal times. S-OIL operates nursery rooms and provides ergonomic office furniture for expectant and breastfeeding mothers. S-OIL also provides medical checkups through 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 health campaigns periodically. Mental stability as well as physical health is critical for full employee engagement. To that end, S-OIL runs the Employee Assistance Program, a comprehensive counseling service where outside professionals provide tips on job-triggered stress, interpersonal relations at work, family relations, childcare and more.

Providing Best-in-Class Work Environment (SDGs #3)

S-OIL strives to provide employees with the best-in-class work environment by optimizing workspace, maintaining a pleasant workplace, and serving swift business support. S-OIL runs a Creative Lounge in the Head Office for self-development and relaxation and various other spaces dedicated to supporting external projects, while enhancing business efficiency. Moreover, the main auditorium at the Head Office is offered to employees for a wedding event of themselves or their children. In 2019, S-OIL continued to implement various workplace improvements, including LED light replacement, AV/VC device upgrade in meeting rooms, and comfortable office furniture procurement.

Collaborative Labor-Management Relations

S-OIL's labor-management relationship sets an exemplary precedent for the industry as there has been no single labor dispute for the past 40 years since 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.

E4 Industrial Safety & Health Management

S-Oil has established and managed safety and health standards that exceed legal requirements as well as accident minimization and legal compliance. Based on top management's commitment to safety, S-OIL is striving to create world-best safety culture and zero accident workplaces. To this end, S-OIL is conducting various measures such as providing safety training to employees and contractors and supporting contractors in improving their safety standards. In parallel, S-OIL periodically carries out drills to minimize damage on 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 is engaged in a variety of activities to enhance its safety culture, such as by operating an IT-based management system that utilizes a checklist in accordance with the tightened SHE regulations. In addition to the existing special safety rules, S-OIL established general safety rules that employees, contractors, and visitors are expected to comply with, and further strengthened the level of safety management for all people visiting the Company premises. S-OIL also conducts PSM self-audit, work permit audit, and fire protection audit to find areas for improvement and further enhance its safety, in a proactive effort to respond to the strengthened safety laws. The company-wide Safety Management Committee also convenes regularly to devise safety policies and support safety inspection for the Head Office, Refinery and terminals, and to strengthen S-OIL's safety capacity through active communication and sharing of accident cases. In addition, safety training by 15 different positions and job functions is provided to reinforce employees' safety capabilities and awareness. Through these preemptive safety-related investment and preventive measures for industrial accidents, S-OIL has maintained the safety culture score for its Refinery and terminals at 8.1 points or above since 2017, demonstrating the Company's world class safety culture.

Continuous Reinforcement of Safety Management System

To promote effective safety management, S-OIL continuously improves its safety management system and eliminates the root causes of accidents through the Behavior-Based Safety (BBS) program that identifies and addresses unsafe behaviors or conditions. S-OIL keeps track of the safety indicators for employees and contractors in real time, and improves performance and operational deficiencies through workshops and consulting services. S-OIL prevents an accident by detecting an abnormal sign through near misses and BBS program. As there is a strong correlation between near misses and major accidents, S-OIL classifies near miss cases depending on severity, and focuses on those cases that can be directly linked to serious accidents. S-OIL also has in place an incentive system for discovering near miss accidents to identify and share cases between employees, aiming to remove potential risks in advance. In 2019, S-OIL carried out regular risk assessments with external institution for facilities that fall under the scope of assessment cycle in accordance with the Industrial Safety & Health Act and internal regulations.

Reinforcement of Emergency Response Capability

Recognizing the importance of initial response in preventing an accident from escalating into a major disaster, S-OIL operates the Emergency Control Program (ECP), an enterprise risk management system. In case of an accident, the Emergency Control Center (ECC) is activated both at the Head Office and the site according to the ECP. The ECC calls emergency meetings, shares the location of the accident via a video conference system, and orchestrates the response activities to keep the situation under control. On the site, the command transmits the status to the ECC in real time, allowing the ECC to make immediate decisions based on the live feed and remotely control the site. Furthermore, S-OIL strives to build the enterprise emergency response capability so as 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. To improve the initial response capability of its own fire brigade and joint response capabilities with external related agencies, S-OIL regularly conducts emergency mobilization drills and fire scenario exercises as well. In 2019, S-OIL conducted company-wide emergency response drills for a scenario of a fire started by combustible material leakage in a plant area. As such, S-OIL is striving to prevent accidents and minimize damage to personnel, environment, and property from accidents.

Employee Health Management

S-OIL is engaged in various activities to manage and promote the health of its employees. Twice a year, S-OIL takes measurements in its work environment, checks if the TWA reading exceeds the exposure threshold for about 40 categories as required by relevant laws, and establishes response plans accordingly. S-OIL regularly reviews its Material Safety Data Sheet (MSDS) for all materials handled by the Company and provides all employees with accurate hazard and risk information. S-OIL conducts an employee health campaign, in which glucose and ion drinks are distributed to prevent heat stress and heat-related illness in summer, and flu vaccination is offered during the winter season. In addition, S-OIL distributed fine dust response leaflets and reminded employees of wearing dust masks at outdoor workplaces through text messages on days when fine dust warning is on. S-OIL has established a step-by-step contingency plan to prevent the spread of infectious diseases and allow for systematic and rapid response when a potentially infectious case is identified. In addition, S-OIL lowered the age limit for comprehensive medical check-ups sponsored by the Company to 35 and expanded the health care center at the Refinery.

Support for Safety Management of Contractors

S-OIL engages in various activities such as technical support to strengthen its contractors' safety management capabilities. S-OIL launched the contractor safety and health cooperation program with its contractors even before the increasingly stringent regulations came into force. Also, S-OIL collects opinions from contractors through an annual survey. In 2019, a total of 38 contractors participated in this program to work safely for the shared goal of maintaining a zero accident workplace. S-OIL conducts various safety management activities such as regular safety meetings, safety checks, and safety campaigns, and provides diverse safety education for contractors, including safety leadership lectures, supervisor workshops, and risk assessment training. S-OIL provides consulting support for contractors to obtain the Occupational Safety & Health Management System (KOSHA 18001) certification and KRAS Risk Assessment certification to enable contractors to achieve a high level of safety management capabilities, and as of 2019, 37 contractors have obtained certifications. Since 2018, S-OIL has supported contractors that are willing to launch a zero accident campaign at their worksite, and awarded them a certificate of achievement of their zero accident safety goals, striving to create a global top-tier safety culture in the workplace.