IT Software & Services
1-4-5 Roppongi, Minato-ku,
- 2020 Korean Game Awards – Nexon won several of the coveted Game Awards.
- V4 – a mobile MMORPG – won the grand prize, The President’s Award, and was also recognized with the Excellent Developer Award and Technology Creation Award.
- The Kingdom of the Winds: Yeon – mobile version of popular The Kingdom of the Winds franchise, has performed well on both iOS and Android charts – won the Popular Game Award.
- EA SPORTS FIFA ONLINE 4 won the eSports Development Award. An honor Nexon shares with EA’s Korea Studio.
Report created by Kavita Kripalani
NEXON Co., Ltd. engages in the development of free to play online and mobile games. It develops graphics based multiplayer online games and uses the concept of micro transactions and the free to play business model.
Nexon operates through the PC Online and Mobile business divisions.
- The PC Online business division handles the production, development and distribution of PC online games. It also provides consulting business related to PC online game distribution, game advertisement business, merchandising business.
- The Mobile business division covers the development and distribution of mobile games that play on terminals such as smartphones and tablets.
The company was founded on December 18, 2002 and is headquartered in Tokyo, Japan.
Company Sustainability Activity
Nexon Group recognizes that its most important management issue is to balance the maximization of its corporate value and securing of the soundness in business operations through efficient and highly transparent management, stipulated
(1) the maximization of shareholder value;
(2) building of a good relationship of trust with stakeholders such as users, business partners, local communities and employees;
(3) sustainable and stable growth, as its basic policy of corporate governance.
The company has been striving to realize strict and proper supervisory function over the execution of operations and will focus on effective design and operation of internal control systems and organizational management through group governance, which is mindful of appropriate cooperation with subsidiaries.
Specifically, the organization is arranged so that directors receive timely reports regarding any important matters that would have an impact on management and performances. At Nexon, they are trying to strengthen internal controls, with Internal Audit Section as an internal independent monitoring body and Legal Department as a division in control of compliance matters.
Nexon’s Board of Directors will aim for the sustained development of society and enhancement of Nexon Group’s corporate value by establishing a basic policy regarding social responsibility that each Nexon Group entity should fulfill, upon consideration of the importance of environmental and social issues over sustainability, thereby raising awareness of board members and employees, and also by promoting aggressive and proactive initiatives to solve the issues while giving consideration to stakeholders.
They believe that the following core strengths are critical to their success and represent sustainable competitive advantages:
- Culture of creativity and innovation
- In-game merchandising expertise and successful approach to managing games over an extended life cycle
- Powerful global operations and publishing platform
- Large global player base
- Strong track record of identifying and maximizing acquired content
Nexon does not disclose targets regarding sustainability at this moment.
Nexon does not disclose any progress regarding sustainability at this moment.
Nexon does not hold any certificates at this moment.
United Nations Sustainable Development Goals
United Nations Sustainable Develop Goals Compliance
The following section aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals. Although not explicitly stated, Nexon has attempted to be compliant with SDGs.
- Equal employment opportunity Employment at Nexon Group shall provide equal opportunities without any discrimination by gender, nationality, race, religion, LGBT (sexual orientation, gender identity), disability, etc., and individuals shall be assessed based only on one’s knowledge, experience, ability and performance.
- Nexon Group complies with applicable labor regulations in each country and area where it conducts its business activities, and shall build and maintain sound work and employment practices so that officers and employees of Nexon Group can fully exercise their abilities.
- Nexon Group provides a safe and healthy work environment to officers and employees of Nexon Group. ‘Safe and healthy’ not only refers to physical aspects but also includes elimination of so-called sexual harassment, power harassment, etc.
- Nexon Group does not allow any forced labor or any labor against one’s will, and shall not allow anyone under the legal working age to work.
- Nexon Group strives to build and maintain an environment where diverse personnel with various values and ways of thinking that can fully utilize their individuality and abilities, regardless of race, nationality, sex, religion, LGBT (i.e. sexual orientation, gender identity), disability, etc.
- When officers and employees of Nexon Group make a business decision or judgment, it shall be confirmed that there is no conflict of interest in the decision or judgment between the interest of Nexon Group and personal interest of the officers and employees or any other third parties. There shall be no undue influence by personal interest on the business decision or judgment.
- In the event officers and employees of Nexon Group detect an act in violation of a rule in this Code of Conduct or internal rules, guidelines, handbooks, etc. of the respective entity, he/she is recommended/encouraged to report the matter to president, internal audit division, legal division, etc. of the respective entity. In the case where whistle-blowing within the respective entity is inappropriate or ineffective, it is also possible to directly report the matter to Nexon’s president, internal audit division or legal division.
This evaluation is based upon the company’s Corporate Governance Basic Policy (last updated in February 2020) and Group Code of Conduct and Business Ethics (last updated in March 2018), since the company has no records of sustainability reports.
The company has no certificates, and few awards/listings.
The company does not communicate any targets. It aligns with a few UN SDGs, but not in a purposeful manner. Their communications lack critical information about the company’s sustainability as well as metrics.
The fact that Nexon has updated its policies as recently as 2020 and yet lacks key information about their company’s sustainability progress reflects their lack of consideration for sustainability. The language used in their reports is vague and does not communicate transparently about their business practices. The references to sustainability that they do have in their reports are not evidenced by actual data to support their claims.
Although reference to sustainability is sparsely inserted in their policy report, the fact that their most updated sustainability report publicly published dates back to 2014 indicates a significant void in their business and overt disregard for the matter.
This company has been rated a D.
Analyst Outlook: Negative
The company clearly does not prioritize sustainable business practices and must start from scratch in developing its sustainability approach.
- The company does not have any Sustainability report, but rather an “Nexcon Corporate Governance Basic Policy” that is linked on their Investor Relations website.
- Their CSR policies are sparse and minimal.