Evolving CSR in South Korea: A Bridge Between ‘Chaebols’ and Global Standards (Part 2)
Corporate Social Responsibility (CSR) in South Korea faces several unique challenges as companies increasingly engage in global markets and face heightened expectations from stakeholders. While large 'chaebols' (family-owned conglomerates) such as Samsung, Hyundai, and LG lead the way in CSR initiatives, there are specific challenges related to 'corporate governance', 'labour practices', 'environmental sustainability', and 'transparency' that need to be addressed. Below are some key CSR challenges in South Korea: Corporate Governance and Transparency: One of the major CSR challenges in South Korea is corporate governance, particularly regarding the structure of 'chaebols'. Many South Korean conglomerates have been criticised for lacking transparency, having complex ownership structures, and concentrating power within family-controlled management. Impact: This lack of transparency can undermine CSR efforts and raise concerns about ethical business practices, accountability, and decision-making processes. For example, in the past, high-profile corruption scandals involving chaebols like Samsung and Lotte have eroded public trust and led to a perception that some CSR efforts are more about reputation management than genuine social responsibility. Suggested Solution: To address this, South Korean companies need to strengthen governance structures, ensure independent oversight, and adopt more transparent reporting practices that cover both financial and non-financial aspects of business. Labour Rights...
Read More
Evolving CSR in South Korea: A Bridge Between ‘Chaebols’ and Global Standards (Part 1)
Corporate Social Responsibility (CSR) in South Korea has evolved significantly over the years, with companies increasingly adopting socially responsible practices that align with global standards. South Korea’s approach to CSR is shaped by the nation’s rapid industrialisation and the influence of 'chaebols' (large family-owned business conglomerates like Samsung, Hyundai, and LG). Traditionally, South Korean companies engaged in philanthropic activities, but more recently, CSR has become more integrated into core business strategies, focusing on sustainability, ethical governance, and social impact. Key Characteristics of CSR in South Korea: Government Influence and Regulation: The South Korean government plays an active role in promoting CSR. It has introduced policies that encourage sustainable development, environmental conservation, and corporate transparency. Korean Commercial Law (2011) requires companies to disclose CSR-related activities in their business reports, increasing transparency and accountability. Environmental Sustainability: South Korea is heavily focused on environmental sustainability, driven by its status as a global leader in technology and manufacturing. Companies are investing in green technologies, renewable energy, and climate action as part of their CSR commitments. Samsung Electronics and LG are leading the way with initiatives aimed at reducing carbon emissions, recycling e-waste, and adopting sustainable production methods. Labour Rights and Workplace Welfare: South Korean...
Read More
From Green to Governance Understanding the Full Scope of Sustainable Financing
Prof (Dr) Shalini Verma 'Lifoholic' In an era where sustainability has become a paramount concern, the financial sector is increasingly aligning itself with environmental, social, and governance (ESG) principles to drive positive change. This integration, known as sustainable financing, is reshaping the landscape of investments and business decisions. By encompassing a broad spectrum of activities aimed at fostering sustainability, including green financing, climate financing, social financing, and governance financing, sustainable financing ensures a comprehensive approach to addressing global challenges. However, it is essential to understand that green or climate financing is merely a subset of this expansive field, specifically targeting projects that benefit the environment or address climate change. This article delves into the nuances of sustainable financing, highlighting its broad applications and the distinct role of green and climate financing within it. 'Sustainable financing' refers to financial services integrating environmental, social, and governance (ESG) criteria into business or investment decisions to achieve sustainable outcomes. It encompasses a broad range of activities aimed at fostering sustainability, including green financing, climate financing, social financing, and governance financing. While 'Green financing ' or 'Climate financing' is just a subset of 'sustainable financing' focused specifically on projects that benefit the environment or address...
Read More