Introduction
While focusing on profit for the stakeholders remains the most significant focus of companies worldwide, the global market is more adherent to policies and strategies that address additional elements. Namely, ESG is a policy that contains factors unrelated to corporate financial gain, including environmental, social, and governance initiatives. In this paper, ESG will be analyzed from the perspective of Korean companies within the technological, transportation, energy, and other industries. The examination will focus on the strategies employed by LG, Samsung, Hyundai, Korean Air, Asiana Air, Hyosung, and KEPCO in regard to social, eco-related, and organizational culture implementations.
Transportation Industry
The transportation industry is a major element within the Korean market. First and foremost, it is vital to exemplify how airlines adhere to ESG. For example, Korean Air, a major airline company, focuses on all three elements within the paradigm. Namely, environmentally, the airline reduces the use of fuel socially, funds libraries, and governance-wise, implements ethical codes (Korean Air, 2022). By analyzing the data, it is certain that the corporation aims to focus on non-financial elements that have economic, social, and internal benefits. Moreover, Asiana Airlines often publishes sustainability reports and evidence of efforts in this particular sector (Park et al., 2020). Thus, it is certain that as airlines are considered widely unsustainable, ESG implementations are being employed in regard to how the corporations address climate change and social initiatives, as well as their own workforce. Automotive companies can also be exemplified through such strategies. The leading organization in this particular industry, Hyundai, has implemented ESG as a core organizational value (Kim & Lee, 2021). Evidence highlights that the last couple of years has been especially beneficial in regard to improving social, internal, and environmental elements (Tolliver et al., 2020). Namely, manufacturing electric vehicles, improving human safety measures, and addressing corporate diversity are among the initiatives implemented by the organization. The actions align with the current demand for more ethical, eco-friendly, and socially aware companies. Based on the aforementioned evidence, it is inevitable that the Korean companies operating in the transportation and automotive industry are willing to invest in the betterment of the social, environmental, and internal governance elements.
Technological Industry
ESG is not limited to the initiatives of organizations in one particular sector. The trend is widely spread among multiple Korean companies (Tolliver et al., 2020). The two corporate giants within the realm of the technological industry in Korea are LG and Samsung. LG, in particular, adheres to the Korean Corporate Governance Service evaluation measures to determine ESG practice implementation. The corporation has scored A for governance, A for the environment, and A+ for social initiatives (LG, 2022). The evidence highlights that the practices are efficiently implemented, allowing the company to make a positive internal and external impact. Moreover, focusing on such initiatives aligns with the strategies employed by western corporations and generates a globalist effort that the Korean organization contributes to. Similarly, Samsung follows similar strategies when it comes to implementing and disclosing ESG initiatives within the organization (Tolliver et al., 2020). Assisting local communities, improving diversity, sourcing materials ethically, and investing in educational programs for children are among the strategies that align with ESG values (Samsung, 2022). As a result, it is inevitable that the major Korean brands, namely LG and Samsung, have elevated themselves from merely gaining financial profitability to making a positive global impact.
Construction and Electrical Power
The construction and electrical power industries are associated with low regard for environmental, social, and ethical initiatives. Nonetheless, evidence shows progress in this particular area alongside other sectors (Son & Kim, 2022). For example, Korea Electric Power Corporation (KAPCO) is the largest utility organization that has implemented ESG elements within its decision-making processes. Namely, the corporation implements strategies to minimize its carbon footprint, maximize social welfare in communities where it operates, and create an ethical environment for its employees and customers (KEPCO, 2022). Thus, the circumstances highlight that even a corporation in the energy industry, which is considered highly harmful to the environment, can generate positive environmental and social outcomes. An example of a corporation with multiple areas of operation, including the construction sector, is Hyosung. Hyosung addresses environmental causes through sustainable practices, social causes through employee volunteering to assist disabled people, and governance through the employment of a code of conduct (Hyosung Group, 2022). Such efforts toward the implementation of ESG highlight that Korean construction and energetic companies are, indeed, making decisions outside the financial scope.
Conclusion
The Korean market and the companies exemplified in multiple industries are implementing strategies aligning with environmental, social, and governance values. Namely, transportations companies such as Hyundai, Korean Air, and Asiana Airlines, tech companies including Samsung and LG, the Chaebol Hyosung, and the energetic corporation KEPCO have initiatives to minimize environmental damage, maximize positive impact on communities, and employ organizational ethics. The trend shows a positive change in the business industry and exemplifies that further alteration will align with the cultures and values of more companies in the Korean market.
References
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