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CSR Cases from Korea

CSR Cases from Korea. 2012. 04. 13. INHA Univ. Jong-Dae , Kim Sustainability Management Research Institute. Table of Contents. CSR Activities of Korean Corporations. 1. Drivers of CSR. 2. Cases from Korea. 3. Future Direction. 4. CSR Activities of Korean Corporations.

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CSR Cases from Korea

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  1. CSR Cases from Korea 2012. 04. 13 INHA Univ. Jong-Dae, Kim Sustainability Management Research Institute

  2. Table of Contents CSR Activities of Korean Corporations 1 Drivers of CSR 2 Cases from Korea 3 Future Direction 4

  3. CSR Activities of Korean Corporations Average Social Contribution Expenditures (in Mil. KRW) Source: The Federation of Korean Industries, 2011

  4. CSR Activities of Korean Corporations Social Contribution Expenditure per Sales(%) 2004 (201) 2007 (205) 2008 (208) 2005 (197) 2006 (194) 2009 (219) 2010 (218) Source: The Federation of Korean Industries, 2011

  5. CSR Activities of Korean Corporations Social Contribution Expenditure per Before-tax Income(%) Source: The Federation of Korean Industries, 2011

  6. CSR Activities of Korean Corporations Expenditures of social Contribution Program by Sector(2010) (in Mil. KRW, %) Source: The Federation of Korean Industries, 2011 * Based on 164 respondents.

  7. CSR Activities of Korean Corporations Trends of Social Contribution Expenditures by Sector(%) Source: The Federation of Korean Industries, 2011 1) Figures represent expenditures of each sector over total expenditures 2) Number of respondents ranges from 164 in 2010 to 206 in 2005.

  8. CSR Activities of Korean Corporations Average Donations (in Mil. KRW) 2005 (205) 2008 (188) 2009 (209) 2006 (200) 2007 (203) 2010 (187)

  9. CSR Activities of Korean Corporations Donations by Sector(2010) (IN Mil. KRW) 1) Based on 165 corporations 2) Other activities include campaign support, community fund, SMEs support, etc.

  10. CSR Activities of Korean Corporations Internal Obstructions to Social Contribution Activities(%)

  11. CSR Activities of Korean Corporations External Obstructions to Social Contribution Activities(%)

  12. CSR Activities of Korean Corporations Motivations for Global CSR(%) Localisation Strategy Transnational Shaking Others reputation Social Responsibility

  13. CSR Activities of Korean Corporations Evaluation of Global CSR(%) Very positive Positive Top early to assess Insignificant

  14. Drivers of CSR Compliance Public Relations (Public Pressure) Social Value Creation Philanthropy Competitiveness (Strategic)

  15. Drivers to promote CSR

  16. Cases from Korea :Compliance • KT&G • Provide Cash Incentive for not displaying competitors products • Fair Trade Commission fined KT&G less than 100 Mil. KRW • Collusion - An Oil Company: 5 Unit(254,800 Mil.KRW) - Life Insurance Company(117,800Mil.KRW)

  17. Cases from Korea : Labor law • KIA Motor - Violation of the Working Hours, Intern Working under 18 age, Non payment of the Intern(300 Mil) and so on. - Penalty: 400Mil.KRW • Yoosung Enterprise Co., Ltd - 70 Case - Penalty: 1,000 Mil.KRW

  18. Cases from Korea : Environmental regulation ‣ ROHS(2007) - Product: Notebook Component - Pb detection(Japan) Whole Quantity take Back - About 500 Mil.KRW

  19. Cases from Korea :Public Relations(Public Pressure) • Samsung Charity Foundation(2006) • - 800,000 Mil.KRWdonation • Hyundai Motors Scholarship Foundation(2012) • - 500,000 Mil.KRW donation

  20. Cases from Korea: Philanthropy • Amore-Pacific • 1. “Make-Up Your Life” • 2. “Pink Ribbon Campaign”

  21. Cases from Korea :Competitiveness • Posco _ FINEX • Yuhan-Kimberly

  22. Strategic Decision on CSR • 1. Where to give • focus on environmental conditions that will most enhance your productivity • Factor condition • Demand condition • Context for strategy and rivalry • Related and supporting industries • 2. How to give • Select the best grantees • Signal other Finders • Advance best practice

  23. Cases

  24. Creating Social Value-Hyundai motors

  25. POSCO

  26. LG Electronics

  27. Future Direction • Future Direction • Shift of Focus from profit-sharing to value creation throughout value chain • Economic Value creation via social value creation • Social & market changes Triggered by CSR • Integration of Social & Environmental Responsibility into Integrated Reports

  28. Thank You !

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