Contributing to society and other larger social responsibility on the part of corporations is becoming the trend. Socially responsible investment (SRI) funds are growing rapidly in size around the world, the International Organization for Standardization (ISO) is developing something called "corporate social responsibility" (CSR) that will take effect in 2008. Observers say that companies which fail to meet the ISO standard will find themselves at a considerable disadvantage when competing for deals and to make investments. Some say Korean companies are not ready for it, and that is something else that makes the establishment of the new index more meaningful.
A change in thinking on the part of executives will be even more important. The fruits of contributing to society will not go very far if companies think of what they give as virtual taxes they have to pay because of social pressure. They need to think positively and realize that once a corporation is judged to be good at giving back to society, consumers and employees alike will feel a sense of satisfaction and that leads to better business performance. One influential businessman once said that when a company makes a lot of earnings and pays taxes on those earnings, that is contributing to society. You cannot say that is entirely wrong, but at the very least it is out of step with the times. The American company Prudential Financial's chairman Art Ryan once said that the CEO will find himself in trouble if all he pursues is profit; if he does not understand the market and know local society he fails. Those are words worth listening to.
The Hankyoreh, 25 October 2005.
[Translations by Seoul Selection]
