By Kim Jin-hyuk

Corporations have a profound effect on people’s daily lives. My question is whether they pull their weight in tackling the problems society faces.

Corporate Social Responsibility (CSR) is a relatively new concept in Korean society.

Korean companies generally take the philanthropic approach to CSR, simply by donating to charity foundations.

However, as consumers and governmental regulations become more sophisticated, corporations are becoming more strategic.

Corporations often use CSR to improve their reputation and brand image, or use it as a tool for risk management. Furthermore, corporations’ commitments are highly instrumental as their motives derive from external incentives rather than internal and moral considerations.

Their problem is that they respond to social issues after signs of a depletion of resources. It is a responsive approach to societal issues. It means that corporations wait until problems occur.

Unfortunately, Korean corporations are behind schedule in countering exploitation of natural and human resources. We frequently take action only after the obvious signs of depletion.

Society needs to tackle the social problems of the present and future in a preemptive way.

What should corporations do to make sure their application of CSR contributes to sustainable development?

First, the concept of separating CSR from the business core needs to be changed. It must be embedded in the business core and culture and take considerable part in the business decision making process. This means that corporations must commit themselves to CSR in a normative sense, ``which stems from internal and largely moral considerations”.

Second, corporations need collective identity orientation and take responsibility with its employees, the community, and the government for sustainable development.

Collective orientation refers to organizations ``seeing themselves as members of larger groups that go beyond simply the stakeholders most relevant to their immediate businesses. Companies must possess generalized ties to one another.”

Third and last, business leaders should spearhead CSR. Throughout history, we have seen the domino effect of a positive movement with a leader and its first follower. The fear of change retards corporate growth. The courage and vision of leaders can help companies chart CSR strategies quickly and effectively for sustainable development.

What I am wondering is whether companies are actually aware of the social impact that their business practices will have on society. Will they continue to exploit natural and human resources? Are they fully aware of the situation? Are they really ignorant of what is happening around us?

Recently Korean corporations have made headlines in international media for the wrong reasons. Their unethical business practices have overshadowed their innovative products.

What we have to realize is that the "business-first" mentality of the 1960s is now out of fashion and needs to change. Governments, consumers and workers are smarter now than before. They expect more from corporations.

The survival of businesses is dependent on practicing ethics. Companies must question themselves whether they are attracting the right talent\ by providing a favorable working environment. The next question is whether they are attracting consumers through innovative environment-friendly products and services.

The time is now for corporations to change their ways not only for our present well-being, but for our future.

After all, this is the only Earth that we have to live on.

The writer is an M.A. student at the U.N. Mandated University for Peace in Costa Rica majoring in responsible management and sustainable economic development. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .

Source: http://www.koreatimes.co.kr/www/news/opinon/2011/10/137_96113.html