hankyoreh

By Lee Won-jae , President, Hankyoreh Economic Research Institute　
　　
Facing large-scale disasters and crises caused by external shocks such as the great earthquake in Japan, the big earthquake in Sichuan Province, China, and the global financial and fiscal crisis, corporate social responsibility has become more important than ever before.
It is time for East Asian corporations to take actions beyond contributing resources such as money, human resources, and technology back to the society. Here is the opinion of the U.N. Global Compact China, Japan and Korea networks, which is an international organization that manages corporate social responsibility.
Corporate social responsibility (CSR) has already become one of the most pressing issues in East Asian corporations. They are not far behind Western corporations in recognizing the importance of CSR.
Mr. Toshio Arima, the chair of the Global Compact Japan Network and a director of U.N. Global Compact headquartered in New York, says that a social business approach should also be taken for creating employments and future businesses after the tsunami in Japan. He means that there should be businesses, which clarify that their purpose is not only profit maximization but also tackling social issues.
However, there are still differences between East Asian and Western countries. First, stakeholders‘ engagement in the civil society is relatively weaker in East Asia. It is a contrast to Western countries where there is a strong presence of NGOs and business has more frequent interactions with the civil society to collect opinions. This is the reason why East Asian corporations should make greater efforts to listen to their stakeholders and reflect their opinions to management.
On the other hand, there is a consensus in East Asia that a corporation in the end belongs to the society, so businesses in the region are active in corporate philanthropy and volunteering. Mr. Ju Chul-ki, former ambassador and Secretary General of Global Compact Korea Network, mentions that there is a strong ethic among the East Asian management that community spirit should be emphasized when they make management decisions.
There was widespread recognition that transparency, protecting the environment, and social issues such as human rights and labor are among the most crucial CSR issues in East Asian corporations. Some also say that anti-corruption and transparent operations should be constantly emphasized, considering the relationship-oriented Asian culture. There are a lot of problems to be solved. Above all, it is critical how fast-growing East Asian companies can co-exist and make harmony with environment.
“These problems are also related to dilemma between business expansion and environmental protection issues,” Mr. Arima said, “How to coordinate them is a critical point in CSR.”
Similarly, coordination between cost competition and labor and human rights considerations is critical. Still, CSR is not being considered a part of corporate culture. Wang Xiaoguang, vice director of the Global Compact China Network, pointed out that there is wider recognition in importance of Corporate Social Responsibility for corporation employees in Western society while further training is needed for employees in the East.
To become new leaders in the global economy, East Asian companies have to set themselves apart from the existing global leaders. CSR, which is genuine and appropriate in the Asian context, can be a critical element in forming the difference. That’s the reason why corporations should consider Corporate Social Responsibility their mission and integral part of corporate culture, not merely a tool for a business strategy or marketing.
　　
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