• Journal of Korea Society of Industrial Information Systems
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• v.27 no.5
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• pp.145-156
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• 2022

In recent years, as there is growing concern with ESG (Environmental, Social, and Governance), the strategic direction of business management is changing from maximizing shareholders wealth to maximizing stakeholders value. ESG is reshaping a corporation's supply chain management strategies. The purpose of this study is to explore the ESG challenges in supply chain management. As a result of network text analysis and topic modeling analysis on 3226 news articles, 'Suppliers', 'Sustainability', 'Shared Growth' 'Carbon Neutral', 'Safety and Health', 'Responsible Business Alliance', 'Supply Chain Due Diligence Law' were identified as the main issue. Since ESG initiatives in the supply chain are not limited to the efforts of individual firms, future research should focus on figuring out what difficulties and challenges exist in the diffusion of ESG practices along multi-tiered supply chains, and how to overcome them.

• Korea Trade Review
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• v.48 no.3
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• pp.1-22
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• 2023

Many major country have struggled to build a block of the secondary battery industry supply chain by considering their interests first. And their supply chain due diligence agreement mandates due diligence on human rights and environmental risks that may occur throughout the supply chain. So the integrated approach called supply chain ESG is needed. But there isn't to be a global standard for ESG yet. And the disclosure standards for each country are different, adding to companies' confusion. In this perspective, to present guidelines for establishing a supply chain ESG management strategy accompanied by Korean SMEs, this study presents environmental evaluation indicators of global secondary battery supply chain ESG customized for Korean SMEs and then performs weight analysis using AHP methodology. Through this, this study aims to suggest implications for accepting sustainability within the supply chain of Korean SMEs by presenting indicators to be considered first among environmental evaluation indicators in preparation for ESG due diligence of the global secondary battery supply chain.

• Journal of Arbitration Studies
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• v.34 no.1
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• pp.75-101
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• 2024

"ESG management" guides companies to prioritize corporate social responsibility and sustainable development as key management objectives, going beyond mere financial performance pursuits. This approach involves creating a sustainable and robust supply chain by urging companies, acting as 'supply chain managers', to implement ESG management practices alongside their 'supply chain partners'. The domestic business community has been quick to respond to this trend, recognizing that failure to adhere to ESG standards set by organizations such as the EU and SEC could lead to severe repercussions, including exclusion from international trade and reputational damage. POSCO and NAVER, two leading Korean companies, are at the forefront of practicing ESG management effectively. They have both produced and publicly disclosed ESG management reports, showcasing their success in enhancing supply chain ESG management. However, as supply chain managers enforce ESG-related obligations on their suppliers, the likelihood of disputes between the parties may increase. In scenarios where supply chain ESG management leads to conflicts between supply chain managers and suppliers, commercial arbitration emerges as a viable solution for dispute resolution. This method offers several advantages, including the arbitrators' expertise, time and cost efficiency, the binding nature of decisions akin to a court's final judgment, international recognition under the New York Convention, confidentiality, and ample opportunity for parties to be heard. Our analysis focuses on the emerging disputes between supply chain managers and suppliers within the context of supply chain ESG management, particularly examining the cases of POSCO and NAVER. By categorizing the expected types of disputes and assessing the appropriateness of commercial arbitration for their resolution, we highlight the effectiveness of this approach. Furthermore, we propose leveraging the Korean Commercial Arbitration Board's role to enhance the use of arbitration in resolving supply chain ESG disputes, underscoring its potential as a strategic tool for maintaining sustainable and harmonious supply chain relationships.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.1
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• pp.47-65
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• 2023

As stakeholder demands and sustainable finance grow, ESG management and ESG evaluation are becoming important. SMEs should also prepare for the trends of ESG rating practices that affects supply chain management and financial transactions. However, SMEs have no choice but to focus on survival first, so there are restrictions on putting into ESG management. In addition, there is a lack of research on the legitimacy of ESG management by SMEs, and volatility in ESG evaluation systems and rating grades is also increasing. Accordingly, it is necessary to review ESG evaluation trends and practical guidelines along with the review of previous studies. As a result of the exploratory study, SMEs need to implement ESG management and make efforts to specialize in ESG related new businesses under conditions in which their survival base is guaranteed in terms of implementation strategies. In addition, it is necessary to focus on the strategic use of various evaluation results along with accumulating information favorable for ESG evaluation through organizational learning and software management. The implications of this study are that various studies such as the classification criteria for SMEs and the relationship between ESG evaluation grades and long-term survival rates are needed in ESG evaluation of SMEs. At the government policy level, it is time to consider the ESG evaluation system exclusively for SMEs so that ESG management can be implemented and ESG evaluation at different levels by industry and size.

• Journal of the Korea Institute of Building Construction
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• v.23 no.6
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• pp.785-796
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• 2023

The adoption of Environmental, Social, and Governance(ESG) practices in domestic construction firms is predominantly driven by major corporations. These companies not only publish reports on their ESG management but also engage in a meticulous process of identifying key issues and setting priorities. This process entails an in-depth evaluation of the severity of various issues and the gathering of insights from experts in the field. Interestingly, a comparative analysis of ESG assessments for construction companies, both domestically and internationally, reveals significant discrepancies in outcomes. These differences stem from the varied evaluation methodologies and criteria employed by different assessing bodies. Addressing this gap, our study proposes a suite of strategies aimed at bolstering ESG management within the construction sector. We advocate for enhanced policy support and financial backing, especially targeting small and medium-sized enterprises(SMEs) to facilitate their engagement in ESG practices. A critical step forward involves the standardization and transparent disclosure of ESG evaluation criteria, tailored to reflect the unique aspects of the construction industry. Moreover, the standardization and publication of ESG assessments for subcontractors are essential, equipping them with the necessary tools for effective ESG management and evaluation. Given the global nature of construction projects, particularly those commissioned by the European Union in regions like Africa and East Asia, adherence to ESG standards is imperative. Our long-term vision includes the development of a comprehensive database detailing ESG regulations and their impacts, segmented by region and country. This repository will serve as a valuable resource for companies venturing into international construction projects.

• Journal of Korea Port Economic Association
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• v.39 no.4
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• pp.147-161
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• 2023

As global challenges, particularly climate change, become more pressing, there is a growing global awareness of Environmental, Social, and Governance (ESG) management. Given the crucial role played by the logistics industry in the complex network of the global supply chain, various societal stakeholders are emphasizing the necessity for logistics entities to practice ESG management. Despite the comprehensive ESG guidelines established by Korea for all enterprises, a notable limitation arises from its inadequate consideration of the distinctive features inherent to logistics enterprises, especially those of a smaller and medium scale. Accordingly, this study conducts a thorough examination of existing ESG guidelines, sustainable management approaches in large-scale logistics enterprises, and prior research to identify potential ESG management diagnostic criteria relevant to small and medium-sized logistics enterprises, including aspects such as Public(P), Environmental(E), Social(S), and Governance(G). To streamline the diagnostic criteria, taking into account the unique characteristics of small and medium-sized logistics enterprises, this study conducts a survey involving 60 logistics company personnel and experts from academic and research domains. The collected data undergoes Principal Component Analysis (PCA), revealing that the four dimensions of information disclosure can be consolidated into a single dimension. Additionally, environmental criteria reduce from 16 to 3 items, societal considerations decrease from 22 to 7 items, and governance structures distill from 20 to 5 items. This empirical endeavor is deemed significant in presenting tailored ESG management diagnostic criteria aligned with the specificities of small and medium-sized logistics enterprises. The findings of this study are expected to serve as a foundational resource for the development of guidelines by relevant entities, promoting the wider adoption of ESG management practices in the sphere of small and medium-sized logistics enterprises in the near future. population coming from areas other than Gwangyang, where Gwangyang Port is located.

• Knowledge Management Research
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• v.24 no.3
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• pp.217-237
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• 2023

Recently, in the face of successive and unexpected global economic risks, ESG(Environmental, Social, and Governance) management has risen as an essential survival strategy for businesses. Particularly, the supply chain disruptions due to the COVID-19 pandemic have added to the uncertainty of risks, heightening the importance of ESG management in the distribution industry. In this context, the role of blockchain technology in strengthening and managing the connection between the distribution industry and ESG management has become increasingly significant. While there have been extensive proposals for business models that integrate blockchain technology into distribution, few studies have specifically focused on the feasibility and effectiveness of applying blockchain to ESG management in this field. Therefore, this study analyzed the relationship between blockchain and ESG management in the distribution industry by employing association analysis, a text mining technique, on Korean academic research. Through this, the study confirmed the possibility of implementing blockchain in the distribution industry's ESG management and presented keywords to guide future research directions. The findings obtained from this study are expected to be utilized as foundational research for future studies in constructing blockchain-based business models for ESG management in the distribution industry.

• Journal of Venture Innovation
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• v.6 no.3
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• pp.165-184
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• 2023

Since municipal welfare institutions operate for different purposes from general companies or public enterprises, ESG practice items and model construction should be conducted through various and comprehensive social welfare studies. Since there are not many studies available in domestic welfare institutions yet and there are no suitable ESG management utilization indicators, the Cheonan Welfare Foundation's strategy and management strategy system were established to spread the model to other welfare institutions and become a leading foundation through education and training. The foundation and front-line welfare institutions selected issues identification and key issues through the foundation's empirical analysis and criticality analysis, focusing on understanding ESG management and ways to establish a practice model that positively affects institutional image and business performance. Based on this, the promotion system was examined by establishing a performance management plan after deriving appropriate strategies and establishing a strategic system for social welfare institutions. Environmental and social responsibility, transparent management, safety management system establishment, emergency and prevention, user (customer) satisfaction system establishment, anti-corruption prevention and integrity ethics monitoring and evaluation, responsible supply chains, and community contribution programs. This study attempted to specifically present efforts to settle ESG management through the consideration of the Cheonan Welfare Foundation. Therefore, it is considered to be useful data for developing ESG management by referring to the systematic development process of the Cheonan City Restoration Foundation to develop ESG measurement indicators.

• Journal of Intelligence and Information Systems
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• v.29 no.3
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• pp.287-316
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• 2023

As global energy crisis and the COVID-19 pandemic have emerged as social issues, there is a growing demand for companies to move away from profit-centric business models and embrace sustainable management that balances environmental, social, and governance (ESG) factors. ESG activities of companies vary across industries, and industry-specific weights are applied in ESG evaluations. Therefore, it is important to develop strategic management approaches that reflect the characteristics of each industry and the importance of each ESG factor. Additionally, with the stance of strengthened focus on ESG disclosures, specific guidelines are needed to identify and report on sustainable management activities of domestic companies. To understand corporate sustainability strategies, analyzing ESG reports and news articles by industry can help identify strategic characteristics in specific industries. However, each company has its own unique strategies and report structures, making it difficult to grasp detailed trends or action items. In our study, we analyzed ESG reports (2019-2021) and news articles (2019-2022) of six companies in the 'Finance,' 'Manufacturing,' and 'IT' sectors to examine the sustainability strategies of leading domestic ESG companies. Text mining techniques such as keyword frequency analysis and topic modeling were applied to identify industry-specific, ESG element-specific management strategies and issues. The analysis revealed that in the 'Finance' sector, customer-centric management strategies and efforts to promote an inclusive culture within and outside the company were prominent. Strategies addressing climate change, such as carbon neutrality and expanding green finance, were also emphasized. In the 'Manufacturing' sector, the focus was on creating sustainable communities through occupational health and safety issues, sustainable supply chain management, low-carbon technology development, and eco-friendly investments to achieve carbon neutrality. In the 'IT' sector, there was a tendency to focus on technological innovation and digital responsibility to enhance social value through technology. Furthermore, the key issues identified in the ESG factors were as follows: under the 'Environmental' element, issues such as greenhouse gas and carbon emission management, industry-specific eco-friendly activities, and green partnerships were identified. Under the 'Social' element, key issues included social contribution activities through stakeholder engagement, supporting the growth and coexistence of members and partner companies, and enhancing customer value through stable service provision. Under the 'Governance' element, key issues were identified as strengthening board independence through the appointment of outside directors, risk management and communication for sustainable growth, and establishing transparent governance structures. The exploration of the relationship between ESG disclosures in reports and ESG issues in news articles revealed that the sustainability strategies disclosed in reports were aligned with the issues related to ESG disclosed in news articles. However, there was a tendency to strengthen ESG activities for prevention and improvement after negative media coverage that could have a negative impact on corporate image. Additionally, environmental issues were mentioned more frequently in news articles compared to ESG reports, with environmental-related keywords being emphasized in the 'Finance' sector in the reports. Thus, ESG reports and news articles shared some similarities in content due to the sharing of information sources. However, the impact of media coverage influenced the emphasis on specific sustainability strategies, and the extent of mentioning environmental issues varied across documents. Based on our study, the following contributions were derived. From a practical perspective, companies need to consider their characteristics and establish sustainability strategies that align with their capabilities and situations. From an academic perspective, unlike previous studies on ESG strategies, we present a subdivided methodology through analysis considering the industry-specific characteristics of companies.

• Journal of Industrial Convergence
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• v.20 no.10
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• pp.87-94
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• 2022

This paper seeks to raise inflection points of battery manufacturing bases in Korea in the V4 region through the reorganization of new industrial technologies in accordance with ESG. As a result, the global supply chain market is cut off. The Russian-Ukraine war and the U.S.-China hegemony are competing in the economic crisis caused by COVID-19. It is showing diversification of new suppliers in an environment where mineral, grain procurement, gas, and even wheat imports from China and Russia are not possible. As a protective glocal, this area is used as a buffer zone(Pro-Russia, Hungary). to an isolated zone(anti-Russia, Poland) by war. In this paper, economic growth is expected to slow further due to the EU tapering period and high inflation in world countries. Due to these changes, the conversion of new tech industry and the contraction of Germany's structure due to energy supply may lose the driving force for economic growth over the past 20 years. This is caused by market disconnection(chasm) in the nominal indicators in this area. On the other hand, Korea should actively develop into the V4 area as an energy generation export (nuclear and electric hydrogen generation) area as a bypass development supply area due to the imbalance in the supply chain of rare earth materials that combines AI. By linking this industry, the energy platform can be scaled up and reliable supply technology (next generation BT, recycling technology) in diversification can be formed in countries around the world. This paper proves that in order to overcome the market chasm caused by the industries connection, new energy development and platform size can be achieved and reliable supply technology (next-generation battery and recycling technology, Low-cost LFP) can be diversified in each country.