• Journal of Practical Engineering Education
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• v.15 no.3
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• pp.663-670
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• 2023

Unlike previous studies that have looked at ESG management and ESG performance from a consumer perspective, this study aims to examine the relationship between attitudes toward ESG and ESG performance perception from the perspective of internal customers who are members of the organization. To this end, the impact of internal members' perceptions of the importance of each ESG area on the organization's ESG management necessity and performance perception was summarized into three research questions and the impact was identified using a structural equation model. As a result of the study, internal customers highly recognized the organization's ESG management needs when they recognized the E (environmental) and G (governance) areas as important, but there was no significant relationship with the ESG management needs in the S (social) area (Research Question 1). In addition, the relationship between the perception of importance in each ESG area and the organization's ESG management needs was found to be little different depending on internal customers' interest in ESG, the degree of ESG knowledge, and age (Research Question 2). Finally, it was found that internal customers who highly perceive the organization's ESG management needs were also positively aware of the organization's ESG performance level.

• Journal of Venture Innovation
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• v.7 no.3
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• pp.85-100
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• 2024

ESG management refers to corporate management that takes into account environmental, social, and governance factors, while digital transformation goes beyond the mere automation or digitization of existing tasks to drive an innovative change in the essence of work and the way value is created. Therefore, digital transformation can help companies achieve ESG goals and implement sustainable business practices, establishing a complementary relationship between digital transformation and ESG management for corporate sustainability and growth. This relationship maximizes the synergy of integrating digital transformation with ESG management, enabling companies to utilize resources efficiently and prevent redundant investments, ultimately enhancing sustainable management performance. In this study, we propose the simultaneous promotion of business process reengineering (BPR), in which both digital transformation and ESG management are integrated. This is because the collection, analysis, and decision-making processes related to various data for promoting ESG management must be organically integrated with digital transformation technologies. Therefore, we analyzed each ESG management objective presented in the K-ESG guidelines and identified the corresponding digital transformation technologies through expert interviews and a review of prior research. The K-ESG guidelines serve as a useful ESG diagnostic system that enables companies to identify improvement tasks and manage performance based on goals through self-assessment of ESG levels. By developing a model based on the K-ESG guidelines for the integrated promotion of digital transformation and ESG management, companies can simultaneously improve ESG performance and drive digital innovation, reducing redundant investments and trial-and-error while utilizing diverse resources efficiently. This study provides practical and academic implications by developing a concrete and actionable new research model for researchers and businesses.

• The Journal of the Convergence on Culture Technology
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• v.10 no.4
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• pp.323-329
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• 2024

This study examines the direct impact of ESG ratings on investment efficiency among Korean firms from 2012 to 2022, as well as whether earnings management mediates the relationship between ESG performance and investment efficiency. The key findings are as follows. Firstly, it was found that as ESG ratings increase, a firm's investment efficiency significantly improves, indicating that ESG management has a positive impact on investment efficiency. Secondly, as ESG ratings increase, earnings adjustment significantly decreases, suggesting that ESG investment activities also have a positive impact on firms' earnings management. Thirdly, as earnings adjustment decreases, investment efficiency significantly increases, indicating that earnings management significantly mediates the relationship between ESG performance and investment efficiency. This study demonstrates that higher ESG ratings lead to increased investment efficiency among firms, and earnings adjustmentment plays a significant mediating role in the relationship between ESG performance and investment efficiency.

• Industry Promotion Research
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• v.9 no.2
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• pp.197-205
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• 2024

This study examines the impact of corporate ESG performance on debt default risk using a sample of Chinese A-share listed.The I mpact of ESG Performance on Debt Default Risk of Heavy Polluter Firms from 2012 to 2022. The findings show that good ESG performance can effectively reduce firms' debt default risk. Further analysis shows that firms' ESG performance reduces debt default risk by mitigating the impact of financing constraints. This study explores the influencing factors of debt default risk from the perspective of ESG performance, and also enriches the research on the economic impact of corporate ESG performance, providing empirical evidence for the prevention of corporate debt default risk.

• Knowledge Management Research
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• v.22 no.4
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• pp.87-101
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• 2021

ESG Investment is emerging as a trend and common sense in the financial market. ESG Investment is an investment method that simultaneously pursue social sustainability and investment returns from a long-term perspective by reflecting non-financial factors such as environment, society and governance in addition to corporate financial performance in investment decisions. This study checked how the characteristics of ESG investment have been changed after Covid-19. Afterwards, it was confirmed that Covid-19 actually acted as a negative factor in the securities market by applying VAR model. At the same time, it was demonstrated that ESG indices of the US and Korea outperformed their benchmark in terms of return and risk during the pandemic regime. The result of this study hints that the importance of ESG investment will be unchanged after Covid-19. At the same time, it suggests that managers should avoid passive ESG management and engage in strategic ESG management based on knowledge management.

• Journal of Korea Society of Industrial Information Systems
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• v.28 no.6
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• pp.173-187
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• 2023

This study aims to determine whether ESG performance positively affects foreign ownership for listed firms that publish sustainability reports. Furthermore, we test whether the disclosure of environmental information in the sustainability report in accordance with the TCFD recommendations moderates the relationship between ESG performance and foreign ownership. The results of the empirical analysis are as follows. First, there is a positive correlation between ESG performance in a given year and foreign ownership in the following year, i.e., the higher a firm's ESG performance, the higher its foreign ownership. Second, the presence of environmental disclosure in accordance with the TCFD recommendations positively moderates the relationship between ESG performance and foreign ownership, i.e., environmental disclosure in accordance with the TCFD recommendations strengthens the positive relationship between ESG performance and foreign ownership. In conclusion, this study shows that foreign investors invest more in companies with better ESG performance, and the effect is stronger for companies that disclose environmental information in accordance with TCFD recommendations.

• Journal of the Korea Fashion and Costume Design Association
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• v.26 no.1
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• pp.99-109
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• 2024

This study focused on analyzing the difference in the impact of non-financial performance, specifically ESG (Environmental, Social, and Governance) activity grade level, on management performance and corporate value among the 25 fashion companies listed on the Korea Exchange that completed their ESG evaluation in 2022. The companies were categorized into three levels based on their ESG evaluations: ESG Integrated Grade (ESG-T), ESG-E (Environmental), ESG-S (Social), and ESG-G (Governance). The study then empirically analyzed how these levels affected management performance and corporate value. The empirical analysis revealed significant differences in the impact on management performance and corporate value depending on the ESG activity grade level. Companies with higher ESG grades exhibited better management performance and higher corporate values across all ESG sub-variables (ESG-T, ESG-E, ESG-S, ESG-G) compared to those with lower grades. This finding demonstrates the influence of ESG activity grade levels on improving management performance and enhancing corporate value in fashion companies. The results of this research provide meaningful insights into the direction of sustainable management through ESG activities in fashion companies.

• The Journal of the Convergence on Culture Technology
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• v.9 no.3
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• pp.19-26
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• 2023

The impact of environmental, social and governance (ESG) performance on investors' decision-making is growing. Investors' focus on the financial performance of firms in the past is expanding to the non-financial performance of the interests of stakeholders surrounding firms. Against this backdrop, this study conducted a panel regression analysis on firms evaluated by Korea Corporate Governance Service to analyze the impact of ESG performance, a firm's non-financial performance, on firm risk. According to the analysis, ESG performance has a negative (-) effect on all three firm risks (systematic risk, unsystematic risk, and total risk), indicating that the stakeholder theory and risk management theory are supported. The implications of this study are: First, ESG reduces not only unsystematic risk but also broad and indiscriminate systematic risk; Second, investors can reduce the risk of their investment portfolio by executing ESG investments; Third, companies can achieve stable financial performance even in adverse circumstances by utilizing the insurance function of ESG management; Lastly, the government can enhance the stability of the financial market while improving the financial soundness of firms through reasonable ESG-related regulations.

• The Journal of the Convergence on Culture Technology
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• v.10 no.5
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• pp.235-242
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• 2024

This study analyzes the development process of Environmental, Social, and Governance (ESG) policies in Korea and corporate response strategies, comparing them with cases from major countries. The results show that while Korea has established a basic framework for ESG policies through the K-ESG guidelines and plans for mandatory ESG disclosure, these policies lack the specificity and enforceability seen in major countries. In terms of corporate response, large companies are actively formulating ESG strategies, but strengthening ESG capabilities of small and medium-sized enterprises (SMEs) remains an urgent task. Industry-specific ESG strategies reflect the characteristics of each sector, such as carbon neutrality in manufacturing, expansion of responsible investment in finance, and enhanced data security in IT. This study suggests improving Korean ESG policies by enhancing the alignment of ESG disclosure standards with international norms, strengthening tailored support for SMEs, and developing industry-specific policies. For effective corporate ESG response, the study proposes strategic integration of ESG, enhanced communication with stakeholders, and improved ESG data management capabilities.

• Knowledge Management Research
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• v.24 no.3
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• pp.53-71
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• 2023

Environmental, Social, and Governance (ESG) refers to factors that are important for assessing a firm's social and environmental effect, as well as its governance standards. This paper investigates the relationship between ESG-based corporate governance and SDGs strategy implementation by discussing about incorporating ESG issues into corporate operations. It digs into the advantages and disadvantages of aligning corporate governance with the SDGs, demonstrating the potential for delivering long-term value for both firms and society as a whole. In this paper, we investigate ESG-Based Knowledge Management (ESG-KM), a knowledge management system that incorporates sustainability principles. More specifically, the paper investigates how the synergy between ESG-KM and ESG-Based Corporate Governance (ESG-CG) might influence firms' long-term value creation, stakeholder involvement, and sustainable decision-making. Finally, this paper investigates how public organizations might use knowledge management to improve the implementation and effect of ESG-CG principles, resulting in better sustainable outcomes. Public enterprises may support responsible decision-making, increase stakeholder involvement, and achieve long-term performance by linking ESG principles with corporate governance standards. The paper then explores how ESG-KM might help public firms integrate these concepts into their governance structures. The scientific novelty of this paper resides in its thorough investigation, realistic implementation methodologies, and novel combination of ESG principles, corporate governance, and knowledge management. Furthermore, by providing actionable insights and emphasizing the application of these concepts in the context of public enterprises, the paper makes a valuable contribution to the field of management, propelling the discourse on responsible and sustainable business practices in both the private and public sectors.