• The Journal of the Convergence on Culture Technology
• /
• v.9 no.5
• /
• pp.329-334
• /
• 2023

This study attempted to examine the effect of corporate ESG activities perceived by college students on corporate loyalty and purchase intention. The results of the study are as follows. Looking at the average ESG activities recognized by college students, society 4.28 points, governance 4.25 points, and environment 4.12 points out of 5, and the average customer loyalty was 3.86 points when 3 points out of 5 points were median, and purchase intention was 3.84 points. Looking at the correlation between the factors of corporate ESG activities, customer loyalty, and purchase intention perceived by college students, it was confirmed that it had a static correlation coefficient. As a result of analyzing the effect of ESG activities perceived by college students on customer loyalty, the variable that significantly affects customer loyalty in [Model 1] is the major (β=.167p=).01) It was. Among the additional variables added to [Model 2], the variable that significantly affects customer loyalty is the environment (t=3.017, p<.).01), society ((t=4.365, p<.001), governance structure (t=-3.139, p<.01) was found to have a significant effect on customer loyalty. As a result of analyzing the effect of ESG activities perceived by college students on purchase intention, there was no significant effect on purchase intention in [Model 1]. Among the additional variables put into [Model 2], society (t=4.850, p<.001), governance structure (t=-3.452, p<.01) was found to have a significant effect on purchase intention.

• The Journal of Economics, Marketing and Management
• /
• v.11 no.6
• /
• pp.23-34
• /
• 2023

Purpose: This study conducted an empirical study to identify the current status of real estate managers' ESG awareness and to derive recommendations for improvement. Research design, data and methodology: A survey was conducted among those who actually manage real estate assets regardless of region. Descriptive statistical analysis, paired sample t-test, and IPA analysis were conducted using SPSS 27.0 statistical package. Results: The results of the t-test showed that respondents perceived their on-site management achievements to be lower than their perceived importance in all areas of ESG. In the IPA matrix, the mean of achievement is higher than 3, which is moderate. Environment (E) was found to be relatively low in importance. In the Social (S) aspect, the achievement level was low compared to its importance, and Governance (G) was found to be low in importance. Conclusions: Based on the analysis, it seems that policies are needed to emphasize the importance of environmental issues such as greenhouse gas reduction in the environment (E) sector and to strengthen realistic achievement in the social (S) and governance (G) sectors.

• Journal of Korea Port Economic Association
• /
• v.38 no.2
• /
• pp.31-47
• /
• 2022

The purpose of this study is to develop a reliable tool that can classify and measure detailed indicators related to the performance of ESG implementation in the country and verify their applicability. Based on World Bank's data as input data, 67 types of ESG-related detailed indicators measured in a total of 239 countries were tested to derive an optimal model that could group detailed indicators into three categories: environment, society, and governance. As a result of the analysis, it was confirmed that a total of 10 detailed indicators had a statistically significant relationship with the country's ESG performance. In addition, the detailed indicators showed a positive correlation with the primary latent variables E, S, and G, and showed a high overall index in the suitability of the model to secure the validity and reliability of variable input. As a result, this study confirmed that several detailed performance indicators constituting ESG can be classified as latent variables, and it can be said that clear criteria for the selection method and input validity of variables were presented.

• Journal of Korean Society for Quality Management
• /
• v.51 no.2
• /
• pp.171-184
• /
• 2023

Purpose: First, this paper suggests an alternative approach to find optimal portfolio (stocks, bonds and ESG stocks) under the maximizing utility of investors. Second, we include ESG stocks in our optimal portfolio, and compare improvement of welfares in the case with and without ESG stocks in portfolio. Methods: Our main method of analysis follows Brennan et al(2002), designed under the continuous time framework. We assume that the dynamics of stock price follow the Geometric Brownian Motion (GBM) while the short rate have the Vasicek model. For the utility function of investors, we use the Power Utility Function, which commonly used in financial studies. The optimal portfolio and welfares are derived in the partial equilibrium. The parameters are estimated by using Kalman filter and ordinary least square method. Results: During the overall analysis period, the portfolio including ESG, did not show clear welfare improvement. In 2017, it has slightly exceeded this benchmark 1, showing the possibility of improvement, but the ESG stocks we selected have not strongly shown statistically significant welfare improvement results. This paper showed that the factors affecting optimal asset allocation and welfare improvement were different each other. We also found that the proportion of optimal asset allocation was affected by factors such as asset return, volatility, and inverse correlation between stocks and bonds, similar to traditional financial theory. Conclusion: The portfolio with ESG investment did not show significant results in welfare improvement is due to that 1) the KRX ESG Leaders 150 selected in our study is an index based on ESG integrated scores, which are designed to affect stability rather than profitability. And 2) Korea has a short history of ESG investment. During the limited analysis period, the performance of stock-related assets was inferior to bond assets at the time of the interest rate drop.

• The Journal of the Convergence on Culture Technology
• /
• v.10 no.2
• /
• pp.333-341
• /
• 2024

So far, the rationality of management decisions has been limited to the economic rationality of maximizing self-interest. However, management rationality in the ESG era, which pursues the interests of the environment, society, and the company from the perspective of harmony and balance, requires new judgment standards. The goal of ESG management is sustainable development. Sustainable development goes beyond the accumulation of wealth, which was the goal of the past economy, and aims for the happiness of the entire society, including coexistence and fair development that develops together with the entire society. From Aristotle's perspective, the happiness of the entire society promoted by sustainable development is no different from the highest good of citizens, members of the community. Accordingly, this paper attempted to explore the new management rationality required for managers in the ESG era by comparing Aristotle's concept of citizenship with the concept of 'corporate citizenship', one of the main concepts of ESG management. Through this, we sought to show that companies are essentially communal entities and that the company's pursuit of profit requires rationality of balance and harmony with environmental and social interests.

• Journal of Navigation and Port Research
• /
• v.48 no.3
• /
• pp.200-205
• /
• 2024

This paper examines the impact of ESG activities of domestic shipping companies on the cost of debt. It is known that companies with large information asymmetry tend to have high costs of debt. Corporate ESG activities have been identified as an effective means of reducing information asymmetry. By actively engaging in ESG activities, companies can lower the cost of debt by reducing information asymmetry. Therefore, this study aims to investigate whether these mechanisms, which have been observed in previous studies, also apply to domestic shipping companies. Multiple regression analysis is conducted on KOSP I-listed shipping companies from2010 to 2022. The cost of debt is set as the dependent variable, while the ESG rating is used as the explanatory variable. The analysis reveals that companies with a high level of ESG activities generally have a lower cost of debt. However, it is important to note that ESG activities of shipping companies do not seem to have a significant impact on their cost of debt. In fact, the level of ESG activities among domestic shipping companies is not particularly high (Hong, 2024). Despite these findings, domestic shipping companies should still strive for sustainable management to adapt to the rapidly changing business environment and meet the demands of the modern era. ESG management is a representative method for achieving sustainability. Therefore, shipping companies should not only focus on reducing the cost of debt but also on opening up the closed industry culture and communicating with capital market participants for sustainable growth. It is crucial for these companies to listen to the voices of stakeholders and embrace a holistic approach to sustainability.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.17 no.1
• /
• pp.191-211
• /
• 2022

As the value of highly sustainable companies increases, ESG(Environmental, Social, and Governance) has emerged as the biggest topic of discussion for companies around the world. In addition, as domestically, more research is being done on ESG in line with global trends, it is necessary to examine ESG research trends. Accordingly, ESG academic papers that have been published for the past 10 years were collected for each year, and frequency analysis was conducted using text mining techniques regarding key themes and thesis titles. This paper analyzed the number of selected publications by year and the cumulated number of studies through bibliometric analysis. The findings suggested that the number of ESG papers is increasing each year and that academic interest in ESG-related issues continues to abound. Next, according to the results of frequency analysis of the keywords and titles of the research papers, the words- "ESG", "company", "society", "responsibility", "management", "investment", and "sustainability"- were extracted. This analysis identified the research fields and keywords that have been relevant to ESG in the past 10 years. As a result of comparing the major ESG issues presented in recent overseas studies and the common factors of the ESG key keywords presented in this study, it was confirmed that the environment is the focus of recent studies compared to previous studies. Third, it was found that the data used by domestic ESG studies mainly include the KEJI index, the KRX index, and the KCGS ESG evaluation index. After identifying the main research subjects of ESG papers, research found that 8 out of 152 domestic ESG studies were focused on SMEs. Through this study, it was possible to confirm the ESG research trend and increase in research, and future researchers divided the research topics and research keywords and presented basic data for selecting more diverse research topics. Based on both, the arguments of previous ESG studies conducted on SMEs and the results of this study, there is a lack of studies on guidelines for ESG practice and their application to SMEs, and more ESG research regarding SMEs will need to be conducted in the future.

• Journal of Korea Trade
• /
• v.27 no.1
• /
• pp.1-18
• /
• 2023

Purpose - Using a sample of Korean multinational corporations, we examine whether the relationship between tax risk and the implied cost of capital discriminates between the environmental, social, and corporate governance (ESG) of highly rated firms. Design/methodology - Firms with high tax risks have an increased uncertainty of future cash flows. Therefore, as the volatility of future cash flow increases, information asymmetry and the required return increases. Highly rated ESG firms can reduce information asymmetry, thereby weakening the positive relationship between tax risk and cost of capital. We employ the standard deviation of the cash effective tax rate as proxy of tax risk. We utilize the ESG rating data of the Korea Corporate Governance Service (KCGS). We use a PEG model, MPEG model, and GM model to measure the implied cost of capital. Findings - We find a positive association between the implied cost of capital and tax risk. The positive relationship between tax risk and the implied cost of capital weakens in highly rated ESG firms. Highly rated ESG firms prefer a stable tax position to invest after-tax cash flows into sustainable management. Therefore, the negative effects of tax risk on cost of capital can be reduced. Originality/value - This study provides empirical evidence that ESG activities can mitigate the negative impact of tax risk on the cost of capital for Korean multinational corporations. In a business environment where ESG activities are more important, the empirical results that ESG activities can reduce the corporate risk of Korean FDI companies are expected to provide implications for the ESG activities of multinational corporations.

• Korea Trade Review
• /
• v.47 no.2
• /
• pp.121-132
• /
• 2022

This study aims to find out the ESG management keywords in the logistics industry through social network analysis using news article and sustainable management reports. In recent years, global climate change and Covid-19 have spurred companies to step up their new management system called ESG management. ESG is a combination of Environment, Social, and Governance. In the past, companies' financial performance was the most important, but in the current investment market, the movement to reflect ESG management factors in investment decisions is strengthening. This study aims to find out degree centrality, betweenness centrality, and closeness centrality through social network analysis after collecting related keywords to derive ESG management issues of logistics companies. This study collected 2,359 news articles searched under the keywords "ESG", "Logistics". In addition, data on ESG activities were also used for analysis by referring to the sustainable management reports of logistics companies. As a result of the analysis of degree centrality, it was found that ESG management of logistics companies is in progress, focusing on small enterprises and eco-friendly keywords, and is concentrated on social responsibility and eco-friendly activities. In the betweenness centrality analysis, logistics companies such as HMM and CJ Logistics were derived in a high ranking. In the closeness centrality analysis, eco-friendly keywords topped the list, while the number of keywords related to governance was relatively small, suggesting that logistics companies need to improve their governance structure.

• Journal of Korean Society of Rural Planning
• /
• v.28 no.4
• /
• pp.41-53
• /
• 2022

This study aims to identify perceptions on ESG management evaluation priorities based on public value in the agricultural and rural sector with the focus on the Korea Rural Community Corporation. We conduct Analytic Hierarchy Process (AHP) to analyze how ESG management evaluation priorities are perceived by distinctive groups across industrial fields. To this end, experts working in the agricultural and rural sector and the general public in non-agricultural sector were questioned to derive and compare the weights for each class of ESG management. Results show the followings: First, the weight for the environment (E) was derived as 0.51774 in the first layer, which was found to be the most important evaluation item among the environment (E), society (S), and governance (G). Second, "ecosystem restoration," "urban-rural exchange expansion and regional development," and "increasing transparency" were the most important items in the second layer. Third, priorities between the agricultural and non-agricultural respondents groups were different in environmental (E) and social (S) categories, which explained that perceptions on ESG management by workers and policy makers in the agricultural and rural sector are different from those by general public in the non-agricultural sector.