[2021 Asia Financial Forum] Park Kwang-woo "Time to Redefine Corporate Goals as ESG"

Kwangwoo Park, Dean of KAIST College of Business and Graduate School of Finance
"Corporate goals are expanding to social roles"

On the 25th, at the Westin Chosun Hotel in Jung-gu, Seoul, a panel discussion chaired by Professor Hong Jong-ho of Seoul National University Graduate School of Environmental Studies is underway at the 10th 2021 Seoul Asia Financial Forum, held under the theme of future financial innovation and sustainable growth. Park Kwang-woo, Dean of the Graduate School of Finance at KAIST College of Business, is speaking. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kiho Sung] "The time has come to redefine the goals of companies. As ESG (Environmental, Social, and Governance) management emerges, the goal of companies is no longer just maximizing shareholder wealth but expanding to social roles."

On the 25th, Park Kwang-woo, Dean of the Graduate School of Finance at KAIST College of Business, attended the second session of the '2021 Seoul Asia Financial Forum' titled 'Green Leadership for Sustainable Management' held at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul. He emphasized that 'stakeholder capitalism' is emerging in relation to the recent hot topic of ESG management.

Dean Park explained that as ESG management gains attention, companies are being assigned various roles. He said, "Minimizing and zeroing carbon emissions, social contributions including communities, and employee-centered management are gaining focus," and emphasized, "Accordingly, the goals of the board of directors also need to be redefined."

Regarding the existing notion that "the goal of a company is to maximize shareholder profits," he stated, "Stakeholder capitalism based on ESG management does not infringe on shareholder interests." He explained, "Becoming a respected company can enhance employees' pride and motivate their work enthusiasm, and also gain recognition from society. Ultimately, it can increase the overall pie that all stakeholders can share."

Dean Park pointed out that the carbon-neutral economy will bring structural changes to industries and that no members should be left behind in this process. He said, "We must remember that when taxis were introduced in Gyeongseong during the Japanese colonial era, the number of rickshaw workers, who had zero carbon emissions, decreased," and emphasized, "Support is needed for those who worked in traditional manufacturing."

He continued, "Job transition will be the most important core issue in the coming era," and said, "The role of finance should be further emphasized, such as financial support for startups and employment education for those engaged in traditional manufacturing."

At the discussion, chaired by Professor Jong-ho Hong of Seoul National University Graduate School of Environmental Studies, participants included Dean Park, former 38th President of the Korean Securities Association, Ben Caldecott, Director of the UK Green Finance Institute and Professor of Sustainable Finance at the University of Oxford, Michael Sheren, Senior Advisor at the Bank of England, and Pierce Haven, Director of the European Banking Authority (EBA), who discussed 'Green Leadership for Sustainable Management.'

This content was produced with the assistance of AI translation services.