6 out of 10 Koreans Say "Corporate ESG Activities Influence Product Purchases"

[Asia Economy Reporter Kim Hyewon] Recently, as ESG (Environmental, Social, Governance) has emerged as a key topic in corporate management, it has been found that companies' ESG activities also influence consumers' product purchases.

According to a recent survey conducted by the Korea Chamber of Commerce and Industry on 300 citizens titled 'Public Awareness of ESG Management and the Role of Companies,' 63% of respondents said that corporate ESG activities affect their product purchases.

When asked if they had ever intentionally avoided purchasing products from companies with negative ESG, 70.3% answered 'yes.' Additionally, 88.3% responded that they are willing to pay extra for products from ESG-excellent companies?such as those excelling in eco-friendliness, social contribution, and worker preference?compared to similar products from competitors.

Professor Lee Jaehyuk of Korea University stated, "ESG management can bring positive effects such as attracting investment and increasing sales, but it also plays a significant role in risk management by preventing problems. With the development of SNS and video platforms, ESG-related issues of companies can be easily shared with the public, so companies need to pay more attention to ESG management."

Corporate ESG Activities and Product Purchasing

The ESG area companies are least responsive to is Governance (G) > Environment (E) > Social (S) in order

Among the ESG areas, the one companies are least responsive to was identified as 'Governance (G)' (41.3%), followed by 'Environment (E)' (35.0%) and 'Social (S)' (23.7%).

Looking at the issues companies should focus on by ESG area, in the environment sector, 'Ecosystem pollution due to excessive plastic use' (36.7%) was the top concern. This was followed by 'Accelerated climate change' (21.0%), 'Endocrine disruptors' (19.7%), 'Fine dust' (15.0%), 'Groundwater and tap water pollution' (3.3%), 'Extinction of various flora and fauna' (2.3%), and 'Heavy metals in soil' (1.7%).

In the social sector, the most selected issue by the public was 'Job shortage' (31.7%), with 'Worker human rights and safety' (31.0%) also recognized as important. Other concerns included 'Income polarization' (14.0%), 'Non-regular employment issues' (9.7%), 'Supplier relationships' (7.0%), and 'Pre-modern corporate culture' (6.3%).

Regarding governance issues companies should pay attention to, 'Inappropriate succession of management rights' (36.3%) was the most cited. This was followed by 'Moral hazard of executives such as private use of company assets' (32.7%), 'Preferential treatment in work allocation' (12.0%), 'Strengthening the roles of the board and audit committees' (10.3%), and 'Enhancing minority shareholder rights' (8.3%).

The Top Priority for Companies According to the Public

Top corporate priorities are producing products consumers can trust (32%), job creation (23%), and social contribution (17%)

When asked about the role of companies, 51.0% responded that companies should pursue the interests of shareholders and society as a whole. In contrast, only 9.0% viewed the traditional role of companies as maximizing shareholder profits, while 39.7% emphasized the interests of social members other than shareholders.

Regarding the top priority for companies to fulfill their fundamental role, the largest number of respondents (32.3%) chose 'Producing products consumers can trust.' Other priorities included 'Job creation' (23.3%), 'Strengthening social responsibility through social contribution' (17.0%), 'Contributing to national economic development' (14.7%), 'Improving worker welfare' (7.0%), 'Co-prosperity with partner companies' (4.0%), and 'Contributing to community development' (1.7%).

Yoon Cheolmin, head of the ESG Management Team at the Korea Chamber of Commerce and Industry, said, "As ESG management is becoming a prerequisite for corporate survival worldwide, social demands and expectations for companies are increasing domestically as well. If companies actively promote ESG management that achieves results in the environment, social, and governance sectors, it will help not only sustainable growth but also positively improve public perception of companies."

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