[New Wave] Content Industry, ESG Is the Future

As the era of the new normal arrives, ESG (Environmental, Social, and Governance) has become a hot topic. Although there is much debate about what ESG exactly entails, discussions on the environment, sustainable development, social responsibility, governance or corporate governance, and transparent management are recognized as essential elements that must be carefully considered in this era. In fact, at the Business Roundtable (BRT) annual meeting in August 2019, 181 of the most influential companies in the United States, including Apple and Amazon, declared that the new purpose of a corporation is not to maximize shareholder profits but to create value for all stakeholders, including customers, employees, suppliers, communities, and shareholders. At the World Economic Forum (WEF) ‘Davos Agenda 2022,’ it was also unanimously agreed that a global ESG standard will soon be established and applied across all industries.

The content industry is also viewed as a necessity rather than a choice. Globally, companies like Disney have long been consistently engaged in social contribution activities such as ESG. World-renowned rock bands like Coldplay and U2 have calculated their carbon footprints and halted large-scale concerts to protect the environment. This is because the travel of audiences by air and to performances, merchandise, lighting, and set installations all negatively impact the environment. Apple, for example, emphasizes ethical treatment of workers and provides safe working conditions throughout product manufacturing and service delivery via its supplier code of conduct. Netflix has published an ESG report and is currently running an environmental protection project aimed at reducing its carbon emissions to zero this year. Among domestic companies, CJ ENM published its first ESG report at the end of last year. The Korea Creative Content Agency also operates the Content Fair Coexistence Center, emphasizing transparent management and relationships with workers in the content sector. Since last year, it has been running the campaign ‘Drawing with Content’ to discover ESG values in the content industry. This is an encouraging development.

However, looking at ventures and funds, the situation is not easy. According to the 2020 Social Venture Survey report and media coverage earlier this year, 45% of social ventures considering social impact are concentrated in manufacturing. The cultural and content industries, which seem to have great potential for ESG integration, account for only 1.9%. It is expected that the importance of rooting not only companies but also society itself healthily and responsibly will become more prominent for the development of the entire ecosystem. Active participation is rather necessary. There are many points to consider and improve from an ESG management perspective, such as harmony between people with and without disabilities, the environment of some content companies suffering from brutal working hours, and ensuring equal opportunities in production, distribution, and platforms for creators and indie producers. Not only companies but also the positive influence of content holds great significance. This is an area that requires more attention in the content field, which is often obsessed with superficial entertainment, sensational content, and ratings.

Looking at specific content examples, there are many good contents that have exerted positive influence, such as ‘Hospital Playlist,’ which highlighted the issue of organ donation; ‘Street Woman Fighter,’ which emphasized providing opportunities by spotlighting non-mainstream genres; and ‘You Quiz on the Block,’ which tells stories of overlooked aspects of society and radiates positive influence. The Ministry of Culture, Sports and Tourism and the National Institute of the Korean Language selected ‘environmental, social, and transparent management’ as an easy Korean alternative to ‘ESG management’ earlier this year. As the management philosophy that considers environmental protection, social contribution, and positive influence spreads, it is hoped that a boom of good content considering ESG, the ‘Seoncon Movement,’ will expand.

Byungmin Lee, Professor, Department of Cultural Contents, Konkuk University

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