Nine out of 10 citizens showed that they are willing to pay more for products from companies that are active in ESG (environmental, social, and governance) activities. As an analysis that a company’s ESG activities can lead to actual sales comes out, it is expected that the business world’s ESG management stance will be further strengthened.
On the 30th, the Korean Chamber of Commerce and Industry (Korea Chamber of Commerce) announced the results of a survey on the’public perception of ESG management and the role of companies’. In the survey conducted on 300 men and women aged 20 and over nationwide, 63% of respondents said that ESG activities of companies influenced product purchases, and 70.3% reported that they did not intentionally purchase products from companies that were negative to ESG. I replied.
In addition, 88.3% of the respondents said that they would pay additional prices for products from companies that excel in ESG activities such as eco-friendly, social contribution, and worker preference. Regarding the amount of additional payment, 3 out of 10 (34%) answered that 2.5~5% of the same products of competitors are suitable. Relatively many respondents (27.6%) that they can pay more than 5%.
Lee Jae-hyuk, a professor at Korea University (College of Business Administration), said, “ESG management not only attracts investment and increases sales, but also has a great effect in risk management to prevent problems. It is necessary to pay more attention to ESG management as much as possible.”
When asked what issues should pay attention to each ESG field most, in the environment (E) field, the most answers were ecosystem pollution (36.7%) and acceleration of climate change (21%) due to overuse of plastics. In the social (S) sector, job shortages (31.7%) and workers’ human rights and safety (31%), in the corporate governance (G) sector, inadequate succession of management rights (36.3%) and personal misappropriation of company assets, etc. ).
When asked what the role of a company is, more than half (51%) answered that they pursue the interest of shareholders and the interests of all members of the society. When it comes to the question of what is the top priority of a company, the most answer is that consumers produce reliable products (32.3%), followed by job creation (23.3%) and reinforcement of social responsibility through social contribution (17%).
“ESG management is becoming a prerequisite for the survival of companies around the world, and social demands and expectations are growing in Korea,” said Yun Cheol-min, head of ESG management team at Daehan Sang. It will help to positively improve public awareness.”
Reporter Kim Kyung-mi [email protected]