Korean Firms Labor Practices as Corporate Social Responsibility (CSR) Initiatives

Korean Firms Labor Practices as Corporate Social Responsibility (CSR) Initiatives

by Sunghye Kim Department of International Studies

A THESIS Submitted to the faculty of the Graduate School of International Studies of Ewha Womans University in partial fulfillment of the requirements for the degree of Master of International Studies June 2011

Accepted by the faculty of the Graduate School of International Studies of Ewha Womans University in partial fulfillment of the requirements for the degree of Master of International Studies

Director of Thesis: Kisuk CHO

Faculty Committee: Jennifer OH

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Heather WILLOUGHBY ________ Kisuk CHO ________ (Name and Signature) (Date)

TABLE OF CONTENTS
Acknowledgementiv Abstract ...v I. INTRODUCTION .......1 II. GLOBALIZATION, CSR, AND LABOR ISSUES .......6 A. Definitions and Conceptualizations of CSR..6 B. Global Trends for CSR initiatives........14 C. Implications of Global CSR Trends and Labor Issues in Korea...19 III. HYPOTHESES AND METHODS .....25 IV. RESULTS OF DATA ANALYSIS ........30 A. CSR practices in Korea and its impact on quality of employment30 1. Korean Firms CSR performances in GRI.30 2. Contents Analysis of Corporate Reports.....31 3. CSR Performances in Other Surveys......36 B. Public Perception on CSR ........40 C. Impact of other stakeholders shaping publics perception ...43 1. Media.....43 2. Labor Unions....47 3. The Government........53 V. CONCLUSION..57 REFERENCES...61 Abstract in Korean .69
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LIST OF TABLES
1. Types of Stakeholders ...8 2. Korean Firms participations in Global CSR Trends ......18 3. Targeted Values in GRI Categories and its Qualifications ....29 4. Public Disclosure of CSR performances in Human Rights and Labor Practices...32 5. Company List of Public Disclosure on Sustainability Reports .35 6. Comparison on Public Perception of CSR ......40 7. Perception of General Public on CSR (2009): Strongly Agree (%) ...42 8. Frequency of CSR related key words in Korean Newspaper .....45 9. The current status of Labor Union and Expected Role in the future..51

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LIST OF FIGURES
1. Comparison of Carrolls and Vissers CSR Pyramids.........13 2. Number of Regular and Non-regular workers by Gender and Marital Status.21 3. Wage Comparison by Employment Type and Gender...22 4. Percentage of Labor Union Members......24 5. Analytical Framework ........27 6. The number of GRI registered Korean firms, published reports and the ratio of publication to total number.........31 7. CSR program performances by stakeholders......36 8. CSR performances: Employees...........37 9. Comparison of media attitudes towards CSR in the US and Korea....46 10. Comparison of Chosun and Hankyore : Subscriber and Frequency47 11. Public Perception on Labor Unions in 1989 and 200752 12. Public Perception on Government responsibility....55

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ABSTRACT
Corporate social responsibility (CSR), where a corporation voluntarily integrates social and environmental concerns in its business practices and in its relations with stakeholders, has been an important concept due to the increased social tension and growing inequality brought about by neo-liberal globalization. Although the history of Korean firms CSR goes back to the late 1990s, their CSR performance has exhibited uneven development, with efforts in labor practices and human rights remaining insufficient. Meanwhile, the quality of working conditions in Korea remains below expectations and has the potential to affect the long-term sustainability of business. In this regard, this thesis recognizes quality of employment as one of the core values that contribute to corporate sustainability and suggests that properly-conducted CSR can enhance the quality of employment. This study is based on a qualitative method, and an analytical framework is outlined which incorporates references of CSR theory, including stakeholder theory. The purpose of this study is two-fold: (1) to describe Korean firms CSR performance in labor and human rights issues; and (2) to understand firms CSR performance in relation with stakeholders. Therefore, this thesis raised questions on how the Korean public perceives CSR and how this perception is influenced by the media, labor unions, and the government. This thesis hypothesizes that firms CSR performance is pressured by the public, and in this process, media, labor

unions, and the government have influenced the shaping of public perception on CSR and labor practices. This content analysis suggests four main points. First, public perception of labor issues is relatively unimportant. Second, the media has influenced the formation of public perception. Third, the Korean public has developed negative sentiment towards labor unions and it attributes to the current behavior of labor unions that does not recognize more responsibilities for the society. Fourth, the public recognizes that solving labor issues are not the most important role of government. Therefore, although there are serious issues in human rights and labor practices, it is unlikely that Korean firms will engage in CSR activities because there is no pressure from the public and there are no regulations outlined by the government. This study also provides a list of suggestions for relevant stakeholders. Regarding the fact that CSR initiatives do not constitute an all-purpose solution, stakeholders should bear responsibility in bringing about better labor relations and an improved standard of human rights.

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