From dominance to responsibility. The integration of corporate social responsibility in Chaebol’s Corporate Governance

Dessi', Cinzia

2024-01-01

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Abstract

This study explores the profound influence of Chaebols-large, family-owned conglomerates-on South Korea's economic transformation from an agrarian to an industrial powerhouse since the 1960s. Representing over 84% of the country's GDP while employing a mere 10% of the workforce, Chaebols such as Samsung, Hyundai, LG, and SK Group have been pivotal in South Korea's development. However, their monopolistic dominance and the controversies surrounding their practices have sparked significant public and academic scrutiny, especially regarding their Corporate Social Responsibility (CSR) initiatives. By conducting a comprehensive review of the current literature, this analysis seeks to uncover the strategic integration of CSR within Chaebol corporate governance (CG) and assesses the extent to which the Korean government encourages socially responsible business conduct. This inquiry is essential for appreciating the nuanced role of Chaebols in the socio-economic landscape of South Korea, emphasizing the intricate balance they navigate between profitability and their commitment to ethical, sustainable practices.