Business Ethics In South Korea
Korean Models of Compliance and Business Ethics Based on Case Studies of Business Leaders in South Korea
FKI Media(www.fkimedia.co.kr), a publishing subsidiary of FKI (Federation of Korean Industries) published a book called "Business Ethics in South Korea" which describes good examples of compliance and business ethics of business leaders in South Korea. The book has three parts with Part 1 describing Korean models of compliance and business ethics in theory, Part 2 introducing cases of seven companies including Siemens Ltd. Seoul, Kyobo Life Insurance, POSCO Energy, Incheon International Airport Corporation, POSCO, KB Kookmin Bank and Shinsegae and the last Part 3 summarizing the previous chapters by ten commandments regarding compliance and business ethics suggests Korean models of compliance and business ethics to business community and college students who will become business leaders in the future.
From 'Noble Poverty' to 'Noble Wealth' - Compliance and Business Ethics as a Way of Making the Society Which Can Recognize Clean Wealth
Nowadays, companies perceive compliance and business ethics as the top priority values for their company management. A survey indicates that more than 95% companies listed in the Fortune 500 are introducing compliance and business ethics . In order to catch up with this trend, most of large companies in South Korea establish the department responsible for compliance and business ethics, operate systematic compliance and business ethics programs and provide related training. This shows that compliance and business ethics became missions of our age which companies should keep.
The concept of noble poverty denied material possessions in the old barter trade period. It still remains in public mindset, even in the current capitalism oriented society. Therefore those who make their fortunes in a legitimate manner are also criticized. The authors claim that we need to shift our paradigm from 'noble poverty' to 'noble wealth' which can recognize legitimate wealth. The authors also claim that compliance and business ethics are the ways to make this shift possible and the Korean model of compliance and business ethics is the shift from 'noble poverty' to 'noble wealth'.
Part 2 describes cases of seven leading companies in South Korea including Siemens AG which experienced one of severe corruption scandals in history in 2006 and how it overcame it, along with philosophy and practices of compliance and business ethics of Siemens Ltd. Seoul. The case of POSCO about its compliance and business ethics POSCO was also introduced. POSCO was selected by Fortune as the most respected steel company in the world on 2001. Each case is related with four developmental phases of compliance and business ethics - necessity, introduction, diffusion and practice - so that they can help understanding of college students and business people. Part 3 suggests ten commandments for good compliance and business ethics so that they develop leadership for integrity and clean business.
South Korea has developed as one of top 10 economies in the world. However, it needs more understanding and interests in compliance and business ethics in every part of the society so that it can act as a truly developed country. We hope that this book can be a guide to understand compliance and business ethics for current and future business leaders who can lead South Korea.
He received the doctor’s degree in business administration from Seoul National University and served as a visiting scholar at the University of Tokyo, a visiting professor at MIT, a member of National Economic Advisory Council to the Presidential Office of South Korea, President of the Korean Association of Small Business Studies (KASBS) and President of the Korean Academy of Motor Industry. He currently serves as Professor of Business Administration at the Catholic University of Korea (Head of the University Development Council), Chairperson of Asia Council for Small Business (ACSB) and Senior Vice President of International Council for Small Business (ICSB). He is also Associate Editor of the Journal of Small Business Management, the renowned journals in the areas of small and medium enterprises and Research Fellow International Motor Vehicle Program of MIT.
He received the doctor’s degree in business administration from Seoul National University and served as Professor of Global Trade at Hannam University and Professor of International Commerce at Soongsil University. He currently serves as Vice President of the Korean Association of Small Business Studies (KASBS) and Vice President of the Korean Academy of Motor Industry as well as Korea Society for Sustainability Management. He wrote “Coexisting Management” and “Long-Lived Companies in Japan”. He is currently Professor of Business Administration at Soongsil University.
He received the doctor’s degree in laws from Hanyang University and was responsible for HR/Labor Management as well as Business Ethics/Auditing for 20 years in Korean conglomerates such as Samsung Electro-Mechanics and SK C&C. He participated in NABIS Cycle 1 as a corporate trainer and currently serves as Advisor of Global Competitiveness Empowerment Forum. He also serves as Advisor and Co-Developer of NCS (National Competency Standards) of Human Resources Development Services of Korea and Korea Research Institute for Vocational Education and Training. He is a certified labor consultant and currently Professor of LINC (Leaders in Industry-University Cooperation) at Kongju National University.
<Table of Contents>
Part 1 Business Ethics in South Korea
Chapter 1 Significance of business ethics
- Why can business ethics become competitive advantage?
- Business ethics in South Korea, why is it difficult?
- What is the Korean model of business ethics?
Chapter 2 Mechanism of business ethics
- Necessary condition
- Sufficient condition
Chapter 3 Road to business ethics: High road and low road
- The philosophical base of business ethics
- Rule of culture and rule of law
Part 2 Cases of business ethics of business leaders in South Korea
Chapter 1 Necessity of business ethics
- Kyobo Life Insurance
Chapter 2 Introduction and diffusion of business ethics
- POSCO Energy
- Incheon International Airport Corporation
Chapter 3 Practice of business ethics
- KB Kookmin Bank
Part 3 Ten commandments of business ethics
Appendix What is NABIS?