No. 154 / Oct 18, 2021
There is a movement of companies that consider the environment. There are bottled water companies that have removed labeling, Kolon, which made the upcycling suit worn by Bang Tan Sonendan (BTS) at the United Nations (UN) conference, AMOREPACIFIC, which developed eco-friendly paper containers that have reduced 70% of existing plastic use, and Happy Bath, which removed metal springs that have made recycling impossible. Was this a corporate choice?
The answer to this question lies in cause marketing, which is a combination of a consumer’s mining-out and corporate Environment, Social, and Governance (ESG) management. Cause marketing is a marketing technique that induces purchases by connecting social problems that consumers respond favorably to and management of the corporation. Its goal is to obtain both the private interests pursued by companies and the public interests pursued by society. Meaning-out is a combination of two words, and the combined terms are “meaning” which means “belief” and “coming out” which means “come out of the closet.” In other words, it is a type of consumer movement that actively expresses the person’s political and social beliefs through consumption activities. In general, people participate by purchasing products that suit their beliefs and then disclosing them using the SNS hashtag function. ESG management of a company was coined from the initials of Environment, Social, and Governance and is a management technique that the world is paying attention to. This implies that companies that are eco-friendly, fulfill their social responsibilities, and improve their governance can be managed sustainably. According to a survey conducted in April 2021 by a market investigation enterprise, Macromill Embrain, 78.1% of respondents said, “There seems to be an increase in the number of people who want to consume conceptually,” and 55.4% said “If it is a corporate’s product that practices ethical management, I am willing to purchase it even if it is a little expensive.” These perceptions are confirmed to be reflected in actual consumption. Compared to the previous year, sales of eco-friendly products increased by 130% for SSG, 126% for Market Kurly, and 13.6% for E-Mart’s low-carbon certified products. Many companies have attempted ESG management based on this consumption phenomenon.
Although these examples are limited to the environmental field, ESG management is a management principle that applies not only to the environment but also to society and governance. It can be applied to various fields other than the development of eco-friendly products, such as improvement of the working environment, clear marks-of-origin, transparent accounting, and tax payments. Therefore, if you acquire information about the environmental, social, and governance of the company before purchasing a product, it will be easier to consume in accordance with your beliefs. When consumers establish their beliefs and engage in consumption activities, public interest can increase. However, we need to be careful not to defend specific companies uncritically.
By Kim Min-ji, AG reporter
mmoboo77@ajou.ac.kr
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