People at Yuhan-Kimberly, the nation's leading maker of health and hygiene products, believe that fulfilling social responsibilities is an investment that improves reputations and the generation of profits.
"Many companies still regard social contributions as costs. They do not see this as investments," company vice president Lee Eun-wook said.
"A good reputation brings good fortune. Employees are satisfied. And we can recruit good people," he said in an interview with The Korea Herald.
The company, a joint venture of Korea`s Yuhan Corporation and U.S.-based Kimberly-Clark, is often mentioned as an exemplary case of how a firm's social activities help build its reputation and corporate value and boost profits.
Yuhan-Kimberly has gained prominence for "Keep Korea Green," a campaign which helped raise public awareness of the importance of the nation's forests, which were neglected during the government-led economic development drive of the past.
Its social activities have not been limited to environmental protection.
The company has also addressed social problems such as unemployment and the declining birthrate with its social welfare programs and "family-friendly" management practices.
The company helped the creation of the national environmental organization Forest For Life, which gave jobless people the chance to cultivate trees during the 1998 Asian financial crisis.
"The project to restore unhealthy forests is aimed at not only providing jobs for the unemployed, but also at protecting the environment. Yuhan-Kimberly's Keep Korea Green campaign greatly contributed to the nation's efforts to overcome the financial crisis," Lee said.
Yuhan-Kimberly believes that it is important for a company to fulfill social responsibilities through ethical and environmental management, as well as improving the life of its employees. The company has satisfied its employees with its unique human-oriented management programs - a life-long learning and family-friendly management. The company has also strived to disseminate the so-called "YK Model" into wider society.
The company`s innovative shift system is part of the YK Model. The company introduced a 24-hour factory operating system, in which assembly line workers work two shifts. One shift works during the day time for four days and takes the next four days off. The other group works night shifts for four days and rests for the following four days. Four teams work two shifts.
During their days off, workers are able to spend time with their children and attend the life-long learning and job training sessions offered by the company.
"The system will also prevent overwork," Lee said.
He said it is important for a company to pursue environmental, economic and social sustainability.
"A company is able to grow only in a sound and healthy society. How can a company be successful when the structure of society is unsound and weak?"
For example, he said the nation's low birthrate potentially drives down sales of diapers, Yuhan-Kimberly's core product.
"The government alone cannot solve social problems," the utive said.
Lee has spearheaded the company's social activities, including the Keep Korea Green campaign, since its inception in 1984.
Yuhan-Kimberly has earmarked 1.2-1.5 percent of its revenues for its social-contribution activities every year.
"I majored in business administration, but when people ask me what my major is, I say, 'forestry,'" Lee quipped.
The company's efforts paid off. Its sustainable development and social contribution programs helped the company gain trust from customers and enhance competitiveness. Its revenue jumped by 129 percent to 905 billion won between 1997 and 2007, and net profit surged over seven-fold to 105 billion won during the same period.
The company is the market leader in all of its core businesses of infant care, feminine care, consumer tissue and professional products.
Yuhan-Kimberly has been picked as one of the nation`s five most admired companies by the Korea Management Association Corporation from 2004 to 2008. The company has been also ed by students as one of the companies that they want to work for, according to a 2008 poll conducted by online job portal, Incruit. The company has received numerous awards for its sustainable and ethical management practices.
Yuhan-Kimberly also received the top score in terms of corporate social responsibility despite its fewer assets and smaller