Korean Corporate Social Responsibility (CSR) Practice and the Embedded Liberalism Compromise

Korea has experienced a fast economic rise, joining the Organization for Economic Co-operation and Development (OECD) in 1996, and achieved peaceful transitions of power for the past 21 years, indicating that democracy has taken a solid root. However, this twin-success is tempered by the highest suicide rate in OECD countries and rising tensions among constituents of the society on social issues. The Korean economic and corporate system, exemplified by the conglomerates working closely with the government and including a tacit understanding of providing jobs and opportunities to small-to-midsize enterprises (SMEs), was restructured through the external shock of the Asian financial crisis and the IMF bail-out conditions, causing jobless growth and growing resentment towards big companies and the government. With a thriving civil society, Korea has entered a stage very similar to the embedded liberalism era that western countries have gone through after World War II, seeking to balance liberal economic forces with the social and domestic agenda. The dynamics of the embedded liberalism, combined with Korea's tumultuous historical background, present a set of particular challenges to big businesses and the government. In an export driven country dominated by big companies, the Korean Conglomerates throughout history have been viewed both as the champions of the Korean miracle and also as villains that block further progress. Now, the corporate sector has to present its case as a responsible member of society through heightened Corpotate Social Responsibility (CSR) efforts, conscious of the historical role it is well advised to play. Likewise, the government should focus on establishing and maintaining a balanced society that is more respectful of the social agenda and provides ample opportunities to SMEs and to the service sector as well, while managing the global challenges that affect its ability to manage the balance.