january 29, 2013 sen winter school
DESCRIPTION
Corporate Social Responsibility (CSR) & Socially Responsible Investment (SRI ). January 29, 2013 SEN Winter School. Chull-Young Lee. Chull-Young Lee. - Seoul National Univ. College of Commerce(BA, Business Adm), 1968 - Columbia Business School, NYC(MBA), 1973 - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/1.jpg)
January 29, 2013SEN Winter School
Corporate Social Responsibility (CSR)
&Socially Responsible Investment
(SRI)
Chull-Young Lee
![Page 2: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/2.jpg)
Chull-Young Lee
- Seoul National Univ. College of Commerce(BA, Business Adm), 1968
- Columbia Business School, NYC(MBA), 1973
- Head, Planning & Research, Sambo Securities
(Presently, Dae Woo Securities), 1973-1977
- Bausch & Lomb Korea, Founder ∙ Korean Partner ∙ CEO, 1983-2003
- Bausch & Lomb Korea, Korean Partner ∙ Co-Chairman, 2003-Present
- ARK Private Fund & Investment Advisors Inc.,
Founder ∙ Chairman & CEO, 2003-Present
(Investment Principles: Value Investing + SRI)
- Social Venture Competition Korea(SVCK), Founder ∙ CEO, 2005-2007
- Social Venture Competition Korea(SVCK), Director, 2007-2009
- Social Enterprise Network(SEN), CEO, 2010-Present
(Outgrowth of SVCK)
- Sookmyung Women’s Univ. , Visiting Professor, 2010-Present
- Ewha Womans Univ. , Adjunct Professor, 2011-Present
![Page 3: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/3.jpg)
Social Enterprise Network
3
Purposes: (1) Study & Education of Social Enterprise at Business School
(2) To grow responsible business leaders of the future
Partners: Fourteen(14) Business Schools, KDI, Work Together Foundation
and
some corporations in Korea
Programs: (1) Social Venture Competition Asia
(2) Social Enterprise Forum
(3) SEN Student Club
Related Topics: Social Entrepreneurship, CSR&SRI, Environmental Sustain-
ability,
Global Poverty & Emerging Markets(BOP), Social Capital
Market,
Strategic Philanthropy, Non-Profit Management
![Page 4: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/4.jpg)
Contents
I. Corporate Social Responsibility
(CSR)
II. Socially Responsible Investment
(SRI)
III.Blended Value Map4
![Page 5: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/5.jpg)
Ⅰ. Corporate Social Responsibility (CSR)
CSR & ESG Issues
- Environment: Climate Change Exxon Valdez (1989) & Mexican Bay(2010) GE
- Social: Human Right, Fair Trade, Stakeholders Theory, Good Citizenship Nike Scandal (1998), Starbucks
- Governance: Governance Structure, Ownership & Mg’t, Minority Shareholders, BOD, Transparency, Internal Transactions. Samsung & Hyundai scandals 5
![Page 6: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/6.jpg)
달라진 삼성그룹 지배구조 ( 단위 =%)
![Page 7: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/7.jpg)
II. Socially Responsible Investment (SRI)
Definition
Execution
- Institutional Investors
- Mutual Funds & Asset Managements
- Individuals
7
![Page 8: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/8.jpg)
Theoretical Grounds
- Limited Liability
- Stakeholders Theory
- Values Theory
- Tax Benefits
8
![Page 9: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/9.jpg)
History(Worldwide)
- 1948: English churches decide to exclude “Sin Stocks” - 1969: Vietnam War & Dow Chemical(Napalm & Agent Or-ange) - 1971: Pax World & SRI mutual fund - 1983: Boycott of South African Gov’t(Apartheid) - 1986: Chernobyl disaster - 1989: Exxon Valdez oil spill - 1997: Climate Change & Kyoto Protocol - 2002: Enron’s bankruptcy & Dissolution of Arthur Anderson - 2008: CDP(Carbon Disclosure Project) - 2010: ISO 26000 9
![Page 10: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/10.jpg)
Vietnamese woman born with de-formed face as a result of exposure
to Agent Orange.
![Page 11: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/11.jpg)
History(Korea)
- 2001: Samsung & Eco Fund - 2005: ARK Private Fund & “Valuing Investing + SRI” SH Asset Mg’t launches SRI mutual fund. - 2006: Korea Corporate Governance Fund (“JangHaSung Fund”) - 2007: UN PRI - 2009: KRX SRI Index DJSI Korea
11
![Page 12: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/12.jpg)
SRI Strategies
- Screening: Pax World Calbert SRI mutual funds - Engagement: Sovereign & SK Lazard(JangHaSung) ARK - Shareholder Activism: Boycott of South African Govern-ment
※ Community Investing 12
![Page 13: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/13.jpg)
Related Organizations
- Standards
⊙ GRI(Global Reporting Initiative): CERES & UNEP Sustainability Reporting Guidelines
⊙ ISO 26000: Int’l Organization for Standardization Guidelines for Environmental & Social Responsibilities(2010)
13
![Page 14: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/14.jpg)
- Research ⊙ EIRIS(UK): Ethical Investment Research Service
⊙ Innovest(U.S): Environment ⊙ Eco-Frontier, SUSTINVEST(Korea)
14
![Page 15: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/15.jpg)
- SRI Index
⊙ DSI (Domini Social Index: U.S.)
⊙ DJSI (Dow Jones Sustainability Index: U.S.)
⊙ FTSE4Good Index (UK & Europe)
⊙ KRX SRI Index (Korea), 2009
15
![Page 16: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/16.jpg)
UN PRI(Principles for Responsible Investment), 2005
1. We will incorporate ESG issues into investment analysis and decision-making processes.
2. We will be active owners and incorporate ESG issues into our owner-ship policies and practices.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4. We will promote acceptance and implementation of the Principles within the investment industry.
5. We will work together to enhance our effectiveness in implementing the Principles.
6. We will each report on our activities and progress towards implement-ing the Principles. 16
![Page 17: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/17.jpg)
■ Investment Returns
* Domini Social Index (1991-2001) DSI S&P500
5 Years 20% 18.4%
10 Years 18.9% 17.4%
* Calpers’ Engagement with 42 Companies(1987 – 1992)
: Outperformed 41% over S&P500
* Pax World Balanced Fund ($1.1B) : 17th among 293 mutual funds (5 Years: 1996-2001)
* Korean Stock Market
KRX SRI Index KRX SRI KOSPI
2009. 1. 2 – 11. 30 41.8% 35.5%
DJSI Korea DJSI Korea KOSPI
2006. 1. 1 – 2010. 4. 5 37.8% 24.7%
ARK(Value Investing+SRI) ARK KOSPI
2003. 7. 16 – 2010. 5. 4 301.8% 139.89%
![Page 18: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/18.jpg)
Strategic Philanthropy
Non-ProfitManagement& Governance
Social Entrepreneurship
CorporateSocial
ResponsibilityGlobal Poverty,Emerging Markets
&
Int’l Development
Environmental
Sustainability
Social Capital Market
Social Blended Value Spectrum Financial
Sustainable Development
SociallyResponsibleInvestment
18
III. Blended Value Map
![Page 19: January 29, 2013 SEN Winter School](https://reader036.vdocuments.site/reader036/viewer/2022062812/56816362550346895dd4324d/html5/thumbnails/19.jpg)
19