Visitors shop for clothes at a department store in southern Seoul on June 25, 2021. (Yonhap)
SEOUL, Dec. 8 (Korea Bizwire) — Businesses with Consumer-centered Management (CCM) certification tend to show better performance in environmental, social and governance (ESG) management, a consumer watchdog said Tuesday.
The Korea Consumer Agency analyzed the annual CCM Certification Data from 2012 to 2020 and the ESG Performance Data compiled by the Korea Corporate Governance Service showed that CCM certification contributed to better ESG management.
Customer-centered Management is a certification for businesses that conduct various activities from a consumer perspective, which is reviewed by the Korea Consumer Agency and certified by the Fair Trade Commission.
The agency selected 66 businesses with sufficient data for analysis and compared CCM and non-CCM companies from the same industry with a similar amount of assets.
CCM-certified businesses, within three years after the standard year, scored an average ESG score of 3.579 points, up by 4.37 percent (0.150 points) from three years prior to the standard year (3.429 points).
Uncertified businesses scored 3.407 points within three years of the standard year, down by 0.84 percent (0.029 points) from three years prior to the standard year (3.436 points).
Among sub-categories of ESG management, the ‘society’ category showed the highest growth.
CCM-certified businesses saw an 8.72 percent (0.311 points) increase in the ‘society’ category following the standard year, an increase of 4.74 percentage points compared to uncertified businesses (3.98 percent).
Ashley Song (ashley@koreabizwire.com)
