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Corporate and Sustainability
The Beginning of Sustainability

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A company's competitive edge lies in 'sustainability'

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Declaration of Sustainable Management and ESG Management

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Executives Reshuffled and Organization Restructured... 
Focusing on 'Sustainable Growth'

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The Future of Companies Now Lies in 'Sustainability' Rather Than Technology

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Sustainable Management Becomes a Key Topic for Businesses

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Economy

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Environment

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Social Value

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Sustainable Management Built on the 
Coexistence of Economic, Environmental, and Social Values

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Sustainable Management

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What is sustainable management?

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Hello, I’m Professor Jongdae Kim from Inha University

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I established the ESG Center at the Institute for Sustainability Research 
and currently serve as its director

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I am engaged in lectures and research activities on ESG

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a topic that many companies have been discussing recently

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What I want to talk about today is

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'The Root of ESG'
I would like to discuss its roots in relation to ESG

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I would like to begin by discussing

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sustainable development and how it has evolved

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into sustainable management

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Additionally, although it's not commonly used these days

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I will discuss the current state of CSR

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It's evolutionary stages, and how it is progressing

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Along with that, I will cover the overall

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history, background, development, and concept of ESG trends

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The Beginning of Sustainability: The Brundtland Report

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As you all know, in 1987, UNEP

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UNEP's WCED

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In Korean, it's called the World Commission on Environment and Development

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have released a report

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This is the report titled 'Our Common Future,' which you all know well

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It is 'Our Common Future'

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It was a highly monumental work

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The individual who managed this project overall was

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a person named Brundtland, 
who was the former Prime Minister of Norway

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so this report is also referred to as the Brundtland Report

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Basically, this report

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was based on the recognition

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that environmental destruction and resource depletion pose a threat

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to the sustainability of social and economic systems

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It was conducted with the aim of diagnosing the current state 
of the relationship between the environment and society

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as well as the environment and economic development, 
while also presenting future directions

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In summary, it is about humanity

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It is a report that reflects on the relationship 
between humanity and the natural environment

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You can think of it this way

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The concept defined here is sustainable development

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Will future generations be able to enjoy a life as prosperous as ours?

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You can see that it started from such reflections and concerns

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It is the structural problem of the existing capitalist economic system

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The first issue is the environmental destruction and resource depletion

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The second issue is income inequality

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As economic growth continues with such structural problems

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there is a growing sense of crisis that humanity

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and the planet will eventually face collapse

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Therefore, these three aspects must be pursued 
in a balanced manner simultaneously

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They all start with E

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Economy, Ecology, Equality

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Ecology and Economy, Ecology and Society, Society and Economy

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These are interconnected

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and if one axis collapses

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the others cannot be maintained

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In two ways, economic inequality
between regions and classes is a social problem

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This can also be seen as economic inequality and environmental issues

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between the present and future generations

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This report can be seen

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as an effort focused on these two issues

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aiming to propose solutions

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The most outstanding aspect

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of this report regarding sustainability is

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its emphasis on an integrated approach

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Sustainability addresses the fundamental issues 
of the capitalist economic system

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which is based on a liberal market economy

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It recognizes the interconnected structural problems within this system

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Environmental destruction, resource depletion, and income inequality

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These are deeply intertwined

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Therefore, balanced development must occur simultaneously

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reinforcing an integrated perspective

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The fact that sustainability encompasses not only the environment

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but also a wide range of socio-environmental issues

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such as social justice, inclusion, human rights, and intergenerational equality

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 is also due to the integrated perspective of this report

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So, sustainable development

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has primarily been discussed at a macro level, focusing on economic policies

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However, when its ideology, principles, and philosophy

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move into the practical stage

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it transforms into operational and management strategies at the corporate level

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That's how the term sustainable management was born

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Business + Sustainability = the beginning of Sustainable Management

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We have been using sustainable management in earnest since the mid-1990s

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And we had to take action to pursue sustainability

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So, at the macroeconomic level

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what can be done in policy making is regulation

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Environmental laws started to become much more stringent

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We have greatly developed environmental management by

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creating areas called Green Management

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and Environmental Management

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This is really focused on environmental issues

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Because environmental management

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has many very important, practical issues

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and if not resolved, enormous costs will be incurred