International Scholar Invitation Forum held with Professor Alex Edmans of London Business School

From the left, KUBS professors Dr. Kim Joonghyuk, Dr. Jungbien Moon, Dr. Kim Woochan, Dr. Na Hyun Seung, Dr. Kyung Suh Park

The forum was held both offline and online while abiding to guidelines to prevent the spread of COVID-19.

On July 6^th(Tue), the ‘ESG International Scholar Invitation Forum,’ hosted by KUBS Asian Institute of Corporate Governance (AICG) and sponsored by ‘KUBS-SK business for Society project,’ was held both online(Zoom) and filmed in studio. The event began with the welcoming words of Professor Kyung Suh Park, head of KUBS Asian Institute of Corporate Governance (AICG), followed by a presentation from Professor Alex Edmans of London Business School and a panel discussion between KUBS professors Kim Joonghyuk(host), Kim Woochan, Jungbien Moon, and Na Hyun Seung.

Professor Alex Edmans, a globally renowned expert in ESG management, mentioned he was aware that ESG became an important topic in Korea. He emphasized the importance of financial elements in ESG management. He explained that financial elements are ‘profit’ for investors and ‘fair prices’ for society and individuals, and ESG management is ‘dividing the whole pie even more effectively.’

How can companies implement ESG management? Professor Edmans asked ‘How a purposeful business makes decisions’ and said, “it is unrealistic to serve customers, employees, suppliers, the environment and the community while providing profit to investors at the same time.” Since it is difficult to satisfy everyone, a company’s goal for ESG management should be determined by ‘Comparative Advantages’ and ‘Principle of Materiality.’ He cited “Corporate Sustainability: First Evidence on Materiality” by Khan, Serafeim, Yoon(2016) and explained that firms should contemplate what value they can deliver by utilizing their current capabilities and focus on specific issues that can be tackled rather than try to solve every problem of their ESG.

Professor Edmans introduced his book, 「Grow The Pie: How Great Companies Deliver Both Purpose and Profit」 and emphasized that ESG is ultimately a helpful value to firms and highlighted the role of shareholders for the responsibility of ESG management. He concluded the session by giving his thanks to KUBS Asian Institute of Corporate Governance for the opportunity to participate in this forum and the participants for their keen attention.

Editor | Yoon Seon Woo (Media & Communication ’18)

Photography | Shin Se Rim (College of Political Science and Economics, Economics ‘18)