Research Report
Review on ESG and Corporate Anti-corruption Legal Systems
I. Background and Purpose of Research
▶ The process and background of the emergence of ESG
○ Immediately after World War II, people began to realize that solutions to the environment and pollution of the highly industrialized society were urgent.
○ As a Sustainable Development concept that seeks to integrate the environment and the economy, the process of embracing the seemingly different two continued for a long period of time.
○ Afterwards, the integration of three concepts that added sociality proceeded.
○ In addition to environmental and social issues, we have come to recognize that it would be difficult if we did not discipline companies, which are the favorites of modern capitalism.
○ ESG has emerged as a concept and practical agenda that integrates capital considerations for companies.
▶ Corporate anti-corruption and ESG
○ Today, no one can lead a life unrelated to companies.
○ All activities of a company affect all areas of the public's life, from the beginning to the end, or from the east to the west of life.
○ Corporate corruption harms the efficient distribution of resources in any society. As with the public sector, anti-corruption activities against companies that are private entities in the market have become an important area in ESG.
▶ Current legislation
○ Most items of Corporate Governance, which have been established and developed in corporate law for decades, have been included in Governance and entered the scope of CSR and ESG.
Ⅱ. Contents
▶ Review of anti-corruption governance and laws
○ Since Corporate Governance, which has been developed as an area of ESG called Governance, has already been legislated, it is believed that ESG actually encompasses a wide range of areas of current law.
○ Survey on anti-corruption governance required for Korean companies
○ Survey of major anti-corruption laws in Korea
○ The purpose of a company should not stop at earning profits. Normal corporate order must be regulated by ensuring that profits and assets are distributed normally.
▶ Enable ESG to contribute to normalizing corporate order
○ In the Korean economic world, corporate corruption and managerial breach of trust and embezzlement are frequent. It shatters public trust in the capital market and hinders the future of the Korean economy.
○ In Korea, investigating cases such as unfair mergers that betrayed the capital market
○ ESG must be able to provide certain guidelines for improving Korea’s corporate order, and that means cultivating ESG and corporate anti-corruption capabilities.
○ However, this can only be possible when the entire legal order plays an organic virtuous cycle and cooperates with each other.
○ Specifically, it is believed that it is necessary to provide litigation procedures and legal manpower to help individuals be held accountable without difficulty.
▶ International law or case study
○ Research into the United States' extensive tradition of market self-execution and the written laws and regulations that can support it.
○ Investigate international anti-corruption standards and anti-corruption activities in the private or market sector
Ⅲ. Expected Effects
▶ Providing reference and research data when enacting laws such as corporate anti-corruption
▶ Economic efficiency increases with transparency and fairness. Contributes to a certain extent in improving economic efficiency by providing reference and research data on the anti-corruption area of ESG