Chairman Han Dong-woo presents “compassionate finance” as an exemplary case at 2012 DJSI International Conference
Han Dong-woo, Chairman of Shinhan Financial Group (SFG), presented “Compassionate Finance by SFG” as an exemplary case at the 2012 Dow Jones Sustainability Index (DJSI) International Conference held at the Shilla Hotel on October 9.
SFG’s “compassionate finance” was chosen as the topic of the presentation, being recognized as the most advanced form of social responsibility activity done by domestic companies in terms of Creating Shared Value (CSV).
This conference is arranged every year by S&P Dow Jones Indices (Dow Jones), the world’s largest financial information provider, Sustainable Asset Management (SAM), a leading company in corporate sustainability assessment, and the Korea Productivity Center.
CEOs of companies deemed sustainable, industry experts and investors participated in the event held under the theme of “Corporate Reputation & Financial Return.”
Chairman Han pointed out during the presentation that there are limitations in winning the hearts of people through pure social contribution activities that are irrelevant to the company’s core business regardless of the amount of money or time invested. “Although Shinhan Financial Group made the largest amount of donations in the industry, it was difficult for us to have people share our true passion through CSR efforts that were irrelevant to our core services,” said Han.
In recognition of this, he designated “compassionate finance” as a new corporate motto, saying that the group will treat its customers as partners for mutual prosperity through financial services, reach out to those less privileged and meet the call of the times.
Chairman Han stressed the need to dispel pessimism about “compassionate finance” and create a general consensus regarding the concept, as people still have prejudices about the nature of the financial industry and believe that this new initiative is no better than traditional CSR efforts.
“Compassionate finance” is in line with the times and CSV will emerge as today’s Zeitgeist, something that can satisfy both the social values of the community and the economic values of business, added Han.
He also argued that Shinhan had prioritized growth and profit, as shown in its existing systems and organizational culture, and that it should shift its focus to longer-term sustainability. To this end, it is crucial to create a balance between the Western style of evaluating performance to ensure sound growth and profit, and people-oriented management; the Eastern way of earning trust from society and customers.
In closing, Chairman Han said Shinhan had begun sincere efforts to transform itself, and reiterated his commitment to “compassionate finance”, wanting to ensure that the initiative is firmly rooted in its DNA and that it remains faithful to its core business as well as to social values.
Meanwhile, the financial group ranked first in the Korean banking sector of the DJSI for the fourth consecutive year.
It also enjoyed the honor of being incorporated into the DJSI Asia Pacific for the fourth straight year. Only the top 20% of businesses in the Asia Pacific region can make it into the index, thus making it a gauge of companies’ international competitiveness.
The Dow Jones Sustainability Index was developed by Dow Jones in collaboration with SAM, in order to create a comprehensive assessment of companies’ sustainability performance.
Launched in 1999, the index assesses the world’s 2,500 largest companies in terms of market capitalization based on their financial performance and achievements in terms of the environment (environmental management performance), economy (corporate governance, management of business partners, etc.) and society (corporate social responsibility, participation of stakeholders).
Despite different companies ranking first in each sector due to fierce competition, SFG has managed to maintain its top ranking since first being included in 2009.
Only 15 companies, including SFG, have maintained the No.1 position in 28 industrial sectors for four consecutive years. This year, the group recorded high scores not only in economy, environment and society sectors, but also in the participation of stakeholders (shareholders, investors, etc.) and the management of environmental data.