One of Two Companies Adopts Moral Charter

In the midst of emphasizing on corporation moral charter because of the accounting forgery of US Enron, moral management such as establishing moral charter spreads on domestic business.

According to the recent survey by The Federation of Korean Industries (FKI) for top 500 companies in turnover about ‘year 2002 corporation moral survey’, at 25th, 49.7% of 292 companies responded that they were practicing moral charter. The number is much higher than 21.8% in 1999 and 45.2% in 2001. Especially, it was known that 76.3% of 80 companies belongs to top 30 groups has moral charter.

FKI analyzed, “Because of the appearance of Moral Round, the effectiveness of regulation of Corruption Prevention, and the strengthening of investor’s supervisory function, companies are interested in moral management to adopt themselves to the change in their surroundings.”

The companies practicing moral charter responded ‘after establishing moral charter, the operational environment changed positively’ (66.9%), ‘moral management and turnover have correlation’ (77.9%), ‘moral management affects share price’ (79.6%). Additionally most of companies (95.0%) in the survey responded ‘moral management is indispensable one.’

The companies have moral charter give priority on △ customer relation (40.8%) △ maintain of internal rule△ relationship with provider (23.4%).

17.3% of companies reflect moral management to performance rating increased compares to the last year of 13.1%. 38.6% of companies adopt internal report system.

Yeon-Su Shin ysshin@donga.com