Samsung, Hyundai get good grades on sharingSamsung Electronics and Hyundai Motor were among the top 14 companies doing a good job at pursuing shared growth with smaller companies, according to an assessment by the National Commission for Corporate Partnership (NCCP).
The NCCP, a private organization that tries to facilitate “win-win growth” between huge conglomerates and small and medium enterprises, or SMEs, announced yesterday its shared growth index for 2013 that evaluated 100 big companies. They were selected based on their business areas, the level of involvement with SMEs such as suppliers, contractors or retailers, and the level of economic impact they have.
“For the 2013 assessment, we picked companies that receive high attention from our society and can have a large impact by pursuing shared growth,” the NCCP said in a release.
So-called shared growth was an idea pushed by the Lee Myung-bak administration and is still a goal of the Park Geun-hye administration. The NCCP has been doing its assessment yearly since 2011.
The NCCP evaluated the groups’ performances on fair trade and shared growth in conjunction with the Fair Trade Commission and using a survey of 13,784 suppliers from last August to May. It divided the 100 companies into four grades: excellent, very good, good and average.
Each company was scored on a 1 to 100 scale. The top 14 companies were designated “excellent,” and they all had scores over 82.3 points. The next 36 companies were graded “very good” with scores over 76.5. The following 36 companies were graded “good,” with scores over 70.3. And the final 14 companies were declared “average,” with scores below 70.3 points.
The NCCP said that Homeplus, a large discount store chain, got the lowest “average” grade for the third straight year, while STX Heavy Industries was included for the second year in a row. E Land World was put in the lowest grade because it didn’t submit documentation of its shared growth performance, while Dongwon F&B and E Land Retail were downgraded for not signing a shared growth agreement with SMEs, according to the NCCP.
In contrast, Samsung Electronics and Samsung Electro-Mechanics managed to receive the top grade of “excellent” for three straight years, while six other companies including SK Telecom received it for the second year in a row. Coway, a water purifier maker that was omitted in the previous evaluation after separating from Woongjin Group, managed to earn the top grade in its first assessment.
LG Electronics and Daewoo Shipbuilding and Marine Engineering were among 36 companies that received “very good” grades, while Korean Air Lines and Asiana Airlines were among 36 companies with a “good” grade.
The NCCP said that companies that received “excellent” or “very good” grades will be rewarded with additional points when entering tenders for government procurement projects and get a one-year exemptions from the Fair Trade Commission’s investigation on treatment of in-house subcontractors.
The NCCP said that there are no penalties for companies with low grades, but it will offer consulting services to companies that received the bottom grade for three years in a row.
The commission, founded in 2010, said it will come up with new evaluation methods by August reflecting differences in companies’ industries and sizes. The NCCP said the 2014 shared growth index assessment will run from September to next May on 134 companies, with Naver and Ssangyong Motor included for the first time.
BY JOO KYUNG-DON [email@example.com]