Chey calls for a better model for social value measurement

Chey Tae-won

SK Group Chairman Chey Tae-won on Thursday highlighted the need for a better social value measurement model to maximize the interests of stakeholders.

He made the comments at this year’s World Economic Forum, which is being held in Davos, Switzerland.

Chey said a “proper social value measurement model” needs to be developed in order to generate and foster social value.

“As we analyze a company’s performance through financial statements, in the future we should measure social value and enhance social performance based on the measurement,” said Chey at the Davos Forum held Thursday. “In particular, we need to first develop an objective and reliable measurement tool to go in the right direction in terms of social value creation.”

Chey attended a panel session entitled “Stakeholder Capitalism in the Asian Century.” It was the second time that he attended the forum as a panel member since he talked about sustainable growth methods in 2013.

The session was hosted by Kenji Kohno, bureau chief of the NHK general bureau for America. It was attended by Joseph Stiglitz, a Columbia University professor who won the Nobel Prize in economics; Laura Cha, chairwoman of Hong Kong Exchanges and Clearing; and Fumiya Kokubu, chairman of Marubeni, who has been leading the efforts to resolve environmental issues.

“It is not an option but an obligation to change the goals and systems of corporate management from the interests of shareholders to those of stakeholders,” said Chey. He explained that customers, employees, suppliers, communities and governments should also benefit under stakeholder capitalism.

He proposed using advanced technologies like artificial intelligence (AI) to enhance social values.

“Using big data and AI technology, we can better understand social issues that each customer cares about and provide more optimized services to each individual, thereby contributing to resolving more social problems,” said Chey. He explained investors can induce companies to take a role in creating social values by encouraging them to measure and assess their social value creation.

SK developed measurement methods and has measured social value created by social enterprises since 2014. It has been implementing a measurement system that calculates the social value created by social enterprises and provides incentives proportionately.

Chey said more data needs to be accumulated.

BY JIN MIN-JI [jin.minji@joongang.co.kr]