Korean companies are increasingly emphasizing their commitment to a better society to improve their image and make their growth sustainable.

Hyundai Steel has set an example for incorporating social responsibility in management philosophy with a range of in-house projects since 2008. Its endeavor has already been recognized by local and international organizations.

In 2009, Hyundai Steel became the first Hyundai Kia Automotive Group firm to be included in the Dow Jones Sustainability Index for Asia Pacific which picked 130 firms from the region’s 600 largest companies. Hyundai Steel was also included in the index for Korea, which selected 41 firms from the countries 200 largest companies. The company also received the top award for the private sector in the Ministry of Knowledge Economy’s sustainability award. In addition, Hyundai Steel was assessed by the Korea Standards Association to be the most sustainable company in the metal and machinery industry in Korea.

Such achievements are the result of Hyundai Steel’s systematic approach to corporate social responsibility.

In order to operate its corporate social responsibility projects more effectively and encourage more employee participation, the company has introduced a number of measures over the years.

In 2008, the company established a social responsibility committee chaired by the company’s chief executive as part such efforts.

Before the launch, the company has been pushing various measures including a matching grant system introduced in 2005.

Hyundai Steel employees taking part in the campaign to donate a set amount from their monthly paychecks, and the company donates matching amounts to the fund.

According to the company, the number of those taking part in the project has increased gradually since its launch and now about 33 percent of Hyundai Steel employees have signed up, generating about 340 million won ($288,000) each year.

The fund is used once a year on a variety of projects ranging from teaching elementary school students about the environment and providing throwing fire extinguishers to facilities for the disabled to repairing houses for underprivileged households.

The project repairing houses, conducted in collaboration with the Korean branch of Habitat for Humanity, is one of Hyundai Steel’s key corporate social responsibility project for this year.

Members of Hyundai Steel’s Happy Yes University Student Volunteer Corps repair a house in Pohang, North Gyeongsang Province in June.                                                    Hyundai Steel

The project selects properties inhabited by single parents, seniors living alone or with grand children and disabled people in areas near Incheon, Pohang in North Gyeongsang Province, and in Dangin in South Chungcheong Province built more than 30 or 40 years ago.

“The project remodels the entire property, so it makes a significant contribution to improving the quality of life of the inhabitant,” a Hyundai Steel official said.

“The project is particularly meaningful in that employees, university students and locals volunteer for the project. Last year, the project was limited to Dangjin, but this year it will include Incheon and Pohang, and we aim to repair 72 houses in total this year.”

In addition the matching grant system that encourages employees to donate money, Hyundai Steel also encourages workers to take part in volunteer projects.

In 2007, Hyundai Steel introduced a system for assessing participation in team units. Under the system, each employee is required to spend at least 27 hours each year taking part in volunteer projects. Each team has a leader who receives leadership training once a year, and plan projects that are suited to local communities and to each team’s abilities. The system has resulted in Hyundai Steel employees taking part in a variety of projects ranging from fixing electrical wiring and mentoring to clearing underwater liter and tutoring.

Along with encouraging its workers to take part in volunteer projects, the company is also helping university students to volunteer.

Last year, the company launched the first Happy Yes University Student Volunteer Corps.

Last year’s volunteer corps, which consisted of 100 university students, took part in house-repair project in Dangin and repaired 32 houses in the area. This year’s batch of student volunteers were launched in June and repaired 10 houses in the Pohang area.

The company also has in place a number of ongoing projects.

Since 2008, the company has been operating environmental classes for children. The classes are held once a month for children in areas near Hyundai Steel’s facilities including Incheon and Dangjin. Through the project, 35,000 children were taught about the environment in 2008.

Another fixed project Hyundai Steel operates is the annual blood donation campaign. Each year in March, the company operates the campaign to address the shortage of blood donors.

In addition, the company has turned end-of-year parties into an opportunity to deliver gifts to the underprivileged.

The project took place across Hyundai Steel’s operations spread across the country at the end of last year, and the participants visited various welfare facilities to deliver gifts and set up Christmas decorations

By Choi He-suk (cheesuk@heraldm.com)