Trust Management

▽Believable firm is the powerful 〓 Experts emphasized that companies must have a transparency, ethics and a social responsibility to develop continuously by receiving the trust. There are the transparent accounting, honest management, fair competition, law-biding & tax payment, clear decision-making structure and a responsibility for a regional society.

The world-successful companies have sought for high morality and high performance. Leading Silicon Valley of US for above 50 years, Hewlett-Packard Company emphasized on the human respect saying that the pursuit of profit cannot be an ultimate goal of the company. Johnson & Johnson has regulated the social responsibility of the company in order of consumers, employees, local society and shareholders in ‘Our Credo’ of the ethical principle from 1943.

Having the history of 100 years, ‘International Paper (IP)’ has grown as the largest pulp/paper industry by keeping away from the management risk such as an anti-trust propriety and the consumer’s resistance through pledge of resource management responsibility.

Jeong Gu-hyeon, dean of the business management department, Yonsei University said “Advanced companies have an important guide of the corporate management with an uncompromising honesty.” The honesty is the first element that the company attracts the world competition in all fields of a quality and efficiency of the products and an organization culture.

▽Good Company Practices the Social Responsibility 〓 Good companies have increased the profits of shareholders through social responsibility activities. Southwest Airlines of US was selected as the company which mostly respects employees in the same industry. The company hasn’t fired employees since 9·11 terror and made only profits among most airlines.

Advanced companies have considered the social contribution activities as the critical factor of the management strategy. Pfizer has operated ‘’joint venture fund’ supporting the funds and know-how for needy individuals from 1996. Merck offered medical treatment materials for infectious disease developed for 10 years to Africa fee of charge. They believe that the social contribution is helpful to the corporate profits for a long term by adding the critical social assets of ‘Trust’ not just donation activities.

▽Trust Management in Korea 〓 Many domestic companies have executed activities not for the pursuit of profits. Kim Jae-cheol, president of Korea International Trade Association (KITA) handed over 590000 shares of stocks to the eldest son in 1990 and paid a donation tax of over 6.2 billion won voluntarily. The national tax service was surprised at the fact.

Yuhan Corp has the business philosophy of ‘production of good products, honest tax payment and the society restoration of the profits’. Amore Pacific Corporation has the management philosophy of the customer value creation through customer satisfaction. Dong Wha Pharm has the philosophy for one family of all employees. These companies have made the various efforts to practice the trust management.

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