More companies are turning their eyes on social entrepreneurism aimed at promoting a fairer society by helping the underprivileged, industry observers said.

They said social entrepreneurism will be further emphasized as a major trend for corporate growth in the future.

Most big companies have focused on engaging in corporate social responsibility activities by providing financial and other support to the poor and underprivileged.
According to a report by the nation’s largest lobby group, the Federation of Korean Industries, domestic companies’ spending for CSR nearly doubled in six years from 1. 22 trillion won ($1 billion) in 2004 to 2.87 trillion won in 2010.

A recent poll conducted by a local newspaper responded that companies should try to make further efforts so that more people can get help.

In this context, the number of companies which seeks to set up their own “social enterprise” is increasing. Social enterprise in Korea refers to companies doing business while helping local communities by providing jobs or other social services.

The conglomerates with social enterprises include Samsung, POSCO and SK, and some other groups are providing marketing or financial support to small social enterprises as part of their CSR.

Samsung Group, Korea’s top business conglomerate, has promised to establish seven social enterprises by 2013 to support the underprivileged.

The social enterprises will support multicultural families in rural areas, education and child care and the employment of people with disabilities, according to officials.

SK Group recently turned its maintenance, repair and operation company with annual sales of 130 billion won into a social enterprise named Happynarae that can spend more than two-thirds of its profits on social purposes.

POSCO, the world’s leading steelmaker, now operates four social enterprises including Songdo SE. The company, which provides cleaning and car parking services for POSCO affiliates in Incheon, has hired 105 underprivileged people including 35 North Korea defectors, making it the largest employers of former North Korean residents in South Korea.

Industry observers forecast a surge in the number of social enterprises as more companies and the government share a fairer society.

They said social enterprises can be a significant alternative to resolve social problems accompanying rapid economic development and achieving sustainable development.

(shinyb@heraldcorp.com)