Research Reports

The purpose of this study was to examine the necessity and actual condition of promoting sustainable management of Korean construction companies, and to present guidelines for Korean construction companies to successfully promote sustainable management. The first publication of a sustainability report by Korean construction companies was a bit late compared to global leading companies. Between 2008 and 2010, large Korean construction companies began publishing sustainability reports, and in 2012, 8 companies and in 2014, 10 Korean construction companies published sustainability reports. In the case of mid-sized construction companies, publication of sustainability reports was insufficient, but there were a number of companies reporting on sustainable management policies and contents through internet homepages. All Korean construction companies that have recently published sustainability reports are applying global standards including the GRI guidelines. Third-party verification of the sustainability report was also obtained by most Korean construction companies. According to the Dow Zone Sustainability Index(DJSI) evaluation, the difference in the score between global construction companies included in the World Index and Korean construction companies included in the DJSI Korea Index was about 3 points. This is relatively small compared to the difference(7 points) in scores between global companies included in the DJSI World index and all Korean companies included in the DJSI Korea index. In addition, as a result of evaluation by KCGS(Korea Corporate Governance Service) for listed companies in Korea, there was no significant difference between general companies and construction companies in the proportion of companies with a good ESG level of B+ grade or higher. In this study, the sustainable management guidelines of Korean construction companies were presented based on global standards and guidelines related to sustainable management, and best practices of leading construction companies. Specifically, with reference to the UNGC 6-step model, ISO 26000 social responsibility practice procedure, GRI Standards, and best practices of major construction companies, the guidelines for promoting sustainable management of Korean construction companies were presented as a 6-step model.