Learning from Japan by Avoiding its Mistakes! Assessing the ‘S’ in ESG and its Impact on Financial Performance in Large South Korean Corporations

Peter Matanle, Yang Li, Zhamayne Fakharuzi, Yejin Shin, Jonathan Bradley and Jim McCafferty

No jk9hp_v1, OSF Preprints from Center for Open Science

Abstract: We research how Diversity, Equity, and Inclusion (DEI) policies within the ‘S’ pillar of the ESG framework affect the financial performance of South Korean corporations. Analyzing data from sustainability reports of the 55 largest Korea Exchange listed companies, we examined 15 employment-related indicators alongside revenue, EBITDA, and share price over five years using multiple regression models. We find that equity critically bridges diversity and inclusion, enabling stronger financial outcomes. Referring to Japan’s experience we highlight the risks of expanding diversity without deepening inclusion, and underline the strategic importance of comprehensive DEI approaches for enhancing firm performance under demographic decline and labour force contraction.

Date: 2025-04-23
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:jk9hp_v1

DOI: 10.31219/osf.io/jk9hp_v1

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