Survey Of 231 Large Firms Shows Corporate Social Responsibility Spending Remains The Same Despite Decreasing Revenue And Profits

by Diana Tomale / Nov 11, 2015 10:44 PM EST

A survey revealed that 231 large firms in South Korea allocated 3.5 percent of their pre-tax profits for social donations last year. (Photo by Oskar Alexanderson / Flickr)

A survey conducted by the Federation of Korean Industries (FKI) shows that the spending of big companies on corporate social responsibility remains the same despite the decrease in revenue and profits, Korea Joongang Daily noted on Oct. 19.

According to the survey, 231 large companies in South Korea reveal that 3.5 percent of their pre-tax profits were spent for the social donations last year, which is almost similar to the 3.48 percent in 2013.

Further reports have revealed that the pre-tax profits of these companies plummet year-on-year by 4.2 percent in 2014.

Despite the decrease of revenue and profits for the last two years, FKI says large companies adhere on its obligation to help in the cultural and infrastructure development of the country.

Meanwhile, social donations by the local firms are being expanded to meet the needs of the local communities. Korea Herald forecasted on Dec. 20, 2013 that some changes were implemented on the programs of local firms to meet the current needs of the people.

Some of these programs aim to provide medications to senior citizens, mentally challenged people and to support those who came from underprivileged families.

Electronics manufacturer Samsung Electronics developed a technology called "eyeCan" that could help patients who are suffering from Lou Gehrig's and other paralyzing illness.

"(EyeCan) was created to provide accessibility to smart devices to patients with such diseases by enabling them to control a computer mouse for affordable prices," Samsung said.

On the other hand, state-run Korea East-West Power Co. carries out nationwide community service called "Hatbit Nanum Hope Power Project," which aims to provide electricity to families who can't pay for their electricity bills.

"We thought that no one, at least anyone living in the vicinity of our power plants, should be cut off from power supply just because they are too poor to pay even basic electricity fees," said the power company.

In addition, the survey conducted by KFI also revealed that 30 percent of the companies surveyed said all of their staffers took part in some type of charitable effort.