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Research Article

KT’s CSV: Creating Shared Value through GiGA Island

Choi, Jun Hyeok1 · Kwanghee Cho1 · Jun Hong Joon2

1 Dongguk University, 2 Shingu College

Published: January 2017 · Vol. 21, No. 4 · pp. 65-98

DOI: https://doi.org/http://dx.doi.org/10.17287/kbr.2017.21.4.65

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Abstract

Due to the great deal of time lag and uncertainty between a company’s social contributions and the benefits the company derives through it, traditional CSR has often been treated as a duty, rather than a profit for corporate managements. Porter and Krammer(2011) introduced Creating Shared Value(CSV) as a strategic view which argues that social and corporate value creation must be concurrent. They describe CSV in three manners: product creation and market entry, value chain efficiency, and local cluster development. KT has been carrying forward domestic CSV projects through its GiGA Island(GiGA Story). The GiGA island project is a traditional CSR activity intended to resolve social problems—information gap—by donating KT’s IT solutions to remote local islands or towns. However, it can also be considered a successful CSV activity in that KT projected its core competencies to create an opportunity to test and promote its new products and services. Not only that, KT can also secure its competitive advantage when pursuing new business in equivalent markets through proposing this as an existing performance. Recently, KT started applying its experience from domestic GiGA projects overseas. In cooperation with the Bangladesh government, KT launched various projects to help solve the local community’s information gap problems. Taking into consideration that KT is reproducing a previously successful local project, holding successful cases from foreign multinational companies, working in close cooperation with the local government, and trying to actualize CSV as its core strategy, KT’s Bangladesh GiGA Island project seems to be an important step in expanding its global market. Furthermore, it is expected to provide a significant model that future businesses attempting to secure their competitive advantage through CSV can follow.
Keywords: 공유가치창출(CSV)기업의 사회적 책임(CSR)KT기가아일랜드기가스토리방글라데시