An Exploratory Study on the Characteristics of Supply Chain Environmental Management in Korean Firm
Authors:   Asia-Europe Perspective Association, Myung Chang-Sig 
Published: June 2018

Recently, environmental problems such as climate change, greenhouse gas, and etc, are spreading out worldwide. Dramatic increase of social concerns on the environmental problem has been leading companies to take into account environmental issues in strategic decision-making. Moreover, because environmental management is on the rise as a significant issue in securing firm's future competitiveness, company is establishing a strategy of green growth. Some doubts about corporate environmental strategy, however, still remain unsolved.
SCEM is the concept of reducing environmental effect on the outside of purchasing and manufacturing process, delivery, and distribution process. An ultimate aim of SCEM are to obtain environmental stability and an operational efficiency which is related with energy and materials. Although the importance of greening supply chain has been highlighted, many former researches were often based on case studies of specific industry and didn't provide clear definition of environmental supply chain management which includes fundamental notions for business practitioners.
This study focuses on findings how the SCEM system practically runs and what the characteristics of SCEM is in Korean firms through case studies.
I analyzed the cases under five categories: eco-friendly design & products development, green purchasing, production & logistics, take-back & recycling and environmental supporting for suppliers. Those are selected through reviewing theoretical literatures which was published.
Four companies including LG electronics, Samsung Electronics, Kia Motora, Hyundai Motors, POSCO, and Hyundai Steel was selected for the analysis of case studies. They are leading companies which has been implementing environmental management in Korea and has been annually publishing Sustainability Report.
Sustainability Report is a key sources of data and contents included in cases. Additionally interview with managers of companies which is in charge of environmental affairs was attempted.
It is suggested that SCEM is more effective for environmental management rather than by making limited eco-innovation. Korean firms have considered that an international environmental regulation is more important than customers' needs for environmental goods for implementing SCEM. The collaborative relations between manufacturing company and parts-suppling company make an important effect on SCEM. but it was implemented by one-sided lead of manufacturing company. Considering industrial characteristics, there is some differences between consumer goods and industrial goods. Auto mobile and electronic industry which is producing a consumer goods make actively a response to the environmental regulation. Also they are more elaboratively tied with the parts and material firm.
Finally there is no difference in the implementation of SCEM comparing the category of Hyundai Group and other category including Samsung, LG and Posco. It means that the environmental management in Korean firms is needed and implemented by external environment rather than CEO' managerial philosophy.
The result of this study can be applied to developing strategies for SCEM concerning which direction a firm should focus on, and which process a firm should interest on. It also provides helpful insight on the implementation and development of environmental management. Also these findings give an important implications for future research because this study is implemented on an exploratory basis.
However, it has some limitations which should be dealt with in further studies. Environmental strategy and its change need a longitudinal study. Also various elaborate research methods should be designed to trace the change of environmental strategy.