Social value in public enterprises from the perspective of Creating Shared Value (CSV): The case of the Korea Expressway Corporation

Abstract

Numerous scholars have noted social issues such as inequality and insufficient social capital as limitations of efficiency-oriented neoliberal development strategies. In this context, the Moon Jae-in administration in South Korea declared social value as the core value of the state. Therefore, public institutions are required to prioritize social value. Beyond ideological discussions, these social and policy changes suggest the need for concrete discussions on how to practically realize social value. Public institutions have strengthened their social responsibility, contributing to local communities and low-income groups. However, companies often consider social responsibility a cost, which impedes growth. As public enterprises, a type of public institution, have the characteristics of a company, their inherent goals of profitability or entrepreneurship may be limited by enhancing publicness to realize social value. Therefore, public enterprises face the challenge of realizing social value in a way that benefits both society and business. To devise measures to realize social value by strengthening publicness while ensuring profitability, this study focuses on Creating Shared Value (CSV), which benefits both companies and society. Publicness and profitability, two values that public enterprises pursue, are discussed, and Corporate Social Responsiblilty (CSR) is compared with the CSV perspective, which aims to benefit both. This study devises measures from the CSV perspective for realizing social value in the Korea Expressway Corporation, a public enterprise. Implications for other public enterprises are highlighted. Points for practitioners As the need for public institutions to solve social issues has increased, public enterprises face the challenge of realizing social value while ensuring profitability. In this context, this study took the CSV approach and conducted a case study on the Korea Expressway Corporation to present plans for public enterprises to create social value by fulfilling their purpose. By suggesting a process and detailed projects from the CSV perspective, this study will help practitioners to create social value tailored to the characteristics of each public enterprise.