ESG management is emerging as an important corporate management paradigm for establishing sustainable management. ESG management evaluates a company’s non-financial performance by assessing environmental, societal, and governmental factors. ESG mana...
ESG management is emerging as an important corporate management paradigm for establishing sustainable management. ESG management evaluates a company’s non-financial performance by assessing environmental, societal, and governmental factors. ESG management, which has been studied mainly in private companies, has begun to be used as a new standard for sustainable management and management performance evaluation of public institutions based on new public theory. Public institutions' sustainability management goals and values differ from those of private companies. The direction and specific management indicators of ESG management differ when evaluating an institution's type, field, and operational method. In this study, ESG management evaluation items that can be applied to public culture and art institutions were derived based on ESG management evaluation indicators used mainly for general private companies.
The study was conducted as follows. First, ESG management evaluation indicators were derived based on previous studies of ESG management in private companies. Next, FGD-based interviews were conducted with experts in the field based on the existing ESG management evaluation indicators to reflect the characteristics of the culture and arts sector and arts and culture public institutions. In addition, ESG management evaluation indicators were derived for arts and culture public institutions. Finally, each ESG indicator's importance level was derived using the analytical hierarch process (AHP), a hierarchical decision-making technique.
As a result of this research, social responsibility showed the highest importance (about 60%) for arts and culture public institutions, followed by governance (G) and environmental (E). In particular, environmental (E) was recognized as the least important factor in the arts and culture field. However, environmental (E) showed very high importance in private companies due to the effects of global warming and climate change. According to the characteristic analysis of arts and culture public institutions, social contribution and social responsibility have high importance. Specifically, the service industry and public administration characteristics of the social (S) field showed high importance.
Therefore, the ESG management evaluation of public arts and culture institutions determined that a system different from the existing private enterprise evaluation system should be implemented. The ESG management system for public culture and art institutions should focus on improving social responsibility and the governance and environmental fields accordingly.