The age of Asia is dawning. China has emerged as the new super power, and it is determined to make the transition from being 'the world's factory?to the world's market?' Japan is also determined to bring back its glory days using the recent slowdown of the US economy as an opportunity. An increasing number of key Korean corporations are rising as major players in the global arena. East Asian business management style is also under the spotlight. In East Asia all members of a society are expected to play their rightful role and uphold their responsibilities to the society, and corporations are no exception. Therefore, corporations were expected to guarantee jobs for the life of its employees, while pursuing mutually-beneficial business transactions with its suppliers unless faced with imminent bankruptcy. Sharing its economic gain with other members of society was also a well-accepted public expectation. During the post IMF bail-out in the late 1990s, the previous expectations changed when Korean corporations were bombarded by the so-called 'global standard?which was the new western capitalism model that placed shareholder value as a distinctly top priority. Business managers were forced to embrace a new value system where good companies are the ones that maximize profit, manage human resources as a cost factor instead of assets, and make decisions on the basis that which benefits shareholders, is beneficial to the corporations themselves. The shareholder value movement caused many changes in the business world and brought some negative consequences. For instance, employees had to bear the brunt of unfavorable business performance far more than they used to and job stability was weakened significantly on a societal level. A dramatic increase in temporary workers is a direct consequence. Shareholder demand for increased profit was passed on to suppliers, and we began to see increased number of suppliers driven to bankruptcy even when their buyers, typically large corporations, flourished with record profits. The shareholder value movement which had been subjected to much criticism has now been shaken to its core since the global financial crisis resonated from US. The recent crisis calls for Asian corporations to adopt a new management method. The stage has been set for a new business management method to become the new norm. East Asian corporations have a good opportunity to present this new norm but before they do, they need to present answers to some very important questions. Here are the eight key questions selected by the Hankyoreh Economic Research Institute. 1. What are corporations about? In the past, East Asian enterprises were strongly patriarchal and operated in a closed manner. At the same time, they had community spirit commonly found in the East Asian society. Loyalty was demanded from the employees but at the same time, they were respected as important constituents within the corporation. However, such community spirit has disappeared as the corporations turned themselves into organizations whose top priority was to strive to maximize shareholder value. As a consequence, they became more open but at the same time their community spirit has diminished considerably. Who should be the top priority for corporations? Should it be shareholders, employees, customers, or society? It is about time we make an earnest effort to find an answer to the question. 2. What are governments to the corporations? The relationship between corporations and governments in East Asia has been unique. Unlike governments of key western nations such as the UK and the US which allow corporations to act more independently, the governments of East Asian countries such as Korea, China and Japan have exerted heavy influence on corporate affairs. Such a corporate-government relationship is rooted in the socio-cultural characteristics of East Asia. However, at the same time, the governments could have greater influence on corporations because economic development was led by the governments themselves. Were governments the rulers or the supporters of the corporations? Would the governments have continued to have such a strong role in the future, or would they begin to play more a more passive role? What is the ideal form of government relations that future corporate leaders should pursue to establish? 3. What are the secrets of East Asian enterprise's success? There is no question that corporations of the three Eastern Asian countries have emerged as potent players in the global economy. The question is what made them perform so well? What are the characteristics that distinguish them from western corporations, in how they are organized and how they innovate themselves over time? What are the innate values that allow the East Asian corporations to have such characteristics? 4. What should be the focus of CSR in East Asia? Demand for CSR has increased as societies began demanding increased fairness and mutually beneficial relationships with stakeholders. It should be noted that the relationship between the corporations and society has been more organic in East Asia due to the community spirit of the region compared to the west. Although East Asia became industrialized much later than advanced nations in the west, information technology proliferated in East Asia at about same time as it did in the west. So, now there is potential for East Asia to actually take a leadership role in CSR management. What should be the focus of the CSR management for East Asian corporate leaders? 5. Where should corporations start on low carbon business management? Participation in the Carbon Disclosure Project (CDP), which prompts corporations to disclose their CO2 emissions ?the main contributor of global warming- is widely regarded as the first step in low carbon business management. This is very much in line with management principles of what gets measured gets managed? How can corporations begin to participate in the CDP? 6. How should corporations cope with ISO 26000? The International Standard Organization (ISO), which has established international standards on quality and environmental management, is scheduled to announce a new standard on CSR this November. This indicates that CSR has now become an established aspect of corporate management. How should corporations respond to this new standard? 7. What makes social enterprises of Korea, Japan and China unique? Interest in social enterprises is soaring. There are many social enterprises out there and many people are interested in starting one. However, social enterprises in East Asia are basing themselves on the philosophy and activities of social enterprises in the west. What is the significance of social enterprises to the three East Asian nations? How can they collaborate and compete with governments, corporations and civil societies? Do social enterprises in East Asia have the potential to grow quickly to take on a greater role in the region compared to their peers in the west? 8. What makes the policy environments of China and Japan unique? The government policies of every nation heavily affect the business performance of corporations that operate within each country. For companies interested in operating in East Asian countries, it is beneficial to understand how government policies are formed and who leads the processes. What constitutes the policy environment of Japan and China? Also, what makes them different from that of Korea and what are their similarities? We will attempt to find answers to the eight questions at the 'Asia Future Forum 2010: Evolution of East Asian Enterprise (www.asiafutureforum.org) which will be held in Seoul, on December 15-16. Renowned academics and corporate leaders will gather to answer the questions and shed light on the ideal evolution path for Korean corporations striving to expand their role beyond Asia. If you are a business manager who is in search for a new management paradigm or an expert interested in the evolution of East Asian corporations you need to pay attention to the eight questions posed. The same goes for experts in the non-profit sector interested in forming new partnerships with corporations. (For more info please call +82-70-7425-5237) LEE, WonJae President, Hankyoreh Economic Research Institute