Pictured here: The first production using eco-friendly FINEX method at POSCO’s plant

For the 11^th consecutive year, POSCO has been named one of the ‘Most Respected Companies in Korea’ by the Korean Management Association Consultants (KMAC).  POSCO topped the list in the steel industry category for its 11^th straight year. In addition, POSCO ranked second in the overall ‘All Star Company’ category for 8 straight years. The ‘Most Respected Companies in Korea’ ranking is the only comprehensive survey model in Korea and was developed in 2004 by KMAC to evaluate and publish the value of Korean companies.

Lessons from one of Korea’s most respected companies

The importance of corporate reputation has achieved all-time highs nowadays. POSCO was recognized on this year’s Interbrand’s Best Korean Brands list for its second consecutive year. It must be doing something right.  A great company does not just excel because of its products, but because of its values and other initiatives. Fortune annually publishes its World’s Most Admired Companies list  and 100 Best Companies to Work For list to distinguish the best from the rest. What lessons can be learned from Korea’s leading steelmaker?

POSCO was highly rated for its CSR activities, reliability, values, talent fostering, employee welfare, and eco-friendly management in addition to ethical management. It also gained recognition as Korea`s leading company in fulfilling social responsibilities through internal activities, resulting in increased profitability and decreased production costs, volunteer activities with all employees participating, 1% sharing activities for the socially disadvantaged, and support for multi-cultural families.

Pictured here: POSCO’s women employees participating in Women’s Mentoring Day, held since 2011

 Pictured here: Joint effort between POSCO’s global volunteering program, Beyond, and Habitat for Humanity

Methodology

The ‘All Star Companies’ category includes the 30 most respected Korean companies regardless of industry and is based on a survey of 5,920 industry officers, 230 securities company analysts, and 4,560 general consumers between  October 2^nd, 2013 through January 6^th, 2014. Companies are surveyed based on the following six factors:

1)     Innovation capability

2)     Shareholder value

3)     Employee value

4)     Customer value

5)     Social value

6)     Image value

See below for the 2014 top 10 ‘All Star Companies’ list:

1.     Samsung Electronics

2.     POSCO

3.     Yuhan-Kimberly

4.     Yuhan Corporation

5.     Hyundai Motors

6.     Incheon International Airport

7.     SK Telecom

8.     LG Electronics

9.     Samsung C&T

10.  Samsung Life

POSCO’s commitment to building its brand is paying off. POSCO, which increased its brand value by 5%p compared to last year, placed 5^th on the 2014 Best Korea Brands list for the second consecutive year. Based on its TV-CM and Corporate Social Responsibility initiatives, as well as its internal branding activities, POSCO was evaluated as a brand with an asset value of about 3 trillion won. POSCO ranked 5^th after other Korean powerhouses that topped the list including Samsung, Hyundai, Kia Motors and SK Telecom.

Here are some of the factors that contributed to POSCO making it into the top 5 brands for this year’s list.

1)      A Game Changing Ad Campaign

Last year, POSCO launched its advertising campaign centered around “Becoming the Base of the World”, meant to imply that POSCO will be the foundation for the world. Although POSCO is a B2B company, it successfully showed a softer side to touch the general public and its internal employees.

In the ad shot in the Rocky Mountains, POSCO acts as the compass to guide where to go and the map to show how to go forth to take on a new challenges.

Pictured here: Still shots from 2^nd ad campaign – Where is your base camp?

Another ad captured the precious moments in our life juxtaposed to how POSCO acts as the base for everyone. The overall concept was designed to show POSCO’s vision of creating the foundations for the future through its steel, materials and energy business.

Pictured here: Still shots from 1^st ad campaign – Where is your base camp?

  2)      Commitment to CSR initiatives

POSCO strengthened its overall corporate reputation through various CSR activities. POSCO established its social enterprise ‘POSCO Humans’ in January 2013, aimed at contributing to job creation for socially underprivileged through eco-friendly steel construction projects.

In addition, POSCO established its ‘1% Sharing Foundation’ to promote ‘Sharing 1% for a better world’. The 1% Sharing Foundation raises funds through employee donations from POSCO and investment companies along with matching grants from the company itself.

The ‘1% Sharing Foundation’ launched in October 2011 starting with POSCO officers and senior managers donating 1% of their wages. This then led to voluntary participation of all POSCO Family company employees. As of November 2013, POSCO and 26 family companies have participated in the 1% sharing campaign. The foundation embodies the strengthening of local community capabilities in Korea and globally through service projects for unprivileged citizens and the protection of Korean cultural heritage properties at risk of loss.

 Pictured here: Relief project in the Philippines funded by the 1% Sharing Foundation

3)      Establishing Brand Ambassadors

POSCO created its Brand Ambassador program which includes a group of 36 POSCO employees that come together to share the company’s mission and vision. Together they work to find ways to enhance the POSCO brand through training workshops, special outings and discussion forums.

Pictured here: Brand Ambassdors sharing insights on brand value

Managing Director at Interbrand Korea, Jihun Moon, mentioned in his overall evaluation that POSCO’s “Brand Ambassador program was a successful example of brand internalization” as it contributed towards revitalizing a brand within an organization and emphasized creating support between employees through brand philosophy. 

Pictured here: Brand Ambassadors visiting other companies to gain insight on other brands

Methodology

The Best Korea Brands list is published annually by the global brand consulting group, Interbrand, which also publishes the ‘World Top 100 Brands’. The list is made up of the top 50 brands that represent Korea and is based on the same rigorous evaluation as the ‘World Top 100 Brands’ list. Under the belief that a strong brand, regardless of the market in which it operates, drives improved business performance , the three key components in all valuations include analyses of the competitive strength of the brand, the role the brand plays in the purchase decision, and the financial performance of the branded products or services. For further information on methodology, visit the official Interbrand site.

The full 2014 list is available in the 2014 March issue of Fortune Magazine Korea.

Click here for the full 2013 Best Korea Brands list.