[W Forum] Squid Game and ESG

The difficult year of 2021, prolonged by the COVID-19 pandemic, is almost over. Reflecting on this year and the various issues that became focal points, particular attention is drawn to Squid Game and ESG (Environmental, Social, and Governance). The global popularity and success of Squid Game can be explained by many reasons, but the class conflict and competition reflecting the reality we face resonated worldwide. Paradoxically, the COVID-19 pandemic triggered a sense of crisis and contemplation on solutions at the community level, sparking a craze for ESG, a concept proposed more than a decade ago.

Companies across various industries at home and abroad are actively adopting ESG, including establishing dedicated ESG teams, and media companies are no exception. Netflix, which helped Squid Game achieve global success, has been publishing ESG reports since 2019, presenting sustainability goals and specific indicators. One might wonder what connection there is between Netflix, an online video service provider, and the environmental aspect of ESG activities, but Netflix is conducting an environmental protection project aiming to reduce its carbon emissions to 'zero' by 2022.

Of course, as ESG adoption expands, some companies’ ESG activities have been criticized as superficial MSG-like displays rather than the realization of core values. Similar to greenwashing, some claim to pursue ESG values but actually act in ways that are disconnected or deceptive. However, genuine ESG is a demand of the times, and active participation from media companies that produce and supply content is necessary. As seen in Squid Game and the recent Hellbound, content has great global scalability, potentially targeting consumers worldwide and thus must meet global standards. With rising expectations for social responsibility during the COVID-19 pandemic, content from companies that fail to meet consumer standards will inevitably be ignored. Furthermore, the foundation of content is communal creativity. ESG emphasizes programs and communication for various stakeholders, including internal members and partners, and content companies can produce excellent content by enhancing creators’ rights and mutual growth through welfare and fair trade practices.

In the long term, the realization of the ESG paradigm must be linked to the essence of the company. Beyond simply performing social contribution activities such as donations as a ‘good company,’ companies must produce content and create value that resonates from the perspectives of shareholders, consumers, employees, partners, and society members alike. Moreover, successful ESG requires participation and communication from members and, further, all stakeholders including shareholders, consumers, and partners. Just as consumers recently have been watching low-resolution videos to reduce carbon emissions, sharing values and gaining empathy based on promises and understanding for a sustainable future in the process of producing and consuming content will be the ideal realization of ESG.

Netflix stated that the reason for its ESG activities is that Netflix exists to entertain the world, and for that, a habitable world is necessary. The fact that numerous excellent K-content, including Squid Game, has brought joy and emotion to viewers worldwide aligns with the core values of ESG. As we overcome and move forward from the COVID-19 pandemic, it is hoped that the domestic content industry will demonstrate ‘creativity’ from an ESG perspective to create differentiated value and contribute to a habitable world.

Choi Se-jung, Professor, Department of Media and Graduate School, Korea University