Korea Chamber of Commerce and Industry Survey:
66.9% of Generation Z Willing to Pay More for Ethical Companies
ESG Management Also Influences Career Choices Among Young People
Recently, "meaning out" (value-based consumption), where individuals make purchasing decisions based on their personal beliefs and values, has emerged as a major consumption trend among Generation Z (those born after 1997). In particular, this generation tends to decide whether to purchase products from a company based on whether the company engages in ESG (Environmental, Social, and Governance) management activities.
On August 6, the Korea Chamber of Commerce and Industry released the results of a survey titled "Perceptions of ESG Management and Consumption Trends," conducted among 350 Generation Z individuals nationwide aged 17 to 28. The findings showed that Generation Z actively expresses their beliefs through value-based consumption, such as deciding to purchase or stop purchasing products depending on a company's ESG activities.
Among the respondents, 66.9% said, "I would buy products from companies practicing ESG, even if they are a bit more expensive." This demonstrates that whether a company practices ESG has a direct impact on Generation Z consumers’ brand choices and purchasing decisions.
They also showed a firm stance by boycotting products from companies involved in social controversies or problems. More than 6 out of 10 Generation Z respondents (63.7%) answered that they had "stopped purchasing due to a company's unethical behavior or negative issues related to ESG."
The Korea Chamber of Commerce and Industry analyzed these results as reflecting Generation Z’s unique consumption values. The consumption keywords chosen by this generation included "Jjantech" (32.9%), which emphasizes saving money; "meaning out" (26.5%), which means proving one’s beliefs through consumption; and "Abohar" (23.3%). "Abohar" is an abbreviation for "a very ordinary day" and refers to a lifestyle and consumption pattern that seeks small satisfactions and happiness in everyday life.
Generation Z, more than other generations, is also highly sensitive to the authenticity of companies' ESG activities. Regarding the issue of "greenwashing" (deceptive environmentalism), 65.4% of respondents expressed concern. This suggests that companies using ESG activities merely as a promotional tool without sincerity risk being rejected by young consumers.
Whether a company practices ESG management is also influencing young people’s career choices. More than half of the respondents (54.2%) said, "When seeking employment or changing jobs, I check the ESG management level of the company or consider it when deciding whether to join."
Cho Youngjoon, Director of the Center for Sustainable Management at the Korea Chamber of Commerce and Industry, said, "For Generation Z, who will be the backbone of the future national economy, companies that are passive in sustainable management may be shunned, so it is important to practice sincere ESG management." He added, "Reflecting the voices of young people, the Chamber will continue to promote projects to solve social problems, such as spreading a new entrepreneurial spirit and holding social value festivals."
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