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Measuring the environmental costs and benefits - The case of the Korea Water Resoruces Corporation-
jong-dae Kim, chungbuk national university, South Korea
Coping with increasing pressure from the stakeholders, the Korea Water Resources Corp. launched a project to measure its costs of and benefits from environmental activities in 2002. The project was funded by the Korean Ministry of Commerce, Industrial and Energy. As a public institution, the Korea Water Resources Corp. seeks to find out where it stands as far as environmental system is concerned, and explore the way to promote its environmental activities. The main driver for the project, however, seems to be a strategic consideration to improve a relationship with the stakeholders, especially environmental activist groups. Measurement of environmental costs are based upon the draft guideline by the Korean Ministry of Environment. The results indicate that its environmental cost reaches up to about 10% of its total manufacturing costs in 2002, that is, $ 80 mil., and it is increasing each year. The case study result reassures us that environmental costs actually are greater than the management in general conceive. The CEOs of the Corp. is getting interested in the benefits from the variety of environmental activities costing a lot of money. Thus, the project team started to exert efforts to measure benefits for the rest of the project period, 2004-2005.