ESG MARKET & CASES

The Final Puzzle of Successful ESG Management: How to Design Organizational Culture

In 2026, ESG is in a paradoxical phase. While the US-driven backlash has reduced the usage of the term 'ESG,' regulations and practical demands are actually intensifying through EU CSRD/CBAM, Brazil's ISSB mandates, and South Korea's disclosure roadmap. Recent research and HR data show that corporate cultural orientation correlates significantly with ESG performance, employee satisfaction, and pride, suggesting that the success or failure of ESG depends on organizational culture rather than systems. Patagonia embedded its mission into its institutional and daily operations through benefit corporation conversion, ownership changes, environmental internships, and trust-based autonomy, realizing 'ESG driven by culture.' Unilever connected strategy, employee well-being, and ESG into a single operating system through the USLP, while global companies like Microsoft drive cultural shifts by linking executive compensation to sustainability metrics such as climate, workforce, and ethical AI. Principles of organizational culture design that South Korean companies can adopt include leadership internalization, institutionalization of values, employee participation experiences, speak-up cultures, and prudent compensation/KPI alignment. KBR's perspective is that as the regulatory phase deepens, only 'ESG embedded in culture' can withstand the post-ESG debate.