Innovation

During the interview, Seung Hyun Lee, Chief Director of CSV Section, stated that the company places mutual benefits at its core values, creating a system that enables all stakeholders to co-exist and create something of value for both the company and society. CSV refers to “Creating a Shared Value,” and is a strategic management where businesses can find opportunities in social problems. Company leaders who place CSV in their management, focus on increasing the value of solving socio-economic problems for new customers and markets, making the product much more cost-efficient.

Inspiration

Seung Hyun explained during the interview that the idea of the Senior Parcel Delivery Service came about when the delivery service rate was decreasing and the population’s aging rate was increasing in the city of Busan, located in the Republic of South Korea. Busan city has the highest aging population rate in the country of South Korea. This is because the city’s residential areas were formed on ridges where refugees converged and settled during the Korean War in the 1950’s with many of the residents still are some of the original refugees from decades ago. It also has suffered a decrease in the delivery service rates and increase in the price of package deliveries because the city is surrounded by mountains which make it difficult for delivery trucks along with the area's layout of steep and narrow streets.

Overall impact

According to Seung Hyun, the Senior Parcel Delivery Service has positively influenced the local community as well as the environment and it is still striving to make more positive changes. The innovations have successfully organized a delivery system in a way that is both cost-efficient and promotes local economic growth. Due to its popularity, many more unemployed seniors have wanted to participate in the program, with many organizations partnering with the Senior Delivery Service and wanting to be part of the innovation.

The short-term effects of the delivery service are that by creating sustainable, high-quality jobs for the elderly, it also helps with the social issue of the high poverty rate among them (ranked #1 by the OECD). The delivery Service has also engaged in creating eco-friendly activities and community contributing efforts. From a long-term point of view, these kinds of projects will contribute to its competitiveness and profit-making activities.

Business benefit

This innovation benefit not only society but the business also. This innovation has now made it possible for the deliveries to be available in these areas at a lower price when compared to the companies that use traditional methods. By employing the electric carts, the company was able to create a new service and tap into a new market. The success of this innovation is shown by just how much they have expanded since the Senior Parcel Delivery Service has started. The employees are increasing in number and many more want to work for them because of how popular this delivering packages work has become for seniors.

Social and environmental benefit

One of the benefits of the Senior Parcel Delivery Service, said Seung Hyun, is based on the cooperative relations established by various stakeholders, including private enterprise (like CJ Logistics its parent company), the government at its various levels, and senior citizen employment groups. It can be viewed as a successful example of forming consensus and forming partnerships for the greater good.

Because there is a continuous growth in the delivery service market, it not only contributes to improvement in the quality of life for the seniors but also contributes to the development of the community by creating jobs by its continuous growth.

The environmental benefit of this service is in reducing the carbon footprint and the strategy of local delivery methods. About 300 eco-friendly electric carts have been deployed for the Senior Parcel Delivery Service, with the cart being able to carry up to 250Kg of packages at speeds up to 3 Km/h. Using these vehicles makes it much easier to navigate the streets than the traditional vehicles, along with a smaller carbon footprint than if the much larger trucks were still used.

Interview

Seung Hyun Lee, Creating a Shared Value (CSV) Specialist