South Korean steel firm Posco said Sunday that it would offer incentives to socially responsible firms from Monday as part of its own efforts to contribute to society. Socially responsible firms refer to companies that are recognized as such under the laws established to encourage entrepreneurial activities by people with disabilities, promote social enterprises and cooperatives and support businesses owned by women.

Under Posco’s new system of giving preference to social enterprises and providing them with additional opportunities, the steelmaker will be easing the minimum requirements that it expects of its suppliers. Recognized social enterprises will receive an incentive of 5 percent when they take part in bids. 

Posco said it hoped the change would help social enterprises win more partnerships with the steel giant and grow together with it by developing stable sources of revenue.

“I hope Posco leads the culture that social firms are better respected. Further, I wish it to spread mutual values to the society by growing together,” said the company’s Chairman Choi Jeong-woo.

Last year, the steelmaker became the first Korean conglomerate to abandon the practice of selecting suppliers by automatically choosing the lowest bidder. 

By Jie Ye-eun (yeeun@heraldcorp.com)