MASTERARBEIT / MASTER’S THESIS Titel der Masterarbeit / Title of the Master‘s Thesis “Big Business in Asia and its Impact on Economy and Society: The Cases of Ayala and Samsung” verfasst von / submitted by Dkfm. Reinhard-Christoph Endres angestrebter akademischer Grad / in partial fulfilment of the requirements for the degree of Master of Arts (MA) Wien, 2017 Studienkennzahl lt. Studienblatt / A 066 864 degree programme code as it appears on the student record sheet: Studienrichtung lt. Studienblatt / Wirtschaft und Gesellschaft Ostasiens degree programme as it appears on the student record sheet: Betreut von / Supervisor: Univ.-Prof. Mag. Dr. Rüdiger Frank CONTENTS 1. Introduction ......................................................................................................................... 1 1.1. Research Question ........................................................................................................... 1 1.2. Outline ............................................................................................................................ 1 1.3. Remarks .......................................................................................................................... 2 2. State of the Art .................................................................................................................... 3 3. Theory and Method ............................................................................................................ 5 3.1. Definition of “Big Business” .......................................................................................... 5 3.1.1. The Market ............................................................................................................... 5 3.1.2. The Firm .................................................................................................................. 5 3.1.3. The Large Enterprise ............................................................................................... 7 3.1.4. The Conglomerate ................................................................................................. 10 3.1.5. The Family Firm .................................................................................................... 10 3.1.6. Goals ...................................................................................................................... 11 3.2. Socio-Economic Impact ............................................................................................... 14 3.2.1. Capacity Building .................................................................................................. 15 3.2.2. Economic Growth .................................................................................................. 16 3.2.3. Education ............................................................................................................... 16 3.2.4. Enterprise Development ........................................................................................ 16 3.2.5. Environmental Sustainability ................................................................................ 17 3.2.6. Governance ............................................................................................................ 17 3.2.7. Human Rights ........................................................................................................ 18 3.2.8. Poverty Alleviation ................................................................................................ 18 3.2.9. Public Health ......................................................................................................... 19 3.2.10. Social Stability ..................................................................................................... 19 4. Facts and Figures .............................................................................................................. 20 4.1. The Market ................................................................................................................... 20 4.1.1. Philippines ............................................................................................................. 20 4.1.2. South Korea ........................................................................................................... 22 4.2. The Firm ....................................................................................................................... 25 4.2.1. Ayala Corporation in the Philippines .................................................................... 25 4.2.2. Samsung Group in South Korea ............................................................................ 30 4.3. Socio-Economic Impact ............................................................................................... 37 4.3.1. Capacity Building .................................................................................................. 37 Ayala ............................................................................................................................ 37 Samsung ...................................................................................................................... 38 4.3.2. Economic Growth .................................................................................................. 40 Ayala ............................................................................................................................ 40 Samsung ...................................................................................................................... 42 4.3.3. Education ............................................................................................................... 43 Ayala ............................................................................................................................ 44 Samsung ...................................................................................................................... 46 4.3.4. Enterprise Development ........................................................................................ 48 Ayala ............................................................................................................................ 49 Samsung ...................................................................................................................... 51 4.3.5. Environmental Sustainability ................................................................................ 54 Ayala ............................................................................................................................ 54 Samsung ...................................................................................................................... 56 4.3.6. Governance ............................................................................................................ 59 Ayala ............................................................................................................................ 59 Samsung ...................................................................................................................... 62 4.3.7. Human Rights ........................................................................................................ 65 Ayala ............................................................................................................................ 66 Samsung ...................................................................................................................... 67 4.3.8. Poverty Alleviation ................................................................................................ 69 Ayala ............................................................................................................................ 69 Samsung ...................................................................................................................... 72 4.3.9. Public Health ......................................................................................................... 75 Ayala ............................................................................................................................ 75 Samsung ...................................................................................................................... 77 4.3.10. Social Stability ..................................................................................................... 80 Ayala ............................................................................................................................ 80 Samsung ...................................................................................................................... 81 5. Conclusion ......................................................................................................................... 85 List of Abbreviations ............................................................................................................ 95 Bibliography .......................................................................................................................... 96 Abstract ................................................................................................................................ 106 1. INTRODUCTION 1.1. RESEARCH QUESTION The research question is already in the title, i.e. What impacts do big enterprises in Asia have on the economy and society of the countries they operate in? The word "big" itself conveys importance, influence, dominance, power, menace, relevance and opportunity. Because