Business Ethics: Corporate Governance, CSR, Normative and Descriptive Theory, Stakeholder Analysis

Business Ethics

Contents
MAIN BODY..................................................................................................................................................................1
MAIN BODY..................................................................................................................................................................1
Part 1..........................................................................................................................................................................1
Part 2..........................................................................................................................................................................2
Part 3..........................................................................................................................................................................4
CONCLUSION...............................................................................................................................................................7
REFERENCES...............................................................................................................................................................8

INTRODUCTION
Business ethics refers to the application of ethics to business. To be more specific business ethics
is the study of good evil, right and wrong and justice or injustice actions of businessmen. It may
be defined as a set of moral standards which people owning and managing business is expected
to follow. These standards are mean to govern the conduct of business person. This report is
conducted in context of Samsung’s bribery charges, Samsung is an electronics multinational
company it is South Korean company and its headquartered in Suwon. This case is about charge
against Lee for bribery arose during a national scandal in 2016. This report covers topics
corporate governance, normative and descriptive business ethics theory and analysis of
stakeholder of company.
MAIN BODY
Part 1
Corporate Governance
Corporate Governance is the set of processes, customs, policies, laws, and institutions affecting a
way a corporation is directed, administrated or controlled. Corporate governance is also
including the relationships among the many stakeholders involved and the goals for which
corporation is governed. The principal stakeholders are the shareholders, the board of directors,
employees, customers, creditors, suppliers, and community at large. It is a system by which
companies are directed and controlled, boards of directors are responsible for governance of
companies. Corporate governance is also concerned with ethics, values, and morals of a
company and its directors. Corporate governance is concerned with holding the balance between
economic and social goals and between individuals and communal goals. (Boatright, J.R., 2017)
The corporate governance framework is there to encourage the efficient use of resources and
equally for accountability for the stewardship of those resources. The main motive is to align as
nearly as possible the interests of individuals, corporations, and society. Vice chairman of
Samsung JY Lee stuck in scandal, in case that he gave bribes in form of money and horses to
park’s aide in return for government support for controversial merger of two business group
affiliates which is true and for this company pay huge amount also this affect the image of
Samsung in market. If Samsung want to run their business organization, they have to follow
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proper system of corporate governance, every corporate sector knows this bribe is a crime for
this they have to huge amount, so every company need to maintain proper customs, policies,
laws to direct company in right direction. This case of Samsung affects their shareholders and
create negative impact on the customers.
Corporate Social Responsibility
Corporate social responsibility is obligation of a business to take those decisions and perform
those actions which are considered desirable in respect of objectives and values of our society.
CSR is form of corporate self-regulations integrated into a business model. Ideally, CSR policy
would function as built-in, self-regulating mechanism whereby business would monitor and
ensure its support to law, ethical standards, and international norms. CSR is not just an issue for
large multinational but its voluntariness, diversity and flexibility are vital to allowing all
businesses, regardless of size or location, to consider how best they can response to the realities
of their market place. Social responsibility of business is an ethical, concept involving motions of
human welfare and improving the quality of life in society. CSR is a positive approach business
driven response to the business environment of today. CSR is not an add-on for businesses it is
increasingly being integrated into business operations, governance, management system and
thinking. It must therefore be seen within the context of the totality of business today. Social
responsibility is a multi-dimensional concept covering social, economic and environmental
concern and is continually evolving within diversity of the market. Samsung also have some
social responsibilities towards their society they follow it properly but after that case Samsung’s
bribery charges there is various points against Samsung corporate social responsibility this
affects the brand image of Samsung. Due to the supreme court’s decision, Lee could potentially
face heavier sentence than previously due to increase in the total monetary value of what is
deemed as a bribe under criminal law, he sentences to five year in prison. This shows that
company is not perform their social responsibility properly and this case also raise many
questions in society towards Samsung.
Part 2
Normative Theory
This theory is attempts to answer specific moral questions concerning what people should do or
believe. Normative refers to norms or guidelines and is often used interchangeably with the
world prescriptive. It involves arriving at moral standards that regulate right and wrong conduct.
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