Samsung's Bribery Charges and Corporate Governance: A Business Report

Business
Report

EXECUTIVE SUMMARY
This project is based upon Samsung as being multinational conglomerate company
that is capable to discover broad range of electronics that includes smart phones, tablets, TVs,
home appliances, etc. The current Chief Executive Officer of Samsung electronics is Kwon
Oh-hyun was appointed in October, 2017. The project elaborates Samsung’s Bribery Charges
on its key person of Jay Lee-Yong as being de facto leader came at the end of special
prosecutor’s 90-day investigation for corruption charges. This project further explains
corporate governance on the basis of Director’s Contracts and remuneration, wages and
rewards, role of Chairman and Committee structure. It further described the most relevant
normative and descriptive theories of business ethics. This project additionally examines
internal and external stakeholders for their ethical and unethical practices.

Table of Contents
INTRODUCTION.................................................................................................................................3
PART 1..................................................................................................................................................3
PART 2..................................................................................................................................................4
PART 3..................................................................................................................................................6
CONCLUSION.....................................................................................................................................9
RECOMMENDATIONS.......................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
Business is also termed as an enterprise, property, entity and property which consist
of entrepreneurs that have the capability to develop innovative ideas by analysing mission
and vision of an organisation. The organisation selected for this project is Samsung as being
multinational conglomerate company that is capable to discover broad range of electronics
that includes smart phones, tablets, TVs, home appliances, etc. The current Chief Executive
Officer of Samsung electronics is Kwon Oh-hyun was appointed in October, 2017. This
project describes the corporate governance with the application of normative and descriptive
theories for focusing on legal and lawful decisions that leads to attempt and perform right
actions from good experiences (Besley, 2015). Additionally, it analyse ethical and unethical
practices that affects internal and external stakeholders of the company.
PART 1
Business is described as an occupation or trade with the procedure of manufacturing
or collecting raw materials to produce the finished goods and services that is capable to meet
requirements of customers. This activity focus on providing high level of satisfaction to their
end-users by supplying qualitative products that fulfils their needs, desire and wants.
Managers of Samsung electronics also establish their products such as smart phones, tablets,
etc., to achieve the demand of their customers with latest electronic gadgets.
Samsung Bribery Charges:- The Samsung electronics co vice-president (Jay Lee)
was sentenced to five years in prison as being identified as the criminal. The crime committed
from him was bribery, embezzlement, capital flight and perjury charges. The confirmation of
Jay Lee-Yong as being de facto leader came at the end of special prosecutor’s 90-day
investigation for corruption charges. Mr. Lee was arrested on 17th February as dramatic
development in South Korea’s struggle to end collusive relation between government and
family-conglomerate in economic sector. He was bailed within six months from prison.
Samsung is accused of giving donations to non-profit foundations operated by Choi Soon-sil,
a friend of Ms Park, in exchange of government favours. Lee was found guilty in August
2017 on charges including bribery and embezzlement and received a five-year jail term.
Corporate Governance:- This is the structure of rules and regulations, policies,
procedures, etc., which directs and manage the actions performed in company must be legally
approved. The Board of Directors of an organisation are bound to focus on corporate
governance by following the laws and controlling business operations through government
regulations. The corporate governance encompasses intrinsic and extrinsic factors that affect
the interest of company stakeholders which involve customers, suppliers, government
regulators, management, etc.
The UK corporate governance code sets out expected standards of good practices
which includes board leadership and company purpose, division of responsibilities,