Contemporary Issues in Accounting

This paper discusses the pros of Samsung Electronics in Australia, analyzes the social issues faced by the company, and examines the impact on its financial status. It also explores the concept of corporate accountability and provides recommendations for the company.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
CONTEMPORARY ISSUES IN ACCOUNTING
Name of the Student
Name of the University
Author Note

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Executive Summary
The purpose of the paper is to discuss about the pros of Samsung Electronics in Australia. The
paper will be able to provide an in depth analysis of the factors and other social issues which are
faced by the company in the recent years. It will also provide the Legitimacy theory which will
be able to provide a generalized perception of the actions of an entity which are desirable, proper
or are appropriate within the socially constructed issues beliefs of the company. The paper is
aimed in providing the impact on the company’s financial status by checking and reviewing the
matrix rating for the company.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Legitimacy.......................................................................................................................................5
Recent social issues of Samsung.....................................................................................................5
Impact on financial status................................................................................................................6
Corporate Accountability.................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Samsung is a Korean company which was established by Lee Byung Chul in the year
1938 as a trading company. It has developed itself from the trading company to a information
technology company in the present years. It also has its assembly plants and sales network in
more than 70 counties. When Samsung had acquired its company and marketing team in
technology based devices it first had developed the telecommunication hardware in the early
1980’s.
The teams and other faculty members then had entered in the market of developing
telephone and fax manufacturing systems. Presently in the recent years it has become the leader
in the mobile phone manufacturing. It has become the center of mobile phone manufacturing.
The company is known for producing more than 800 million phones till date.
The company is presently investing high amount of money in its research and
development for developing innovative products. In the year 2018 it was known for the leader in
the building of the memory chips. The aim of the paper is to discuss the pros of the company and
it will also include the legitimacy theory which will help to identify its present strategies and
impact in the near future. The paper will also focus into the recent social issues which are faced
by the company. It will therefore discuss later the impact of the financial status and find out the
link with the corporate accountability. In the last part the paper will provide recommendations
and conclusion for the research paper.

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Discussion
Samsung is among the oldest manufacture of mobile phones and they are also serving the
global market by producing the widest range and variety of gadgets which ranges from the
largest 6.0 plus inch touch screen smart phones to the old technologies of the QWERTY keypad
button model phones. Few of the pros of the company are briefly described below.
 Android OS – Samsung was the first company to embrace itself with the world of the
android OS which is known for having a global reputation for offering a million of
applications from the Google Play Store. It had also allowed an integration of advanced
computing and other latest technologies and other software in the mobile phones.
 Reputable manufacturer – Samsung is a company which is known for its reputation in the
market. It is a phone manufacturing company which is known for having a large follower
base. According to Jamal and Khan (2018) few of the products which are designed by the
company are known as the best in the market.
 Compact ability and design – The most famous pros of the company is that the smart
phones which are manufactured by the company are the most durable among the
competitors. They are quite durable and can also serve the user for a couple of years if
they are maintained properly. According to Illyasa and Alimudin (2018) there are few
Samsung devices which are half a decade old but functions properly.
 Latest technology – Samsung electronics also offers a wide range of latest state of art
features which cannot be achieved by the other competitor brands in the market. The
electronic devices which are manufactured by the company are mostly composed of the

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GPS tracking, mobile wallets, high definition camera, best display and coupled with a
long lasting battery in all it devices (Jamali and Khan 2018).
Legitimacy theory
Legitimacy theory is the theory which is known to support the mechanism which can be
followed by the organization to be in a better position. It is a theory which will help the
organization to implement, develop voluntary social and other environmental disclosures in order
to fulfill their social contracts which are enabled for the company. The nature of the legitimacy
theory has a very rich disciplinary background based on the management theory, institutional
theory and the stakeholder’s theory. Therefore it is very important for big institutions like
Samsung to follow the legitimacy theory.
Here in the case the Samsung, the implementation of the theory will help the company in
recognizing the organizational objectives which are yet to be achieved in the future and in the
present time. By implementing the legitimacy theory in Samsung the company will be benefited
by achieving the future directions, it will be very clear to the company how to achieve the
stakeholder planning. Therefore it is very important to note that the long term impact of the
legitimacy on the economic and financial performance of Samsung will be generating much
more internal and external conflicts.
Recent social issues of Samsung
The company has been marked as providing the consumers with fake advertisements. The
company is known for advertising that it provides the best products in the market within the
competitive price segment. According to the author Lee (2019) the company has been providing
the consumers with average devices which slows down after certain time if they o not get any

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latest software update. People these days are getting fooled by the advertisements of the
company. It has also been reported that the company has been manufacturing the note 7 devices
which has been reported to have blasted several times when in use. The company should take
care of the matters as because it is of a serious note that if people are buying high end devices,
they are also expecting that they will be provided the best products whereas it is happening that
they are blasting.
Impact on financial status
The pros which Samsung has create a beneficial impact on the company. The company
has to pay a less operating cost. In the middle of the manufacturing of the devices the company
had manufactured the note 7 device which was one of its flagship devices. Due to the blast of the
devices and fire catching those were recalled temporarily. The company in the mean time had to
face much problem. However if the company continues to develop its, manufacturing of the
devices by establishing an innovative idea and latest technology (Jeong, Kim and Seo 2018).
Corporate Accountability
Corporate accountability can be defined as the ability of the organizations which are
affected by the corporation to hold corporation to accounts for their operations. These concepts
are known for demanding the fundamental changes to the legal framework where the company
operates. This always includes the environmental and social responsibilities on the directors who
have the corporate duty of on the company financial matters and other duties. In the case of
Samsung the top managers instead of urging other companies t voluntarily give an account of the
activities rather they try to improve the social and environmental performances by their corporate
accountability movement (Hafilah, Chaer and Usman 2019).

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Conclusion
In order to conclude the above research paper it has successfully discussed the pros of
Samsung as well as it has successfully described the Legitimacy theory of Samsung and how
implementing this theory can help the company to identify and develop the voluntary social and
environmental disclosures. In the later pat it has briefly discussed the recent social issues which
are faced by the company.

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References
Jamali, M. and Khan, R., 2018. The impact of consumer interaction on social media on brand
awareness and purchase intention! Case study of Samsung. Journal of Marketing, 114.
Illyasa, A. and Alimudin, A., 2018. Social, Personal, Cultural and Psychological Influence
Analysis of Samsung Smartphone Purchase Decision at Samsung Experience Store WTC
Surabaya. IJIEEB: International Journal of Integrated Education, Engineering and Business,
1(2), pp.99-112.
Lee, Y.W., 2019. Enhancing shared value and sustainability practices of global firms: The case
of samsung electronics. Strategic Change, 28(2), pp.139-145.
Blackman, A.R., Saeed, A.A., O'byrne, D.N. and Diaz, J.A., Citibank NA, 2018. Display screen
portion with a transitional user interface of a financial data viewer and launcher application.
U.S. Patent Application 29/529,773.
Cruttenden, J., Cruttenden, W. and Keegan, D., ACORNS GROW Inc, 2018. Display screen or
portion thereof with a financial data graphical user interface. U.S. Patent Application
29/607,807.
Kim, H.S., Samsung Electronics Co Ltd, 2018. Method and apparatus for transmitting and
receiving application/content based on purchase information. U.S. Patent Application
10/121,173.

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Li, X., 2019, February. Analysis of Financial Statements of the Panel Industry under the
Harvard Analytical Framework——Taking BOE as an Example. In 2018 International
Symposium on Social Science and Management Innovation (SSMI 2018). Atlan
Jamali, M. and Khan, R., 2018. The impact of consumer interaction on social media on brand
awareness and purchase intention! Case study of Samsung. Journal of Marketing, 114.
Uslay, C. and Yeniyurt, S., 2018. Executive Insights: An Interview with Joseph Stinziano, EVP
Consumer Electronics & Enterprise IT at Samsung Electronics America.
Jeong, I., Kim, E. and Seo, E., 2018. An empirical study of the relationship between marketing
standardization and performance of Japanese firms in international markets: the moderating role
of product strategy. International Journal of Marketing & Distribution, 2(1), pp.15-24.
Hafilah, E., Chaer, V. and Usman, O., 2019. The Effect of Brand Ambassador, Brand Image,
Product Quality, and Price on Purchase Decisions Samsung Smartphones. Brand Image, Product
Quality, and Price on Purchase Decisions Samsung Smartphones (January 11, 2019).
Hafilah E, Chaer V, Usman O. The Effect of Brand Ambassador, Brand Image, Product Quality,
and Price on Purchase Decisions Samsung Smartphones. Brand Image, Product Quality, and Price
on Purchase Decisions Samsung Smartphones (January 11, 2019). 2019 Jan 11.