Business Ethics and Corporate Governance: Samsung Report

This report provides an in-depth analysis of Samsung's business practices, focusing on corporate governance and ethical considerations. It begins with an executive summary outlining the company's structure, including the role of the CEO and the impact of the bribery charges involving Jay Lee. The report then delves into corporate governance aspects, such as director contracts, remuneration, and the role of the chairman and committee structure. It also examines the application of normative and descriptive theories of business ethics, including deontology, virtue ethics, ethical egoism, and utilitarianism. Furthermore, the report explores the ethical and unethical practices affecting both internal and external stakeholders, including individual and situational factors. The case study and survey methods used to analyze these practices are also discussed, providing a comprehensive overview of Samsung's ethical landscape.

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.
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 Table of Contents
 INTRODUCTION
 PART 1
 PART 2
 PART 3
 CONCLUSION
 RECOMMENDATIONS
 REFERENCES
Table of content

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 organization. The
organization 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. Additionally, it analyze ethical and unethical practices that affects internal
and external stakeholders of the company.
Introduction

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.
PART 1

21/03/20 18:54:37
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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, composition, succession, audit, risk
control and remuneration are described with reference to managers of Samsung electronics are as
follows:-:-
Cont..…

• Director’s Contracts and remuneration:- It refers as the procedure in which mid-career contract
directors of 5-9 years experience earns an average of $112,527 based on 73 salaries whereas the
experienced contract directors of 10-19 years earns an average compensation of $124,597 based on
210 salaries. The remuneration of directors for Samsung includes corporate entities, provision of
security or payment guarantees, conclusion of loan governance, etc.
• Wages and rewards:- This process focus on motivating employees to perform their actions with the
motive to achieve individual and organisational goal. Managers of Samsung encourage their workers
to complete their task with engagement and involvement by developing employee relation. It focuses
on enhancing co-ordination through building trust and faith among one another to understand and
share views.
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• Role of Chairman:- The duty and responsibility of chairman is to promote business by planning
through strategic decision making procedure that generate value for shareholders and contribute in wider
society. Managers of Samsung electronics ensure that the company purpose, value and strategy are
properly aligned that creates opportunity for growth and sustainability in global market. This further
develops a framework to direct and control the actions of workforce by eliminating errors which are to be
solved through corrective measures by effective engagement with stakeholders and shareholders.
• Committee Structure:- It is referred to the division of responsibilities, composition, succession
and evaluation which focus on decentralising the activities of business. Managers of Samsung achieve
their target of producing electronics products by dividing their works in various departments that result in
specialisation as the work is distributed in accordance with the capability of workers. This improves
effectiveness of workforce as they are trained by being aware for importance of their work that will lead
to achieve success in perfect competition market by competing with rivalries.
Cont..

 The most relevant normative and descriptive theories of business ethics are mentioned below:-
 Normative:- This theory focus on ethical actions of business in developing strategic decision-making
that describes prescriptive functions which help people to maximise their expected utility of outcomes.
The main purpose of this theory is to serve rational standards for the actions performed by workers that
are to be compared with their actual behaviour while performing it. Managers of Samsung electronics
implement this theory for investigating the set of questions when compared to rational standard. This
further refers as social, political and philosophical principles of business which organise ideas to
develop relation between media and society. The various types of normative theories are described
with reference to managers of Samsung are as follows:-
PART 2

 • Deontology:- It is the part of normative ethical theory which states that performance of worker
must be already evaluated in accordance with rules and regulations that leads to distinguish between
right and wrong action. This theory was introduced by Immanuel Kant which emphasize to judge
action by their result, as it does not focus on cost and benefits of situation. Managers of Samsung can
use this theory as to analyse the consequences of steal, cheating, lying, etc., that affects the capability
of business to achieve success efficiently. The Samsung Company is adversely affected by unethical
action of its co-vice president which is arrested for Samsung Bribery charge as exporting it with illegal
actions. `
Cont....

• Virtue Ethics:- This ethical theory emphasize on people of business to perform their task with
virtue of mind, character and sense of honesty. It describes the nature and definition of good qualitative
workers that analyse problems and focus on consequences of action. It was introduced by Aristotle who
declares that various virtuous persons have ideal characteristics traits such as integrity, honesty, loyalty,
responsibility, humility, etc. Managers of Samsung can use this theory as to identify the virtue of their
employees which increase loyalty and support of business to achieve its goal. Managers of Samsung are
adversely affected by the virtue of their co-vice president as being disloyal, distrust, and irresponsible for
the actions being performed by him.
Conclusion