Case Study Of LG Electronics

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Erdem Ünal 53296 LG Electronics LG Electronics Inc. is a multinational electronics company based in Seoul, South Korea. It was founded in 1958, after the Korean War, as GoldStar by Koo In-hwoi under the aim of rebuilding nation with domestic consumer electronics. Today it has operations in 118 countries and it is employing more than 75,000 people all over the world. In 2016, it recorded $ 47.9 billion sales revenue globally1. As of 2016, the shareholder composition is the following: LG corp. 31%, foreign investors 24%, domestic investors 45%2 LG Electronics has 4 main business units: mobile communications, home appliance & air solution, home entertainment and vehicle components. LG has different web pages for each regions…show more content…
Corporate responsibilities to employees: respect for human dignity, fair treatment, promoting creativity. Chapter 6. Responsibilities to society and the country: rational business development, protection of stockholder interest, contribution to social development, environmental conservation Board of Directors of LG Electronics LG electronics has lots of subsidiaries including small (local ones) and giants (LG display etc.) They have their own board of directors. Here, we will see the board of directors of LG electronics. Board of directors are published at investor relations page of the global web site of the company. There are basically 3 committees: Management committee, audit committee and outside director candidate recommendation committee. Management committee: responsible for review and determination of management issues. It has 3 directors; 2 of them are executive and one is non-executive. Audit committee: responsible for audit of financial and accounting records. It has 3 outside…show more content…
There are no M&A activities on the web either (after 2010). Erdem Ünal 53296 However, at the end of 2016, LG Electronics merged its german branch (situated in Ratingen) and european headquarter (situated in London) together in Eschborn a suburb of Frankfurt am Main.5 My thoughts I’m sure the board members of the LG electronics are qualified people. However, since LG is one of the greatest company of the world, I expected to see CV’s which are full of past experiences at different companies or at different sectors. Although it gives some sense of family company, we see that the BoD are not traditionally organized at all. On the other hand, BoD seems very nationalist, I would have expected to see some foreign directors at an international company. I do not have much information about the effects of board members on the operations of companies. However, since the grandson of the founder of the company is on the board, it is not surprising that BoD has a huge effect on the operations. 5
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