Samsung Corporate Governance Failure Essay

ITC Ltd.’s strategy plan for compliance with the current acceptable standards or norms relative to social responsibility today is well thought out, especially for a company that sells potentially dangerous products, and try to meet and listen to all demands and laws in place since the start of their business. Even though in 2014 a new bill was passed for the majority of companies to build accountability and also have the government looking over the private sector (Banerjee, 2013). “The CSR provision requires affected companies to spend at least 2 percent of their average net profits made in the preceding three years on CSR” (Banerjee, 2013). Even though this bill has caused a lot of uproar for companies, ITC has actually already been

The Oxford English Dictionary defines ‘governance’ as ‘the act, manner, fact or function of governing, sway, control’. ‘To govern’ is ‘to rule with authority’, ’to exercise the function of government’, ‘to sway, rule, influence, regulate, determine’, ‘to conduct oneself in some way; curb, bridle (one’s passions, oneself)’, or ‘to constitute a law for’.

The first section of this essay focuses on the possible causes of corporate failures including dominant CEO, poor strategy decision and the failure of internal control. Secondly, it discusses how the third edition of corporate governance principles and recommendations could be applied to prevent the causes of the failure. The 1st, 2nd, and 7th principles along with specific recommendations will be mentioned in this section. However, the context is concerned solely with the causes stemming from Dick Smith itself.

Companies are paid huge amounts of money, where they go through a process of killing and damaging the animal for life.

Such decisions may affect the company’s profitability today but judging from the fact that high risk means low stock price and vice-versa, high return waits in the future.

Simply, company started to sell everything that is commercially profitable, which is big mistake in the long term.

Introduction:   With  the  introduction  of  new  Chinese  competitors  in  the  DRAM  market  it  is  necessary  for  Samung  to  access  their  strategy  for  the  future.  Looking  at  past  trends  in  the  DRAM  market,  current  market  situation,  and projections  for the Flash market, the  best option for  Samsung  is  to focus their efforts  on  growing  the  Flash  technology,  while  maintaining  their  DRAM  output.  This  is  the best course of action  because  Samsung’s  customer  loyalty  will  carry  their  market  share  in   the  DRAM  market,  while  they  are  focusing on establishing this type of dominance in the Flash market.

Each company has some negative points going against them. We cannot take people’s review because it will be bias to one side and will rather state only their side without looking at the facts but we will look at what is common between them. The negative point in Samsung is its huge amount of employees. Samsung has about 430,000 employee. We all know that the profit is equal to the total revenue minus the total cost and that the salary of the

The evolution of the world has left nations with an ever changing business environment which keeps companies on their toes.With the technological advancements as well as changes in demographic, many companies have to rapidly change the way they react to these changes in order to stay relevant in a competitive environment (Jovanović, 2015). Samsung has adapted to today’s business through adopting Western business practices into its Japanese system as well as digital technology(Khanna, Song & Lee, 2011).The role of management in today’s industry has rapidly changed from the role of a manager imposing restrictions to an organisational tool, not only for a company but personally as well (McCrimmon, 2010).Management system used in Samsung during the S-level recruitment program proves the importance of managerial ranks as well as an organised system(Khanna et al, 2010).

Now let me give some recommendations to solve the identified ethical problem in the Samsung. The first recommendation is the Samsung should provide safety equipages to the employees such as anti-static work wear, masks, protective glasses and so on. This is because Samsung electronics factory and semiconductor factory has many hazardous substances and radiation, employees need to work in the factory every day up to 12 hours or even to work overtime. Besides, semiconductor chip process requires the use of a variety of chemicals, such as using sulphuric acid to clean it, wet etching need to use hydrofluoric acid and other liquid chemicals, vapour deposition process will also use a variety of gases. Most chemicals if it random emissions

The rise and fall of the Royal Bank of Scotland is characterized by poor corporate governance which allowed for the complete dominance of the executive management over the board of directors and a massive principal-agent problem. Positive social dynamics and the power of weak ties allowed for compliance while intimidation and bullying tactics silenced questions, concerns and opposition. The board’s utter compliancy and borderline negligence enabled rampant, unchecked empire-building at the cost of shareholder value and led to a spiral of unaccountability and gross incompetence. Stakeholders’ loss of confidence from misinformation and misdirection was an inevitability that sealed

Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.

plan. It is a plan which leads Samsung to be the top brand in the

Because of the extremely intricate and sophisticated nature of manufacturing semiconductors, a competitor should expect high initial capital requirements to build facilities needed for production. Cost to build a new semiconductor fab has gone up from $200 million in 1985 to $3 Billion in 2004. Incumbent companies have capabilities to design newer generations of semiconductors with greater amounts of memory and processing abilities that make older generations obsolete. Older generations tend to drop half their amount in price one year after a new model is reduced (exhibit 6). The United States

In my conclusion, I would like to emphasize that SAMSUNG has a quite distinctive way to carry on its business. From the part of visible aspects, it has a different way to build up its image by emphasizing the blue color, while other competitors such as SONY and APPLE focus on the shape of logos to do the same thing. From another aspect of organizational culture, the invisible aspects, we can find its effort to be adjusting well to a society where the organization affects. It tries to contribute its profit to the society by offering an educational service, a welfare service and even some public performances and so on. Although, it has been obvious that such a large co-operation company like SAMSUNG has a responsibility to contribute its profit to make the society better, SAMSUNG`s profit contribution policy is very well-organized so, it can be a very own aspect that SAMSUNG has. Lastly, its managerial structure has an incredibly unique way to communicate to each other and get a new idea from people. It has a very strict hierarchical structure that is carried out by people in the organization all the time, but