Professional Documents
Culture Documents
1.0 Introduction
It cant be denied that management and businesses in general are continuously facing
important ethical challenges. Before that, its better we know the definition of ethics itself.
Actually, the term of ethics has a variety of different meaning. To make it understandable,
ethics can be best defined as the principles of conduct governing an individual or a group.
Besides, ethics is also refers as the discipline that examines ones moral standards or the
moral standards of a society. The moral standard affect how people make decisions and lead
their lives. Ethics is very concerned with what is the best for individuals and society and its
also described as moral philosophy. The term is derived from the Greek word, ethos which
can mean custom, habit, character or disposition. It covers these following dilemmas, such as
how to live a good life, our rights and responsibilities, the language of right and wrong and
the moral decisions, what is good and bad? .We already know the meaning of ethics in
details, now we move to the definition of business ethics. Although there may be no universal
definition of business ethics, and no one scholars likened defining it, according to the
website, The Business Ethics Blog, business ethics can be best defined as the critical,
structured examination of how people and institution should behave in the world of
commerce. In particular, it involves examining appropriate constraints on the pursuit of selfinterest or for firms profit, when the actions of individuals or firms affects others. Business
ethics also is the study of proper business policies and practices regarding potentially
controversial issue, such as corporate governance, insider trading, bribery, discrimination,
corporate social responsibility and fiduciary responsibilities.
There is different between the business ethics and also the moral ethics. This is
because the moral ethics is concerning about the applying the moral framework to the way of
an individual in their daily life while the business ethic is concerned about the applying a
moral framework in the way of an organization do its business. In this project, we already
analysed five companies in order to determine the ethical issues incurred by those companies.
The companies chosen by our group are Apple Incorporation, Hewlett-Packard (HP)
Company, LG Electronics Corporation, Motorola Solutions Company and Samsung
Company. The similarity of these companies is that, all of the companies are actively
producing a variety of electronic devices such as mobile phones, computers, laptops, tablet
and others types of electronic devices. They also are example of successful multinational
company in two different region that is in Asian country and Western Country. Although the
Western country is significant and very typical with their sophisticated technologies, Asian
BPMN 3123 MANAGEMENT ETHICS
country also is very great with well-established of Samsung Company and LG Electronics
Corporation.
Although each of the companies has incurred many ethical issues that related to the
business, but in this assignment, we will only choose several of the ethical issues that
incurred by each company so that we can more focus on those issues and do a better analysis
related to the ethical issue incurred by the companies in conducting their business. After done
with analysing, we found that all of the companies are actively participate in doing Corporate
Social Responsibility (CSR) in order to gain publicity and their obligation as a respected
institution to balance between achieving a high profits and fulfil the community needs.
In this assignment, we also divided our analysing into several important parts. They
are the background of the companies, Companys missions, vision, conducts and objectives,
their well-established organizational structure, companys organizational culture and practices
and the most important one is their ethical issues. Each companies have their own system and
the way they conduct their business operations are totally different with each other. Although
they are actively producing the same kind of product and services in the market, we found
that they are compete fiercely and fairly. We can simply said that they have their own
business strategies to gain a well competitive advantages in the market and achieve as much
as possible publicity to get a good recognition among the customers.
Apple started in 1976 as a computer company. In the last decade, however, Apple has
expanded into a very intricate company that specializes in much more than just computers. In
2001, Apple broke the barrier with the iPod, eventually becoming the dominant market leader
in music players. As well, Apple joined the phone industry in 2007 with the iPhone, which
has also been widely successful. Apple Computer, Inc. designs, manufactures, and markets
personal computers, software, networking solutions, and peripherals, including a line of
portable digital music players. Apple's product family includes the Macintosh line of desktop
and notebook computers, the iPod digital music player, the Mac OS X operating system, the
iTunes Music Store, the Xserve G5 server, and Xserve RAID storage products. The
company's products are sold online, through third-party wholesalers, and through its own
chain of stores. Apple owns approximately 125 retail stores in the United States, as well as
Apple was formed by Steven Paul Jobs (21) and Stephen Gary Wozniak (25), they
created a first Apple computer on 1st April 1976 named Apple I. Apple was incorporated in
1977 in California. For about 20 year Apple computers Inc. was predominantly a
manufacturer of personal computers that includes Power Mac, Apple I, Apple II, Apple III
and Macintosh lines but also faced unstable sales and low market shares. Steven Job resign
the company in 1985 due to infighting and he re-join in 1996 as a CEO of the company. He
brought with him a new corporate philosophy of identifiable product and simple design.
Introducing a great success of iPod music player in 2001, Apple become a leader in consumer
electronic industry, dropping ''computer'' from its name and keeping on to release the iPad
and iPhone. Apple is one of the biggest technology company in the world, with the revenue of
over $60 billion per annum.
BPMN 3123 MANAGEMENT ETHICS
Apple designs Macs, the best personal computers in the world, along with OS
store.
Apple reinvented the mobile phone with its revolutionary iPhone and App
Store, and has recently introduce its magical iPad which is defining the future
of mobile media and computing devices.
2.1.2 Vision
We believe that we are on the face of the earth to make great products and thats not
changing. We are constantly focusing on innovating.
2.1.3 Conduct
Apple conducts business ethically, honestly, and in full compliance with applicable laws and
regulations. This applies to every business decision in every area of the company worldwide.
introducing Apple Solution and Vehicle Components. For each division, there are executives
who is responsible to ensure that their division is safe and sound. They are :
EXECUTIVE PROFILE
TIM COOK
CEO
JONATHAN IVE,
CHIEF DESIGN
OFFICER
BRUCE SEWELL,
SENIOR VICE
PRESIDENT AND
ANGELA
EDDY CUE,
AHRENDTS,
SENIOR VICE PRESIDENT,
SENIOR VICE
INTERNET SOFTWARE
PRESIDENT,
& SERVICES
RETAIL&ONLINE
STORE
LUCA MAESTRI,
SENIOR VICE
PRESIDENT,
CHIEF FINANCIAL
OFFICER
CRAIG FEDERIGHI,
SENIOR VICE
PRESIDENT,
SOFTWARE
ENGINEERING
DAN RICCIO,
PHILIP S. SCHILLER
SENIOR VICE PRESIDENT,
SENIOR VICE
HARDWARE
PRESIDENT,
ENGINEERING
WORLDWIDE
MARKETING
JOHNY SROUJI,
SENIOR VICE
GENERAL COUNSEL
PRESIDENT
HARDWARE
TECHNOLOGIES
culture. In Apples case, the following characteristics are the most significant in its
organizational culture:
Top-notch excellence.
Apples organizational culture involves a policy of selecting only the best of the best
workers. Steve Jobs was known to readily fire employees who did not meet his
expectations. This tradition in Apples organizational culture continues under Tim
Cook. Excellence is emphasized as a critical success factor in the business, especially
in product design and development.
Creativity.
Apple employees are selected for their knowledge, skills, and creative abilities. The
firms organizational culture highlights the importance of creativity. Employees
involved in product design and development processes are especially creative. This
characteristic of Apples organizational culture helps the firm maintain the capacity to
develop solutions to business needs and consumer needs.
Innovation.
Apples organizational culture is also highly innovative. In fact, Apple is frequently
appraised as one of the most innovative companies in the world. All employees are
trained and encouraged to innovate in terms of individual work performance and by
contributing ideas to the firms product development processes. Apple organizational
culture succeeds in facilitating rapid innovation, which is at the heart of the business.
Secrecy.
Steve Jobs developed Apple to have an organizational culture of secrecy. This secrecy
is part of the companys strategy to minimize theft of proprietary information or
intellectual property. Upon hiring, Apple employees agree to this organizational
culture of secrecy, which is reflected in the firms policies, rules and employment
contracts. This aspect of Apples organizational culture helps protect the business
from corporate espionage and the negative effects of employee poaching.
Moderate Combativeness.
Apples organizational culture has moderate combativeness. This feature is linked to
Steve Jobs and his combative approach to leadership. He was known to randomly
challenge employees to ensure that they have what it takes to work at Apple.
However, under Tim Cooks leadership, the company has been changing its
organizational culture to a more sociable and less combative one. Thus, Apples
organizational culture now has a moderate degree of combativeness.
2.4
worked there tell that they worked 12 hours a day in the mines, carrying heavy loads and
earning between one and two dollars per day. The majority of miners spend long hours every
day working with cobalt without the most basic of protective equipment, such as gloves,
work clothes or facemasks to protect them from lung or skin disease. three factories operated
by Pegatron, which makes equipment for Apple computers and iPhones, and found that
Pegatron hired children under the age of 18, the child laborers worked under the same poor
conditions as adult staff. In total, 10,000 employees aged between 16 and 20 worked in
crowded production rooms, performing the same tasks as adults. Some of the children were
paid less, and others did not have their wages paid on time.
that, to save water, the company employs an irrigation system that monitors local weather
conditions and soil moisture.
In Cupertino Apple will open its huge and revolutionary campus. Here, 80% of the
site is going to be green, with thousands of shade and fruit trees and drought-tolerant plants.
The source of energy will be solar, while natural ventilation is to be employed for most of the
year, through air flowing freely between the inside and the outside. Employees will reach the
campus thanks to biofuel buses, public transit, carpools, bicycles and their own feet. The
campus is going to be equipped with hundreds of electric vehicle charging stations. Apple
aims to power all its offices, retail stores and data centers entirely with energy from
renewable sources. At this point, the options are two. If this article has been so effective that
it has made you want to substitute any device in your house that does not have an apple
impressed on it with one that does, I will tell you: wait a minute. While youre on the way to
the Apple store, dont forget to bring the old device. They will recycle it for you.
Hewlett-Packard (HP) Company
3.0 Background of HP Company
The name of the company Hewlett Packard are the combination of the name of the
founders, which are William R. Hewlett and David Packard, who are the electricalengineering graduates of Stanford University. William R. Hewlett Packard Company (HP)
was founded by William R. Hewlett and David Packard on 1938 in a garage in Palo Alto.
This means that the first office of HP Company is only at a garage which located at behind
Packards home. William R. Hewlett and David Packard introduced their first product in
1938. The product was a resistance-capacitance audio oscillator, which call Model 200A
audio oscillator and it developed by them was based on the result of Hewletts masters
thesis. Besides, the first customer of HP Company was Walt Disney Productions, which
purchased 8 audio oscillators to use in certifying the Fantasound surround sound systems
installed in theaters for the movie Fantasia. In 1940, HP Company moved from the garage to
BPMN 3123 MANAGEMENT ETHICS
10
a rented office space on Page Mill Road in Palo Alto which is larger than the garage behind
Packards house. In that year, they also make their first donation to charitable organization.
HP Company is an American multinational Information Technology organization that
provides hardware and software services to small, medium and large sized businesses across
industries. The company has also offer a wide range of IT product which include laptops and
tablets, desktops, printers, inks and toners, and displays and accessories.
In 6 October 2014, the company plan to split its personal-computer and printer
segments from its corporate hardware and service business. The purpose of split into 2
separately publicly traded company is to confirm the speculation that broke out over weekend
and to cut another 5,000 jobs and to pledge to invest the money saved into research and
development. Besides, separating into 2 business segment will provide each new company
with the independence, focus, financial resources and flexibility they need to adapt quickly to
market and customer dynamic, while generating long term values for their shareholders. The
split was closed on 1st November 2014 and resulted in two publicly traded companies which
include HP Inc. and Hewlett Packard Enterprise. Hewlett Packard Enterprise will define the
next generation of technology infrastructure, software and services for the New Style of IT
while the HP Inc. will be the leading personal systems and printing company delivering
innovations that will empower people to create, interact and inspire like never before.
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3.1.2 Mission
The mission statement of HP Company is to provide products, services and solutions
of the highest quality and deliver more value to our customers that earns their respect and
loyalty. This means that in order to satisfy the need of customer and makes a better life for its
customers, HP Company will do more on research and development so that they can provide
a high quality of products and services that can increase the value of the product and services
to the customers. This can make the customer more royalty and also respect to the company.
3.1.3 Objective
The objective used by the company is to achieve the companys vision and mission.
The objective of the HP Company is to:
1. Get customer loyalty by providing high quality and value products and services;
2. Gain profit by achieving profit to finance growth so that to create the value to the
companys shareholders;
3. Growth the company by recognize and seize the opportunity to growth based on the
company strengths and competent;
4. Become market leadership by developing and delivering useful and innovative
product and service.
5. Commitment to employee by promoting and rewarding the employee based on
performance and by create a work environment based on the companys values;
6. Develop leaders at all levels who achieve business results, exemplify the companys
value, and lead the company to growth and win.
7. To fulfil the responsibility to society by being economic, intellectual, and social asset
to each country and community where the company do business.
In summary, the objective of HP Company is to get customer loyalty, gain profit, develop
growth, become market leadership, commitment to employees, develop leadership capability,
and emphasis global citizenship.
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Systems, Printing, the Enterprise Group (EG), Enterprise Services (ES), Software, HP
Financial Services (HPFS) and Corporate Investments. The function of each segment are:
1. Personal systems segments provides commercial personal computers (PCs),
consumer PCs, workstations, thin client PCs, tablets, retail point-of-sale (POS)
systems, calculators and other related accessories, software, support and services for
the commercial and consumer markets
2. Printing segment provides consumer and commercial printer hardware, supplies,
media, software and services, as well as scanning devices to the customers.
3. Enterprise group segment of the company provides a broad portfolio of enterprise
technology solutions to address customer needs in building the foundation for
applications, Web services and user experiences.
4. Enterprise services segment provide technology consulting, outsourcing and support
services across infrastructure, applications and business process domains in traditional
and strategic enterprise services offerings, which includes analytics and data
management, security and cloud services.
5. Financial services segment provide investment solutions, such as leasing, financing,
IT consumption and utility programs and asset management services that facilitate
technology deployment models and the acquisition of IT solutions, including
hardware, software and services.
6. Corporate Investments segment include HP Labs. It also includes certain enterpriserelated business incubation projects and venture focused minority investments.
7. Software segment provides big data analytics and applications, enterprise security,
application testing and delivery management and IT Operations Management
solutions for businesses and other enterprises.
3.3 Organization Culture
The organization culture of HP Company is shaped by its value. The share
values of HP Company are:
1. Trust and respect for individual so that the employee in the company can work
together to create a culture of inclusion that is built on trust, respect, and
dignity for all.
2. Achievement and contribution which means that the employee of the company
need to strive for excellence when they are performing their jobs because the
13
14
According to Washington Post on 26 September 2006, from the article between the
lines of HP Company's spy scandal, state that the HP Companys media-leak investigation
went forward despite warnings from HP security personnel that the tactics used were
"probably illegal" and should be stopped. This is because HP Company conducted its internal
investigation to acquire the private information by spying the personal phone records of
board member of the company in order to assuage the damage that might have been caused
by sharing confidential information to authorized parties. In order to get the personal phone
record, the company using the target board members Society Security number to convince
the telephone companies to release the telephone of the particular board members record.
The action made by the company in acquiring personal phone is an unethical action because
this action will compromise the privacy of the companys employee.
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member that the related board member do not want others to know (such as the health status
of the board member) will be known by others other than himself or herself. Moreover, the
action of spying the personal phone record of the board member of the company had shown
that Kevin Hunsaker was violate the fidelity principle that state by Kitchener because he do
not trust his upper ordinate Dunn, who is the chairwomen of HP Company and his colleagues
(the other chief executive).
Besides, all of the individual has the basic rights to freedom of speech and to expect
privacy in their own homes, free from unwarranted searches and seizures. The way the Kevin
Hunsaker in conducting the internal control by spying the personal phone record of the board
member of the company had compromise the basic rights to freedom and to expect privacy in
home, and free from unwarranted searches and seizures. This is because when he keep spying
the personal phone record of the board member of the company, the related board member
might feel uncomfortable and make them scare to communicate and talk to their family
members and friend through using their phone because the related board member of the
company scare that the personal information like the status of healthy will be known by
others people others than him and his family members. Besides, the action taken by the Kevin
Hunsaker in spying the personal phone record of the board member is consider as an
unwarranted searches and seizures to the related board member of the company that being
spying. Moreover, the employee has the right to expect privacy in their home, when the
company keep spying them in their home by spying the phone record of the particular board
member, this will cause they cannot expect privacy in their home (when using phone to
communicate with his or her family members and friends at home).
The ethical issue about if there HP Company has breach the trust also arrive. Thus, in
order to measure that the company do not breach the trust, the company need to question
itself whether the action taken by him is accordance with the Utilitarian approach and the
moral right approach. Due to the action taken by Kevin Hunsaker was compromising the
basic right of an individual, thus, we can say that the company had breach the trust because
the action taken by Kevin Hunsaker in conducting the internal investigation had already
exceeded the companys authority and it has been invade the privacy of those whom personal
phone record had been spying by the company because the company get the records of the
personal phone record of the related employee without consent.
16
In the conclusion, although the board member of HP Company may have shared the
confidential information of the company to the third unauthorized party that commit a
violation to the companys policy, but this also does not mean that the company has the right
to check the personal telephone record of the board of the member in order to measure that
member do not share the confidential information.
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GoldStar has already produced its first air conditioner and have a branch in New York City. It
was the start of it global dominance in electronics.
During the 70s, GoldStar reached 100 billion won in revenue and become the first
company to attain $100 million won in export. GoldStar made another achievement when it
established its subsidiary in the United States that handles sales in its 20 th year around year
1978. The success for the company did not end here as it entered the 80s, its also established
its first production subsidiary overseas. By the mid 80s, the company has already surpassed 1
trillion won in sales.
In 1995, GoldStar merged with Lucky Chemical and LG Cable, therefore the
corporate name was changed to Lucky-GoldStar , and then finally to LG Electronics,
signalling its intention to become one of the biggest and most successful corporate entities in
the world. At first, GoldStar mostly focused on producing TV sets, but eventually involved
the mobile phone market. It merged with companies that dealt with communication and
information, and its also went into joint venture with Company Phillips, strengthening its
grasp on the TV manufacturing industry while keeping an eye on the mobile phone market.
At the end of 90s, LG focused on developing innovative LG mobile phone
technologies, which made it the top manufacturer of CDMA mobile handsets in the United
States in 2003. One year later, in year 2004, it had become a giant in the mobile phone
manufacturing industry, dominating sales all over the world and continuing to be one of the
strongest mobile phone manufactures worldwide.
4.1.2 Vision
LGs vision is to become the market leading company with broad market recognition.
BPMN 3123 MANAGEMENT ETHICS
18
4.1.3 Conduct
LG will succeed through the constant development of capability based in ethical
management.
Do-Hyun Jung
President & CFO,
LG Electronics
Bong-Suk Kwon
President & CEO,
Home Entertainment
Company
19
Jun-Ho Cho
President & CEO,
Mobile Communication
Woo-Jong
Lee
Company
President & CEO,
Vehicle Components
Seong-Jin Jo
Company
President & CEO,
Home Appliance & Air
Solution Company
20
21
females, foreigners, and the disabled to join their business operation and together make LG
Electronics become more successful. LG Electronics company also have practiced a very
good diversity management when they established and declared a labour policy against
discrimination and facilitating an environment in which individuals with diverse values and
beliefs can work together as a team. They put their utmost best and making ongoing efforts to
recruit and develop female talent in Korea where the percentage of female employees lags
behind. In addition, LG Electronics encouraging their business organization to hire people
with disabilities to increase their representation in the workforce. Besides that, the labour
policy includes a regulation that prohibits forced labour that restrain mental and physical
freedom, employing minor below the age of fifteen, and assignment of dangerous tasks to
youths under age of eighteen. Moreover, policy also guarantees employees the freedom to
join a union, as well as to the activities of the union and freedom to organize.
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China
Since 1999, LG Electronics have selected an elementary schools around China
and named it as LG Hope School and support its development by teacher training,
scholarship and building school infrastructures.
Ethiopia
LGE held an event My First Family Portrait at an Ethiopian village. The event was
organized to present a memorable picture moment to the villagers, which most of them
BPMN 3123 MANAGEMENT ETHICS
23
cannot afford to buy a camera and thus have never taken pictures with their families and
friends. In the event, LGE took photos of the residents and presented them with prints
instantly produced with Pocket Photo.
South Africa
LG Electronics representative make a charity visit for orphanages and grade schools
in underprivileged neighbourhoods and they gave free electronics repair service and
performed disinfections. The subsidiary also gifted a free 3D movie screening and IT classes
on the service bus.
Germany
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LGE hosted the LG Helps Flood Victims program to help victims from the South
East region hit by the worst flooding in a century and provided free repair service to the flood
victims. As part of the program, LGE donated 1,400 units of electric products and operated a
mobile laundry service.
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Motorola Solutions, Inc. is the one of the biggest American Data Communication and
Telecommunications Equipment Provider. This company comprises the previous
Government and Public Safety Division of Motorola Inc., which was founded in 1928. It
began its operation as a separate independent company on January 4, 2011, under the
NYSE symbol MSI. Motorola Solution, Inc. originated in Schaumburg, Illinois, United
States. Until now, this institution have spread its influence worldwide, which operates its
business at sixty countries in the world and hiring about 13,000 employees. Greg Brown
is a chairman and also a CEO of the company. From here, we can simply said that this
company practices CEO Duality concept which the chairman and CEO is a same person.
With operations worldwide, Motorola Solutions maintains manufacturing, sales and
administrative facilities in dozens of locations. Although it started its operation in 2011,
this company had received a several of awards and recognition from year 2014 to year
2016. We can consider Motorola Solutions is a successful company because in a short
period of time it can achieved a good performance by winning a lot of awards. Below is
the list of awards that Motorola Solutions, Inc. had received.
YEAR
2014
26
2015
2015
European
Critical
Communication Competitive Strategy
Innovation and Leadership Award.
2016
27
Greg Brown,
Chairman and Chief
Executive Officer
Bruce Brda,
Executive Vice
President, Product &
Mark S. Hacker,
Executive Vice President,
General Counsel & Chief
Administrative Officer
Gino A. Bonanotte,
Executive Vice
President & Chief
Financial Officer
Eduardo Conrado,
Executive Vice
President, Strategy &
Innovation Office
Jack Molloy,
Executive Vice President,
Worldwide Sale
28
LEVEL 1
CHIEF FINANCIAL
OFFICER
INVESTOR
RELATION
Shep Dunlap
STRATEGY &
INNOVATION
STRATEGY &
STAFF
LEGAL &
ADMINISTRATION
DIRECTOR
Michael Hayden
PRODUCT &
SERVICES
DIRECTOR
Clayton Jones
WORLDWIDE SALES
Jack Molloy
DIRECTOR
Judy Lewent
DIRECTOR
Gregory
Mondre
DIRECTOR
Anne
Pramaggiore
DIRECTOR
Samuel Scott
DIRECTOR
Bradley Singer
LEVEL 3
CHIEF
TECHNOLOGY
OFFICER
Paul Steinberg
HUMAN
RESOURCE
SOFTWARE
SERVICE AND
PUBLIC SAFETY
Bob Verbiscer
SALES, BRAZIL
Elton Borgonovo
SALES, MIDDLE
EAST
Mohammad Akhtar
BusDev &
VENTURE
DATA CAPTURE
SOLUTION
Bob Sanders
29
VALUES
We are innovative
We are passionate
We are driven
We are accountable
We are partners
CONTENTS
Motorola Solutions persistently create
ingenious solutions to the real challenges of
today, tomorrow and beyond.
This institution meet every challenges with
energy and determination and always
pursuing ever-higher standards.
They keep it simple by focusing on what
matters most so they can seize opportunities
with speed and confidence.
They stand behind the work that they do, the
contributions they made and the high business
standards that they have maintained.
They succeed together because they respect
all individuals and value contributions from
colleagues and customers alike.
30
5.4.1
31
32
Employee giving
Providing their employees with matching programs in the United
States and globally. They invest in their employees in other ways as well by
providing opportunities for professional development at every level so they
can reach their full potential. Their rewards programs are designed to attract,
retain and motivate employees.
Samsung Company
6.0 Samsung Company background
33
Samsung electronics Co. Ltd is the South Korea multinational electronics company.
The company is one of the chief subsidiary of South Koreas giant Samsung Group. It
conduct their business in 80 countries and employ 370000 people. Currently, Samsung
Electronic managing about 200 subsidiaries in the world. Samsung Electronics operates three
main divisions including consumer electronics (CE) division, information technology and
mobile communication (IM) division and device solution (DM) division. In the CE division,
they manufacture colour television. Monitors, printers, air conditioners and refrigerator.
However, the IM division is involve in production of computer, handhold phones, network
system as well as digital cameras and the DM division which consists of semiconductor and
display business part whose responsible to manufacture component part for its clients.
Nowadays, the company become worlds largest company that provide information
technology after Apple. Samsung electronics also is the worlds largest manufacturer of the
mobile phone, smartphone as well as tablets. The product of the company such as Androidpowered Samsung Galaxy smartphone, notes and tablets are recognition by the general public
and gain the market share in the electronic device in the world. Besides, Samsung Electronic
also is a major manufacturer of electronic component for its clients such as Apple, Sony and
HTC. They involve in manufacture lithium-ion batteries, semiconductor, chips, flash memory
and hard drive devices. In year 2006, the Samsung electronics become the worlds largest
television manufacturer.
The quality, environmental friendly and innovation product manufactured by
Samsung Electronic recognize by the world. Recently, the director of Samsung Electronics
have announced that they won more than 100 awards on their product including Home
Entertainment, Home Appliances, Mobile, and Internet of Things at the 2016 Consumer
Electronics Show (CES) to recognize Samsung as the leader in the consumer electronics
space spanning the home entertainment, mobile and home appliance categories.
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The vision of Samsung Electronics is Inspire the World, Create the Future. The
mission to achieve the vision, the company will focus on provide the innovation technology,
product and solution to inspire the community around the world to joint them in order to form
a digital world and enrich the life of the community in the world. The company is not only
focus on fulfil the shared value of their shareholders, partner and employee, they also
recognize their responsibility as the creative leader in global society. Thus, they want to
engage more effort and resources in creating more value to the industry and customer in order
to create sustainable future.
In order to success in global market, the company set a quantitative and qualitative
goal to guide the member of the company move toward vision and mission. Samsung
Electronics want to achieve annual sales of USD 400 billion and placing Samsung Electronic
overall brand value among the global top 5 in year 2020. For the qualitative goal is to achieve
innovative company; respected company and top ten worlds best workplaces. Besides, the
company want to have creative leader that able to build new market as well as global
enterprise that attract the worlds best talents.
CHAIRMAN
VICE
35
BOARD
CSR
IT/MOBILE
DEPARTMENT
CONSUMER
ELECTRONIC
DEPARTMENT
COMPONENT
DEPARTMENT
VISUAL
DISPLAY
MEMORY
DIVISION
SYSTEM
LSI
SOLUTION
DEVELOPME
NT
MODEM
DEVELOPME
NT
LED
DIVISI
HOME
GADGET
MEDICAL
GADGET
DIVISION
PRINTING
SOLUTION
DIVISION
WIRELESS
DIVISION
IMAGING
PROJECT
NETWORK
DIVISION
MEDIA SOLUTION
DIVISION
BIG DATA
Organization chart above, we can see that Samsung Electronic adopt mechanistic
organization. The organization member is organize in hierarchical which involve high
horizontal and vertical differentiation. The main position of the company is occupied by
chairman, then vice chairman. However, the component department, consumer electronics
department and IT and mobile department is under the control of vice chairman. The
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organization structure also characteristic by highly formalize. This is because all the
employee roles and responsibility is clearly state and they perform their work according to
the instruction. In term of decision making, Samsung emphasize highly important in
procedure and flow from top to bottom. The department under the company is independent,
they not interact and communication with each other. Each department do their own
responsibility and task. The component department will only responsible for memory
division, system LSI division and LED division, while consumer electronics department
responsible for visual display division, home gadget division, market gadget division and
printing solution division. Besides, the IT and mobile department responsible for wireless
division, network division and media solution division.
6.3 Organization Culture
Samsung Electronics adopt creative corporate culture to encourage innovation in the
organization. The company undertake participation work environment to ensure their
employee feel a sense of dignity, pride and ownership of the organization vision.
The company promote Work & Life Balance through Work Smart Samsung
Electronics to balance the work and life of their employee in order to improve the
productivity. They adopt flexible work schedule in Korea to avoid overtime at the same time
maximize the work performance of employee through effective time management.
In order to promote the creativity of their employee, Samsung Electronic has
established a Creative Development Research Institute System to give opportunity for their
employee to pursue creative new ideas. The company encourage the member of organization
to taking risks and develop new idea. As the employees plan is accepted, that employee will
assign as the member of task force to develop that project. That employee will be free from
their usual responsibilities and may receive a dedicated work space, development expenses
and necessary equipment during such period. Samsung Electronics also give incentive to the
person for their successful outcome.
In term of recruitment, Samsung Electronics emphasize on creativity and expertize in
hiring new employee in software engineering and design in order to recruit talent expert. The
qualification for admission is based on the applicant talent rather than examination result. The
applicant also have to go through capacity testing, technical ability as well as presentation of
the idea before admission as the member of the company.
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The company promote diversity workforce, they engage difference races, age and
country of origin. They avoid discrimination in workplace by adopting many approach to
protect against female and disability. They build pleasant working environment for their
employee.
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health problem such as reduce their immune system. So that, the cost of society is greater
than benefit obtain, it is an unethical action.
In addition, Samsung Electronic also violate ethic in the Kantian Theory. Kantian
theory emphasize on an ethical person should act only when others will also act in same ways
in same condition. An action is morally right if the person does not use others to advance him
or her interest. Ethical person also have to act rationally. In the issue that, we can see that
Samsung Electronic does not act rationally toward its employee. The main action of the
management of the company is more toward to satisfying the company interest rather than the
interest of stakeholders. Samsung Electronic treats their employees like a machine rather than
human in order increase the efficiency of production, reduce the cost of production and
increase the profit of the company. This can be evidence by the most of employee of the
company are working up to 15 hours in which 10 hours on their feet without rest to do
repetitive work. They also given a limitation time to assembly a phone in which only six
second that can be done by the ordinary person. Samsung Electronics do not think whether
their action is rational or ethical or not, as long as it will bring benefit to the company. They
does not thinks that the if the worker work intense pace of work will harm the worker as they
may have the risk of illness.
In my opinion, Samsung Electronic have been violate the duty of firm toward
employee in proving a health and safety working condition. An employer has the
responsibility to provide a workplaces that are free from serious recognized hazards, examine
always workplace condition as well as make sure the employee have and use safe tools and
equipment properly maintain those equipment. Samsung Electronics is the company that
mostly engage in manufacture electronic device, so the workplace is consider as hazards
because the working place will expose the worker with the heavy metals and hazardous
chemical. The employer have the responsible toward the working place as well as the health
and safety of the worker. However, the company violate their responsibility toward employee.
Even though the company acknowledge the risky working condition but they does not inform
their worker about the workplace risks and take sufficient action to eliminate the risks. The
company does not undertake sufficient safety approach to protect theirs employee against
those worst condition while performing their task. The company does not provide basic safety
equipment such as earplugs and protective goggles to protect their worker against injure or
harm until infected with disease such as leukaemia and blood disease.
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In addition, the employer already violate the human right of the employee. Employee
is a human being, they should be treat with dignity. Employee deserve a safety and health
working environment. According to the Maslows need of hierarchy, safety is consider as the
second level of need which is the basic need of an individual. However Samsung Electronics
expose their employee in the hazardous working condition. The company does not take any
action toward the emission of toxic chemical to protect employee against those hazardous
substances. Such chemical substances can be threaten the health of the employee and the risk
of infected serious disease. The employer also take over the right of employee to enjoying
their social life. When the employee of the factory are called to work up to 15 hour and
sometimes working for 27 days without break, they may spend most of their time in work and
without have spare time for them to enjoy their life. They does not have time to social with
their friends and family as well as entertain themselves.
As a conclusion, Samsung Electronics is unethical in the issue that discuss in above.
Worker is the main resource of a company to carrying out their operation, whether in
managing or in manufacturing a product. Without worker, accompany cannot operation.
Worker deserve basic safety, company should provide safety and conducive working
environment for their employee to protect against any negative effect on them. All the
employer should be balance the interest between the company and the interest of all
employee. The management should make the decision and action based on rational thinking
and choose the action that can bring largest benefit to the society. Employee is not a machine,
however they need basic right and justice and should be treat with dignity. A successful
company must undertake corporate and social responsibility to maintain fair and justice in the
society.
7.0 CONCLUSION
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There is saying from Jdbelland, Being on top of the world doesnt mean anything
unless you know what its like to be at the bottom. Most successful and well established
companies today, take a lot of times, up to twenty years period, to climb the ladder of
success. These organisations put their efforts, energy, time and valuable properties such as
capital to ensure their business can compete and generate a better cash inflow in the market.
There are so many strategies to be implemented to maintain their sustainability and to gain a
competitive advantage among their rivals. For instance, Hewlett-Packard (HP) Company,
which started their business on 1938 only a garage which located at behind Packards home.
After that in year 1940, HP Company moved from the garage to a rented office space on Page
Mill Road in Polo Alto which is larger than the garage behind Packards house. From this
situation, we can simply said that Hewlett-Packard (HP) Company lack of resources that is an
appropriate workplace to operate their business in the earlier, but, as we can see now, HP
Company evolved rapidly becoming a successful American multinational Information
Technology organization. Its a great things to learn from HP Company how they can survive
from the bottom to the top. Another great story is about Apple Incorporation Company.
Although Apple Computer Incorporation dominated as a manufacturer of personal computers
for almost twenty years, their product also faced unstable sales and low market share. Its also
a fruitful thing to learn from Apple Incorporation Company on how they try their best to keep
sustain in the competitive market.
Arthur Helps have said that, In a balanced organization, working towards a common
objective, there is success. Each organizations must work on diligently to achieve their
objective or mission and vision no matter what happens. When employees need to make a
difficult decisions, they can refer to the organizations goals for guidance. For organizations
to be successful more emphasis on making sure every employee and every managers know
what he or she needs to accomplish in the present and future. When employee understand the
needs to be done to succeed, its much easier for them to contribute. Its also tremendously
easier for managers to do their jobs, to improve productivity and to manage proactively. Clear
mission and vision help everyone in the company succeed. In order to attain the highly
achievement, we found that Apple Incorporation, HP Company, LG Corporation, Motorola
Solutions Incorporation and Samsung company had set up their own objectives, mission,
vision and conduct. Each company had set a clear purpose and from their perspective, we
found that they try their best to create a win-win situation between two parties, that is, the
companies and their customers. For example, LG Corporations mission is to create value for
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customers, respect human dignity and to become the best in its class by winning customers
acclaim as a true leader in global market. But, its vision is totally different which is to
become the market leading company with broad market recognition. From this point of view,
we can simply said that the LG Corporations mission is more emphasized on their
customers, while, its vision is more focused on the companys achievements.
Organizational structure is definitely important for decision making process. Most
companies either have a tall or flat organizational structure. Small companies usually use a
flat organizational structure. From our assignment, we found that Apple Inc., HP Company,
LG Corporation, Motorola Solutions, Inc. and Samsung Company use a tall organizational
structure because they operated their business in a larger scale and they also are multinational
companies that have many subsidiaries in a worldwide. Their business operation also are very
complex and involves so many staff.
Every organisation has its own culture. Since many employees spend almost twenty
four hours at their workplace, their organizations culture obviously affects both their work
lives as well as their personal lives. Organizational culture commonly related to the beliefs,
ideologies, principles and value that the individuals of an organisation share. The success of
an organization depends on their organizational structure. Based on the organization culture
that implemented by HP Company, we can conclude that the company is innovation due to
emphasis on innovative. They also is a people-orientation company because the company
focuses on achievement and contribution. HP Company always evaluate their results through
a team work and due to this, HP Company is a team-orientation company. Besides, this
organizational culture of the company also strengthening on the moral values and the ethics
of the member in organization. Other company like Samsung, Apple Inc., LG Corporation
and Motorola Solutions Incorporation also have their own organizational culture.
While many companies grows profits ethically, others maximize profits unethically
via abusing their employees, lowering product quality and impacting the environment
negatively. Unethical business practices and controversy basically can lead to smeared public
relations and a loss of trust and respect on the part of the consumers. For example, Apples
promises to protect its workers were routinely broken due to using cobalt mined by child
labour in their lithium ion batteries. The child labour need to work twelve hours a day in the
mines, carrying heavy loads and just earning between one and two dollars per day. The
majority of miners spends long hours every day working with cobalt without the most basic
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of protective equipment, such as, gloves, work clothes, or facemasks. Another negative issue
also arises in Samsung Company due to poor working condition at the factory in Amazon on
August 2013. The employee of the factory were reported to work up to fifteen hours and
sometimes working for twenty seven days without break. There is a spying scandal happened
in HP Company. The internal investigation that conducted by the HP Company may leak the
private information of the board member of the company by spying the personal phone
records of board member in order to assuage the damage that might have been caused by
sharing confidential information to authorized parties. These controversies that happens
within the institution will effects its reputation and to the worst extent, boycott also can
happen. To cover up with the negative issues, the company need to implement other strategies
and strengthening their Corporate Social Responsibility (CSR). For example, Apple Inc.
already launched an environmental campaign due to several nature disasters happens
nowadays. LG Corporation also actively doing their charity work in a worldwide to help the
people in need in a poor and developing countries such as Ethiopia, South Africa and so on.
Motorola Solutions Incorporation through its Motorola Solutions Foundation is actively
participate in Corporate Social Responsibility (CSR) in different aspects such as education,
public safety, disaster relief and employee giving. This is a good practices as multinational
company in balancing their profit and fulfil communitys needs and wants.
In a nutshell, for corporation, in order to survive in the competitive market, they need
to eliminate the negative issues or any scandal that can affect their reputation as a respected
institution. They also need to implement a better business strategy plan and build a strong
customer relationship as the customer is the main channel to get a larger profits. As a
responsible organization, they also need to be balance between profit and need of community.
Get organised is a compulsory to fulfil that lead the corporation to the victory and successful.
A systematic organization will help and guide the organisation to complete the tasks and stay
on the top of things to be done. To be successful, the company need to study and learn from
their competitors. Effective internal control and having a good risk management also should
be implemented in the company as the risks can affect the organisation to pursue their
objectives. Always remember what Henry Ford have said, A business that makes nothing but
money is a poor kind of business.
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