KHWAJA MOINUDDIN CHISHTI LANGUAGE

UNIVERSITY, LUCKNOW,
2023-24
Department of Masters of business Aadministration

SUBMITTED TO: SUBMITED BY :

Prof.(Dr.) Syed Hadier Ali Tasneem khan

Head of Department MBA 1st sem

KMCLU, Lucknow
Introduction
Samsung Electronics Co. Ltd. is one of the largest and most popular South
Korean multinational conglomerates. Samsung is currently owned by the
Samsung Group which is currently headquartered in Samsung town, Seoul,
South Korea. Samsung currently employs more than 2,60,000 employees
worldwide. The various subsidiaries working under Samsung include
Samsung electronics, Samsung SDS, Samsung engineering, Samsung
biologics, Samsung fire and marine insurance, Samsung Life insurance,
Samsung heavy industries, Samsung C&T corporation, Samsung SDI,
Samsung electro-mechanics, and Cheil Worldwide. Samsung is currently one
of the largest business conglomerates with the 8th largest global brand
value.
Samsung electronics which is a part of the Samsung Group is one of the
largest tech companies for manufacturing consumer electronics and a silicon
chip maker. Samsung is the second largest phone manufacturing company in
the world. Also, Samsung Heavy Industries is the second largest shipbuilding
company in the world along with Samsung engineering.
Samsung has diversified itself into multiple business products like consumer
electronics, home appliances, chip manufacturing, clothing, medical
equipment, and telecommunications. Its various services also include
advertising, financial services, information technology, medical services,
semiconductors, shipbuilding, hospitality, construction, and advertisements.
Samsung – History & Overview:
Samsung was initially founded by Lee Byung Chul in 1938 as a retail
company in Daegu city under the name of Mitsubishi Trading Company. It was
initially focused on food processing, manufacturing, textiles, insurance, and
trade & retail. Later on, Samsung diversified itself into the electronics and IT
industry in the 1960s such as Samsung electronics, Samsung Corning, and
Samsung semiconductors. Samsung manufactured the first Black and white
TV during this time. By the 1970s, Samsung also entered the shipbuilding,
construction, and infrastructure business to diversify its revenue. In 1987, the
founder of Samsung Group Lee Byung Chul died which led to the division of
Samsung into 5 companies namely – Samsung Group, CJ Group (Food and
chemicals), Hansol Group (Paper and Telecommunications), JoongAng Group
(media), and Shinsegae Group (departmental stores).
During the 1990s, Samsung focused to invest in the research and
development of its products and diversify its business all over the world
beginning in the United States by setting up multiple manufacturing plants.
During this time Samsung won multiple contracts for its construction
business like Burj Khalifa in the United Arab Emirates, Petronas towers in
Malaysia, and Taipei 101 in Taiwan. Samsung also became the world’s
largest producer and manufacturer of LCD screens, semiconductors, and
mobile phones. By 1999, Samsung also started developing gas turbines and
aircraft engines for its commercial airline business.
In 2008, Samsung started its Galaxy line of smartphones which changed the
game for Samsung. By 2012, Samsung electronics became the world’s
largest smartphone manufacturing company by beating other companies. In
the same year, Samsung had to pay a 1 billion dollar fine to Apple for
violating its patents using Apple’s smartphone technology. In 2018,
Samsung established the world’s largest mobile manufacturing industry in
Noida, India which was inaugurated by Prime Minister Narendra Modi.
Samsung – Products and Services
The various products and services of Samsung are as follows:
Consumer electronics – Samsung is one of the largest consumer electronics
manufacturing companies which includes air conditioners, mobile phones,
semiconductors, refrigerators, monitors, TVs, and AMOLED displays. It is one
of the largest sources of revenue for Samsung.
Construction – Samsung is also known for its construction in infrastructure
services. Samsung has developed multiple popular skyscraper buildings like
Burj Khalifa in the United Arab Emirates, Taipei 101 in Taiwan, and Petronas
towers in Malaysia.
Pharmaceutical – Samsung biologics is known for its biopharmaceutical
manufacturing of drugs and medicines for curing harmful diseases.
Ship Building – Samsung Heavy Industries is the largest shipbuilding
engineering company in South Korea that manufactures container vessels for
crude oil and passengers due to which trade takes place in the world.
Insurance – Samsung also provides insurance services for accident vehicles,
casualty, fire & marine insurance, and life insurance as well.
Energy – Samsung SDI is known for the development of energy solutions and
products using electrically rechargeable batteries or solar and wind-powered
energy systems.
IT Services – Samsung SDS also provides various IT services like consulting,
customer care, and outsourcing technical services. It uses artificial
intelligence, blockchain, and the internet of things to manage its business.
CORPORATE SOCIAL RESPONSIBILITY
Samsung Corporate Social Responsibility (CSR) programs and initiatives
are facilitated through the Sustainability Management Council, which
consists of 14 related departments that handle issues from 10 different
areas, including society and the environment.[1]

Samsung Global Code of Conduct is based on the following principles:

1. Compliance with laws and ethical standards

2. Maintenance of clean organizational structure
3. Respecting customers, shareholders and employees
4. Caring for the environment, health and safety
5. Being socially responsible corporate citizen

CSR aspect of the business is managed by Samsung CSR Committee.

The company releases Supplier Responsibility Progress Report annually
and it includes the details of CSR programs and initiatives engaged by the
company. Samsung Electronics addresses CSR aspects of the business
in four directions: social contributions, green management, health and
safety and sharing growth.

Samsung Supporting Local Communities

• Samsung Tech Institute encourages independence and self-

reliance among young adults via systematic vocational education.
The initiative had 39,659 beneficiaries by the end of 2015.

• Samsung SMART School addresses an important gap in the global

education by improving educational environment for students
residing in disadvantaged areas. In 2015 alone 224,753 students
attended Samsung SMART School.

• Samsung Solve for Tomorrow is a program that aims to tackle

important social issues. The program engages students and non-
profit organizations to identify the most pressing social problems
and to find and to implement solutions to these problems

• Samsung Care Drive facilitates a range of healthcare programs in

order to deal with the help of technology. As of 2014, the company
 had 30 active programs primarily in China, Russia, and several
countries in Africa.

• Samsung Nanum Village aims to target the roots of poverty via

providing an effective infrastructure to socially disadvantaged
segments of the population. Within the scope of this program,
partnerships are formed with national and local governments to
provide an extensive support for education infrastructure, medical
facilities, clean water and the construction of community centres.

• An average number of Samsung employee volunteering hours

amounted to 11.3 hours during 2014

• In Korea Samsung opened the sixth House for Hope in 2015 to

improve the conditions of local community child centres

Samsung Educating and Empowering Workers

• Employee benefits provided in Korea and abroad in 2015 totalled to

KRW 3.853 billion

• Training time per employee in 2015 amounted to 78 hours

• Samsung Career Consulting Centre has been used by 5,500 people

• Samsung conducts its STaR (Samsung Talent Review) Sessions in

association with its EDP (Expertise Development Process) annually.
It is a talent nurturing process that supports employees in designing
an individual career path and establishing a clear vision with their
supervisor. In Korea alone 2000 employees undergo STAR
sessions annually.

Labour and Human Rights at Samsung

 • The company conducted 235 supplier inspections for child labour
prevention in China in 2015

• In Malaysia Guidelines for Migrant Workers in cooperation with

Business for Social Responsibility (BSR) to help eradicate forced
labour

Employee Health and Safety at Samsung

• Building health and safety management systems is a matter of

priority for Samsung. The company complies with OHSAS 18001
standard for occupational health and safety management systems
across its workplaces around the globe.

• Samsung attempts to operate its workplaces in safe conditions at all

times. A continuous monitoring and improvement has been
instituted and accordingly, the company organizes occasional
emergency scenarios for the occasions of harmful chemical
substance spills, fires, explosions and natural disasters.

• Samsung supports employee health and safety by constructing

ergonomic applications in the working environment and prohibiting
business trips to regions with high risks for infectious diseases such
as Ebola and MERS

Samsung and Gender Equality and Minorities

• Disabled employment rate by the multinational electronics company

amounted to 1.6%, 1.68% and 1.7% in 2013, 2014 and 2015
respectively
• The table below illustrates changes in ratio of female employees by
job function during the past several years.
 Ratio of female employees by job function[1]

Waste Reduction and Recycling by Samsung

• Samsung collected a total of 2.26 million tons of waste products

from 2009 to 2015, and aims to collect 3.8 million tons (cumulative)
of waste products by 2020.

• In 2015, the company applied a total of 34,322 tons of recycled

plastics (6.3 percent of total plastic use) to monitors, printers,
washing machines, refrigerators, vacuum cleaners, and earphone
cases

Carbon Emissions by Samsung

• Within the scope of Eco-Management 2020 and Planet First

initiatives introduced by Samsung, greenhouse emissions were
reduced by 70% and accumulated 250 million tons of greenhouse
gas reduction was achieved since 2008.

• Green communications initiative that aims to share the value of

Samsung Green Management implemented various open projects
around the globe. These include environmental educational courses
 and events and support of employee interests to participate to such
events.

• The company operates green workplaces by reducing greenhouse

gas emissions and usage water, as well as, increasing waste
recycling in its offices.

• Samsung achieved cumulative 156 million tons green house gas

(GHG) reduction at product use stage during the period 2009 –
2015.

Water Consumption by Samsung

The flow of water resources by Samsung is illustrated in figure below.

Flow of water resources at Samsung Electronics[3]

Samsung and Sustainable Sourcing

• Samsung maintains Supplier Consulting Team that comprises a

roster of 100 of directors and executives in the fields of
manufacturing, product, development and quality control.
 • The company operates a Shared Growth Fund of KRW 1 trillion to
help improve business for suppliers that find it difficult to secure
funding.
• Seven Shared Growth Implementation Plan introduced in 2010 is an
attempt to develop a win-win partnership with suppliers. Win-Win
Partnership Academy instituted by Samsung aims to assist its
suppliers to improve their businesses.

Samsung other CSR Initiatives and Charitable Donations

• Developing green technology and products is adapted as one of the

core principles by the company in terms of reducing its
environmental impact. Samsung has received certifications for an
accumulated 3,027 product models as of the end of 2014, from 11
nations including Korea, the US, China and European countries.

Samsung Group Report contains a full analysis of Samsung corporate

social responsibility including Samsung CSR issues. The report illustrates
the application of the major analytical strategic frameworks in business
studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain
analysis and McKinsey 7S Model on Samsung. Moreover, the report
contains analyses of Samsung leadership, business strategy,
organizational structure and organizational culture. The report also
comprises discussions of Samsung marketing strategy and addresses
issues of corporate social responsibility.
Conclusion
Samsung is a highly influential and diversified conglomerate with a long
history of innovation in the tech industry. It is a global leader in various
sectors and continues to adapt to the evolving market landscape.
However, like any large corporation, it faces challenges and scrutiny.
Forming a definitive conclusion about Samsung depends on specific
areas of interest, such as their products, technological advancements, or
corporate practices, and should take into account both their strengths and
weaknesses.