MANAGEMENT CONCEPT AND PRACTICES ASSIGNMENT-1 CORPORATE SOCIAL RESPONSIBILITIES CASE STUDIES ON SAMSUNG ELECTRONICS & SONY
Corporate Social Responsibility (CSR)INTRODUCTIONCorporate Social Responsibility is defined as “the integration ofstakeholders’ social,environmental and other concerns into a company’s business operations.Corporate Responsibility (CR) has emerged as a significant theme in the globalbusiness community and is gradually becoming a mainstream activity. The growingemphasis on corporate responsibility is affecting the relationship between companiesand their various stakeholders, such as investors, customers, vendors, suppliers,employees, communities and governments.CSR in Equation Form Is the Sum of: Economic Responsibilities (Make a profit) Legal Responsibilities (Obey the law) Ethical Responsibilities (Be ethical) Philanthropic Responsibilities (Good corporate citizen)Key Issues in CSR Labour rights: child labour forced labour right to organise safety and health Environmental conditions water & air emissions climate change Human rights cooperation with paramilitary forces complicity in extra-judicial killings Poverty Alleviation job creation public revenues skills and technology
CSR Management:IMPORTANCE OF Corporate Social Responsibility (CSR) • Addresses social issues business caused and allows business to be part of the solution • Protects business self-interest • Limits future government intervention • Addresses issues by using business resources and expertise • Addresses issues by being proactive • Demonstrate a commitment to society’s values and contribute to society’s social, environmental, and economic goals through action. • Insulate society from the negative impacts of company operations, products and services. • Share benefits of company activities with key stakeholders as well as with shareholders. • Demonstrate that the company can make more money by doing the right thingImpact on global value chain labour conditions (e.g. right to organise, wages) environmental controls transfer of new management techniques Compensation for weak legal environment in LDCs
Corporate Social Responsibility Case Study SAMSUNGSamsung Electronics adopted a new vision of becoming an innovative leader thatcreates new markets to keep pace with the fast changing global business environment.Strategic ApproachesCore ValuesSamsung Electronics promotes transparency and accountability with an advancedcorporate governance structure. Full support is extended to the board of directors tofacilitate creative management with the ultimate goal of maximizing corporate value,while every effort is made to enhance the wealth and rights of shareholders. The boardof directors addresses issues as stipulated in related laws and the company’s articles ofincorporation, and is responsible for overseeing basic policies and major issuesconcerning the company’s operations
Sustainability Management SystemSamsung Electronics set up the CSR Liaison Office that reports directly to the CEO andthe Sustainability Management Committee for effective implementation of sustainabilitymanagement. The committee holds two regular meetings a year during which they drawup related plans, review progress and performance, discuss global CSR trends, anddecide on how to address major sustainability issues.Identifying Material IssuesSamsung Electronics derives major sustainability issues through a 3- stage process.•Stage 1: Identify all internal and external sustainability issues including media research,electronic industry trends, and corporate strategy•Stage 2: Assess the level of interest from stakeholders and society and the impact onbusiness activities•Stage 3: Decide on material issues after review by sustainability report task force teamand top management.Enhancing Employee ValueAdvances made by employees mean advances for the company. With that in mind,Samsung Electronics offers various programs and assistance to help our peopledevelop their skills and abilities. Samsung Electronics offers about 1,600 educationprograms in the four categories of value & leadership, next-generation leaders, globalcompetencies, and expert training.●Expert TrainingWe adopted a competency grading system to train employees into experts in theirrespective fields. Based on this system, we monitor job skills of each individual andorganizational unit and develop education programs accordingly.●Global CompetenciesForeign language training is offered to hone global competencies. Courses are alsoavailable to prepare workers for overseas assignments and for leadership roles inoverseas subsidiaries and plants.
Creative Organizational CultureToday’s fast-paced business environment calls for an organizational culture that valuescreativity. In line with our emphasis on growing the software and solutions business,Samsung Electronics is building a flexible culture that motivates each individual todemonstrate their creativity under the mottos of “Work Smart,” “Think Hard” and “BuildTrust.”Think Hard●Idea Suggestion SystemOur knowledge management system features a mechanism for receiving ideas fromemployees. Innovative suggestions from employees can provide the seeds of a newbusiness or enhance the performance of existing products.●Knowledge SharingThe R&D KMS (Knowledge Management System) is a portal that supports sharing ofinformation related to technology and R&D. It includes communities of R&Dprofessionals, technology glossary, a question-and-answer site, technology blogs, andidea suggestion.Green Management VisionThe underlying philosophy of green management at Samsung Electronics is tocontribute to building a prosperous society and preserving the environment throughbusiness activities that give due respect to people and nature. Our vision is “creatingnew value through eco-innovation” under the slogan of “PlanetFirst.” As a responsiblecorporate citizen, we aim to create new value for customers by pursuing innovationactivities across a products entire life cycle.
Addressing Climate ChangeGreenhouse Gas InventoryThe standards used to manage greenhouse gas (GHG) emissions at SamsungElectronics are based on widely accepted international guidelines.Temperature and Humidity Control DevicesTangjeong Plant installed air spray humidifiers to curb energy use and CO2 emissionsrelated to humidification (for regulating temperature and humidity of the clean room) andto ease the cooling load.Clean Development Mechanism (CDM)The LCD Division is pursuing a CDM project under which carbon credits will be obtainedby reducing SF6 generated during production.Renewable Energy DevelopmentSamsung Electronics is carrying out R&D on renewable energy, such as solar cell andfuel cell, to address climate change and contribute to green growth. We developed asolar cell with industry leading efficiency and are making preparations for massproductionSocial ContributionIn order to extend a helping hand to our global neighbors in need, our nine regionalheadquarters carry out various social contribution activities tailored to each region’ssocietal and cultural characteristics. From North American headquarters’ Four Seasonsof Hope to Samsung Real Dreams (educational program for low-income households inAfrica), our employees are working hard to deliver great outcomes for communities inneed.Adopt-a-Village CampaignIn China, Samsung Electronics launched the “Adopt-a-Village” campaign in 2005 tosupport farming villages across the country to meet China’s policy to build new ruralcommunities. As of the end of 2009, 44 local subsidiaries and their 33,000 employeesforged sisterhood ties with 46 villages and coordinated their resources in a total of 1,000endeavors annually.Participating in the Habitat for Humanity ProjectTexas-based Samsung Telecommunications America employees have been donatingseveral months a year of their time to build Habitat for Humanity homes for deservingfamilies in the state since 2006Global competitivenessThe competitiveness of our business partners has a significant influence on ourcompetitiveness. To raise the competitive edge of partner companies, SamsungElectronics offers comprehensive support across the areas of funding, technology, HRdevelopment and infrastructure.
CASE STUDY SONYStrategic ApproachesSony InitiativesTo strengthen its governance structure beyond legal requirements, Sony Corporationincludes several provisions in its Charter of the Board of Directors to ensure theseparation of the Board of Directors from the execution of business, and to advance theproper functioning of the statutory committees. Sony is continuously considering the customer’s viewpoint and is working hard to improve customer satisfaction around the world. In addition to rising stakeholder interest in environmental issues, human rights, and labor conditions in factories, the impact on business arising from changes in the labor situation due to fluctuations in the operating environment is an increasing cause for concern. Quality Strategy Meetings—which are attended by top management from each business group—are held regularly to discuss and set policies, strategies and key measures relating to product and service quality, and they function as the ultimate decision-making forum for related matters
Enhancing Employee ValueSony values communication between management and employees. Top managementencourages employees to voice their opinions, which allows for a meaningful exchangeof information and ideas on a variety of topics. Sony also conducts employee surveysby region, the results of which are reflected in actions aimed at enhancing theworkplace and corporate culture.Risk Management SystemEach Sony Group business unit, subsidiary or affiliated company, and corporate divisionis expected to review and assess business risks on a regular basis, and to detect,communicate, evaluate and respond to risk in their particular business areas.In addition,Sony Corporation’s Corporate Executive Officers have the authority and responsibility toestablish and maintain systems for identifying and controlling risks with the potential tocause losses or reputational damage to the Sony Group in the areas for which they areresponsible. The Corporate Executive Officer in charge of Compliance is tasked withpromoting and managing the establishment and maintenance of such risk managementsystems through the coordinated activities of the Group Risk, Compliance, Internal Auditand other relevant groups.Environmental Initiatives Sony has developed a technology for dye-sensitized solar cells that allows for the production of solar cells at a lower cost, and with fewer materials and less energy, than conventional silicon-based cells. Dye-sensitized solar cells also
have an advantage in that they enable excellent power generation, especially in low-light situations. Sony also takes care to ensure the proper recycling of end-of-life products in countries and regions where related legislation does not exist. Resource ConservationTo conserve resources, Sony promotes environmentally conscious product design andworks actively to reduce product weight and maximize the use of reused and recycledmaterials. For example, Sony uses waste plastic from discarded DVDs and CDs in themanufacture of digital still camera components Social ContributionAs a global company, Sony is keenly aware of the importance of the MDGs and worksin partnership with international organizations and NGOs to implement a diverse arrayof activities around the world, not only where it operates but also elsewhere, aimed atcontributing to the achievement of these goals. In commemoration of 50 years of social contribution activities, in 2009, Sony established the Sony Science Program, a series of workshops planned and conducted by Sony engineers that aim to teach children about the principles of science through first-hand experience, as well as to encourage curiosity and broaden their imaginations As a global corporate citizen, Sony provides disaster relief and humanitarian aid in the aftermath of major disasters. As part of its effort to provide medium- to long-term support for victims of the 2008 Sichuan Earthquake, Sony donated funds to assist in the construction of two primary schools through the China Children’s Fund.Global competitivenessIn recent years, stakeholders increasingly place value not only on the quality of acompany’s finished products, but also on how responsibly it manages its supply chain.This includes production and procurement, responsiveness to quality issues andcustomer concerns, and the workingconditions and occupational health and safety it provides to those who make theproducts. Sony is committed to effective quality and supply chain management, both onits own and in cooperation with its suppliers.