Sustainability Samsung has claimed so much in their sustainability report regarding their concern for environment, quality control and product safety in terms of producing products in sustainable way. However, it cannot be denied that Note 7 crisis has left the great impact on the environment. There was storm of questions about how a sophisticated electronics company with decades of experience can put a faulty product in the market. There was an issue with quality assurance and testing to make sure the device is safe and properly designed. Samsung boasted so much about the assurance and quality (refer to appendix A) but failed to apply in practical. Even Samsung has revealed in their sustainability report that they had quality issue related to the Galaxy Note 7. (Samsung Sustainability Report 2017) According to the Greenpeace (International NGO), Samsung manufactured 4.3 million Note 7 devices added about 730,000 kg material which contained rare earth minerals and precious resources such as cobalt, Tungsten, Tantalum, Gold, Silver. It was said that 99% of rare earth minerals cannot be recovered for recycling stated by iFixit. It was just an estimated that recycling effort by Samsung will help to collect up to 142,828 kg of resources. Now the question is, what will happen to the remaining waste? Even environmental organisations questioned Samsung about its recycling plan following an eco-friendly manner and how will they execute their plan. It was stated in the Samsung’s sustainability report 2017 that company has reduced its Sustainability management value due to environmental impact of wastage. Actions taken by Samsung after Note 7 Crisis: Their plan was to recall all the sold devices at the initial stage and after five months, Samsung revealed its commitments towards the environment, recycling and to save the galaxy. Samsung said it will considered to be used their devices as refurbished phones after the consultations with regulatory authorities, carriers and local demand. Moreover, components such as camera modules and semiconductors will be detached and used for test sample and production purposes. Final process will be to extract precious metal using environmentally friendly methods. Apart from all, Samsung has joined the EUs and R&D and new eco-friendly processing methods for testing. Effect on company’s goodwill According to the report published by Boston-based consulting group Reputation Institute, Samsung’s place has fallen drastically to 89th, a huge drop of 69 spots in the global Corporate Social Responsibility ranking (Lee Wan 2017). The report examines Corporate Social Responsibility and weighs factors such as social influence, treatment of workers and corporate structure in major companies from different companies. It was estimated that Samsung’s shares prices were declined almost 7%, knocking about 17billion off the company’s market value. Apart from this, class action lawsuits have been launched in many countries but ag.

1. Sustainability
Samsung has claimed so much in their sustainability report
regarding their concern for environment, quality control and
product safety in terms of producing products in sustainable
way. However, it cannot be denied that Note 7 crisis has left the
great impact on the environment. There was storm of questions
about how a sophisticated electronics company with decades of
experience can put a faulty product in the market. There was an
issue with quality assurance and testing to make sure the device
is safe and properly designed. Samsung boasted so much about
the assurance and quality (refer to appendix A) but failed to
apply in practical. Even Samsung has revealed in their
sustainability report that they had quality issue related to the
Galaxy Note 7. (Samsung Sustainability Report 2017)
According to the Greenpeace (International NGO), Samsung
manufactured 4.3 million Note 7 devices added about 730,000
kg material which contained rare earth minerals and precious
resources such as cobalt, Tungsten, Tantalum, Gold, Silver. It
was said that 99% of rare earth minerals cannot be recovered for
recycling stated by iFixit. It was just an estimated that recycling
effort by Samsung will help to collect up to 142,828 kg of
resources. Now the question is, what will happen to the
remaining waste? Even environmental organisations questioned
Samsung about its recycling plan following an eco-friendly
manner and how will they execute their plan.
It was stated in the Samsung’s sustainability report 2017 that
company has reduced its Sustainability management value due
to environmental impact of wastage.
Actions taken by Samsung after Note 7 Crisis:
Their plan was to recall all the sold devices at the initial stage
and after five months, Samsung revealed its commitments

2. towards the environment, recycling and to save the galaxy.
Samsung said it will considered to be used their devices as
refurbished phones after the consultations with regulatory
authorities, carriers and local demand. Moreover, components
such as camera modules and semiconductors will be detached
and used for test sample and production purposes. Final process
will be to extract precious metal using environmentally friendly
methods. Apart from all, Samsung has joined the EUs and R&D
and new eco-friendly processing methods for testing.
Effect on company’s goodwill
According to the report published by Boston-based consulting
group Reputation Institute, Samsung’s place has fallen
drastically to 89th, a huge drop of 69 spots in the global
Corporate Social Responsibility ranking (Lee Wan 2017). The
report examines Corporate Social Responsibility and weighs
factors such as social influence, treatment of workers and
corporate structure in major companies from different
companies.
It was estimated that Samsung’s shares prices were declined
almost 7%, knocking about 17billion off the company’s market
value. Apart from this, class action lawsuits have been launched
in many countries but again Samsung has not stated this
provision as a contingent liability. Insider from Samsung has
also revealed that the crisis was really worse that it directly
impact company’s products, brand and trust with
customers.Actions that company has taken to recover their
goodwill
Without any doubt, incident with Note 7 cost Samsung a lot of
money and some goodwill. Samsung had a choice to continue to
sell their phones, continue or delay trying to find out issues
with the device. But Samsung is doing whatever is within their
power to maintain an ethical and sustainable business. Company
chose not to risk with counsumers’ life or risking the entire
Samsung brand so it took sencond road by recalling its 3 million

3. devices. Furthermore, firm announced to give owners of Note 7
a price reduction on the Note 8, obviosly on some terms and
conditions, such as by returning old samsung phones.
Apendix A
Referencing
https://ciwm-journal.co.uk/samsung-sets-recycling-plan-faulty-
galaxy-note7/
https://www.bloomberg.com/news/articles/2016-10-10/samsung-
crisis-raises-prospect-note-7-could-head-to-scrapheap
http://time.com/4531372/samsung-note-7-recall-fires-
overheating-why/
https://www.forbes.com/sites/ianmorris/2017/08/26/galaxy-
note8-massive-discount-note7-owners/#68296a886f3a
https://www.fastcompany.com/3064569/how-did-samsung-
botch-the-galaxy-note-7-crisis-its-a-failure-of-leadership
http://english.hani.co.kr/arti/english_edition/e_business/811843.
html
http://www.ibtimes.com/samsung-note-7-environmental-impact-
will-43-million-devices-be-recycled-2441090
https://www.triplepundit.com/2016/10/samsungs-failed-note-7-
phones-pose-big-environmental-problem/

4. http://bgr.com/2017/07/18/galaxy-note-fe-vs-galaxy-note-7-
recycling/
Page 1 of 3
Online ECSP 533
Discussion Guidelines– Missouri Baptist University
Participation in online discussion groups is mandatory/graded in
this class. Please review the
this document carefully. The guidelines and due dates are
provided in modules. Note that
the syllabus indicates that late postings will receive a grade of
zero. The discussion board is
designed for dialogue, reflection, and feedback about our
readings as part of this class.
How to post to the discussion board within MyMBULearn /
Canvas:
the week (easiest) or
through the Discussions tab, clicking on the week’s discussion

5. in which you can type your
name / week information, your school / district / grade header,
and then your questions
and responses
posting, and click on Reply
clicking Help in the upper right-
hand corner of your window, then Search the Canvas Guides,
then Student Guide, then
Discussions
Participation in online threaded discussions:
Online discussions are our class sessions for the eight weeks of
this course, and as such are a
critical part of our shared learning experience. This is the
opportunity for you to share your
thoughts from the readings, ask questions of one another, relate
the concepts to your daily
teaching experiences, and learn from the experiences of your
classmates. You will participate in
6 discussion board cycles throughout the term. The questions
for discussion are designed to

6. help guide your understanding of what the reading assignment is
about, the purpose of the
assignment, and the content you should take from the reading to
help you as a teacher in the
classroom or as a supporter of classroom teachers.
There is the overarching expectation that your postings are
substantive, presenting new thoughts
and ideas. The purpose is not simply to repeat what you read or
reiterate what your
classmates have shared. Support your comments with related
links, personal experiences,
and sources, including direct reference to specific points in your
texts. When you respond,
respond thoughtfully, and support your statements. Read the
instructions and criteria below
closely.
1. Students should complete at least two posting cycles each
week, on two or more separate
days: the initial posting is your thoughts based directly on the
week’s questions or topic,
and responses are your feedback to postings of at least two
other students within their
discussion threads, responding to a variety of classmates

7. throughout the 8-week term.
Feel free to include questions that are brought up by your
readings; others may have
some ideas to help.
Page 2 of 3
2. You are expected to read the postings of all of your
classmates and are encouraged to
respond to more than the minimum number (at least 2 per week,
as noted in each week’s
discussion) required. Remember that these are the equivalent of
our in-class discussions.
3. Response postings build on the postings of others.
4. Postings present your own ideas and personal examples of
application of ideas being
studied in the course, such as in your (or others’) classroom
experiences. As stated above,
original thought and application of this material should be
demonstrated through your
thoughtful, original posts.
5. Postings are clearly and professionally written, with proper
spelling and grammar.

8. Initial postings are due by Thursday evening at 6:00 PM.
Response postings are due by
Sunday evening at 6:00 PM. Late postings to discussion boards
will receive a grade of zero.
Classmates are not required to respond to late postings.
Grading criteria for online threaded discussions:
- Timely submission of significant, well-written initial post
responses.
- Respectful, thoughtful agreement or disagreement in
responses, valuing diversity of
thought and making original writer feel that statements and
opinions are valued.
- Thoughtful questions tied to the application of our course
readings.
- Evidence of analytical thought demonstrating clear
understanding of the topics explored.
- Original insights or ideas shared.
- Support provided for your rationale, including outside sources
/ links and personal
experiences.
- Each response (for each initial question or follow up) should
be composed of at least 4
thorough, well written sentences.
- Avoid generalized blanket statements such as good, nice,
great, etc., and avoid repeating

9. statements and ideas from previous posters. We want to hear
your thoughts.
- Postings made on multiple days. Students will be graded down
if both postings and
responses are all made on the same day. Discussion board
cycles are meant to encourage
repeated visiting of course material throughout the week.
- Quality of professional writing.
With these criteria in mind, discussion board cycle scores will
be assigned weekly as:
15 points (good) – fully meet criteria
10 points (fair) – meets most of the criteria
5 points (needs much improvement) – meets none of the criteria
or is very wide of the
mark.
Format of your initial postings:
Reflect on the required readings / discussion topic and answer
each of the questions posed by the
instructor for that week, in your own words. When you refer to
material from an outside source,
please cite it so that all readers can access the material.

10. - It is expected that you will write your response of at least one
well-structured and succinct
paragraph (4+ sentences) for each question.
Page 3 of 3
- It is expected that you will close your post with at least one
additional follow-up question
raised in your mind by the readings. Be clear and explicit. This
will give your classmates
something concrete to respond / reply to, in addition to the
thoughts you present.
- While you are encouraged to draft your postings in Word or a
similar tool to allow for
thorough editing, please write / copy the text for your post into
the discussion board
thread, rather than posting an attachment. This makes it quick
and easy for your readers to
access.
- You are strongly encouraged to revisit your own discussion
thread throughout the week and
keep the discussion going by responding to the comments made
by your classmates.
Format of your responses to postings: Picture yourself in a
classroom discussion

11. - Respond to at least two of your classmates individually.
Comment on his / her writing or
respond to his / her questions(s) about the reading: e.g., state
how you would answer the
specific question, provide a resource that will help the person
further explore the question,
explain what you have done in similar situations, etc.
- Expectation: It is expected that you will write at least one
well-structured and succinct
paragraph (4+ sentences) per response. Responses are due
within 3 days after the initial
posting date, as noted in due dates below.
Please note that the points for small group discussion will not
be posted to grade center until all
postings for the week have been completed.
Directions:
In bullet points, please summarize the outline and what you
understand to be the expectations
for discussions. When are they due? What is the minimum?
(will you only do the minimum?
Give a good clear picture of what is expected. I really want you
to understand these so that you

12. can earn full points each week.
5
CONTINGENT LIABILITY:
According to AASB 1044, companies are expected to
disclose provisions for contingent liabilities if the business is
confident that they might be cash outflow as a result of past
activities such a breach of contract. As a rule, the business
should not only disclose the causes of contingent liabilities but
also its implication on the financial statement. This means
business must disclose all the contingent liabilities that are
foreseeable. According to AASB, a contingent liability
provision must be recognized by the business when there is
probable that future sacrifices of economic benefit or losses will
be incurred by the firm. Moreover, the cost/benefit of the future
event can be measured reliably. Therefore, it is the duty of
management to ensure that companies have provided provision
for the contingent liability when there it is highly likely that a
business will incur losses. According to Samsung annual report
2017, the company has not presented any provision for
contingent liabilities (Samsung Annual Report, 2017). However,
a critical analysis of Samsung shows that there was the
significant probability of losing cash due to the breach of the
patent right. Samsung management knew the business had a
high probability of losing cash due to the lawsuit filed by Apple
and Huawei. Samsung was ordered to pay $120 million as
damages to Samsung for infringing two patents (Kastrenakes,
2017).
It also lost a case filed by Chinese mobile phone maker Huawei
for $11.6 million (Chong, 2017). Samsung infringed Huawei
smartphone cellular technology and was ordered to pay the fine.

13. The lawsuit was filed in 2016 but Samsung management has
deliberately failed to disclose them as contingent liabilities.
Interestingly, even after the case against apple having being
completed in 2016, Samsung appealed the case in 2017 but
failed to provide provision for contingent liability. In the case
against apple, Samsung management knew the firm had a high
probability of losing the appeal case. Moreover, the cash
outflow could be measured reliably since the court had already
identified the fined to be paid. Therefore, it is correct to argue
that Samsung either deliberately failed to disclose provision for
contingent liability or it was an act of omission. This shows that
the accuracy of Samsung annual report in 2017 is questionable.
It does not represent the fair view financial position of the
business.
METHOD OF DEPRECIATION:
According to AASB, firms should depreciate their asset to
depict the fair value. Samsung has depreciated its assets on a
straight line bases to allocate the cost between their cost and
residual value. Samsung has complied with AASB require to
depreciate its assets on a straight line bases.
SALES RETURNSCOMPARISON:
Samsung recalled S7 and washing machines due to complain
from customers that they were blasting (Dolcourt, 2017). It was
expected that the sales return would reduce profitability and be
disclosure in the annual report as note to financial statement.
However, Samsung has not disclosed any sales return in its
annual report. Consequently, it is difficult to establish the
implication of the sales return on the annual report. However,
the lack of disclosure shows that Samsung financial statement
do not represent a fair view financial position of the business.

14. EFFECT ON THE EARNING PER SHARE (EPS):
The issues that has been facing Samsung such as S7 blast,
lawsuit and bribery had little impact on earnings per share.
Samsung earnings per share increased in 2017 from $139.66 in
2016 to $265.12 in 2017 as shown in the screenshot below.
Samsung revenues improved in 2017 which resulted to high net
income attributed to shareholders. Irrespective of recalling S7
and washing machines, earnings per share continued to improve.
However, it is essential to note that earnings per share is
determine by management.
References
Chong, Z. 2017. Samsung to pay Huawei $11M for patent
violations, court rules. Available at:
https://www.cnet.com/news/huawei-beats-samsung-in-battle-
over-patent-infringement/ (Accessed 20 Apr. 2018).Dolcourt, J.
2017. Samsung Galaxy Note 7 recall: Here's what happens now.
Available at: https://www.cnet.com/news/samsung-galaxy-note-
7-return-exchange-faq/ (Accessed 20 Apr. 2018).Kastrenakes J.
2017. Apple has finally won $120 million from Samsung in
slide-to-unlock patent battle. Available at:
https://www.theverge.com/2017/11/6/16614038/apple-samsung-
slide-to-unlock-supreme-court-120-million (Accessed 8 Apr.
2018).
Samsung Annual Report. 2017. Consolidated financial
statement. Available at:
http://images.samsung.com/is/content/samsung/p5/global/ir/docs
/2017_con_quarter04_all.pdf (Accessed 8 Apr. 2018).
Inventory
In according to IAS 2, inventoried should be stated at the lower
of cost and net realisable value (Iasplus.com., 2017). Expenses

15. like write-down to net realisable value should be recorded in the
reasonable period of time when it occurred (Iasplus.com.,
2017). However, Samsung recorded a low net realizable value in
inventory (Samsung Electronics Co., Ltd, 2017), which mean it
failed to present the recalled products to the financial statement
and this will be an area that we have to critic at.
Profit
According to AASB, businesses are required to indicate the
total revenue and expenses of the business in a particular
financial year as in income statement (Aasb.gov.au., 2010).
Samsung has prepared a comprehensive income statement in
2017’s annual report as per AASB’s requirement which is
shown as below.
(Samsung Electronics Co., Ltd, 2017)
The figure showed that the profit was relatively high compare to
other years, our research and analysis showed that Samsung was
inflated by reducing their financial expenses. It is because
financial expense was deducted on income statement for a
particular period of time in order to obtain profit. Usually when
short-term liability or long-term library increase, the finance
expenses will also increase because of extra interest occurred on
the additional debt. In this case, Samsung’s total liability
increased from $61.19 billion in 2016 to 77.15 billion in 2017;
however there was a decrease in finance expense from $9.4
billion in 2016 to $7.9 in 2017 (Samsung Electronics Co., Ltd,
2017). This situation showed that business inflated the figures
in income statement. Therefore, this reflected that its financial
statement is not trustable.
(Samsung Electronics Co., Ltd, 2017)

16. Reference
Aasb.gov.au. (2010). Financial Instruments: Recognition and
Measurement. [online] Available at:
http://www.aasb.gov.au/admin/file/content105/c9/AASB139_07-
04_COMPjun10_07-10.pdf [Accessed 5 May 2018].
Iasplus.com. (2017). IAS 2 — Inventories. [online] Available
at: https://www.iasplus.com/en/standards/ias/ias2 [Accessed 2
May 2018].
Samsung Electronics Co., Ltd, 2017, ‘SAMSUNG
ELECTRONICS Co., Ltd. 2017 Business Report’, Samsung
Electronics Co., Ltd., viewed 11 April 2018.
Company Name: SAMSUNG
I need you to rearrange the already writing report in a nice
orderly fashion. There are 4 documents included in the
attachment , Samsung Patrick, Samsung Kanchan, Samsung
phoebe, Samsung phoebe and Samsung Quan.
· Use the same font and same font size
· Capitalize and customize each subheadings
· Bring together all references (Harvard (Anglia) style
referencing.
I want you to add, Table of content, Introduction, Account
Receivable & provision for bad/doubtful debts, conclusion
Introduction should contain a brief words : the meaning of
Samsung, and how Samsung started with fish sell to electronics
Conclusion write it base on true and fair on AASB , if you think
the whole annual report is true and fair.
Structure OF Report:

17. · Table of content ( you)
· Introduction of Samsung company (you)
· Inventory (Samsung phoebe docx)
· Profit (Samsung phoebe docx)
· Contingent Liability (Samsung Patrick docx)
· Method of depreciation (Samsung Patrick docx)
· Sales Returns comparison (Samsung Patrick docx)
· Effect on The earning per share (Samsung Patrick docx)
· Ethics in corporate (Samsung Quan docx)
· Account Receivable & provision for bad/doubtful debts, (you)
· Sustainability (Samsung Kanchan)
· Conclusion (you)
· References (you)
This assignment is all about finding CRITIC in the company’s
annual report. You are supposed to find mistakes in the annual
report. Comparing all three annual report, finding mistakes
either in 2017 or 2016 or 2015. Comment at each section if
Samsung is been true and fair their report. If nothing is found in
a particular section of the structure, is it okay. But this report
should at least include 60% of critic, if not more. Please
remember to include snapshots of all proof you find in your
report.
You are suppose compare each structure especially the first one
(the conceptual framework) to the AASB Standards
(http://www.aasb.gov.au/admin/file/content105/c9/ACCED264_
06-15.pdf)
to see if its matches. And comment on your findings. OR
compare to IAS Standards
Also you are to compare the annual reports with what the
outside opinion says or thinks. Examples are below:
Example 1: in 2016 , Samsung had a recall of all note 7 due to

18. explosion, and the share prices fell, and all outside opinion,
news agencies reported they will make a loss in revenue or
profit, compare this opinion with the annual report of that year,
and see if the accountant recorded the loss or profit for that
year.
Example 2: depreciation method, check what depreciation
method is been use by the company, and compare it to the
AASB standards if it the same.
Example 3: check the news for any going or past legal matter
and see if its been reported in the annual report of the year
under contingent liabilities
Example 4: suitability report, compare it to what outside people
are saying, news, see if Samsung a causing harm to the society
by dumping waste on the environment, rather than what they
have reported in their annual report.
Other examples that you can look into are: Fair Value, Faithful
representation of Property, plant Equipment, corporate
governance, lease, intangible assets, and recognition of
liabilities, social responsibility, reputation.
If you can find any errors outside this you can include it in your
report, Just follow the AASB Standards. Include the section of
the AASB Standards that is in contradiction with any part of the
annual report in your report by quoting or referencing that
particular area so as to avoid plagiarism.
Writing style:
-The response should be professionally presented in Arial 10pt
or Times New Roman 12pt, single space.
-Harvard (Anglia) style referencing.
Ethical Approach
· Deon

19. · Neo
Component of Ethics in Corporate
Bribery case of Samsung (to earn favor > unfair competitions)
In November 2016, a raid was conducted in different Samsung’s
locations in Korea as it was suspicious for bribing Soon Sil
Choi, who was closely associated with South Korea’s president
at the time Geun Hee Park. This bribery case was accused to be
directly related to the Park government’s approval of a
controversial merger Samsung had done back in 2015. In the
light of former South Korean president’s bribery scandal,
Samsung heir and defacto chief Jae Young Lee had become
criminal suspect in this scandal in January 2017. It is noticeable
that Jae Young Lee had been acting as Samsung’s chairman
since 2014, after his father (and Samsung’s former Chairman)
Kun Hee Lee suffered a poor health condition. Samsung heir
was accused of bribing about 41 billion won (around 50 million
Australian Dollar) to non-profit foundations of run by Soon Sil
Choi for political favors. The bribery was taken place as
donations in Samsung’s financial record as well as
announcement to the public. Moreover, Jae Young Lee had
earlier confirmed that Samsung also presented some gifts to
Soon Sil Choi’s daughter, which include a horse and money, to
support her career. In August 2017, Jae Young Lee was
convicted of bribery and jailed for five years.
This was not the first time a well-known Korean company
gotten into trouble of bribery. However, this scandal, which
happened between the country’s former president and the
country’s biggest business conglomerate, has raised the
questions about Samsung’s future leadership and corporate
governance.
Samsung shares fell by 1% in August 2017, at which Jae Young
Lee was officially sentenced for bribery. However, this scandal
does not seem to have any larger influence on Samsung
financially. The proof is that, Samsung did not only record a
profit of 11 trillion for the second quarter 2017 but also
released a new product Samsung Galaxy S8 after its recall of

20. Galaxy Note 7.
Environment
However, compared to its scandal of Note 7 explosion, Samsung
does not receive much negative feedback from the public for its
bribery ethical issue.
Nonetheless, one of the ways Walmart weathered its bribery
scandal was by making changes. These changes, which took
place amid a several-years-long investigation, included internal
restructuring of personnel as well as compliance programs.
Other companies have employed similar strategies to recover
from reports of high-profile corporate misbehavior, using the
discovery of unethical business practices and even criminal
activity as opportunities to re-examine existing policy and
procedures, and make improvements.
Find some number of charity activities in its 2017 report
http://fortune.com/2017/03/15/samsung-bribery-galaxy-note-7/