It can be said that Corporate Social Responsibility has emerged as an important organizational function. The large firms have realized the importance of CSR and sustainable development. Still, there is frequent news in the media about the violation of CSR practices. The objective of this report is to company whose reputation has been damaged by media revelations detailing its breaches of CSR obligations. This report is based on Samsung. There was news in 2014 that Samsung finds labor violations at dozens of its Chinese suppliers. The report would discuss the CSR for Samsung, type of violations and the measures to address these issues in future.
Link to Report:
This paper discusses the reports, breaches in the factories and ways to overcome these issues in long term. It can be said that Samsung would have to play an important role to develop a system of check and balances to measure the CSR practices across its suppliers and vendors in China and other parts of the world.
The definition of CSR for Samsung and various other manufacturers would include the establishment of working conditions where organization can attain the path of sustainable development. It is important that the CSR policies should be established as a common medium to connect with internal and external stakeholder of the organization. The report suggests that there were three kinds of breaches observed in Samsung’s suppliers in Chinese factories. These were:
- Breach of working time: The employees and labor were asked to work beyond 9 hours. In fact, some of the contract workers were reported to work for two shifts back to back.
- Breach of workplace safety equipment: It was reported that the workplace safety standards were compromised.
- Discipline and lack of standards: It was reported that the processes were haphazard in nature and there was lack of established standards.
This problem could be avoided if the suppliers of Samsung have a dedicated board of members with the focus to improve the working conditions. From an academic research perspective, Katz (2014) cites studies between the 1980s and 2000s highlighting longer tenure periods increased the level of independence by corporate board members. Katz (2014) also cites a 2011 study highlighting corporate governance problems existed at companies where directors served on multiple boards. A 2013 study on director tenure described the tradeoff between expertise of outside directors and independence concluding the optimal average tenure for an outside director is between seven and eleven years (Katz, 2014).
Bass (1985) presents, leaders can increase the motivation of their followers and increase corporate morale and CSR practices by being leaders who hold a higher place for values (as cited in Kovjanic, Schuh, & Jonas, 2013). “The leader’s role is to expect followers to maintain ethical behavior and develop followers into leaders who exhibit ethical behavior. Leaders must consistently inspect what they expect and guide change where necessary to ensure that the organizational culture remains positive and ethical” (A’haamid, 2016). In order for this behavior to be done successfully is through continuous self-reflection on the part of leadership. When leaders evaluate themselves ensuring that they are holding themselves accountable for their actions based on their core beliefs, then leaders fully understand the effects that their behavior and attitude have on subordinates and potential behaviors of subordinates raising to future leadership positions that can truly practice CSR and sustainability.
Katz (2014) indicates good leaders ensure that they are leading by example by creating strong policies and procedures for CSR. These policies and procedures serve as visible and physical reminders of what effective leadership is about. For example, when policies and procedures are visible and in public areas, the intent is that everyone will have access and use them as grounds for ethical decision making.
The above paper discusses the CSR violation for Samsung’s suppliers. With the above discussion it can be said that Samsung should have tight control over its suppliers. The above paper also discusses the various ways to avoid these problems in future. It can be said that the senior leadership has a key role to play to ensure that a culture of CSR could be established in the organization.
A’Haamid, K (2016). Doctoral Student: Grand Canyon University
Arthur, C. (2014). Samsung finds labour violations at dozens of its Chinese suppliers. The Guardian. Retrieved from:
Katz, D.A. (2014, May 22). Renewed focus on corporate director tenure [Online web post]. Retrieved from
Kovjanic, S., Schuh, S. C., & Jonas, K. (2013). Transformational leadership and performance: An experimental investigation of the mediating effects of basic needs satisfaction and work engagement. Journal of Occupational & Organizational Psychology, 86(4), 543-555. doi:10.1111/joop.12022