Unethical practices of Samsung

Samsung is best known for its production of electronics, particularly mobile phones, which has
been the primary power for its income. According to research done by Strategy Analytics,
Samsung overtook Nokia to become the worlds largest maker of mobile phones in 2012, and
reported its highest quarterly profit since 2008 at $4.5 billion in net profit, up 81% from the year
prior. In the year 2012, Samsung was investigated for using illegal labor practices in their China
manufacturers. The allegations of this case were that the employees at this manufacturer were in
some cases working 16-hour days with one day off per month, and they were also found hiring
employees under the legal working age of 16 years of age.
According to Friedman's theory of individualism, the only obligation that the business has is to
maximize profit for the owner and stockholders. Samsung's manufacturer in China was trying to
cut their costs and maximize their profit by hiring younger employees and overusing overtime.
This would be deemed ethical by individualists, but they used illegal methods to maximize
profit.
The last normative theory is the virtue theory, in which honesty, justice, temperance, and courage
are evaluated to judge whether or not the company was ethical in their decision making.
Samsung was unethical in virtue theory as well because they didn't possess any of these virtues.
They weren't honest to their employees when hiring them, the employees weren't aware of what
they were getting themselves into. Justice wasn't demonstrated in this case either because they
didn't perform "fair practices." They used child labor and overused overtime so they didn't use
fair practices. Temperance wasn't portrayed either because Samsung didn't have "reasonable
expectations and desires." Samsung's manufacturer expected their employees to work 16-hour
days with sometimes just one day off per month. These expectations are absurd and definitely
not reasonable. Courage also wasn't possessed by Samsung in this case. Samsung didn't stand for
"right ideas and actions." Their actions were very poor and unethical, and certainly not
courageous. The lack of these virtues proves that Samsung is deemed unethical by virtue
theorists.

Ethical practices of Samsung

In an expression of its commitment to corporate social responsibility as a world leading
company, Samsung Electronics announced the Five Samsung Business Principles in 2005. The
principles serve as the foundation for its global code of conduct in compliance with legal and
ethical standards and the fulfillment of its corporate social responsibilities.
The global code of conduct sets forth detailed behavioral guidelines and judgmental standards
for Samsung Electronics employees as members of a world leading company. The code of
conduct includes elimination of nationality or gender discrimination, transparent disclosure of
business information, customer information protection and partner collaboration. All of Samsung
Electronics employees will abide by this code of conduct in their relationship with their peers
and customers.
Samsung Electronics Global Code of Conduct
1. Preface
2. Samsung Electronics Global Code of Conduct
Principle 1.
1-1. we comply with all law and ethical standards.
1-2. we respect the dignity and diversity of individuals.
1-3. we compete in accordance with the law and business ethics.
1-4. we maintain transparency of accounts with accurate recording of transactions.
1-5. we do not get involved in politics and maintain neutrality.
1-6. we protect information on individuals and business partners.

Principle 2.
1-1. we maintain a clean organizational culture.
1-2. we make a strict distinction between pubic and private affairs in our duties.
1-3. we protect and respect the intellectual properties of the company and others.
1-4. we create a sound organizational atmosphere.
1-5. we maintain the dignity of Samsung Electronics in our external activities.
Principle 3.
1-1. we respect customers, shareholders and employees.
1-2. we put priority on customer satisfaction in management activities.
1-3. we pursue management focused on shareholder value.
1-4. we endeavor to improve our employees quality of life.
Principle 4.
We care for the environment, health, and safety.
We pursue environment friendly management.
We value the health and safety of human begins.
Principle 5.
We are a socially responsible corporate citizen.
We sincerely execute our basic responsibilities as a corporate citizen.
We respect the social and cultural values of local communities and practice prosperous coexistence.
We build relationships of co-existence and co-prosperity with our business partners.