Samsung – Stages of Corporate Citizenship
Corporate Social Responsibility (CSR) as part of business strategy has shown increased prominence in contemporary business world. On a daily basis the roles corporations play in society are scrutinized by the media who constantly lookout to report on scandals, corporate misbehavior or, the positive contributions businesses have on society (Crane, 2008). Induced by this, corporations are facing increasing pressure to legitimate their practices and take account of the impact they have on society, which has led to the emergence of what Crane (2008) refers to as a ‘CSR Movement’.
The concept of CSR emerged in the 1960/70’s as an American Doctrine ...view middle of the document...
Based on these characteristics, I believe CSR should be defined as: a concept that emphases on business practices that go beyond purely financial gains and philanthropy, and deeply imbedding them into the core of the organization. It incorporates business activities that go beyond the law, while taking into account all stakeholders’ interests and the impact on the wider society/environment (both direct and indirect).
The company that I have chosen to analyze is Samsung Electronics (Samsung) in particular. Samsung, established in 1969, is a South Korean Multinational Company (MNC) headquartered in Suwon and is the flagship company of the Samsung Group. The company is a global giant operating in over 61 countries (190,000 employees) with products including computers, digital televisions, liquid crystal displays, mobile phones and more (Samsung 2013, Web1). The MNC was ranked the worlds largest mobile maker in 2012 as well as the second largest semiconductor maker based on 2011 revenues, second to Intel. Samsung was awarded a 73rd place by Global100, who ranks the 100 most sustainable corporations worldwide (Samsung Sustainability Report [SSR], 2012; Global100, Web2). The company was also awarded 1st place in the global ‘Super sector leader’ by the Dow Jones Sustainability Index (DJSI) which is one of the most authoritative sustainable management indexes (DJSI, 2012).
The reason I chose to examine Samsung is because they are the largest electronics company in the world, and have a renowned reputation of being a socially responsible corporation whose actions seem to have a positive impact on the society and environment.
A number of frameworks can be found regarding what makes an effective CSR audit. Carroll (1979) categorized four motives embodied behind business’ actions: economic, legal, ethical, or discretionary/philanthropic. This ‘four-part framework’ can be used to identify the reasons behind corporate actions. He later advanced his Four-Part categorization into ‘The Pyramid of Corporate Social Responsibility’, which assists managers to gain a better understanding of what society expects from the business. This framework has been widely used to define and explore the concept of CSR.
A second example is ‘The five Stages of Organizational Learning’, as identified by Zadek (2004), is a tool based on the experience of Nike (supply chain conditions scandal) and is used to identify and record the attitude of a firm, from defensive stance to one of realizing the potential and competitive advantage a firm could gain from being the first-mover in an industry.
They literature that will be used for this audit is the ‘Dimensions of Citizenship’ framework developed by Mirvis and Googins (2006). This framework identifies five stages (Elementary, Engaged, Innovative, Integrated, Transforming) in the integration of CSR, and they argue that there are four triggers for movement along the stages: credibility and capacity to support CSR...