1. MANAGEMENT CONCEPT AND PRACTICES
ASSIGNMENT-1
CORPORATE SOCIAL RESPONSIBILITIES
CASE STUDIES
ON
SAMSUNG ELECTRONICS
&
SONY

2. Corporate Social Responsibility (CSR)
INTRODUCTION
Corporate 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 global
business community and is gradually becoming a mainstream activity. The growing
emphasis on corporate responsibility is affecting the relationship between companies
and 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

3. 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 thing
Impact 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

4. Corporate Social Responsibility
Case Study
SAMSUNG
Samsung Electronics adopted a new vision of becoming an innovative leader that
creates new markets to keep pace with the fast changing global business environment.
Strategic Approaches
Core Values
Samsung Electronics promotes transparency and accountability with an advanced
corporate governance structure. Full support is extended to the board of directors to
facilitate creative management with the ultimate goal of maximizing corporate value,
while every effort is made to enhance the wealth and rights of shareholders. The board
of directors addresses issues as stipulated in related laws and the company’s articles of
incorporation, and is responsible for overseeing basic policies and major issues
concerning the company’s operations

5. Sustainability Management System
Samsung Electronics set up the CSR Liaison Office that reports directly to the CEO and
the Sustainability Management Committee for effective implementation of sustainability
management. The committee holds two regular meetings a year during which they draw
up related plans, review progress and performance, discuss global CSR trends, and
decide on how to address major sustainability issues.
Identifying Material Issues
Samsung 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 on
business activities
•Stage 3: Decide on material issues after review by sustainability report task force team
and top management.
Enhancing Employee Value
Advances made by employees mean advances for the company. With that in mind,
Samsung Electronics offers various programs and assistance to help our people
develop their skills and abilities. Samsung Electronics offers about 1,600 education
programs in the four categories of value & leadership, next-generation leaders, global
competencies, and expert training.
●Expert Training
We adopted a competency grading system to train employees into experts in their
respective fields. Based on this system, we monitor job skills of each individual and
organizational unit and develop education programs accordingly.
●Global Competencies
Foreign language training is offered to hone global competencies. Courses are also
available to prepare workers for overseas assignments and for leadership roles in
overseas subsidiaries and plants.

6. Creative Organizational Culture
Today’s fast-paced business environment calls for an organizational culture that values
creativity. In line with our emphasis on growing the software and solutions business,
Samsung Electronics is building a flexible culture that motivates each individual to
demonstrate their creativity under the mottos of “Work Smart,” “Think Hard” and “Build
Trust.”
Think Hard
●Idea Suggestion System
Our knowledge management system features a mechanism for receiving ideas from
employees. Innovative suggestions from employees can provide the seeds of a new
business or enhance the performance of existing products.
●Knowledge Sharing
The R&D KMS (Knowledge Management System) is a portal that supports sharing of
information related to technology and R&D. It includes communities of R&D
professionals, technology glossary, a question-and-answer site, technology blogs, and
idea suggestion.
Green Management Vision
The underlying philosophy of green management at Samsung Electronics is to
contribute to building a prosperous society and preserving the environment through
business activities that give due respect to people and nature. Our vision is “creating
new value through eco-innovation” under the slogan of “PlanetFirst.” As a responsible
corporate citizen, we aim to create new value for customers by pursuing innovation
activities across a product's entire life cycle.

7. Addressing Climate Change
Greenhouse Gas Inventory
The standards used to manage greenhouse gas (GHG) emissions at Samsung
Electronics are based on widely accepted international guidelines.
Temperature and Humidity Control Devices
Tangjeong Plant installed air spray humidifiers to curb energy use and CO2 emissions
related to humidification (for regulating temperature and humidity of the clean room) and
to ease the cooling load.
Clean Development Mechanism (CDM)
The LCD Division is pursuing a CDM project under which carbon credits will be obtained
by reducing SF6 generated during production.
Renewable Energy Development
Samsung Electronics is carrying out R&D on renewable energy, such as solar cell and
fuel cell, to address climate change and contribute to green growth. We developed a
solar cell with industry leading efficiency and are making preparations for mass
production
Social Contribution
In order to extend a helping hand to our global neighbors in need, our nine regional
headquarters carry out various social contribution activities tailored to each region’s
societal and cultural characteristics. From North American headquarters’ Four Seasons
of Hope to Samsung Real Dreams (educational program for low-income households in
Africa), our employees are working hard to deliver great outcomes for communities in
need.
Adopt-a-Village Campaign
In China, Samsung Electronics launched the “Adopt-a-Village” campaign in 2005 to
support farming villages across the country to meet China’s policy to build new rural
communities. As of the end of 2009, 44 local subsidiaries and their 33,000 employees
forged sisterhood ties with 46 villages and coordinated their resources in a total of 1,000
endeavors annually.
Participating in the Habitat for Humanity Project
Texas-based Samsung Telecommunications America employees have been donating
several months a year of their time to build Habitat for Humanity homes for deserving
families in the state since 2006
Global competitiveness
The competitiveness of our business partners has a significant influence on our
competitiveness. To raise the competitive edge of partner companies, Samsung
Electronics offers comprehensive support across the areas of funding, technology, HR
development and infrastructure.

8. CASE STUDY
SONY
Strategic Approaches
Sony Initiatives
To strengthen its governance structure beyond legal requirements, Sony Corporation
includes several provisions in its Charter of the Board of Directors to ensure the
separation of the Board of Directors from the execution of business, and to advance the
proper 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

9. Enhancing Employee Value
Sony values communication between management and employees. Top management
encourages employees to voice their opinions, which allows for a meaningful exchange
of information and ideas on a variety of topics. Sony also conducts employee surveys
by region, the results of which are reflected in actions aimed at enhancing the
workplace and corporate culture.
Risk Management System
Each Sony Group business unit, subsidiary or affiliated company, and corporate division
is 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 to
establish and maintain systems for identifying and controlling risks with the potential to
cause losses or reputational damage to the Sony Group in the areas for which they are
responsible. The Corporate Executive Officer in charge of Compliance is tasked with
promoting and managing the establishment and maintenance of such risk management
systems through the coordinated activities of the Group Risk, Compliance, Internal Audit
and 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

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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 Conservation
To conserve resources, Sony promotes environmentally conscious product design and
works actively to reduce product weight and maximize the use of reused and recycled
materials. For example, Sony uses waste plastic from discarded DVDs and CDs in the
manufacture of digital still camera components
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Social Contribution
As a global company, Sony is keenly aware of the importance of the MDGs and works
in partnership with international organizations and NGOs to implement a diverse array
of activities around the world, not only where it operates but also elsewhere, aimed at
contributing 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 competitiveness
In recent years, stakeholders increasingly place value not only on the quality of a
company’s finished products, but also on how responsibly it manages its supply chain.
This includes production and procurement, responsiveness to quality issues and
customer concerns, and the working
conditions and occupational health and safety it provides to those who make the
products. Sony is committed to effective quality and supply chain management, both on
its own and in cooperation with its suppliers.