Social Responsibility to The Community and The Environment
Samsung is a corporation that strives for innovations and has a big impact on the global economy. However, while the influence of this giant company is massive all over the world, Samsung’s social responsibility agenda is not at the same level as its profit, management, and investment value. The major issues are highlighted by Samsung’s policies regarding environmentalism and human rights. There is potential for improvement in regard to these domains of social responsibility. However, certain changes have to be made in order for the organization to achieve the next level of social consciousness.
Ramifications
Certain ramifications are connected to the underperformance of Samsung in regard to social responsibility to the community and environment. The first one is the management’s inability to have fully transparent business practices because the company does not publish all the sources and the suppliers of raw materials. Moreover, because of Samsung’s lack of a proper environmental agenda, potential consumers can criticize their practices and, sometimes, refuse to buy their products. Such strategies also illustrate unclear corporate values. Since Samsung publishes information that contradicts data gathered by researchers, the organizational values are undermined, which can create uncertainty. It is also important to point out that the brand’s reputation suffers when people are doubtful about the organization’s controversial strategies.
Organizational Aspects
Samsung’s organizational structure is a divisional one due to the fact that there are three divisions (IT & Mobile, Consumer Electronics, and Device Solutions). According to researchers, this type of structure correlates with positive plan implementation (Abuga et.al., 2019). This is a beneficial structure that positively influences the potential for better social responsibility due to the fact that one department can dissociate from others on some level and have a separate policy.
The matrix design suggests that employees have multiple bosses yet one general manager. Samsung’s controversy regarding corruption between the head of the corporation and politicians illustrates the negative connotations in terms of social responsibility and the company’s effectiveness. Samsung is a technological giant, so its innovation-based culture is obvious. However, the organization has been sued for plagiarism multiple times, which creates tension in regard to the socially responsible policy they claim to have.
Values of Conscious Culture and Management
The culture of an organization is linked to the responsibilities that it has (Jehan et al., 2020). The core values of conscious organizational culture and management start with transparency. While Samsung is open to publishing certain information, the corporate strategy involves not sharing information about suppliers to be honest with customers, which does not favorably influence organizational functions.
The company does, however, state a clear goal, which is improving the world by creating useful technology. In regards to conscious leadership, Samsung has not been efficient in this domain due to the fact that the head of the organization has faced the consequences of engaging in corruption and bribery. According to researchers, low social responsibility increases the risk of corruption (Krishnamurti et al., 2018). Moreover, not all stakeholders who participate in organizational processes are taken into consideration when creating an organizational plan.
Researchers point out that in modern times, social expectancy for organizational consciousness is more relevant than ever (Latapí Agudelo et al., 2019). Since respect for all stakeholders is one of the aspects included in this domain, it is important to examine Samsung in regard to this topic. Based on the evidence, not all stakeholders who participate in organizational processes are taken into consideration when creating an organizational plan.
Samsung does use cheap labor, and some of the workers face difficulties because of bad work conditions and low wages. It is also important to mention that the organizational function has not been fully fulfilled due to the low level of certain devices that caused controversy among consumers. In terms of fair hiring and equal opportunity, Samsung is quite certainly an employer that makes a point to hire different professionals from all over the world. A part of their campaign is based on inclusion and equality, which is an effective management strategy that allows them to acquire the best professionals.
Kotter’s Eight-Step Change Model
Based on Kotter’s model, the first step toward a more environmentally-friendly corporation is increasing the urgency. This means it is essential to start talking about the main issue (improper disposal in this case). Then it is important to create a coalition by having stakeholders agree with the premise. It can be done by showing previous practices (such as dumping millions of phones after the release of a compromised model). Moreover, by creating a vision and determining the main goals, the plan will start to become more substantial. In this case, the plan is to focus resources on finding better recycling or repurposing ways for devices that either can not be repaired or cannot be sold for technical reasons.
It is certain that certain stakeholders will be concerned about the financial side of the plan. It is important to be transparent and have an honest conversation in regard to future expenses and the whole impact on the company’s economic potential.
The next step in creating a system for better disposal is to remove the obstacles by hiring specific people whose main goal is for the change to happen and rewarding employees that put effort into making the change possible such as engineers, policymakers, and researchers that deal with improper disposal. Moreover, it is essential to focus on short-term wins, such as implementing other companies’ proper disposal practices that are not expensive yet more effective than the current system. The next step is building the change and encouraging employees that are on the right track. If the research team is preoccupied with finding the most efficient disposal method and has small goals, this has to be acknowledged.
Last but not least, implementing the change into the organizational culture by letting the media know about Samsung’s desire to create less waste and be more eco-friendly by having certain guidelines in place will consolidate the reform. It is also important to let every employee know about the company’s desire to create an ecosystem of like-minded individuals who share the same environmental values and carbon footprint.
Challenges
Certain challenges may occur while implementing a new plan for disposing of devices and materials the proper way. Researchers point out that making an organizational change is hard due to the fact that there is no consensus on the exact principles that should be used during the process (Stouten et al., 2018). This is why it is important to take into consideration each domain. From an economic standpoint, the expenses will rise due to the high budget of the operation. Moreover, the entire organizational culture will go through certain reforms unfamiliar to employees at the present moment. It is also important to take into consideration that management will have to switch from regular strategies to different ones on the structural level. This means that Samsung as a company will go through a drastic replacement of environmental policies, which is a big step that is not only risky but also challenging.
Solutions
While the fact that the new implementation will create new expenses for Samsung, it is essential to implement a new budget and have a favorable approach to the costs of the reform. This is why it is essential for the finance department to not only manage the possible monetary problems but also find new ways to attract customers. An environmentally friendly company has the potential of attracting customers who would like to support such initiatives, so it is important to involve the media and create resonance regarding the new plan.
Moreover, the solution to the risk of certain departments and employees being dismissive of the new change is to be open and clear about the benefits. Letting employees know how favorable and ethical the policy is can minimize such challenges. In terms of the change being revolutionary on all structural levels, the only solution is planning and efficient management that can not only handle the structural implementations but also make them beneficial for all the stakeholders.
Summary
Samsung is a global corporation that appears to be underperforming in terms of social responsibility to the community and the environment. Specifically, Samsung has been in a couple of controversies over the years regarding improper sourcing of raw materials and unethical practices. One of the problems that occurred several years ago was the improper waste disposal of devices that were not technically ready to be purchased by consumers.
This is why it is vital to have proper waste disposal practices involving recycling, research, repurposing, etc. Such a drastic shift requires changes in terms of budgets, organizational culture, and management. However, proper planning and reforms on structural levels can minimize the risks and create a beneficial environment for all the stakeholders, from producers and managers to customers, who will appreciate the new ethical practices.
References
Abuga, R., & Deya, J. (2019). Effect of organizational structure on strategy implementation: A case study of Safaricom Kenya Ltd. International Journal of Human Resource and Business Administration, 3(5), 247-254.
Jehan, N., Gull, S., Khan, N. A., & Hussain, A. (2020). Relationship between organizational virtue and the perceived role of ethics and perception of social responsibility in business: Testing a mediation model. International Journal of Business Governance and Ethics, 14(2), 166. Web.
Krishnamurti, C., Shams, S., & Velayutham, E. (2018). Corporate social responsibility and corruption risk: A global perspective. Journal of Contemporary Accounting & Economics, 14(1), 1–21. Web.
Latapí Agudelo, M. A., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1). Web.
Stouten, J., Rousseau, D. M., & De Cremer, D. (2018). Successful organizational change: Integrating the management practice and scholarly literature. Academy of Management Annals, 12(2), 752–788. Web.