Introduction
Samsung Electronics ‘has grown within the past four decades to become a leading provider of quality information and technology services’ (Samsung Electronics: Sustainability Report 2014, para. 1). The company has over 200 business subsidiaries across the globe. The firm’s sustainability strategy makes it successful. Samsung Incorporation also uses its innovations to promote new changes in different parts of the world. The company empowers its stakeholders, customers, and business partners to achieve their possibilities. This objective defines Samsung Group’s sustainability approach. The company’s sustainability motto is ‘global harmony with people, society, and the environment’ (Samsung Electronics: Sustainability Report 2014, para. 4). The company communicates its business practices and sustainability efforts every year. The leaders at the firm believe strongly that Samsung Electronics can support the needs of its stakeholders. The organization has always been protecting the natural environment. The managers also work hard to improve the living conditions of different communities.
Sustainability Approach: Supporting Samsung’s Future Growth
Business enterprises should be sustainable in order to secure their future operations. The concept of sustainability has been supported by many scholars and analysts. A socially-responsible firm will achieve most of its goals within the shortest time possible. That being the case, businesses should consider the sustainability of their surrounding environments to achieve their business potentials. Samsung Electronics understands the importance of sustainability (Tong-hyung 2014). This knowledge has made it easier for the firm to embrace the best Corporate Social Responsibility (CSR) strategies.
The first goal towards ‘a sustainable business future is focusing on various fields such as education and healthcare’ (Samsung Electronics: Sustainability Report 2014, para. 3). Samsung Electronics uses its innovative power to produce quality products that can address the needs of many patients. Such products are environmentally-friendly thus making the firm sustainable. The firm has also expanded its operations across the globe. This practice has made it easier for the company to support the needs of many global consumers. The company has also introduced a wide range of programs that can improve the living conditions of the targeted populations. Such practices continue to support the company’s performance.
Green accounting is a powerful concept embraced by Samsung Electronics Incorporation. The firm’s economic decisions always reflect the future needs of many consumers. The firm uses its financial strength to produce quality products. Such products have been supporting Samsung’s sustainability effort. Different stakeholders are encouraged to support the firm’s decision-making approach. This practice continues to make Samsung Electronics one of the leading promoters of sustainable decisions. Talent management (TM) is also supported in this company. Individuals from various backgrounds are mentored and trained to support the company’s future goals. The firm focuses on the best practices that can improve the level of business performance. Such practices also promote the concept of sustainability (Hill & Jones 2012). Many stakeholders have been supporting the firm using their ideas. This approach continues to make Samsung Electronics a leading global player.
Most of the products marketed by Samsung Electronics deliver the best promises to the targeted customers. For instance, the company’s washing machines offer the best green technologies to the targeted users. Such machines are designed to consume less energy (Hill & Jones 2012). They also consume less water thus improving their level of performance. The company promotes new technologies that reduce the use of electricity. A good example is ‘the indoor air quality technology that encourages more people to conserve electricity’ (Chang 2011, p. 29). Samsung has established ‘several Lifestyle Research Laboratories (URLs) to innovate quality products that can address the needs of different communities’ (Chang 2011, p. 32). This practice shows clearly that Samsung Electronics has been dedicated to producing quality consumer products. This process is also associated with Samsung’s desire to safeguard the natural environment.
Stakeholder Engagement
Samsung’s Corporate Social Responsibility (CSR) approach is incomplete without engaging different stakeholders. One of Samsung Electronics’ ultimate goals is ‘to become a leading global corporate citizen’ (Samsung Electronics: Sustainability Report 2014, para. 7). That being the case, the firm communicates effectively with different stakeholders. The managers use a wide range of dialogues to attract more stakeholders. Such individuals support the company’s goals. This practice has ‘established long-term associations with different stakeholders’ (Samsung Electronics: Sustainability Report 2014, para. 11). The firm collects the best opinions from such stakeholders. Samsung Electronics also ‘undertakes different surveys to understand the environmental challenges affecting the communities where it does its business’ (Samsung Electronics: Sustainability Report 2014, para. 15). Samsung uses such activities to identify the major trends, risks, and opportunities associated with its business functions. The most important goal is to support the wider society.
Samsung Electronics collaborates with eight different stakeholders. Such stakeholders present powerful insights that can improve the company’s sustainability practice. The first group is stakeholders include Samsung’s investors. These individuals offer powerful reports that can support the performance of the company. The firm also collaborates with various suppliers to produce quality products. Local communities are encouraged to present their views to improve the company’s sustainability performance (Nedelea & Paun 2009). Samsung Electronics has also established many community services centers (CSCs) in an attempt to support the needs of many people.
Samsung Group focuses on different government policies. The organization also participates in different policymaking processes. This practice has produced powerful policies that can guide many companies in the electronics industry. The company’s employees present powerful strategies and ideas that can produce the best courses of action. The employees focus on innovative products that can ‘improve the experiences of many end-users’ (Nedelea & Paun 2009, p. 99). The firm embraces the power of interviews and press releases. This practice ensures the company communicates its CSR strategies to the public. Most of the customers are encouraged to present their surveys and suggestions to the company. Samsung uses such reports to deliver standard products that can fulfill the needs of the targeted consumers.
Materiality Matrix
Nedelea and Paun (2009) believe that ‘materiality in sustainability reporting considers various issues that affect the needs of future generations’ (p. 97). Companies should, therefore, consider every social, environmental, and economic factor whenever presenting their sustainability reports. Samsung Electronics considers different factors that can affect its future business performance. It also re-examines the implications of its business functions. In 2013, the firm improved its Materiality Matrix (MM). The ‘firm compares its functions with the major trends experienced in the world’ (Samsung Electronics: Sustainability Report 2014, para. 9). Samsung Electronics considers various issues that can result in sustainability management.
Samsung is currently promoting various business practices that can support its objectives. The company’s Materiality Matrix (MM) focuses on three major areas. These areas include ‘Issue Identification, Materiality Assessment, and Review/Confirmation’ (Samsung Electronics: Sustainability Report 2014, para. 12). The first area focuses on the issues presented by both external and internal stakeholders. The internal issues include business plans, strategies, and goals (Samsung Electronics: Sustainability Report 2014). This approach makes it easier for the firm to identify the most critical CSR issues. The second area examines how every CSR issue affects the company’s business goals. The firm also identifies the major social concerns experienced in various geographical regions. The third area encourages the firm to address the targeted CSR issues. External stakeholders are also required to review the effectiveness of different action plans.
Samsung Electronics has identified nine material issues that contribute a lot to its future sustainability. These material issues are critical because they define the strengths of the firm’s CSR strategies. The ‘first issue is Human Resources (HR)’ (Chang 2011, p. 81). The firm allocates the best human resources in order to get the best outcomes. The firm also hires employees from every corner of the globe. This practice has made it possible for the company to become successful. The firm promotes the best health practices for its workers and customers. This goal is achieved through the provision of good working conditions (Chang 2011). The company’s products are also safe and friendly to the targeted users.
The company is ‘a leading producer and marketer of eco-friendly products’ (Chang 2011, p. 87). Samsung’s products such as mobile phones, household appliances, and computers are produced using sustainable methods. They contain environmentally-friendly memory chips thus making them suitable for many users. The company promotes the best water management practices. This strategy addresses most of the challenges affecting various communities. Samsung uses the ‘concept of product accessibility to deliver its products to many consumers across the globe’ (Chang 2011, p. 87). The firm also ‘plows back most of its profits to the community’ (Chang 2011, p. 52). Samsung Electronics supports the educational, social, and health needs of different individuals across the globe. It empowers more individuals in the developing world to become successful.
Notably, the firm ensures ‘every materiality assessment result is reflected in the decision-making process’ (Hernaus 2011, p. 7). These actions are undertaken in order to ensure positive performance (Chang 2011). The MM report is used to highlight the best business strategies for the firm. The MM report is also used as a powerful tool to inform stakeholders about the company’s sustainability efforts (Zafar, Habib & Bilal, 2014). This practice has made Samsung Group one of the most responsible firms in the world.
Concluding Remarks
Samsung Electronics has become one of the most sustainable firms in the globe. The company’s approach to CSR fulfills the demands of many stakeholders. The company’s sustainability report ‘can be used as a powerful criterion for a successful CSR strategy’ (Hernaus 2011, p. 7). The company is currently using modern technologies to improve human efficiency. The firm’s products are also sustainable and environmentally-friendly. The firm always collaborates with its stakeholders to achieve its potentials (Rowley & Paik 2008). This development explains why Samsung Electronics is competing with leading giants such as Apple Incorporation and Nokia. Companies should, therefore, borrow new ideas from Samsung Electronics to become profitable. These practices will eventually make the world more sustainable.
List of References
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Hill, C & Jones, G 2012, Strategic Management Theory: An Integrated Approach, Cengage Learning, Boston.
Nedelea, S & Paun, L 2009, ‘The Importance of the Strategic Management Process in the Knowledge-Based Economy’, Review of International Comparative Management, vol. 10, no. 1, pp. 95-105.
Rowley, C & Paik, Y 2008, The Changing Face of Korean Management, Longman, New York.
Samsung Electronics: Sustainability Report 2014. Web.
Tong-hyung, K 2014, Samsung to Beef Up Risk Management. Web.
Zafar, F, Habib, I & Bilal, H 2014, ‘How to achieve Financial Gains with Corporate Social Responsibility in Businesses’, European Journal of Business and Management, vol. 6, no. 1, pp. 68-77.