business ethics in electronic devices company

7/25/2019 Business Ethics in Electronic Devices Company

1/45

[BUSINESS ETHICS IN ELECRONIC DEVICES COMPANY]

1.0 Introduction

It cant be denied that management and businesses in general are continuously facing

important ethical challenges. Before that, its better we know the definition of ethics itself.

Actually, the term of ethics has a variety of different meaning. To make it understandable,ethics can be best defined as the principles of conduct governing an individual or a group.

Besides, ethics is also refers as the discipline that examines ones moral standards or the

moral standards of a society. The moral standard affect how people make decisions and lead

their lives. thics is very concerned with what is the best for individuals and society and its

also described as moral philosophy. The term is derived from the !reek word, ethos which

can mean custom, habit, character or disposition. It covers these following dilemmas, such as

how to live a good life, our rights and responsibilities, the language of right and wrong and

the moral decisions, "what is good and bad#$ .%e already know the meaning of ethics in

details, now we move to the definition of business ethics. Although there may be no universal

definition of business ethics, and no one scholars likened defining it, according to the

website, "The Business thics Blog$, business ethics can be best defined as the critical,

structured examination of how people and institution should behave in the world of

commerce. In particular, it involves examining appropriate constraints on the pursuit of self&

interest or for firms profit, when the actions of individuals or firms affects others. Business

ethics also is the study of proper business policies and practices regarding potentially

controversial issue, such as corporate governance, insider trading, bribery, discrimination,

corporate social responsibility and fiduciary responsibilities.

There is different between the business ethics and also the moral ethics. This is

because the moral ethics is concerning about the applying the moral framework to the way of

an individual in their daily life while the business ethic is concerned about the applying a

moral framework in the way of an organi'ation do its business. In this pro(ect, we already

analysed five companies in order to determine the ethical issues incurred by those companies.

The companies chosen by our group are Apple Incorporation, )ewlett&*ackard +)*

-ompany, ! lectronics -orporation, /otorola 0olutions -ompany and 0amsung

-ompany. The similarity of these companies is that, all of the companies are actively

producing a variety of electronic devices such as mobile phones, computers, laptops, tablet

and others types of electronic devices. They also are example of successful multinational

company in two different region that is in Asian country and %estern -ountry. Although the

%estern country is significant and very typical with their sophisticated technologies, Asian

BPMN 3123 MANAGEMENT ETHICS 1


2/45


country also is very great with well&established of 0amsung -ompany and ! lectronics

-orporation.

Although each of the companies has incurred many ethical issues that related to the

business, but in this assignment, we will only choose several of the ethical issues that

incurred by each company so that we can more focus on those issues and do a better analysis

related to the ethical issue incurred by the companies in conducting their business. After done

with analysing, we found that all of the companies are actively participate in doing -orporate

0ocial 1esponsibility +-01 in order to gain publicity and their obligation as a respected

institution to balance between achieving a high profits and fulfil the community needs.

In this assignment, we also divided our analysing into several important parts. They

are the background of the companies, -ompanys missions, vision, conducts and ob(ectives,

their well&established organi'ational structure, companys organi'ational culture and practices

and the most important one is their ethical issues. ach companies have their own system and

the way they conduct their business operations are totally different with each other. Although

they are actively producing the same kind of product and services in the market, we found

that they are compete fiercely and fairly. %e can simply said that they have their own

business strategies to gain a well competitive advantages in the market and achieve as much

as possible publicity to get a good recognition among the customers.



3/45


APPLE Incorporation Company

2.0 Background of Apple Inc. Company

Apple started in 2345 as a computer company. In the last decade, however, Apple has

expanded into a very intricate company that speciali'es in much more than (ust computers. In

6772, Apple broke the barrier with the i*od, eventually becoming the dominant market leader

in music players. As well, Apple (oined the phone industry in 6774 with the i*hone, which

has also been widely successful. Apple -omputer, Inc. designs, manufactures, and markets

personal computers, software, networking solutions, and peripherals, including a line of

portable digital music players. Apple8s product family includes the /acintosh line of desktop

and notebook computers, the i*od digital music player, the /ac 90 : operating system, the

iTunes /usic 0tore, the :serve !; server, and :serve 1AI< storage products. The

company8s products are sold online, through third&party wholesalers, and through its own

chain of stores. Apple owns approximately 26; retail stores in the =nited 0tates, as well as

Apple was formed by 0teven *aul >obs +62 and 0tephen !ary %o'niak +6;, they

created a first Apple computer on 2st April 2345 named Apple I. Apple was incorporated in

2344 in -alifornia. ?or about 67 year Apple computers Inc. was predominantly a

manufacturer of personal computers that includes *ower /ac, Apple I, Apple II, Apple III

and /acintosh lines but also faced unstable sales and low market shares. 0teven >ob resign

the company in 23@; due to infighting and he re&(oin in 2335 as a -9 of the company. )e

brought with him a new corporate philosophy of identifiable product and simple design.

Introducing a great success of i*od music player in 6772, Apple become a leader in consumer

electronic industry, dropping 88computer88 from its name and keeping on to release the i*ad

and i*hone. Apple is one of the biggest technology company in the world, with the revenue of

over 57 billion per annum.



4/45


2.1 Mission !ision and conduct

2.1.1 Mission

The mission of Apple company are

Apple designs /acs, the best personal computers in the world, along with 90

:, iife. i%ork, and professional software.

Apple leads the digital music revolution with its i*ods and iTunes online

store.

Apple reinvented the mobile phone with its revolutionary i*hone and App

0tore, and has recently introduce its magical i*ad which is defining the future

of mobile media and computing devices.

2.1.2 "ision

%e believe that we are on the face of the earth to make great products and thats not

changing. %e are constantly focusing on innovating.

2.1.# Conduct

Apple conducts business ethically, honestly, and in full compliance with applicable laws and

regulations. This applies to every business decision in every area of the company worldwide.

2.2 $rgani%ation structure

obs era that cover the period 2334 C 6722, Apple leadership was known

for autocratic leadership style with 0teve >obs micro&managing a wide range of business

operations. It has been noted that "when 0teve >obs was in charge, everything flowed through

him. Dow that hes dead, the company is taking on a more collaborative approach, according

to various reports$

Apple leadership practices have been changed dramatically under Tim -ook.

Acknowledged as the %orlds !reatest eader by ?ortune /aga'ine, -ook initially attracted

a skeptical attention from the ma(ority of industry watchers and public in general due to

concerns related to his ability to fill the shoes of 0teve >obs. Tim -ook proved to be effective



5/45


introducing Apple 0olution and Eehicle -omponents. ?or each division, there are executives

who is responsible to ensure that their division is safe and sound. They are

E&EC'(I"E P)$*ILE

(IM C$$+ CE$

A,-ELA E/ C'E C)AI- *EE)I-I

A)E,( E,I$) "ICE P)EIE,( E,I$) "ICE

E,I$) "ICE I,(E),E( $*(A)E P)EIE,( P)EIE,( 3 E)"ICE $*(A)E

)E(AIL3$,LI,E E,-I,EE)I,-

($)E

4$,A(A, I"E

CIE* EI-,

$**ICE)

B)'CE EELL

E,I$) "ICE

P)EIE,( A,

L'CA MAE()I A, )ICCI$ PILIP . CILLE)

E,I$) "ICE E,I$) "ICE P)EIE,( E,I$) "ICE

P)EIE,( A)A)E P)EIE,(

CIE* *I,A,CIAL E,-I,EE)I,- $)LIE

$**ICE) MA)+E(I,-

4$,/ )$'4I

E,I$) "ICE



6/45


-E,E)AL C$',EL P)EIE,(

A)A)E

(EC,$L$-IE

2.# $rgani%ation Culture

The culture of Apple was based on an ideal that self&motivated individuals will work

harder if they do not have a boss micromanaging every action. The uniFue structure of Apple

had allowed it to grow and react more Fuickly to changes than its competitors. The reason for

the Fuick responsiveness is simpleG it is much easier to get a pro(ect started if there are only a

few people to obtain approval from. Apple initially grew fast, because decisions were made at

the lowest possible level. -orporate headFuarters made policy and oversaw all activities, but

the local employees made the day&to&day decisions on the ground in countries all over the

world. This type of top&down philosophy allowed for Fuick responsiveness and resolutions to

situations without involving the corporate headFuarters, thus avoiding corporate red tape.

Apples organi'ational culture is effective in supporting the firms leadership because

of key features that fit the business.


7/45


culture. In Apples case, the following characteristics are the most significant in its

organi'ational culture

(op5notc6 e7cellence.

Apples organi'ational culture involves a policy of selecting only the best of the bestworkers. 0teve >obs was known to readily fire employees who did not meet his

expectations. This tradition in Apples organi'ational culture continues under Tim

-ook. xcellence is emphasi'ed as a critical success factor in the business, especially

in product design and development.

Creati!ity.

Apple employees are selected for their knowledge, skills, and creative abilities. The

firms organi'ational culture highlights the importance of creativity. mployeesinvolved in product design and development processes are especially creative. This

characteristic of Apples organi'ational culture helps the firm maintain the capacity to

develop solutions to business needs and consumer needs.

Inno!ation.

Apples organi'ational culture is also highly innovative. In fact, Apple is freFuently

appraised as one of the most innovative companies in the world. All employees are

trained and encouraged to innovate in terms of individual work performance and by

contributing ideas to the firms product development processes. Apple organi'ational

culture succeeds in facilitating rapid innovation, which is at the heart of the business.

ecrecy.

0teve >obs developed Apple to have an organi'ational culture of secrecy. This secrecy

is part of the companys strategy to minimi'e theft of proprietary information or

intellectual property. =pon hiring, Apple employees agree to this organi'ational

culture of secrecy, which is reflected in the firms policies, rules and employment

contracts. This aspect of Apples organi'ational culture helps protect the business

from corporate espionage and the negative effects of employee poaching.

Moderate Com8ati!eness.

Apples organi'ational culture has moderate combativeness. This feature is linked to

0teve >obs and his combative approach to leadership. )e was known to randomly



8/45


challenge employees to ensure that they have what it takes to work at Apple.

)owever, under Tim -ooks leadership, the company has been changing its

organi'ational culture to a more sociable and less combative one. Thus, Apples

organi'ational culture now has a moderate degree of combativeness.

2.9 Issue of Apple Inc. Company

2.9.1 Illegal and 'net6ical taff (reatmant

Apple8s promises to protect workers were routinely broken. It found standards on

workers8 hours, I< cards, dormitories, work meetings and (uvenile workers were being

breached at the *egatron factories. xhausted workers were filmed falling asleep on their 26

hour shifts at the *egatron factories on the outskirts of 0hanghai. The -% report claims thatstaff at the facility are owed millions of dollars in unpaid overtime wages, with employees

reFuired to put in as many as 277 additional hours a month which is three times the legal limit

on mandatory overtime. Investigators also claim to have found workers reFuired to stand for

more than 22 hours a day, with no rest outside of H7&minute meal breaks.

It said it monitored the working hours of more than a million workers and that staff at

*egatron were averaging ;; hours a week. The poor conditions in -hinese factories were

highlighted in 6727 when 2 workers killed themselves at Apple8s biggest supplier, ?oxconn.

?ollowing the suicides, Apple published a set of standards spelling out how factory workers

should be treated. It also moved some of its production work to *egatron8s factories on the

outskirts of 0hanghai. But *anorama8s undercover reporters found that these standards were

routinely breached on the factory floor.

9vertime is supposed to be voluntary, but none of the reporters were offered any

choice. In addition to the excessive hours, one reporter had to attend unpaid meetings before

and after work. Another reporter was housed in a dormitory where 26 workers shared a

cramped room. Apple says the dormitory overcrowding has now been resolved and that it

reFuires suppliers to retroactively pay workers if it finds they haven8t been paid for work

meetings. *egatron said it was carefully investigating *anorama8s claims and would take all

necessary action if any deficiencies were found at their facilities.

Apple is one of several technology companies using cobalt mined by child labor in

their lithium&ion batteries. Battery manufacturers are next to acFuire the cobalt, using it to

produce the lithium&ion batteries found in smartphones like the i*hone. The children who



9/45


worked there tell that they worked 26 hours a day in the mines, carrying heavy loads and

earning between one and two dollars per day. The ma(ority of miners spend long hours every

day working with cobalt without the most basic of protective eFuipment, such as gloves,

work clothes or facemasks to protect them from lung or skin disease. three factories operated

by *egatron, which makes eFuipment for Apple computers and i*hones, and found that

*egatron hired children under the age of 2@, the child laborers worked under the same poor

conditions as adult staff. In total, 27,777 employees aged between 25 and 67 worked in

crowded production rooms, performing the same tasks as adults. 0ome of the children were

paid less, and others did not have their wages paid on time.

2.9.2 (6e practices of Corporate ocial )esponsi8ility :C); 8y Apple Inc.

Apple is one step ahead. 1ight, it hasnt been the first company in its sector to launch

an environmental campaign. But it has been the first one to transform it into its core mission.

The companys new goal is to make its sustainability "better$ as the "Better 0tarts )ere$

video states. 9n arths day, 66 April, the -upertino based firm disclosed to the folks of the

world its new strategy to help with disabilities make their field trips, take care of babies at the

facility for single mothers, and install heaters for elderlies who live alone.

In the last six years, the average total power consumed by Apple products has dropped

by ;4J. The worlds most energy&efficient desktop computer is /ac mini. Todays i/ac uses

34J less electricity in sleep mode than the first i/ac. The 22&inch /acBook Air consumes

the least total energy in its class. As a matter of fact, on the website, Apple boasts its entire

product line not only meeting, but exceeding D1!K 0TA1 guidelines. Take your i*hone

out of its shiny cover. Kou should feel free to hold it in your hand some of the most harmful

toxins likes mercury, lead, arsenic, *E-, B?1s, and *hthalates have been entirely eliminated

from the whole range of Apple products.

Almost 4HJ of all facilities including all of the data centers and @5J of the corporate

campuses are powered by renewable energy. The same is true for 267 retail stores in the =0.

The energy sources include solar, wind, geothermal, water and biogas fuel cells. 9n top of



10/45


that, to save water, the company employs an irrigation system that monitors local weather

conditions and soil moisture.

In -upertino Apple will open its huge and revolutionary campus. )ere, @7J of the

site is going to be green, with thousands of shade and fruit trees and drought&tolerant plants.

The source of energy will be solar, while natural ventilation is to be employed for most of the

year, through air flowing freely between the inside and the outside. mployees will reach the

campus thanks to biofuel buses, public transit, carpools, bicycles and their own feet. The

campus is going to be eFuipped with hundreds of electric vehicle charging stations. Apple

aims to power all its offices, retail stores and data centers entirely with energy from

renewable sources. At this point, the options are two. If this article has been so effective that

it has made you want to substitute any device in your house that does not have an appleimpressed on it with one that does, I will tell you wait a minute. %hile youre on the way to

the Apple store, dont forget to bring the old device. They will recycle it for you.

e


11/45


a rented office space on *age /ill 1oad in *alo Alto which is larger than the garage behind

*ackards house. In that year, they also make their first donation to charitable organi'ation.

)* -ompany is an American multinational Information Technology organi'ation that

provides hardware and software services to small, medium and large si'ed businesses across

industries. The company has also offer a wide range of IT product which include laptops and

tablets, desktops, printers, inks and toners, and displays and accessories.

In 5 9ctober 672, the company plan to split its personal&computer and printer

segments from its corporate hardware and service business. The purpose of split into 6

separately publicly traded company is to confirm the speculation that broke out over weekend

and to cut another ;,777 (obs and to pledge to invest the money saved into research and

development. Besides, separating into 6 business segment will provide each new company

with the independence, focus, financial resources and flexibility they need to adapt Fuickly to

market and customer dynamic, while generating long term values for their shareholders. The

split was closed on 2stDovember 672 and resulted in two publicly traded companies which

include )* Inc. and )ewlett *ackard nterprise. )ewlett *ackard nterprise will define the

next generation of technology infrastructure, software and services for the Dew 0tyle of IT

while the )* Inc. will be the leading personal systems and printing company delivering

innovations that will empower people to create, interact and inspire like never before.

#.1 "ision Mission and o8=ecti!e

#.1.1 "ision

The vision of )* -ompany is to create technology that makes life better for everyone,

every organi'ation, and every community around the globe. This means that the vision of the

company is to view the change in the market as an opportunity to grow because they will

always do more on research and development so that to produce the product and services that

in satisfy the need of customer because the reFuirement of the customers change over time.

Besides, the term of make life better also means that the company will emphasis on the

environment so as to reduce or prevent the pollution in the environment when the company

performing their (obs. The vision stated by the )* -ompany can motivates its employee to

use its ability to develop and produce innovative product, services and solution to satisfy the

need of its customers.



12/45


#.1.2 Mission

The mission statement of )* -ompany is to provide products, services and solutions

of the highest Fuality and deliver more value to our customers that earns their respect and

loyalty. This means that in order to satisfy the need of customer and makes a better life for its

customers, )* -ompany will do more on research and development so that they can provide

a high Fuality of products and services that can increase the value of the product and services

to the customers. This can make the customer more royalty and also respect to the company.

#.1.# $8=ecti!e

The ob(ective used by the company is to achieve the companys vision and mission.

The ob(ective of the )* -ompany is to

2. !et customer loyalty by providing high Fuality and value products and servicesG6. !ain profit by achieving profit to finance growth so that to create the value to the

companys shareholdersGH. !rowth the company by recogni'e and sei'e the opportunity to growth based on the

company strengths and competentG. Become market leadership by developing and delivering useful and innovative

product and service.;. -ommitment to employee by promoting and rewarding the employee based on

performance and by create a work environment based on the companys valuesG5.


13/45


0ystems, *rinting, the nterprise !roup +!, nterprise 0ervices +0, 0oftware, )*

?inancial 0ervices +)*?0 and -orporate Investments. The function of each segment are

2. Personal systems segments provides commercial personal computers +*-s,

consumer *-s, workstations, thin client *-s, tablets, retail point&of&sale +*90

systems, calculators and other related accessories, software, support and services for

the commercial and consumer markets6. Printing segmentprovides consumer and commercial printer hardware, supplies,

media, software and services, as well as scanning devices to the customers.H. Enterprise group segmentof the company provides a broad portfolio of enterprise

technology solutions to address customer needs in building the foundation for

applications, %eb services and user experiences.

. Enterprise ser!ices segmentprovide technology consulting, outsourcing and supportservices across infrastructure, applications and business process domains in traditional

and strategic enterprise services offerings, which includes analytics and data

management, security and cloud services.;. *inancial ser!ices segmentprovide investment solutions, such as leasing, financing,

IT consumption and utility programs and asset management services that facilitate

technology deployment models and the acFuisition of IT solutions, including

hardware, software and services.

5. Corporate In!estments segmentinclude )* abs. It also includes certain enterprise&

related business incubation pro(ects and venture focused minority investments.4. oft


14/45


contribution by the employee in performing the (obs is important to the

companys success.H. 1esult through teamwork which means that the employee of the company

work together in order to looking for more efficient ways to serve their

customers so that to improve the performance of the company. /eaningful innovation which means that the company emphasis the

innovation in invent the new product or improve the Fuality of the product.

Innovation is important for a technology company because if its competitor

offer a new product with new feature, the company may not able to fight with

the competitor if the company not able to produce similar product with the

competitor because the preferential of the customer had change toward the

new feature product offer by the competitor.;. =ncompromising integrity which mean the company emphasis the open,

honest and direct in conducting their business.

Based on the share value of )* -ompany, we can conclude that the organi'ational

culture of the company is innovation due to emphasis innovative, people orientation because

the company emphasis on achievement and contribution, team orientation because the

company is emphasis the result through team work. Besides, the organi'ation culture of the

company also emphasis the moral value and the ethics of the member in the organi'ation.

#.9 Issue of P Company :pying candals;

#.9.1 A8out t6e pying candal

The issue about the spying scandal of )* -ompany was start from 6Hrd >anuary 6775,

when the -DT publishes the article attributing insider information from the recent )* boardmeeting to a "source with the company$. This is because the published article had shown the

)* -ompany had conducted the internal investigation that may leak the private information

of the board member of the company. This rise the issue whether the tactics used by the )*

-ompany in conducting the internal investigation to the find the private information of the

board member of the company is ethical or unethical. This is because in order to get the

private information of its employees, the )* -ompany or the security that hired by the firm

may use illegal internal investigation tactics in finding the private information of the

companys employee.



15/45


According to %ashington *ost on 65 0eptember 6775, from the article between the

lines of )* -ompany8s spy scandal, state that the )* -ompanys media&leak investigation

went forward despite warnings from )* security personnel that the tactics used were

Mprobably illegalM and should be stopped. This is because )* -ompany conducted its internal

investigation to acFuire the private information by spying the personal phone records of

board member of the company in order to assuage the damage that might have been caused

by sharing confidential information to authori'ed parties. In order to get the personal phone

record, the company using the target board members 0ociety 0ecurity number to convince

the telephone companies to release the telephone of the particular board members record.

The action made by the company in acFuiring personal phone is an unethical action because

this action will compromise the privacy of the companys employee.

#.9.2 Et6ical issue related to t6e spying scandal of P Company

The person who conduct the internal investigation, Nevin )unsaker, who was the )*

-ompanys -hief thics 9fficer, by spying the personal phone records of related person will

face ethical dilemma. This is because Nevin )unsaker may face dilemma in choosing

whether to acFuire the personal phone record of the related board member of the company or

not because he want to measure that the member do not share confidential information to

authori'ed parties. Besides, Nevin )unsaker who conduct the internal investigation may also

think that the action took by him in spying the personal phone record is not an unethical

action because he think that he is completing his duties to measure that the board member of

the company do not act any action that may cause unfavourable outcome to the company and

also to find out who is the person that share the confidential information of the company to

the third party and make the company condition become unfavourable. But, although Nevin

)unsaker may face dilemma, but this does not means that the way he conduct the internal

investigation is the right thing and he is also have not obligated to violate the employees

right of informational privacy. The internal investigation that conduct by Nevin )unsaker had

already violated the 6 of the five moral principle that introduced by the Nitchener in 23@

which include non&maleficence and fidelity. This is because the action took by Nevin

)unsaker in spying the personal phone record of the board member of the company is violate

the non&maleficence due to the action taken by him is actually harming the related board

member that had been being spying because the privacy information of the related board



16/45


member that the related board member do not want others to know +such as the health status

of the board member will be known by others other than himself or herself. /oreover, the

action of spying the personal phone record of the board member of the company had shown

that Nevin )unsaker was violate the fidelity principle that state by Nitchener because he do

not trust his upper ordinate


17/45


In the conclusion, although the board member of )* -ompany may have shared the

confidential information of the company to the third unauthori'ed party that commit a

violation to the companys policy, but this also does not mean that the company has the right

to check the personal telephone record of the board of the member in order to measure that

member do not share the confidential information.

Lucky -oldtar :L-; Company

9.0 Background of L- company

The establishment of ! lectronics has always surrounded by the companys desire

to create a happier, better life. This company is a 0outh Norean multinational electronics

company headFuartered in Keouido&dong, 0eoul, and a member of ! !roup, employing

@H,777 people working in 223 local subsidiaries worldwide. The company operates its

business through five divisions )ome ntertainment, /obile -ommunication, )ome

Appliance, Air -onditioning and nergy 0olution and Eehicle -omponents. ! lectronics

was established in 23;@, and by 23;3, it had already produced the very first radio in Norea. It

was the start of evolving electronic industry in the country. ! itself stands for ucky

!old0tar and the company tagline, ifes good. ! -orporation is a conglomerate in 0outh

Norea that deals in the production of telecommunication products, chemicals and electronics.

0ince 23;@, the company went on to produce several other electronic products for the next

ten years like telephones, refrigerators and TE sets. By its 27th year of establishment,



18/45


!old0tar has already produced its first air conditioner and have a branch in Dew Kork -ity. It

was the start of it global dominance in electronics.


19/45


9.1.# Conduct

! will succeed through the constant development of capability based in ethical

management.

9.2 $rgani%ation structure

The way that the ! -ompany in designing and allocation their (ob is based on

business segment. The company operates its business through five divisions )ome

ntertainment, /obile -ommunication, )ome Appliance, Air -onditioning and nergy

0olution and Eehicle -omponents. ?or each division, there are executives who is responsible

to ensure that their division is safe and sound. They are


D!"H#$% &$%'P()*+,)%- . C/O0

LG E)-(!%+*

B!%'"S$ !%P()*+,)%- . CEO0

H!) E%-)(-+%)%-C!%#


20/45


9.# $rgani%ation Culture

The ! organi'ation culture includes !8s core beliefs, values, and aspirations. It

illustrates a vision that guides the thoughts and actions of ! employees in attaining the

ultimate goal of becoming a MDo. 2 !M. The ! organi'ation culture is reached through the

practice of M>eong&eong&eong&


21/45


The essence of the ! corporate culture is found in !8s management principles of

creating value for customers and respecting human dignity. As they are put into action

through M>eong&


22/45


females, foreigners, and the disabled to (oin their business operation and together make !

lectronics become more successful. ! lectronics company also have practiced a very

good diversity management when they established and declared a labour policy against

discrimination and facilitating an environment in which individuals with diverse values and

beliefs can work together as a team. They put their utmost best and making ongoing efforts to

recruit and develop female talent in Norea where the percentage of female employees lags

behind. In addition, ! lectronics encouraging their business organi'ation to hire people

with disabilities to increase their representation in the workforce. Besides that, the labour

policy includes a regulation that prohibits forced labour that restrain mental and physical

freedom, employing minor below the age of fifteen, and assignment of dangerous tasks to

youths under age of eighteen. /oreover, policy also guarantees employees the freedom to

(oin a union, as well as to the activities of the union and freedom to organi'e.

9.9.2 (6e practices of Corporate ocial )esponsi8ility :C); 8y L- Electronics.

+orea

In year 672H, ! lectronics introduced the "%orkday Eolunteer *rogramme$ as their

effort to promote employee volunteering. =nder this programme, employees can take up toeight hours of paid leave to volunteer on weekdays every year by signing up on the

scheduling system. It was a great social care activity when 44H employees took advantage of

the programme and volunteered a total ,67@ hours. In 672, 4H3 employees took advantage

of the programme and volunteered a total of ,45 hours +up 677 hours from the previous

year to help with disabilities make their field trips, take care of babies at the facility for

single mothers, and install heaters for elderlies who live alone.

-01 in 0outh Norea



23/45


C6ina

0ince 2333, ! lectronics have selected an elementary schools around -hina

and named it as "! )ope 0chool$ and support its development by teacher training,

scholarship and building school infrastructures.

Et6iopia

! held an event "/y ?irst ?amily *ortrait$ at an thiopian village. The event was

organi'ed to present a memorable picture moment to the villagers, which most of them



24/45


cannot afford to buy a camera and thus have never taken pictures with their families and

friends. In the event, ! took photos of the residents and presented them with prints

instantly produced with *ocket *hoto.

out6 Africa

! lectronics representative make a charity visit for orphanages and grade schools

in underprivileged neighbourhoods and they gave free electronics repair service and

performed disinfections. The subsidiary also gifted a free H< movie screening and IT classes

on the service bus.

-ermany



25/45


! hosted the "! )elps ?lood Eictims$ program to help victims from the 0outh

ast region hit by the worst flooding in a century and provided free repair service to the flood

victims. As part of the program, ! donated 2,77 units of electric products and operated a

mobile laundry service.

Motorola olutions Inc.



26/45


>.0 Background of Motorola olutions Inc.

/otorola 0olutions, Inc. is the one of the biggest American


27/45


672; 672; I&f *roduct


28/45


>.2 $rgani%ation structure


G()' B(!%0C+(% %, C+)) O?)(

G+%! A@ B!%%!--)0

E=)$-+>) V+)P()*+,)%- . C+)) V+)

P()*+,)%-0 P(!,$- .

E,$(,! C!%(,!0

E=)$-+>) V+)P()*+,)%-0 S-(-)'# .

M( S@ H)(0

E=)$-+>) V+) P()*+,)%-0G)%)( C!$%*) . C+)) V+) P()*+,)%-0

;!(,+,) S)


29/45


$)-A,I?A(I$,AL ()'C(')E@ )ELA(I$,IP BE(EE, (A** I,

I**E)E,( LE"EL $* M$($)$LA $L'(I$,

B$A) LE"EL 1 LE"EL #


INVESTOR

RELATION

CHIEF FINANCIAL

OFFICER

CHAIRMAN &

CEO

STRATEGY &

STAFF

STRATEGY &

INNOVATIONDIRECTOR

)%%)-

CHIEF

TECHNOLOGY

OFFICER

LEGAL &

ADMINISTRATIONDIRECTOR

E'!% D$(:%

PRODUCT &SERVICES

DIRECTORM+) H#,)% HUMAN

RESOURCE

SOFTWARE

SERVICE AND

PUBLIC SAFETY

WORLDWIDE SALES

& M!!#DIRECTOR

C#-!% &!%)*

SALES, BRAZIL

E-!% B!('!%!>!

DIRECTOR

&$,# L))%-

DIRECTOR

G()'!(# SALES, MIDDLE

EAST

BusDev &

VENTURE

DIRECTOR

A%%)

DIRECTOR

S$) S!-- DATA CAPTURESOLUTION

B!: S%,)(*DIRECTOR

B(,)# S+%')(


30/45


>.# $rgani%ation culture

/otorola 0olutions values are based on a foundation of uncompromising integrity and

ethics that influence everything they do. The values that practices by this company represent

not (ust what they believe, but, how they will behave toward each other, their customers,

suppliers and all of their stakeholders. By emphasi'ing on their values, /otorola 0olutions

struggle to create an inclusive environment where each individual has a chance to give an

impact. Thats how /otorola 0olutions create the innovation that has been their legacy for

more than eighty years. It all starts with their beliefs that the next big ideas can come from

anyone, anywhere, at any time. At /otorola 0olutions, diversity and inclusiveness is a main

key to meeting and exceeding their customers diverse needs. /otorola 0olutions is a smaller,

and more focused company than their predecessor, /otorola Inc., allowing each of theiremployees greater say and greater impact. But their culture also asks every one of them to

contribute to their fullest potential. %ith their values as their foundation, they strive to engage

the organi'ation in promoting a culture that values diversity of thought. Below is /otorola

0olutions values that represent their organi'ational culture.

EA=0 -9DTDT0

%e are innovative /otorola 0olutions persistently createingenious solutions to the real challenges of

today, tomorrow and beyond.

%e are passionate This institution meet every challenges with

energy and determination and always

pursuing ever&higher standards.

%e are driven They keep it simple by focusing on what

matters most so they can sei'e opportunities

with speed and confidence.

%e are accountable They stand behind the work that they do, the

contributions they made and the high businessstandards that they have maintained.

%e are partners They succeed together because they respect

all individuals and value contributions from

colleagues and customers alike.

>.9 Issue of Motorola olutions Inc.



31/45


>.9.1 (6e practices of Corporate ocial )esponsi8ility :C); 8y Motorola

olutions Inc.

Motorola olutions *oundations

The /otorola 0olutions ?oundation is the charitable and philanthropic arm of

/otorola 0olutions, originally founded in 23;H. %ith employees located around the

globe, /otorola 0olutions seeks to benefit the communities where it operates. The

company achieves this by making strategic grants, forging strong community

partnerships and fostering innovation. In particular, the foundation focuses on

education, public safety, disaster relief and employee giving.

Education

0upporting programs that advance science, technology, engineering

and math +0T/ education, preparing their next generation of innovators.

0ince 6774, the /otorola 0olutions ?oundation has provided more than 7

million in education grants to elementary, secondary and postsecondary 0T/

programs.9ne of these recipients is the -onsortium of ?lorida ducation

?oundations +-??. /otorola 0olutions ?oundation and -?? work together

to support teachers and innovative school programs that highlight the benefits

of careers in engineering and technology to students.9ne of the schools chosen

to receive support from the /otorola 0olutions ?oundation was ?lagler *alm

-oast )igh 0chools iH Dew Tech Academy in ?lorida. %ith this support,

teachers engaged students in a competition to research and design a prosthetic

leg for a dog named -hamp who was wounded in a car accident. The goal of

the competition was to show students how design and engineering can be used

to improve the world around them.After consulting with engineers, veterinarians and others, teams of

students worked together to come up with different designs that would help

-hamp live a fuller, more comfortable life.

Pu8lic safety

/aking their communities safer by using their leadership in public

safety innovation to provide resources to first responders and the communities

they serve.



32/45


In 672;, the /otorola 0olutions ?oundation, in partnership with the

International Association of -hiefs of *olice +IA-*, launched the Institute for

-ommunity *olice 1elations to help communities and law enforcement

agencies across the =.0. strengthen trust and collaboration, while continuing

to reduce crime. %ith financial support from the /otorola 0olutions

?oundation, the institute is focused on implementing recommendations from

the 672; %hite )ouse Task ?orce 1eport on 62st -entury *olicing.

The Institute will work on identifying the most effective ways law

enforcement and certain communities can work together to improve

communication, increase understanding and reduce crime. Then, the Institute

will share those programs with other law enforcement departments around thecountry.

isaster relief

*artnering with humanitarian organi'ations to provide relief to disaster

victims and providing vital support to emergency workers who are at the front

lines of disaster relief. ?or two years, the /otorola 0olutions ?oundation has

worked alongside American 1ed -ross chapters across the =.0. on a national

fire preparedness campaign to reduce =.0. home fire deaths and in(uries by 6;percent. The /otorola 0olutions ?oundation is now expanding our support to

fund innovative initiatives in Africa to prevent fires and help train firefighters.%ith support from the /otorola 0olutions ?oundation, the American

1ed -ross and International 1ed -ross are improving technologies in Africa

that help disaster prevention and relief. To meet the uniFue needs of these

communities, the 1ed -ross and 1ed -rescent partnered with two fire sensor

manufacturers and a do'en companies to improve sensor technology for use in

informal housing settlements. In 672;, they began installing the low&cost,

smart fire alarms in thousands of homes across settlements in Dairobi, Nenya

and -ape Town, 0outh Africa.

They also support the Africa ?ire /ission, a nonprofit organi'ation in

the =nited 0tates that delivers gently used eFuipment and much&needed

training to fire departments in Africa. Africa ?ire /ission and its team of

experienced firefighters have trained and eFuipped firefighters in Dairobi,

Nenya with support from the /otorola 0olutions ?oundation.



33/45


Employee gi!ing

*roviding their employees with matching programs in the =nited

0tates and globally. They invest in their employees in other ways as well by

providing opportunities for professional development at every level so they

can reach their full potential. Their rewards programs are designed to attract,

retain and motivate employees.

amsung Company

.0 amsung Company 8ackground



34/45


0amsung electronics -o. td is the 0outh Norea multinational electronics company.

The company is one of the chief subsidiary of 0outh Noreas giant 0amsung !roup. It

conduct their business in @7 countries and employ H47777 people. -urrently, 0amsung

lectronic managing about 677 subsidiaries in the world. 0amsung lectronics operates three

main divisions including consumer electronics +- division, information technology and

mobile communication +I/ division and device solution +


35/45


The vision of 0amsung lectronics is "Inspire the %orld, -reate the ?uture$. The

mission to achieve the vision, the company will focus on provide the innovation technology,

product and solution to inspire the community around the world to (oint them in order to form

a digital world and enrich the life of the community in the world. The company is not only

focus on fulfil the shared value of their shareholders, partner and employee, they also

recogni'e their responsibility as the creative leader in global society. Thus, they want to

engage more effort and resources in creating more value to the industry and customer in order

to create sustainable future.

In order to success in global market, the company set a Fuantitative and Fualitative

goal to guide the member of the company move toward vision and mission. 0amsung

lectronics want to achieve annual sales of =0< 77 billion and placing 0amsung lectronicoverall brand value among the global top ; in year 6767. ?or the Fualitative goal is to achieve

innovative companyG respected company and top ten worlds best workplaces. Besides, the

company want to have creative leader that able to build new market as well as global

enterprise that attract the worlds best talents.

.2 $rgani%ation tructure


CHAIRMAN

VICE


36/45


9rgani'ation chart above, we can see that 0amsung lectronic adopt mechanistic

organi'ation. The organi'ation member is organi'e in hierarchical which involve high

hori'ontal and vertical differentiation. The main position of the company is occupied by

chairman, then vice chairman. )owever, the component department, consumer electronics

department and IT and mobile department is under the control of vice chairman. The


BOARD

CSR

ITMOBILE

DEPARTMENTCONSUMER

ELECTRONICCOMPONENT

DEPARTMENT

VISUAL

DISPLAYMEMORYDIVISION

LED

DIVISI HOMEGADGET

SYSTEM

LSI

MEDICALGADGET

DIVISION

MODEM

DEVELOPMESOLUTION

DEVELOPME

PRINTING

SOLUTIONDIVISION

;IRELESS NET;ORMEDIA SOLUTION

DIVISION

IMAGING BIG DATA


37/45


organi'ation structure also characteristic by highly formali'e. This is because all the

employee roles and responsibility is clearly state and they perform their work according to

the instruction. In term of decision making, 0amsung emphasi'e highly important in

procedure and flow from top to bottom. The department under the company is independent,

they not interact and communication with each other. ach department do their own

responsibility and task. The component department will only responsible for memory

division, system 0I division and < division, while consumer electronics department

responsible for visual display division, home gadget division, market gadget division and

printing solution division. Besides, the IT and mobile department responsible for wireless

division, network division and media solution division.

.# $rgani%ation Culture

0amsung lectronics adopt creative corporate culture to encourage innovation in the

organi'ation. The company undertake participation work environment to ensure their

employee feel a sense of dignity, pride and ownership of the organi'ation vision.

The company promote %ork O ife Balance through %ork 0mart 0amsung

lectronics to balance the work and life of their employee in order to improve the

productivity. They adopt flexible work schedule in Norea to avoid overtime at the same time

maximi'e the work performance of employee through effective time management.

In order to promote the creativity of their employee, 0amsung lectronic has

established a -reative


38/45


The company promote diversity workforce, they engage difference races, age and

country of origin. They avoid discrimination in workplace by adopting many approach to

protect against female and disability. They build pleasant working environment for their

employee.

.9 Issue of amsung Company

.9.1Poor


39/45


health problem such as reduce their immune system. 0o that, the cost of society is greater

than benefit obtain, it is an unethical action.

In addition, 0amsung lectronic also violate ethic in the Nantian Theory. Nantian

theory emphasi'e on an ethical person should act only when others will also act in same ways

in same condition. An action is morally right if the person does not use others to advance him

or her interest. thical person also have to act rationally. In the issue that, we can see that

0amsung lectronic does not act rationally toward its employee. The main action of the

management of the company is more toward to satisfying the company interest rather than the

interest of stakeholders. 0amsung lectronic treats their employees like a machine rather than

human in order increase the efficiency of production, reduce the cost of production and

increase the profit of the company. This can be evidence by the most of employee of thecompany are working up to 2; hours in which 27 hours on their feet without rest to do

repetitive work. They also given a limitation time to assembly a phone in which only six

second that can be done by the ordinary person. 0amsung lectronics do not think whether

their action is rational or ethical or not, as long as it will bring benefit to the company. They

does not thinks that the if the worker work intense pace of work will harm the worker as they

may have the risk of illness.

In my opinion, 0amsung lectronic have been violate the duty of firm toward

employee in proving a health and safety working condition. An employer has the

responsibility to provide a workplaces that are free from serious recogni'ed ha'ards, examine

always workplace condition as well as make sure the employee have and use safe tools and

eFuipment properly maintain those eFuipment. 0amsung lectronics is the company that

mostly engage in manufacture electronic device, so the workplace is consider as ha'ards

because the working place will expose the worker with the heavy metals and ha'ardous

chemical. The employer have the responsible toward the working place as well as the healthand safety of the worker. )owever, the company violate their responsibility toward employee.

ven though the company acknowledge the risky working condition but they does not inform

their worker about the workplace risks and take sufficient action to eliminate the risks. The

company does not undertake sufficient safety approach to protect theirs employee against

those worst condition while performing their task. The company does not provide basic safety

eFuipment such as earplugs and protective goggles to protect their worker against in(ure or

harm until infected with disease such as leukaemia and blood disease.



40/45


In addition, the employer already violate the human right of the employee. mployee

is a human being, they should be treat with dignity. mployee deserve a safety and health

working environment. According to the /aslows need of hierarchy, safety is consider as the

second level of need which is the basic need of an individual. )owever 0amsung lectronics

expose their employee in the ha'ardous working condition. The company does not take any

action toward the emission of toxic chemical to protect employee against those ha'ardous

substances. 0uch chemical substances can be threaten the health of the employee and the risk

of infected serious disease. The employer also take over the right of employee to en(oying

their social life. %hen the employee of the factory are called to work up to 2; hour and

sometimes working for 64 days without break, they may spend most of their time in work and

without have spare time for them to en(oy their life. They does not have time to social with

their friends and family as well as entertain themselves.

As a conclusion, 0amsung lectronics is unethical in the issue that discuss in above.

%orker is the main resource of a company to carrying out their operation, whether in

managing or in manufacturing a product. %ithout worker, accompany cannot operation.

%orker deserve basic safety, company should provide safety and conducive working

environment for their employee to protect against any negative effect on them. All the

employer should be balance the interest between the company and the interest of all

employee. The management should make the decision and action based on rational thinking

and choose the action that can bring largest benefit to the society. mployee is not a machine,

however they need basic right and (ustice and should be treat with dignity. A successful

company must undertake corporate and social responsibility to maintain fair and (ustice in the

society.

.0 C$,CL'I$,



41/45


There is saying from >dbelland, "Being on top of the world doesnt mean anything

unless you know what its like to be at the bottom$. /ost successful and well C established

companies today, take a lot of times, up to twenty years period, to climb the ladder of

success. These organisations put their efforts, energy, time and valuable properties such as

capital to ensure their business can compete and generate a better cash inflow in the market.

There are so many strategies to be implemented to maintain their sustainability and to gain a

competitive advantage among their rivals. ?or instance, )ewlett&*ackard +)* -ompany,

which started their business on 23H@ only a garage which located at behind *ackards home.

After that in year 237, )* -ompany moved from the garage to a rented office space on *age

/ill 1oad in *olo Alto which is larger than the garage behind *ackards house. ?rom this

situation, we can simply said that )ewlett&*ackard +)* -ompany lack of resources that is an

appropriate workplace to operate their business in the earlier, but, as we can see now, )*

-ompany evolved rapidly becoming a successful American multinational Information

Technology organi'ation. Its a great things to learn from )* -ompany how they can survive

from the bottom to the top. Another great story is about Apple Incorporation -ompany.

Although Apple -omputer Incorporation dominated as a manufacturer of personal computers

for almost twenty years, their product also faced unstable sales and low market share. Its also

a fruitful thing to learn from Apple Incorporation -ompany on how they try their best to keep

sustain in the competitive market.

Arthur )elps have said that, "In a balanced organi'ation, working towards a common

ob(ective, there is success$. ach organi'ations must work on diligently to achieve their

ob(ective or mission and vision no matter what happens. %hen employees need to make a

difficult decisions, they can refer to the organi'ations goals for guidance. ?or organi'ations

to be successful more emphasis on making sure every employee and every managers know

what he or she needs to accomplish in the present and future. %hen employee understand the

needs to be done to succeed, its much easier for them to contribute. Its also tremendously

easier for managers to do their (obs, to improve productivity and to manage proactively. -lear

mission and vision help everyone in the company succeed. In order to attain the highly

achievement, we found that Apple Incorporation, )* -ompany, ! -orporation, /otorola

0olutions Incorporation and 0amsung company had set up their own ob(ectives, mission,

vision and conduct. ach company had set a clear purpose and from their perspective, we

found that they try their best to create a win&win situation between two parties, that is, the

companies and their customers. ?or example, ! -orporations mission is to create value for



42/45


customers, respect human dignity and to become the best in its class by winning customers

acclaim as a true leader in global market. But, its vision is totally different which is to

become the market leading company with broad market recognition. ?rom this point of view,

we can simply said that the ! -orporations mission is more emphasi'ed on their

customers, while, its vision is more focused on the companys achievements.

9rgani'ational structure is definitely important for decision making process. /ost

companies either have a tall or flat organi'ational structure. 0mall companies usually use a

flat organi'ational structure. ?rom our assignment, we found that Apple Inc., )* -ompany,

! -orporation, /otorola 0olutions, Inc. and 0amsung -ompany use a tall organi'ational

structure because they operated their business in a larger scale and they also are multinational

companies that have many subsidiaries in a worldwide. Their business operation also are verycomplex and involves so many staff.

very organisation has its own culture. 0ince many employees spend almost twenty

four hours at their workplace, their organi'ations culture obviously affects both their work

lives as well as their personal lives. 9rgani'ational culture commonly related to the beliefs,

ideologies, principles and value that the individuals of an organisation share. The success of

an organi'ation depends on their organi'ational structure. Based on the organi'ation culture

that implemented by )* -ompany, we can conclude that the company is innovation due to

emphasis on innovative. They also is a people&orientation company because the company

focuses on achievement and contribution. )* -ompany always evaluate their results through

a team work and due to this, )* -ompany is a team&orientation company. Besides, this

organi'ational culture of the company also strengthening on the moral values and the ethics

of the member in organi'ation. 9ther company like 0amsung, Apple Inc., ! -orporation

and /otorola 0olutions Incorporation also have their own organi'ational culture.

%hile many companies grows profits ethically, others maximi'e profits unethically

via abusing their employees, lowering product Fuality and impacting the environment

negatively. =nethical business practices and controversy basically can lead to smeared public

relations and a loss of trust and respect on the part of the consumers. ?or example, Apples

promises to protect its workers were routinely broken due to using cobalt mined by child

labour in their lithium ion batteries. The child labour need to work twelve hours a day in the

mines, carrying heavy loads and (ust earning between one and two dollars per day. The

ma(ority of miners spends long hours every day working with cobalt without the most basic



43/45


of protective eFuipment, such as, gloves, work clothes, or facemasks. Another negative issue

also arises in 0amsung -ompany due to poor working condition at the factory in Ama'on on

August 672H. The employee of the factory were reported to work up to fifteen hours and

sometimes working for twenty seven days without break. There is a spying scandal happened

in )* -ompany. The internal investigation that conducted by the )* -ompany may leak the

private information of the board member of the company by spying the personal phone

records of board member in order to assuage the damage that might have been caused by

sharing confidential information to authori'ed parties. These controversies that happens

within the institution will effects its reputation and to the worst extent, boycott also can

happen. To cover up with the negative issues, the company need to implement other strategies

and strengthening their -orporate 0ocial 1esponsibility +-01. ?or example, Apple Inc.

already launched an environmental campaign due to several nature disasters happens

nowadays. ! -orporation also actively doing their charity work in a worldwide to help the

people in need in a poor and developing countries such as thiopia, 0outh Africa and so on.

/otorola 0olutions Incorporation through its /otorola 0olutions ?oundation is actively

participate in -orporate 0ocial 1esponsibility +-01 in different aspects such as education,

public safety, disaster relief and employee giving. This is a good practices as multinational

company in balancing their profit and fulfil communitys needs and wants.

In a nutshell, for corporation, in order to survive in the competitive market, they need

to eliminate the negative issues or any scandal that can affect their reputation as a respected

institution. They also need to implement a better business strategy plan and build a strong

customer relationship as the customer is the main channel to get a larger profits. As a

responsible organi'ation, they also need to be balance between profit and need of community.

!et organised is a compulsory to fulfil that lead the corporation to the victory and successful.

A systematic organi'ation will help and guide the organisation to complete the tasks and stay

on the top of things to be done. To be successful, the company need to study and learn from

their competitors. ffective internal control and having a good risk management also should

be implemented in the company as the risks can affect the organisation to pursue their

ob(ectives. Always remember what )enry ?ord have said, "A business that makes nothing but

money is a poor kind of business$.



44/45


)eferences

B)(%(,0 S@ 2160 M# 18@ Business Ethics. R)-(+)>), P+!*!# ---!@*-%

5788@-

/(%)0 A@ 2160 A(+ 25@ Brazil Sue Samsung over Poor Working Condition@

R)-(+)>), *"F-"!('%+-+!%"

*-($-$()"283@-

HP D)>)!)%- C!%#@ 2160 4 15@ HP@ R)-(+)>), ), !$%-))(+%'"%,"

,!%-+!%

LG E)-(!%+*@ 2160 A(+ 2@ Our Brand@ R)-(+)>), ),


45/45


business ethics in electronic devices company

Documents