The paper 'Corporate Governance Issues in Samsung’ s Corruption and Embezzlement Scandal" is a good example of a management case study. Corporate governance is increasingly becoming an area of major concern for governments, business leadership and interested parties including the public through such agents as civil society and political representatives. This has particularly been the case due to numerous and almost catastrophic scandals arising from the failure of responsible corporate governance. As noted by Manacorda, Francesco, & Forti, (2014), the global economic scandal of 2008 and the Enron fraudulent accounting scheme are arguably some of the best indicators of how corporate governance failure can result in grave consequences for shareholders and society at large.
Corporate governance impacts several aspects of the business including leadership, ethics, sustainability and human rights. In light of this understanding, this paper details and analyses an article detailing corruption and embezzlement of funds at Samsung Group involving its head, Lee Jae Yong. The paper will aim to link critical corporate governance theories relating to transparency, corruption and misuse of shareholder funds with evidential literature in the Samsung Scandal.
The use of financial advantage by big corporate bodies to influence regulatory decisions is not only an undesirable act but a major contributor to potential economic shocks and growth of monopolies in domestic and international markets (Manacorda et al. , 2014). Outline and summary of arguments in the article About Samsung The Samsung Group is a 70-year-old multinational conglomerate headquartered in South Korea. Samsung’ s interests span advanced technology, electronics, hotels, petrochemicals, semiconductors, medicine, finance and real estate. Samsung electronics including its Galaxy smartphones, laptops, TVs, are a major source of revenue for the company.
In 2017, Samsung generate $178 billion in revenue. Samsung is a major source of GDP in the South Korean Economy. This means that its operations are of great interest to the government.
Albrecht, C., Turnbull, C., Zhang, Y. and Skousen, C.J., 2010. The relationship between South Korean chaebols and fraud. Management Research Review, 33(3), pp.257-268.
Aldrick, P., 2006. Compass settles UN bribery cases for £40m. [Online]
Available at: http://www.telegraph.co.uk/finance/2949017/Compass-settles-UN-bribery-cases-for-40m.html
Barstow, D., 2012. The Bribery Aisle: How Wal-Mart Got Its Way in Mexico. [Online]
Available at: http://www.nytimes.com/2012/12/18/business/walmart-bribes-teotihuacan.html?pagewanted=all&_r=0
Bishop, T. & Hydoski, F., 2009. Corporate Resiliency: Managing the Growing Risk of Fraud and Corruption. s.l.:John Wiley & Sons.
Crane, A. & Matten, D., 2016. Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. s.l.:Oxford University Press.
Engen, A. O., Mikkelsen, A. & Grønhaug, K., 2010. Critical incidents and social construction of corporate social responsibility. Social Responsibility Journal, 6(3), pp. 345-361.
Hollinger, P. & Belton, C., 2017. Rolls-Royce humbled by long list of corruption offences. [Online]
Available at: https://www.ft.com/content/5c85eab6-dcd5-11e6-86ac-f253db7791c6
Jaewon, K., 2017. Samsung arrest imperils company and country. [Online]
Available at: https://www.ft.com/content/da80812a-f52f-11e6-8758-6876151821a6
[Accessed 27 March 2017].
Kochan, N. & Goodyear, R., 2011. Corruption: The New Corporate Challenge. s.l.:Springer.
Manacorda, S., Francesco, C. & Forti, G., 2014. Preventing Corporate Corruption: The Anti-Bribery Compliance Model. s.l.:Springer Science & Business.
OECD, 2014. OECD Foreign Bribery Report: An Analysis of the Crime of Bribery of Foreign Public Officials, Paris: OECD Publishing.
Oxford University Press, 2017. corruption - definition of corruption in English | Oxford Dictionaries. [Online]
Available at: https://en.oxforddictionaries.com/definition/corruption
[Accessed 20 March 2017].
Williams, G., 2007. Some determinants of the socially responsible investment decision: A cross-country study. The Journal of Behavioral Finance, 8(1), pp.43-57.
Samsung, 2017. About Samsung - Samsung. [Online]
Available at: http://www.samsung.com/us/aboutsamsung/ir/newsMain.do
[Accessed 30 March 2017].
Zimmerli, W., Richter, K. & Holzinger, M., 2007. Corporate Ethics and Corporate Governance. s.l.:Springer Science & Business Media.