The Samsung Group (SG) is a multi-national manufacturing conglomerate headquartered in South Korea whose portfolio includes retail, electronics, securities, textiles, and Everland Resort (The oldest theme park in South Korea). Samsung Electronics (SE), known for producing innovative and top quality products is the flagship company of the Samsung Group which specializes in system integration, digital appliances and media, memory, and semiconductors. For this assignment I’m going to focus on the manufacturing of semiconductors by the SG and their supply chain management strategy which includes economic, social, and environmental responsibilities. Samsung is one of the world’s leading electronics companies and manufacturers of semiconductors. Semiconductors are a major component in many of the products that we use throughout our daily life, they have been integrated into hundreds of popular industries and thousands of products in the last few decades. PC’s have a semiconductor to prevent it from vibrating, they are used in Rice Cookers to control the temperature precisely, and in air conditioners to control the temperature.

Samsung has adopted a philosophy based on fairness, openness, and co-prosperity, their “Supply Chain Management Strategy” focuses on ensuring the materials that are used by the company are sourced ethically and responsibly. Samsung provides support to its suppliers to fulfill its ethical and social responsibilities and to operate in adherence with global laws and standards. Samsung has established a transparent registration system for new suppliers who wish to do business with them which includes requiring the supplier to satisfy criteria in Environment and Safety and Labor Rights. For Environment and Safety, new suppliers are required to satisfy the criteria set in 22 articles which includes occupational safety, fire prevention, environmental facility, and hazards and waste. Labor Rights has a criteria set in 20 articles which includes prohibition of child labor, guarantee minimum wage, and prohibition on inhumane treatment. Samsung has collaborated with Kangbuk Samsung Hospital to offer physical examinations to executives and employees of their partner companies. Samsung promotes its 10 Environment, Safety, and Health Commandments which encourages its employees not to work if it’s not safe to do so.

Although Samsung has invested a lot of money and resources into their Supply Management Strategies, the company is constantly in the news and receiving bad press about known issues that the employees and outside organizations feel that the company is ignoring. Numerous South Korean courts found that factory conditions were responsible for brain tumors, multiple sclerosis, and leukemia due to the hazardous chemicals that are being used. Miscarriages are also very normal among women ages 20 to 39 in their first trimester due to the lack of proper equipment and ventilation.

I think that Samsung is trying to satisfy too many issues at the same time and has lost focus on their core values. They should prioritize their employees and focus on actually implementing the changes that they promote rather than just state what’s not obvious.