Samsung’s Ethical Setbacks: A Case Study in Leadership and Accountability

Let’s examine Samsung's Corporate Issues where innovation meets ethical dilemma. An ethical dilemma is a complex situation in which a decision needs to be made between two equally unsavory moral options, where taking one path has a tendency to erode the other ethical principle. Ethical dilemmas within business have far-reaching consequences for a company's reputation, stakeholder trust, and business prosperity. The following essay introduces two prominent ethical dilemmas of Samsung, the world's top technology company: the vice-chairman Lee Jae-yong bribery scandal and the Galaxy Note 7 product recall scandal. These events will be examined through the lenses of ethical frameworks such as utilitarianism and deontology to critique the management culture of Samsung and the company's ethical implications of these dilemmas.

Overview of Samsung and the Ethical Challenges

Samsung, an electronics giant based in Seoul, has faced ethical challenges in recent times, including a bribery charge against Vice Chairman Lee Jae-yong. Lee was accused of bribes and fraud, including influencing government decisions in favor of Samsung. He was arrested and sentenced to prison for five years, the first corporate accountability in South Korea.

Samsung was faced with a giant ethical crisis in the recall of the Galaxy Note 7 product due to faulty lithium-ion batteries, with the model being recalled. The decision to utilize high-risk battery parts and delayed response to safety concerns raised concerns about Samsung's internal controls and eroded investor and public trust in the company.

Impact of Ethical Issues on Samsung

Samsung's moral failures had far-reaching effects, including the bribery scandal, which discredited its brand and fueled public anger at the corporate-political nexus in South Korea. The scandal raised questions regarding accountability and ethics at the leadership level and prompted stakeholders to reconsider dealings with the company. Samsung's recall of the Galaxy Note 7 also sparked public relations disasters, with consumers raising questions regarding the safety measures of Samsung's products and regulatory attention. The incident involved a loss of money and general distrust of Samsung's product testing and quality control processes.

Application of Utilitarianism in Samsung's Case

Samsung's response in the Galaxy Note 7 and bribery sagas did not ensure utilitarianism, a normative ethical theory that supports actions that bring the greatest good to the greatest number. Rushing product development and ignoring battery safety by the company put users at risk and resulted in physical injury. The vice-chairman's emphasis on corporate and personal benefits resulted in major losses in trust and credibility, necessitating stronger ethical structures in business decision-making.

Deontological Approach to Samsung's Ethical Behavior

Deontology, the leading ethical theory, values duty, rules, and intent over morality. It assigns priority to integrity, honesty, and moral rules over consequences. Samsung's actions in the bribery scandal and the Galaxy Note 7 incident are deontologically wrong, violating elementary moral duties and legal expectations. The business firm failed to honor its moral duties towards consumers, such as battery issues despite replacement.


Deontological ethical practice would have demanded that Samsung put ethical behavior and openness at the forefront of its leadership and production practices. By not doing so, the company risked not just public safety but also violating its ethical responsibility to its consumers and stakeholders. These choices, based on negligence and self-interest, show the gap between ethical theory and Samsung's corporate practice in these events.

Managerial Ethics and Corporate Responsibility

Samsung's failure to manage ethical issues well points to internal policy gaps and leadership responsibility gaps. To restore credibility and trust, Samsung needs to have an effective code of ethics and incorporate stakeholder interests into strategic business choices, giving managers the authority to manage conflicts of interest and take appropriate action when necessary.


Ethical leadership is core to realizing company culture and driving behavior. Leaders have a responsibility to model ethical behavior and ensure that conduct conforms to legal expectations and moral standards. For Samsung, active involvement by senior leadership in unethical activities created mixed messages to the employee population and the general public. This serves to highlight the importance of leadership behavior being driven by integrity, accountability, and transparency values.

Conclusion

The Samsung Galaxy Note 7 recall and bribery scandal revealed flaws in stakeholder engagement strategies, decision-making, and leadership morality. Ethical theories like utilitarianism and deontology reveal that these acts were in conflict with moral responsibility and corporate accountability. To prevent future infringement, Samsung needs to focus on building and implementing comprehensive ethical policies, investing in training leaders, promoting transparency, and setting clear standards for ethical behavior. This focus will regain stakeholder trust and ensure long-term organizational success. If you would like to learn more, visit desklib's website and learn more about this subject with our AI researcher tool.
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