At a meeting of top executives, Samsung Group Vice Chairman Lee Hak-soo unveiled a new set of "principles of management" to be followed by all Samsung employees.

The principles, detailed in a five-point action plan, emphasize adherence to law and ethics, respect for customers and shareholders and responsibility to community, among others.

The plan reflected Samsung's pro-activeness in a new, society-wide campaign to root out corruption. Samsung Group Chairman Lee Kun-hee was one of the business, political and government leaders who signed a "transparent society pact," a non-binding agreement to fight corruption and promote transparency.

Samsung's new guidelines will replace variations of codes of ethics that were being implemented at different Samsung affiliates and become a regular part of employee education. Samsung will also launch a committee to see these values take firm root across the company. The guidelines demand Samsung employees hold up to the values of fair competition, accounting transparency and political neutrality, as well as protection of individual and company intellectual properties. They also call for management stress on shareholder value and environment-friendliness, co-existence with community and improvement in the quality of life of employees.

Samsung explained in a statement that the guidelines are not only an extension of Chairman Lee's philosophy on ethical management but have been adjusted to meet global standards.

Since taking the helm of the group in 1987, Lee has emphasized the importance of ethical management and has ordered subordinates to benchmark global companies like IBM Corp.

As demands for global standard ethic management increased in the wake of the Asian financial crisis in the late 1990s, Samsung affiliates began implementing codes of ethics. This time, however, Samsung felt the need to establish a unified code of conduct and stipulate it in letters, the company statement said.

Samsung has been actively sharing profits with the community. It has contributed 2.1 trillion won in the past 10 years social welfare, environment protection and arts and sciences. Samsung Electronics Co, the flagship company of the business group, placed first in corporate governance ranking by Finance Asia, a Hong Kong-based magazine, last year. 

Source: The Korea Herald; 3/17/05