Discuss about the Corporate Social Responsibility Policy.
Financial analysis is one of the essential aspects of the whole finance function of the business that is comprised of observing the past data to attain data or information of the present and future financial position of the business (Birchall, 2014). The financial analysis could be applied in a varied range of circumstances that offer the information to the managers of the business, which is required to take important decisions. The capability to comprehend the financial data is important for every manager of the business. Finance is considered the language of the business. Objectives and goals of the business are framed in the financial terms and their results are evaluated in the financial terms. The finance function in a business comprises analysis of the economic trends, framing financial policies, and making long-term plans for the activities of the business. It is comprised of applying internal control system for managing cash, the sales recognition, inventory valuation, and disbursement of expenses (Fridson and Alvarez, 2011). This report is being prepared in order to compare the financial performance of two major companies i.e. Apple and Samsung who are the key players in the consumer electronic appliance industry. Besides this, the report will evaluate corporate social responsibility of both the companies in order to identify their image and contribution towards the benefit of the society.
Apple Inc. is multinational technology company of America with headquarter in Cupertino, California. The company majorly deals in the designing, creating, and selling computer software, online services, and consumer electronics. The hardware products of the company comprise the iPad tablet computer, the Mac personal computer, the iPhone smartphone, the iPod handy media player, the HomePad that is a smart speaker, the Apple Watch it is a smartwatch, and the Apple TV digital media player (Rawlinson, 2017). The software range of Apple is comprised of iOS and macOS operating systems, web browser the Safari, media player the iTunes, and productivity and creativity suites the iWork, and iLife, along with this it also comprises professional applications such as Logic Pro, Xcode, and Final Cut Pro. Company’s online services comprise the Mac App Store, iCloud, iOS App Store, Apple Music, and iTunes Store (Zang, 2018).
Samsung is a multinational conglomerate of South Korea with the headquarter in Samsung Town, Seoul. It includes various connected businesses; maximum of them are integrated under the same brand i.e. Samsung. The company is the biggest conglomerate in South Korea. The company was established in 1938 under the supervision of Lee Byung-Chul as a trading company. Over the subsequent three decades, the group expanded its business into different areas comprising textiles, securities, retail, food processing, and insurance. In the late 1960s, the company initiated its steps towards the electronics industry and in the mid of 1970s in the industry of shipbuilding and construction (Samsung profile, 2013). These industries have offered a subsequent growth to the whole group. After the death of Lee in 1987, Samsung was detached into four groups i.e. Shinsegae Group, Hansol Group, Samsung Group, and CJ Group. Since 1990, the company has gradually globalized its electronics and business activities specifically its semiconductors and mobile phones have become the most significant income source (Lifewire, 2018). As of 2017, Samsung Company possessed the sixth highest brand value at the global level.
Corporate social responsibility or CSR is a self-regulating model of business that assists a company to become socially responsible to the public, its stakeholders, and itself (Haynes, Murray and Dillard, 2013). By performing corporate social responsibility, businesses can be aware of the type of influence they are having on every part of the society comprising environmental, economic, and social (Schwartz, 2011).
Lisa Jackson is the Vice President of Environmental Initiatives, who is responsible to report directly to CEO i.e. Tim Cook, leads corporate social responsibility programs of Apple. It must be known that “Steve Jobs wasn’t famous for charity. Some speculated that he does charity; even criticized him for his less contribution towards society, and many defended him. However, under the leadership of Tim Cook in 2011, the concentration of the company on CSR aspects was increased to some extent.
In 2011, the Global Volunteer Program was established to influence workers to volunteer in local societies. After the launch of this program around USD, 78 billion was given in the charities and non-profits across the world.
In March 2015, this program was again reviewed to offer workers the right to select the projects in their local societies to which they want to contribute (Apple, 2015).
The development and education program of Apple is accessible free of charge by 18 factories and in 2016, around 280,000 workforces acquired numerous courses.
Under the supervision of Denise Young Smith who is the vice president of HR department of Apple, Company has successfully expanded its programs of employee benefits to a significant level. For instance, “expectant mothers are allowed to take off for four weeks before their baby’s delivery and around 14 weeks after a baby’s birth, whereas fathers and other non-birth parents are allowed to take off to six weeks as the parental leave”
Apple Company imposes the Supplier Code of Conduct, which is said to be the hardest in the industry of electronics.
The company has attained an average 95% acquiescence among supplies.
The company has examined cases of misuses of overseas workforces and the company has made it compulsory for the suppliers to compensate affected “overseas contract workforces USD 3.9 million in extreme fees provided to the brokers of the labor, carrying company’s total compensations from 2008 to USD 16.9 million” (Dudovskiy, 2018)
Health and Safety of Employees at Apple
The business has established the Academy of Apple supplier EHS, it is a program for 18 months that works to enhance the health and safety of the employees in the whole industry across the globe. 270,000 workers and 240 suppliers have joined this program.
The programs of Corporate Social responsibility of Samsung are enabled through the Council of Sustainability Management, which is comprised of 14 linked departments that manage issues of 10 diverse areas, comprising the environment and society (Samsung, 2018).
The Global Code of Conduct of Samsung is dependent on the following ethics:
The Samsung Tech Institute enforces individuality and self-sufficiency among adults through organized vocational education. The ingenuity has 39,659 recipients at the end of 2015.
The SMART School of Samsung highlights an essential gap in the worldwide education by enhancing the environment of education for the students living in underprivileged areas. In the year 2015, around 224,753 students appeared in Samsung SMART School.
A program i.e. Samsung Solve for Tomorrow has an objective to handle essential issues of the society. This program involved non-profit organizations and students in order to recognize the most persistent social issues and to execute solutions for these issues.
Samsung care Drive provides a variety of healthcare programs. In 2014, the company has near around 30 active programs mainly in Russia, Africa, and China.
Samsung Nunum Village wishes to target the origins of poverty through offering an operative infrastructure to communally underprivileged parts of the population. In the range of this program, partnerships are made with domestic and national governments to offer an wide-ranging support for the infrastructure of education, clean water, building community centers, and medical facilities (Continuum, 2018).
Samsung Empowering and Educating Employees or workers
Employee benefits are offered abroad and Korea in 2015 with the total amount of KRW 3.853 billion.
Training time is declared according to every employee in 2015
Around 5,500 people have utilized the Career Consulting Centre of Samsung.
The company in connotation with its EDP (Expertise Development Process) annually conducts Samsung talent review sessions. A procedure of talent nurturing supports workers in creating an individual path of their career and creating a strong vision with their manager. In Korea, around 2000 employees appear for STAR sessions yearly.
Human and Labour Rights at Samsung
The company conducted inspections in China of 235 suppliers for the prevention of child labor in 2015 (Dudovskiy, 2017).
Conclusion
The above report has presented the financial analysis of Apple and Samsung Company and it can be concluded from the perspective of solvency Samsung is better than Apple as it is utilizing its internal funds or reserves more than external funds which reduces the liability of the company. Moreover, from the perspective of profitability Apple is better than Samsung because it is able to generate more returns for its shareholders as compared to Samsung. Besides this, in terms of Corporate Social Responsibility both the companies are making their maximum efforts towards enhancing the view of society by offering various opportunities to its employees as well as saving the natural resources by reducing the consumption of water.
References
Apple (2015) Corporate Social Responsibility Policy [online]. Available from https://www.apple.com/in/legal/policies/Apple_India_2015_CSR.pdf [accessed 25 July 2018]
Birchall, A. (2014) Financial Analysis and Control: Financial Awareness for Students and Managers 1ST ed. U.K: Butterworth-Heinemann.
Continuum (2018) SAMSUNG [online]. Available from https://www.continuuminnovation.com/en/what-we-do/case-studies/tomorrow-solutions [accessed 25 July 2018]
Dudovskiy, J. (2017) Samsung Corporate Social Responsibility [online]. Available from https://research-methodology.net/samsung-corporate-social-responsibility/ [accessed 25 July 2018]
Dudovskiy, J. (2018) Apple Corporate Social Responsibility (CSR) [online]. Available from https://research-methodology.net/apple-corporate-social-responsibility-csr/ [accessed 25 July 2018]
Fridson, M.S., and Alvarez, F. (2011) Financial Statement Analysis: A Practitioner’s Guide 4th ed. U.S: John Wiley & Sons.
Haynes, K., Murray, A., and Dillard, J.F. (2013). Corporate Social Responsibility: A Research Handbook 2nd ed. U.S: Routledge.
Lifewire (2018) The History of Samsung (1938-Present) [online]. Available from https://www.lifewire.com/history-of-samsung-818809 [accessed 25 July 2018]
Rawlinson, N. (2017) History Of Apple [online]. Available from https://www.macworld.co.uk/feature/apple/history-of-apple-steve-jobs-mac-3606104/ [accessed 25 July 2018]
Samsung (2018) Corporate Social Responsibility [online]. Available from https://www.samsungengineering.com/sustainability/corporate/project/suView [accessed 25 July 2018]
Samsung profile (2013) Revision [online]. Available from https://www.samsung.com/common/aboutsamsung/download/performance/Samsung_Profile_2013.pdf [accessed 25 July 2018]
Schwartz, M.S. (2011). Corporate Social Responsibility: An Ethical Approach 2nd ed. Canada: Broadview Press.
Zang, Q. (2018) Research on Apple Inc’s Current Developing Conditions. Open Journal of Business and Management, 6(2018), 39-46.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download