Samsung electronic corporate governance practices Essay

Samsung electronic corporate governance practices - Essay Example During the collapse of large corporations during (2001-2002), fraud, embezzlement of funds were notably blamed for this phenomenon (2013 Samsung Electronics Annual Report 10). Today, some of the leading companies such as Samsung have managed to create a monumental corporate governance policy. Sadly, many people have little knowledge on the significance of company corporate governance. This paper will explore Samsung financial reports, the audit committee, board of directors and their roles in order to enhance in-depth understanding of the corporate governance. Besides, a historical review of the company under scrutiny will enhance a better reflection of the milestone that has led to the development of concrete policy. Samsung Company came into existence around 1938 after the first Samsung General stores opened its doors. It is a company dealing with three-tire electronics portfolio, namely electronics, mobile devices and information technology. It is a company that has defined its position within a competitive and dynamic electronic industry over a few decades. During its inception, the company objectives included provision of world-class electronic devices that will improve access to information. Today, the company boost of monumental corporate governance that has led to investment in advance technology and enormous proceeds. By 2013, the company has raised its shares to 130 million that translated to 10% growth rate from the previous year. Today, the company faces vulnerability to litigation due to patent suits. Notably, Apple sued Samsung in 2012 in numerous country, including U.S, Japan, China among other big consumers (2013 Samsung Electronics Annual Report 12). In addition, the company faces a high capital requirement occasioned by unpredictable shift in technology and customers change in taste and preference. Besides, there are new entrants in the market coupled with huge tax levies and international customs poses uncertainty in future profits