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Samsung
Corporate Philosophy
2008
SAMSUNG Human Resources Development Center


Table of Contents
Stage 1. History and Corporate Culture
of Samsung
Stage 2. Foundation Philosophy
Stage 3. Management Philosophy
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Samsung Management Philosophy


Stage 1.

History & Corporate Culture

of Samsung
The History and Culture


Corporate Culture & Philosophy
 Corporate Culture
 The value and behavioral patterns
shared by corporate members

 Corporate Philosophy

 A core element forming
the corporate culture
 Management philosophy:
Published values and credo that a company shares and seek for
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Samsung Management Philosophy


McKinsey 7s Model
 The Organizational Culture and Shared Value
 The management infrastructure
Structure
Strategy

System

Shared
Value
Skills

Style
Staff
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Samsung Management Philosophy

Philosophy Shows the Direction

“Corporate philosophy is a key
principle by which an organization
operates both in prosperity and
in difficulties, like the North Star
that shows people the direction”
- Orit Gadiesh (Bain & Company)

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Samsung Management Philosophy


Meaning of “Samsung”
 “Be Great and Powerful for Good.”

삼

 It signifies “large,” “many” and “strong”.

(Sam)

삼

 It signifies “bright,” “high” and
“shining brightly for good”.

(Sung)

Source: The Biography of Ho-Am
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Samsung Management Philosophy


Chairman of Samsung
15 years

50 years (1938-1988)

(1988- present)

The Second
Foundation
In 1988

Foundation
In 1938

Founder
The Late Chairman
Byung-chull Lee
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Present

2004

Achiever
Chairman Kun-hee Lee
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Samsung Management Philosophy


Samsung – Its History of 65 Years
 History of Challenges and Exploration
 1950s: Advancing into the manufacturing and financial biz.
 1960s: Advancing into the electronics and
business diversification
 1970s: Advancing into the heavy chemical industry and
Systematization of electronics companies
 1980s: Advancing into high value-added and capitalintensive industry
 1990s: Declaration of the New Management
and joining the ranks of first-class companies
 2000s: Global competitiveness, First-class Status
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Samsung Management Philosophy


Corporate Philosophy of Samsung
 Foundation Philosophy
 The Management Philosophy of Founder’s Era (’38~92’)
 It was formally established in 1973

 Management Philosophy
 This was announced in 1993 of
the 5th year of the Second Foundation
 As a form of inheritance and development of
foundation philosophy
 Current Management Philosophy

Management Philosophy
We will devote our human resources
and technology to create superior
products and services thereby
contributing to a better global society

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Samsung Management Philosophy


Corporate Culture of Samsung
 Culture of Challenge and Innovation,
by Healthy Awareness of Crisis
 Decentralized With All Members Sharing Rights
and Responsibilities
 Respect for Rationality and Actions
 Transparent Organizational Culture
(Free From Wrongful Acts)
 Strong Capacity for Organization & Teamwork
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Samsung Management Philosophy


Stage 2.

Foundation Philosophy


Great Business Leader in 20C
 Byung-chull Lee (penname Ho-Am)
(1910~1987)
 “ A dignified great mentor”

- Sejima, special advisor to Itotsu Shoji -

 “A man with a magic power attracting others”
- Jack Welch, former GE chairman -

 “A giant who I met in a small eastern country
in Asia”
- Catherine Graham, honorary chairman of The Washington Post
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Samsung Management Philosophy


Foundation Philosophy (1973)
 Economic Contribution

to the Nation
 Top Priority to Human
Resources
 Pursuit of Rationality
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Samsung Management Philosophy


◈ Economic Contribution
to the Nation
 Samsung Has A History
of making challenge and exploration
in search of a business demanded
by the era and the nation.

 The Way of “Economic Contribution to the Nation”
 Making a company grow through strong management and
generation of profit
 Provision of best products and services
 Paying taxes to the nation, wages to employees
and dividends to shareholders
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Samsung Management Philosophy


A Company Must Serve Its Nation

“What I learned throughout my career as an enterpriser
was that the basis of a company is the nation and thus
a company must contribute to development of the nation.
So I have advocated “Economic contribution to the nation”
over the past 40 years.
The highest mission of a company is to serve
its nation, its people & humanity.
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Samsung Management Philosophy


◈ Top Priority to Human Resources
 A Company is Its People
“It is undeniable that the future of a company, or
a nation for that matter, relies on human resources.
This has always been the guiding principle of Samsung.
As long as Samsung places the utmost emphasis on
developing our employees, it will be able to look
forward to a bright and stable future.
The men and women trained and developed in Samsung
will lead the nation and the world in bringing
happiness and prosperity to humanity.”
April, 1982
Byung-chull Lee
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Samsung Management Philosophy

Samsung Founder’s HR Philosophy
 Three Major Principles Based on ‘Top Priority to Human Resources’
Merit System
• Employees are always to be
treated on the basis of
capability and performance
• Recruit & utilize talented
& gifted individuals
• No factionalism
• In 1957, Samsung became
the first company in Korea
to recruit employees
through open competition

Right Person
In the Right Place
• Provide sufficient support
to those selected so that
they can successfully
carry out their duties.

Reward &
Punishment
• The company should reward
those who excel and to punish
those who break the rules

• Strict discipline of those

engaged in an immoral or
• Delegate authority according wrongful act
to ability of individual
• Rigorous standards in
Discipline
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Samsung Management Philosophy


◈ Pursuit of Rationality
 Always Pursue Reasonable Means to Achieve Corporate Goals
 Basing all decisions on what is efficient and practical results in
sound business operation. This is the means by which Samsung
obtains a well-earned profit and pursues constant development

 In Operating a Business,
1.
2.
3.
4.

Keep abreast of what is happening both at home and abroad.
Do not be greedy.
Avoid speculation.
Build up insight, and prepare alternatives

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Samsung Management Philosophy


Stage 3.

Management Philosophy


Declaration of the Second
Foundation (1988)

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Samsung Management Philosophy


Structure of Samsung CI
Visual
Identity

Faces
(VI)

• Word mark
※ SI(Sound Identity)

CI

Mind
Identity

Mind
(MI)

• Management Philosophy

Corporate
Identity

Behavior
(BI)

Behavioral
Identity

• Samsung’s Spirit
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Samsung Management Philosophy


Management Philosophy
and Samsung’s Spirit

Management Philosophy
We will devote our human resources

and technology to create superior products
and services thereby contributing
to a better global society

Samsung’s Spirit
To Actively Participate With Our Customers
To Recognize and Confront the Global Challenge
To Create a Better Future for All
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Samsung Management Philosophy


Structure of Management Philosophy
Contributing to a Better
Global Society

Corporate Purpose
(Outcome)

Superior Products and Services

Corporate Goal
(Output)

Essential Elements
of Management

(Input)

Human Resources

Technology
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Samsung Management Philosophy


Explanation of
Management Philosophy
 “Applying human resources and technology”
 Samsung considers concentrated investment in human resources
and Technology to be essential for success
 The proper mix of human resources and technology for each
business area will result in the greatest synergy

 “ Creating the best quality products and services”
 Creating products and services that give customers complete satisfaction
 Samsung must position itself as one of the world’s best
for those industries in which it is involved

 “Contributing to a better global society”
 Samsung contributes to a better quality of life and to society in general
 As a member of society, the corporation has an obligation to work
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for the good of all
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Samsung Management Philosophy