After Watching The Required Video, Profits Not Always The Po

After Watching The Required Video Profits Not Always The Point By H

After watching the required video “Profit’s not always the point” by Harish Manwani and reading the article “Samsung delays launch of Galaxy Fold After Screen Failures” by Sam Kim and Mark Gurman, discuss the 4G Model and the purpose firms must have beyond the products they sale or the service they provide. Pretend you are the executive officer at Samsung responsible for not releasing the Galaxy Fold, what would be your response to shareholders and customers regarding the failed product. Use the economic theory and concepts in chapter one to support your response. Remember the idea is to maximize the wealth of shareholders but also be socially responsible to the community that must sustain your product.

Paper For Above instruction

The contemporary understanding of corporate purpose extends beyond merely maximizing profits to include creating value for all stakeholders, such as shareholders, customers, employees, and the broader community. The 4G Model, which emphasizes Good, Growth, Governance, and Genuineness, underscores the importance of firms operating ethically while contributing positively to society. As an executive at Samsung faced with the setback of the Galaxy Fold's launch failure, it is vital to acknowledge these principles and communicate effectively with shareholders and customers to maintain trust and uphold corporate responsibility.

The 4G Model aligns with the broader economic and ethical frameworks discussed in Chapter 1, which advocate for balancing profit-making with social responsibility. The traditional profit maximization approach, rooted in classical economics, focuses solely on increasing shareholder wealth. However, modern theories, such as stakeholder theory, posit that firms must serve not just shareholders but also other societal stakeholders, thus fostering long-term sustainability and social license to operate (Freeman, 1984). Given this, Samsung’s decision not to proceed immediately with the Galaxy Fold launch demonstrates a commitment to Genuineness—an authentic concern for consumer safety and product quality—which ultimately benefits long-term shareholder value.

From an economic perspective, the failure of the Galaxy Fold's initial release can be viewed through the lens of opportunity cost and risk management. According to the theory, the potential loss of consumer trust and brand reputation could outweigh short-term profits from launching a flawed product. Therefore, halting the release aligns with risk-averse strategies that prioritize sustainable growth—an essential aspect of responsible corporate governance. This decision supports the idea that profits are best achieved in the long term by ensuring product reliability and social credibility, which are vital for maintaining customer loyalty and attracting future investments.

Moreover, social responsibility entails that Samsung considers the broader societal impacts of its products. The defective foldable screens could have caused significant inconvenience and disappointment to users, undermining the company's reputation and violating ethical standards that emphasize consumer safety. The principle of corporate social responsibility (CSR) suggests that corporations should act ethically, considering their influence on society and the environment. By postponing the Galaxy Fold release,Samsung demonstrates adherence to CSR, fostering goodwill and aligning corporate actions with societal expectations.

In communicating with shareholders, I would emphasize that the company’s primary objective remains the sustained growth and legitimacy of the business, which ultimately leads to increased shareholder wealth. I would explain that these setbacks, while costly in the short term, are necessary investments in quality assurance and brand integrity. Transparency about the issues and the steps taken to rectify them reaffirms our commitment to social responsibility and ensures long-term value creation.

Furthermore, engaging openly with customers about the challenges faced and the measures implemented to improve the product solidifies trust. Customers are increasingly aware of and concerned about social and ethical issues; thus, proactive communication bolsters Samsung’s reputation and ensures consumer engagement with the brand’s broader values beyond just product features.

In conclusion, leveraging the 4G Model and economic principles encourages a holistic approach to corporate strategy—balancing profit, social responsibility, and stakeholder interests. By prioritizing consumer safety, quality, and transparency over immediate profits, Samsung can sustain its long-term growth, enhance its reputation, and fulfill its social responsibilities, ultimately maximizing the wealth of shareholders in a socially responsible manner.

References

• Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman.
• Kim, S., & Gurman, M. (2019). Samsung delays launch of Galaxy Fold after screen failures. Bloomberg.
• Manwani, H. (2019). Profit’s not always the point. Harvard Business Review.
• Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.
• Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65-91.
• Carroll, A. B. (1999). Corporate social responsibility: Evolution of a definitional construct. Business & Society, 38(3), 268-295.
• Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine.
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