FACULTY OF

INTERNATIONAL
BUSINESS – MARKETING

Case study: Samsung’s CSR activities in

Thailand

Lecturer : PhD. Nguyen Hue Minh

Class : IBC02
Course : K48
Subject : International Business In Asia
Group :3
TABLE OF CONTENTS
1. What are the CSR activities of Samsung in Thailand? ................................................ 2
2. According to you, which level of Samsung’s CSR activities in Thailand at? ................ 2
3. What are the benefits of those Samsung’s CSR activities in Thailand? ....................... 3
4. In your opinion, what CSR strategy/approach does Samsung follow? ......................... 4

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 1. What are the CSR activities of Samsung in Thailand?
• CSR activities:
SEMTHAI initially geared its CSR activities toward a unique motive to create a
sense of cohesiveness among its local employees
There was also a lack of connection to the Korean expatriates. SEMTHAI
therefore decided to employ CSR activities as team building opportunities to create a
sense of belonging, concord, and cohesiveness among the local employees and with the
company (i.e., create a harmonious organizational climate). SEMTHAI was further
recognized as the most admired workplace for Thai employees in 2003. SEMTHAI’s
altruism clearly achieved an added economic value of having a positive influence on its
employees, which led to improved productivity and reinforced retention.
SEMTHAI’s consistent engagement in CSR activities began with volunteering
at a nursing home for the severely disabled and teaching at the Watapanki primary
school located in one of the poorest rural towns in Thailand. SEMTHAI’s attempts to
regularly engage its employees first-hand and provide help to those who were ignored
and abandoned, even by their own family members, eventually caught the attention of
Thai society.
SEMTHAI also actively engaged in efforts to stop the spread of AIDS and drug
misuse in the community through various campaigns. As part of these campaigns,
SEMTHAI provided educational programs to raise children’s awareness against drugs
and AIDS and also added a “Drug and AIDS” category under the company’s physical
examination for current and future employees.
SEMTHAI also created special occasions to solidify its altruistic image. For
example, SEMTHAI held the “Year of Celebration for Volunteer Work'' campaign in
2003. The campaign included 15 different social service programs every month along
with the “Samsung Marathon for the People in Need,” a town library construction,
providing medical services in underprivileged regions, and providing scholarships to
local schools (i.e., Watapanki primary school and Burpa College)

2. According to you, which level of Samsung’s CSR activities in Thailand at?

Pursuant to CSR Pyramid of Carroll, 1991, SEMTHAI’s CSR activities reached
the highest level - Philanthropic Responsibilities. Apart from other purposes, their CSR

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activities played a pivotal role throughout their presence in Thailand. It aims at
supporting the community and contributes to the improvement of local living standards.

3. What are the benefits of those Samsung’s CSR activities in Thailand?

• Benefits of CSR activities of Samsung in Thailand:
Leverage Samsung’s image in Thailand and reputation: SEMTHAI earned
an unexpected reputational advantage over other competing nominees for the Prime
Minister Awards through its unique CSR activities. Most of SEMTHAI’s awards were
granted because its rigorous and persistent CSR activities differentiated it from other
corporations. This gave SEMTHAI an added advantage beyond establishing its
respectable status in the Thai community.
Engaging staff through meaningful activities: Local employee-centered and
action-oriented CSR activities that served the marginalized local communities in need
on a regular basis. SEMTHAI’s consistent engagement in CSR activities began with
volunteering at a nursing home for the severely disabled and teaching at the Watapanki
primary school located in one of the poorest rural towns in Thailand. SEMTHAI’s
attempts to regularly engage its employees first-hand and provide help to those who
were ignored and abandoned, even by their own family members, eventually caught the
attention of Thai society. Inside the company, the local employees were motivated and
empowered as, over time, they became increasingly proud to be affiliated with
SEMTHAI. Their motivation, commitment, and loyalty to the company increased.
Working together on various CSR projects improved the relationships between the local
employees and the Korean expatriate managers, promoting a mutual understanding,
interpersonal bonding, and cooperation.
Create a positive image to Thailand’s government and enhance the
competitive advantages: SEMTHAI first differentiated itself from other MNCs by
regularly conducting CSR activities that involved local and expatriate employees’
participation. SEMTHAI also truly localized its CSR activities by not only specifically
addressing the immediate needs and values of Thai society, but also further utilizing
their local employees as the main driving force behind their CSR localization.
SEMTHAI quickly earned its recognition and became the first foreign company to
receive “The Prime Minister Industry Award” from the Thai government in 2009.

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 Create positive impact to the community: SEMTHAI also actively engaged in
efforts to stop the spread of AIDS and drug misuse in the community through various
campaigns. As part of these campaigns, SEMTHAI provided educational programs to
raise children’s awareness against drugs and AIDS and also added a “Drug and AIDS”
category under the company’s physical examination for current and future employees.
These campaigns further enabled SEMTHAI to present a positive message to its
potential employees and increase its attractiveness beyond its already positive reputation
that had been established through its various CSR activities.
Enhance the firm’s financial status: EMTHAI’s annual sales quadrupled in a
mere 15 years within their first two decades of operation. This shows that CSR can
improve an entity’s financial returns, whether it be by creating a bond between the MNC
and its stakeholders or by improving the firm's reputation, brand equity, employee
relations, and quality of management

4. In your opinion, what CSR strategy/approach does Samsung follow?

• Local CSR Approach
SEMTHAI concentrates on serving local’s social and solving specific problems
that the locals are facing. SEMTHAI begins its CSR strategies in order to bond the
local’s employees together. Because the workers here are used to living alone, they may
lack connection with others. Therefore, this activity as an opportunity to develop an
friendly, sociable environment that not only solves the demand, brings benefits to people
here but also be suitable with core value of social here. In addition to Local CSR
Approach are monthly tours of nursing homes for the disabled and special schools since
1995, launched Celebrating Year for Volunteer Work" campaign with 15 service
programs such as building libraries for towns, providing medical services to
disadvantaged areas, and awarding scholarships to local schools.
The result of SEMTHAI's CSR localization is clear, it creates a positive image
of SEMTHAI. Regular coverage of SEMTHAI's social contributions in local media has
led many Thai citizens to believe that SEMTHAI is a Thai corporation. SEMTHAI has
used CSR for HR, instead of for PR like other companies, so focusing on local
employees to motivate them to work harder and in better harmony with others has
motivated them. SEMTHAI carries out activities that contribute to the local community,

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making the company's CSR activities truly localized - local employees plan activities in
accordance with local values , to meet the specific needs of the local community in a
way that local people will appreciate. SEMTHAI's CSR is of local people, by local
people and for local people.
• Transnational CSR Approach
SEMTHAI does not only consider social responsibility at the local level but looks
further, creating positive and sustainable impacts on a global scale, including ensuring
that ethical principles and ethical values are applied and adhered to not only in local
communities but also in the different countries and regions in which Samsung
businesses operate. For example, collaborated with Samsung Medical Center in Korea
to assist in the recovery of areas affected by the South Asian tsunami. SEMTHAI not
only addresses local issues but also brings awareness to international issues such as
AIDS and drug abuse. Providing educational programs to raise drug and AIDS
awareness among children not only impacts local communities but also contributes to
global efforts to stop the spread of the problems. In 2008, SEMTHAI trained
approximately 170 Thai management-level employees in both Korean language and
culture, so that they better understand and participate in Korean corporate culture.
The result is that SEMTHAI's CSR activities, in addition to meeting requirements
and solving social problems in the host country where the company is operating, are still
aware of the existence of its values. general and international. Therefore, SEMTHAI's
CSR strategies are not in opposition to each other, but the company has applied a
combination of local and transnational approaches - still maintaining and respecting
local values, at the same time. Carry out CSR activities based on common ethical
principles and values around the world. The ultimate goal of CSR is to promote
sustainable development and encourage responsible business activities that not only
create economic benefits but also contribute positively to the development of the entire
society.