Samsung Electronics (SSNLF) Makes Changes to Donation Policy

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Samsung Electronics has made a major change to the company’s donation policy in order to avoid scandals such as the one that hit its upper management recently.

Samsung
Source: Samsung

The electronics giant now requires all donations of over 1 billion won ($883,680) to receive approval by the company’s board of directors. Additionally, payments must be approved by the company’s board of directors and publicly shared by South Korea’s financial regulator.

Samsung previously only required payments over 680 billion won ($600.9 million) to receive approval from the board. The move is a massive departure from its previous policy due to the bribery scandal that struck the company.

Some of the company’s top executives are facing jail time after reportedly bribing other companies to promote themselves. Vice chairman Lee Jae-yong (Jay Y. Lee) was arrested after he donated 43 billion won ($38 million) to companies that are backed by Choi Soon-sil, friend and adviser to President Park Geun-hye.

Samsung has found itself in similar hot water before in the form of a 2008 scandal where chairman and former CEO Lee Kun-hee allegedly used 200 billion won ($200 million) to bribe prosecutors and politicians so they would overlook some of the financial improprieties performed by the company.

Regarding the current matter, Samsung has yet to comment on the matter and it is unclear whether or not the company is admitting to any wrongdoing.

Lee faces three years in prison now.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/02/samsung/.

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