Organizational capability, which leads to corporate competitiveness, needs to be created step by step. However, latecomers striving to catch up do not always have the luxury of time. This paper examines the case of Samsung Electronics, a company that succeeded in catching up and growing into a multinational corporation, and investigates various activities of the human resource department in expediting the creation of organizational capability.

With stiff penalties accompanying internal control reporting systems, introduced after the March 2009 reporting period, managers were moved to seek immunity and concerns were raised about the side effects of these systems on corporate behavior. Hence, the original role of internal auditors (i.e., investigate and identify problem areas, inform management of large-scale risks, and make recommendations and suggestions) is explored through concepts such as internal auditing, internal controls, and internal control reporting systems.