1.0 Title and Applicability
- Samsung India Electronics Pvt. Ltd. (hereinafter referred to as Samsung) has developed a CSR Policy (hereinafter referred to as Policy) in alignment with its objective, principles and values, for delineating its responsibility as a socially and environmentally responsible corporate citizen. The Policy lays down the principles and mechanisms for undertaking various programs in accordance with Section 135 of the Companies Act 2013.
- 2. The Policy shall apply to all the CSR programs and activities undertaken by Samsung at various locations for the benefit of diverse sectors of the society.
2.0 Validity of CSR Policy
The Board may amend the Policy as may be required from time to time.
3.0 About Samsung India – Making the Smart World
Since it commenced its operations in India, Samsung has placed great importance on acting as a responsible corporate citizen in the communities where it operates. Samsung has conceptualized programs in areas of education, employability, sports, community welfare, healthcare and environment, addressing the needs of the community.
4. CSR Vision Statement
Under the CSR vision of “Global Harmony with People, Society and Environment,” Samsung strives to build a society where people, society and the environment coexist in harmony. The aim is to create positive change for people everywhere, helping them to live a better life full of possibilities, while preserving the environment. In an effort to promote sustainable social development and better quality of life, Samsung has not only provided products that meet the needs of customers, but has also reached out to underserved individuals around the country, carrying out various social responsibility activities for local communities.
5. CSR Focus Areas and Programs
Samsung’s core focus areas are –
I. Education Program – Samsung Smart Class
The Indian education system till date is largely driven by conventional method of using textbooks as educational material, and lectures for imparting knowledge. This leads to inferior learning outcomes at higher education levels, further reflecting in low skilled manpower in India.
Samsung sees education as the seed of innovation and thus created the Samsung Smart Class program that supports education through the use of Samsung’s technology, services and expertise. Set up in partnership with Government schools in India, Samsung is not only committed to giving students greater access to education but is expanding the scope of learning. Samsung is working with educators around the world to improve learning experiences through the use of technology, facilitating a classroom environment that is limitless and gives students access to a world of knowledge from their desks. Through the use of IT technology, the Samsung Smart Class fosters a smart education environment, enabling students have the opportunity to easily understand and assimilate the syllabus concepts through a more learner-centric education platform.
II. Employability - Samsung Technical School Program
Unemployment has been one of the biggest challenges plaguing the Indian economy. Almost every industry is facing a shortage of skilled workforce. The real problem, is finding suitable candidates to fill jobs. Being unemployed and unemployable are two different issues. Societal inequalities, inadequate education infrastructure, quality of education and lack of effective assessment of skills are some of the reasons why a majority of working class personnel in our country are not qualified for the jobs that they aspire for.
While problems of unemployment are not new, the rise in number of people who are unable to meet the industry's needs due to the lack of career-oriented knowledge and skills-set is a pressing problem. Samsung has, through it’s Samsung Technical School, decided to assist the youth of today in designing their future and laying the foundation for financial independence by offering systematic vocational education and local employment. Samsung fosters promising talents by offering customer service education, soft skills and capabilities needed to survive in today’s competitive work atmosphere. The graduates are also exposed to life skills training or internship opportunities during their course, which prepares them for the real workplace scenario.
III. Health and Medical care - Samsung Smart Healthcare
Accelerated urbanization has led to an alarming increase in the rate of health issues, accidental injuries, crime and violence in India. It is well recognized that our health care system is not fully equipped to meet the challenge as significant deficiencies exist in current trauma systems. Most hospitals catering to the underprivileged have inefficient services for medical or trauma care, due to financial constraints and lack of appropriate health infrastructure. Most do not offer prompt diagnoses or life-saving treatment. Consequently death rate in India is estimated to be sevenfold worse compared to most advanced states.
Samsung aims to enhance hospital care through its medical equipment and technology, thus improving survival and functional outcome among patients. Samsung’s installation of automated biochemistry, immunology, and hematology equipment will enable hospital departments to benefit from this rapid quality testing especially in cases of emergencies such as cardiac tests or accidents. Samsung equipment will not only provide fast diagnosis with test results, but also reduces the time between injury and the definitive treatment thereby reducing morbidity and mortality.
Health and Medical care - Blood Donation Drives
The need for blood is constantly increasing the world over. Apart from diseases like dengue, millions lose their lives to accidents and natural or man-made disasters. Against an annual demand of 12 million units, India is able to collect only 9 million units of which 70 per cent is from voluntary blood donors while the remaining 30 per cent is from family/replacement donors. A blood donor by his donation saves many lives and gives hope to many whose situation may otherwise be hopeless.
Samsung regularly organizes blood donation camps to encourage employees to donate blood. Through these blood donation camps, Samsung aims to support the areas of blood and platelet donation and treatment of disorders such as sickle cell anemia, thalassemia and hemophilia that require repeated blood transfusions.
IV. Response to Humanitarian Disasters
India’s urban and rural populace has always been vulnerable to natural disasters. Droughts, floods, landslides, cyclones and earthquakes are some of the natural disasters that have recently affected the country. The impact of each hazard varies, and leaves a lasting impact in most cases on the people and on the national budget, disrupting life and livelihoods.
In this context, Samsung will extending a helping hand to aid communities facing natural disasters through multifarious ways including initiating relief and rehabilitation activities, offering services and financial assistance. As support to such initiatives is not pre-planned, therefore they will be of an ad-hoc nature. The magnitude and the form of investment covered under this support will depend on the nature of the disaster.
6.0 CSR Budget
- The Board shall ensure that in each financial year, Samsung spends at least 2 per cent of the average net profit made during the three immediately preceding financial years.
- The computation of average net profits will be carried out in accordance with the provisions of Section 198 of the Companies Act, 2013.
- The unutilized CSR budget from the 2 per cent of the average net profit will be put back into CSR activities of the succeeding year.
- The surplus arising, if any, out of the CSR projects or programs or activities shall not form part of the business profit of a company.
- Samsung may collaborate or pool resources with other organizations (its subsidiary companies and NGO’s) to plan, implement, monitor and report CSR activities.
- CSR program will be undertaken by Samsung in areas selected for interventions. Samsung will choose to undertake need assessments as and when, it deems.
- Samsung will encourage employees for volunteering in community service.
- The time period/duration over which a particular program will be spread, will depend on its nature, extent of coverage and the intended impact of the program.
- Samsung may enter into partnerships with the government, business partners and communities to create multiplier effect of its social and environment projects.
- The mode of implementation of CSR programs will include a combination of direct implementation and partners such as government schools and college, training institutes, NGOs, business partners, registered societies etc. Samsung will select its activity partners after appropriate due diligence.
- Samsung may also implement the CSR programs through registered trust/foundation/society/company set up by Samsung or its holding or subsidiary or associate company under section 8 of the Companies Act, 2013 or through other registered trust/society/company having an established track record of three years in undertaking the projects or programs proposed to undertaken by Samsung.
- Samsung may use the services of internal teams, expert agencies, consultancy firms etc., wherever required for carrying out base line surveys, guidance on project design and implementation, due diligence of implementation partners, impact assessment surveys etc.
- The teams responsible for implementing the various CSR projects are mentioned in the section on the Governance Structure of the Policy.
8.0 CSR Governance Structure
9.0 Roles and Responsibilites
The Board of Directors of Samsung will be responsibe for:
- the approval of the CSR Policy for Samsung India Electronics
- disclosing the content of the Policy in its report and ensuring its placement on Samsung’s website in such a manner as prescribed under Section 135 of the Companies Act 2013 read with the CSR Rules
- ensuring that the social projects included in the Policy are undertaken by Samsung
- that Samsung spends, in every financial year, at least 2 percent of the average net profits made during the three immediately preceeding financial years
- ensuring that Samsung gives preference to the local areas around its operations for spending the amount earmarked for CSR projects
- ensuring that it specifies the reasons in its report for not spending the earmarked amount in case it to spend such amount
|S. No.||Name||Designation/Category||Designation – CSR Committee|
|1||Mr. Hyun Chil Hong||Managing Director||Chairman|
|2||Mr. Yang Seog Seo||Director||Member|
|3||Mr. Gautam Sehgal||Whole-time Director||Member|
2. Responsibility of the CSR Committee:
- formulate and recommend the CSR Policy to the Board for approval
- monitor the Policy from time to time and recommend changes to the Board
- recommend the amount of expenditure to be incurred on CSR projects
- constitute a transparent monitoring mechanism for ensuring effective and efficient implementation of the CSR projects
1. Responsibility of the CSR Team:
- To seek guidance from the CSR Committee regarding policy, budget and implementation guidelines
- To spread awareness regarding the approved CSR policy and place it on Samsung’s website
- Recommend projects to be undertaken during the financial year to the CSR Committee.
- Recommend targets and timelines for implementation of developmental initiatives.
- Apprise CSR Committee with the project performance and status of CSR expenditure once every quarter
- Facilitate effective implementation of Samsung‘s CSR plan across sectors and regions
- Allocate appropriate resources to achieve desired performance in alignment with Sustainability & CSR targets and initiatives
- Documentation and reporting of all CSR activities of the company in pursuit of the Companies Act and the CSR Rules
10. Monitoring and Reporting Framework
Samsung will institute a well-defined monitoring and evaluation mechanism to ensure that each CSR program has:
- Defined objectives developed out of the societal needs
- Defined targets, time lines and measureable parameters, wherever possible
- A progress monitoring and reporting framework that is aligned with the requirements of the section 135 of the Companies Act and the CSR Rules
The CSR committee will meet periodically to discuss the progress of CSR activities and apprise the Board with the progress and action plan, from time to time.
Samsung will establish an accounting system to ensure proper accounting of CSR spends.
- The CSR Team will monitor progress on CSR projects and CSR spend and report to the CSR Committee at regular intervals.
- Samsung will report CSR performance in its annual report as per the structure and format prescribed in the notified CSR Rules.