Through managerial practices based on ethical discipline and integrity, Samsung Electronics is able to return greater benefits and values to its shareholders, customers, employees, partner companies, and people in the community.
Samsung Electronics has increased the number of outside directors in the BOD, restructured the audit committee, and opened business results to the public. To achieve a level of ethics which adheres to a higher standard than that required by laws and regulations, the Company follows the guidelines in the Ethics for Employees and the Code for Procurement. To prevent any illegalities, all employees periodically take an anticorruption class. The cyber audit team receives a corruption report around the clock from inside the company and outside. Any employee connected with corruption is punished by proper measures regardless of his or her position.
Samsung Electronics global code of conduct
Samsung Electronics continuously focus on the whole prohibition of injustice behavior such as bribery, corruption and non participation in politics under the code of conduct based on the 5 management principles in Sep. 2005. Through this, it became obligatory that employees make healthy organization culture and observes the obeying the law consciousness.
Samsung Electronics management principles
- We comply with laws and ethical standards
- We maintain a clean organizational culture
- We respect customers, shareholders and employees
- We care for the environment, health and safety
- We are a socially responsible corporate citizen
Samsung Electronics management principles
The code of conduct is composed of 59 items in 17 clauses based on the 5 management principles and defines the practical performance measurements about conducts and judgment of value such as prohibition of discrimination against nationality and gender, etc. transparent opening of business information, protection of customer’s privacy and searching for mutual living with cooperative corporations to step toward the global company.
abiding laws and fair competition - ethical code 1·2
Our business activities strictly abide by the laws and regulations and are fair in competition.
- The company will not abuse a dominant market position nor use coercion to cause inclusion of unwanted items in any sales transactions (tying).
- The company will not enter into price fixing, bid collusion, market collusion or reduced production agreements with competitors, and will not discuss with competitors prices, bids, customers, sales territories and conditions including price confirmation.
- The company will not permit the acceptance of money, goods, entertainment and/or share offers of stock from customers or external interested parties, nor allow any improper activities that violate laws and fair trade principles.
- The company shall not illegally obtain or use competitor’s trade secrets of confidential information.
- The company shall not demand, or use coercion to obtain any advantage detrimental to the interest of customer or partner companies.
political activities of employees - ethical code 1·4
Our employees do not engage in politics under the name of Samsung
- Employees shall not attribute their personal political opinions and conduct to the company, or cause such opinions or conduct to be attributed to the company.
- The company’ resources, including financial resources, manpower, and facilities shall not be used to further political goals
- The company will refrain from illegal donations and improper dealings with governments, and will respect related national, state and local laws of the host jurisdiction.
clean corporate structure - ethical code 2·1
All employees at the Company do not take any personal advantage in business deals by using their job positions.
- The company will not permit any illicit activity for the pursuit of personal gain, such as irregular treatment of expenses, using one's position for private gain, or the embezzlement of corporate assets.
- The company will not permit any activity that utilizes proprietary information of the company for private gain, for example insider trading, irrespective of whether of not this activity was conducted by an employee directly or indirectly via third parties.
- All business decisions must be and all business activities must be conducted, in the best interest of the company.
co-existence and co-prosperity - ethical code 5·3
We build up relationships of co-existence and co-prosperity with business partners
- The company will acknowledge its business partners as strategic partners based on mutual trust, and will pursue the shared value of customer satisfaction.
- The company will select business partners in accordance with business objectives by applying fair standards without discrimination.
- The company will pursue strengthening the business partners' competitiveness and mutual development.
- The company will actively encourage business partners to fulfill their own social responsibilities with respect to safety within the workplace and the individual rights of their employees.
The Audit Committee controls and assists the performance of employees from top to bottom. The audit office was restructured in 2000. The committee has a broad range of audit rights. These include the right to audit performance and work tasks (the committee can audit overall performance and work tasks of the BOD, CEO and other employees from top to bottom); the right to inquire about financial reports and to audit corporate assets (the committee can inquire about a financial report from the BOD and employees any time and audit the Company’s financial status and assets); the right to receive reports from the BOD (the BOD must report immediately if the directors discover a fact that will adversely affect the Company); the right to claim to suspend illegal activity of a company BOD member (when the activity of the BOD member violates the law or the Company articles and may cause irrecoverable damage to the Company; the committee has the right to claim to suspend the activity); and the right to call a general shareholders’ meeting (with the submission of a letter stipulating the purpose of the meeting to the BOD, the committee can call a special general shareholders’ meeting). The Company also runs a separate audit team under the direct control of the CEO, to encourage employees to adhere to the practice of management by ethics. The audit team is composed of 22 experts with ten or more years of experience. Recently, the team has begun empowering a network and an online audit to increase efficiency in inspecting a large organization.