Samsung Electronics pursues mutual interest in cooperative relationships with partner companies outsourced for material supplies, product part manufacturing, and services. Before establishing a partnership, the Company reviews with fair means the potential partner company’s moral principles in addition to its facilities and capacity.
management support for partner companies
The partner companies Samsung Electronics referred to are those who supply materials, produce parts, or carry out services which the Company outsourced. To maximize mutual and stable interest yielded from the partner companies, Samsung Electronics provides them with systematic support and business strategies while ensuring their independent operations.
The facilities and competitiveness as well as the moral principles of the CEO and the employees of future to-be partner companies are subject to review for establishing or breaking up a partnership. Samsung Electronics avoids business deals with those conducting immoral, corrupt, or unfair practices. The partner company which is discovered impairing the standing of Samsung Electronics in any aspect is subject to dissolution of the business deal and partnership in accordance with the prearranged articles and procedures.
basic review before establishing a partnership
- Leadership of CEO, Ban on establishing a partnership with a company run by a corrupt or immoral CEO.
- Production capacity including processing facilities and equipment.
- Technological capacity including the possession of outstanding technologies.
- Workforce capacity including administrative management and employee mindset.
- Records of business deals done with others to review the status of their product warranty.
- Location of production facilities, acquisition of international certificates, and etc.
evaluation policies and procedures
Once a year, Samsung Electronics conducts an overall evaluation of partner companies that the Company is dealing with. The partner companies’ continuance and management of their product quality and service after their acquisition of a supplier quality certificate, their contribution to the Company, cooperation, and the reliability management are reviewed in accordance with the Company’s evaluation policies and procedures. The Company delivers penalty or incentives based on the evaluation results.