Dear Stakeholders, I would like first to express my appreciation for your continued support and interest in Samsung Electronics. I’m delighted to meet you in cyberspace..

Dear stakeholders,

It has been twenty years since Samsung Electronics executed a series of turnaround strategies that have fundamentally changed the way we manage our business.

During the past two decades, Samsung Electronics has emerged as a leader in the IT industry, not only in terms of global sales but also in sustainability. This Samsung Electronics Sustainability Report for 2013 provides a comprehensive look at our efforts in envoronmental and social responsibility, from stories on our past successes to a focused vision for our future.

The business environment in 2012 was tough for us just as it was for many others. However, Samsung has been able to successfully navigate the challenges of 2012’s global IT marketplace and economy. This past year saw Samsung Electronics record its largest annual growth and operating profits in its corporate history, further strengthening our leadership position in the global electronics industry. In 2012, external recognition of our company’s value also continued to rise, as Samsung Electronics ranked 20th on the list of Fortune Global 500 Companies and 9th in Interbrand’s Best Global Brands Report. The corporate value of Samsung Electronics skyrocketed all around the globe.

Above all else, these successes are due to the hard work and expertise of Samsung Electronics' employees, whose collaborative efforts enhance our company's competitiveness and accelerate innovation. There can also be no doubt that our company's achievements in 2012 would have been impossible without the keen interest and full support of all of our stakeholders like you.

Ler me take this opportunity, then, to extend my deepest gratitude to all of you for your great contributions to our company's accomplishments in 2012. I can personally assure you that Samsung Electronics will regard our success as an asset that positions us for future growth and realize our Vision 2020 plan and become a leader in corporate citizenship.

To that end, let me share with you some highlights of Samsung's sustainability efforts in 2012, specifically in terms of our contributions to both society and the environment.

Under our philosophy of ‘People First,’ Samsung continued to hire great people around the globe who are the best and brightest in their field. Samsung took a variety of measures to make itself a world-class workplace. Samsung Electronics took great care to develop and foster a workplace environment that assured our workers’ health and safety. One highlight includes a program through hospitals, through which we offered various physical and mental health services to our employees. These services include onsite stop-smoking clinics, counseling centers and fitness facilities.

Samsung is also committed to using our resources to help communities in need. One of our most exemplary social contributions, the Samsung Hope for Children program, benefits around 200,000 children and young adults in the developing world in both education and healthcare and we will continue to increase our role in creating better lives for children around the world.

In 2012, in order to ensure the responsible management of our supply chain, Samsung Electronics intensified the systematic scrutiny of our suppliers in terms of labor conditions, human rights, and health and safety. In doing so, we identified key issues with which to measure our suppliers' compliance - some of which we took immediate measures to address.

At Samsung Electronics, we view the growing imperative for eco-friendliness as an opportunity for responsible business leadership. In 2009, we announced two key sustainability strategies in our 2013 Eco-Management Plan, namely reduction in GHG emissions and increased eco-product launches. In 2012, Samsung Electronics exceeded its goals in these two strategies, whose work consisted of activities in three major areas: Green Operations, Green Products, and Green Communication.

Through the release of this report, Samsung Electronics hopes to enhance communication with its stakeholders about the company's contributions to the economy, society, and the environment. We'd also like to engage in open discussions with our stakeholders about the challenges we face while seeking ideas to address them. We firmly believe that a company can continue to grow only when it maintains its stakeholders' full trust and collaboration.

In order to create value for our stakeholders - including customers, shareholders, investors, employees, suppliers and local communities - Samsung Electronics has expanded our commitments to social and environmental responsibility, embedding social contributions and sustainable practices into our core business. We are always developing new goals to further improve upon our corporate citizenship and, in turn, helping to create a healthier global community.

I look forward to your continued trust and support in these endeavors.

Thank you.

ceo sign

Oh-Hyun Kwon

Vice Chairman & CEO, Samsung Electronics