Samsung Electronics strives to implement our corporate philosophy, ‘social contribution through the best products and services.’ We do our best to not only produce the best products and services, but also take responsibility in our roles as corporate citizens creating a better society.
In December 2007, the company joined EICC (Electronic Industry Citizenship Coalition) which has high standards regarding working conditions, ethics of the business, safety and health of workers, and the environment that can be implemented across our whole supply chain.
Evaluation on Supplier CSR
Samsung Electronics has been evaluating supplier CSR activities since 2009, and inducing improvement on low-evaluated areas. In 2010, EICC decided to implement the Validated Audit Process (VAP), a third-party audit on operational sites, proactively responding to the growing demand of NGOs, and investment in rating agencies. The VAP is a supplier CSR management program which consists of documentation review, employee/management interviews and operational site surveys by an EICC-certified third-party verification agency, and results of which are evaluated by the EICC.
In 2011, we selected six major suppliers for the VAP. However, the VAP was postponed due to natural disasters including the tsunami in Japan and major floods in Thailand, as well as the European economic crisis.
The planned VAP is well under progress, and it will be completed before the end of 2012. The scope of VAP will be expanded to a larger number of suppliers in order to improve the credibility of supplier CSR management.
Propagation of EICC Code of Conduct Version 4.0
EICC recently revised its code of conduct through collaboration with stakeholders in order to strengthen member responsibility on CSR issues. The code of conduct includes a strict ban on indentured labor and trafficking in line with the California Transparency in Supply Chain Act legislated in March 2012. It also includes zero tolerance for unethical business conduct, increased disclosure of information for closer monitoring of business conduct, which reflects new legislation on improving business integrity by the US and UK governments. The new code of conduct also includes a ban on the use of conflict minerals, compliance with privacy and information security laws. Samsung Electronics has produced a Korean language translation of the new code of conduct and has communicated it to suppliers along with a plan to conduct training to help the suppliers understand the changes to the code.