Sustainable Supply Chain

Sustainable Supply Chain

We ensure that our
materials are sourced
ethically and responsibly

We ensure that our materials are sourced ethically and responsibly

We support our suppliers to build a stronger competitive edge in order to
establish a sound corporate ecosystem and a sustainable supply chain

We support our suppliers to build a stronger competitive edge in order to establish a sound corporate ecosystem and a sustainable supply chain

A close-up view of the hands of a group of people whose palms are stacked on top of each other in a cooperative gesture. A close-up view of the hands of a group of people whose palms are stacked on top of each other in a cooperative gesture.

In collaboration with our suppliers across the globe, we are continually working towards a sustainable business ecosystem based on a philosophy of fairness, openness, and co-prosperity. We provide support to our suppliers to operate in compliance with global laws and standards to fulfill its environmental and social responsibilities. We also operate a risk management system to minimize human rights infringements and environmental impacts in the mining process in high-risk areas.

Supply chain management strategy

Economic

We secure an all-encompassing competitive edge in cost, delivery, quality, technology, and human resources in order to maximise synergy, speed, and efficiency with our suppliers and create a corporate ecosystem that enables sustainable growth.

An icon of a bar graph with an arrow above it to illustrate economic growth. An icon of a bar graph with an arrow above it to illustrate economic growth.

Social

We request that international standards and regulations be complied in the areas of human rights management, work environment, ethics, and conflict minerals issues, with the objective to build an open and transparent management accountability system that engages all stakeholders along the supply chain.

An icon of a globe to illustrate social management. An icon of a globe to illustrate social management.

Environmental

We work solely with Eco Partner-certified suppliers so that we can assess and manage the environmental impact when sourcing their components, raw materials, and manufacturing process.

An icon of a small leaf on a stem to illustrate environmental management. An icon of a small leaf on a stem to illustrate environmental management.
  • Supplier
    operation

  • Partner
    collaboration

  • Supplier work
    environment

  • Conflict minerals
    management

Supplier operation

Samsung Electronics endeavor to build strategic partnerships with best-performing suppliers based on mutual trust. This is why we adopt a fair and transparent process in operating our supplier registration system for new suppliers while performing annual assessments to assist our suppliers in reinforcing their competitive edge and minimizing relevant risks. Any company who is willing to bring your differentiated technological capability to the table and wishes to do business with Samsung can post their new business proposals on our Supplier Portal(www.secbuy.com). Our International Procurement Center (IPC) serves as the procurement hub, and the IPC enables us to identify outstanding suppliers in strategically important regions across the globe.

A Korean man and a white man wearing business suits are standing outside and shaking hands. The white man holds a briefcase in the other hand. A Korean man and a white man wearing business suits are standing outside and shaking hands. The white man holds a briefcase in the other hand.

Requirements for new supplier registration

  • Environment and Safety

    Request suppliers to satisfy the criteria set in 22 articles, spanning occupational safety, fire prevention equipment, occupational health, hazardous substances, and environmental facility. Nine mandatory compliance items : Fire prevention equipment, hazards and waste, sewage and wastewater facility, etc.

  • Labour Rights

    Request suppliers to satisfy the criteria set in 20 articles, including voluntary work, compliance with work hour regulations, and ban on discrimination.
    Three mandatory compliance items : Prohibition
    of child labour, guaranteed minimum wage, and prohibition on inhumane treatment.

  • Eco-Partner

    Conduct reviews on product environmental policy, education & training and the use of hazardous substances. Conduct business solely with Eco-Partner-certified suppliers.

Annual supplier evaluation process and criteria

  • 01

    Year-round
    self-assessment

    Suppliers perform self-
    assessment based on the
    evaluation items
    that are related to
    business competitiveness
    and sustainability.

  • 02

    Self-
    Improvement

    Suppliers identify necessary
    improvements on
    their own
    and make improvements.
    Samsung
    monitors risks and
    offers feedback

  • 03

    Evaluation

    Suppliers are notified of
    their final assessment
    outcomes at the end of
    each year

  • 04

    Post-
    Management

    Suppliers develop and
    implement improvement
    plans, and Samsung
    provides assistance

Evaluation items for business competitiveness

  • Technology

    The ownership of
    technology patents
    and R&D investment

  • Quality

    Failure rates and
    quality management
    system certification

  • Responsiveness

    Engagement in our
    policies and activities
    for innovation

  • Delivery

    On time delivery and
    On time shipping

  • Cost

    Increase rate in
    transaction value and
    competitiveness in
    cost

Evaluation items for sustainability

  • EHS

    Workplace safety and international
    certification

  • Finance

    Credit rating and
    debt ratio

  • Law (Social)

    Labor & human rights
    in the workplace and
    anti-corruption

Supporting our partners to be their best

To live by our business philosophy that ‘our competitive edge at Samsung Electronics comes from the competitive edge of our suppliers’, we further push the boundary of our win-win management initiatives to include both domestic and overseas suppliers. We provide a wide array of programs to support funding, education, and innovation to ensure that our suppliers become globally-competitive.

  • KRW

    974

    billion

    Investment in the
    Win-Win Cooperation
    Fund

    Funding

    Create funds valued at KRW 1 trillion with
    commercial banks

  • 16,756

    persons

    Attendees of
    supplier training

    Employee capacity-building

    Provide leadership, job expertise, global and other
    courses by using
    our supplier-only training facility

  • 375

    companies

    Suppliers that received
    Smart Factory support

    Innovation initiatives

    Support 1,000 suppliers and SMEs without
    business relationships
    with Samsung across the
    nation in improving their manufacturing
    capacity

[2020 Outcomes of Our Key Win-Win Programs]

* We assist our 1st-tier and 2nd-tier suppliers in voicing their grievances through our direct phone line (+82-80-200-3300), via e-mail (ssvoc@samsung.com), through an online whistle-blowing system on the Supplier Portal (www.secbuy.com), with on-site supplier consultations, and through various exchange meetings.

Supplier code of conduct and guide

We align our Supplier Code of Conduct with that of the RBA and share updates with our suppliers. We also provide a guide to help them comply with the Code and to put compliance management into practice.

  • Supplier Code of Conduct
    388 KB
  • Supplier Code of Conduct Guide
    4.07 MB

Ensuring a safe workplace for everyone

We regularly monitor all our suppliers in accordance with RBA(Responsible Business Alliance)’s verification standards to identify issues and make necessary improvements. While we encourage our 1st-tier suppliers to create a safe workplace, such commitment to workplace safety extends to our 2nd-tier suppliers by way of 1st-tier suppliers.

Self-assessment

Annual self-assessment of all first- tier suppliers using a checklist based on 85 RBA criteria

On-site audits

On-site audits on high-risk suppliers
to identify improvement tasks.

High-risk suppliers : High impact based
on business volume or dependence,
Located in geopolitically high-risk area,
Low grade with self-assessment

Conducted by independent
dedicated audit staff, led by
RBA-certified auditors

Square root of total number of
employees of suppliers interviewed

Third-party audits

RBA-certified third-party audit firms
randomly select suppliers and
conduct Initial audits based on
RBA criteria

Only announce the selection of
the target and do not share the
specific schedule  to ensure more
accurate audits since 2015

Take instant action on tasks that can
be immediately addressed. Results
verified through Closure Audits

Our suppliers

Responsible sourcing of minerals

Samsung Electronics operates a mineral management system based on 'OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas', and manages smelters in the supply chain through suppliers we work with. We are actively sharing the smelter list with various stakeholders, including our customers. Additionally, we encourage suppliers to partner with smelters certified by the RMAP (Responsible Minerals Assurance Process), and require uncertified smelters in our supply chain to become certified by the RMAP. The Responsible Minerals Report including smelter list and other information, outlines Samsung Electronics’ efforts to minimize the negative social and environmental impacts of mining operations, which are susceptible to human rights infringement and environmental destruction.

Samsung Electronics' minerals due diligence process based on OECD Due Diligence Guidance

  • Samsung Electronics' Responsible Minerals Report
    1.2 MB

Smelter and refiner list

(As of the end of Dec., 2020)

Certification
completed
Certification
in progress
Total
Tantalum
(Ta)
38 - 38
Tin
(Sn)
53 - 53
Tungsten
(W)
42 - 42
Gold
(Au)
107 - 107
※ Cobalt
(Co)
- - 27