Sustainability in Supply Chain > Supplier Due Diligence and Capacity Building

Monitoring Progress on Improvement

We require improvement measures for findings detected in the initial third-party audit and monitor implementation status in the closure audit. Findings that require an extended period of time for improvement are monitored on a continued basis in collaboration with the respective suppliers.

Improvement rate by area *

Improvement rate by area/caption>
Area First-tier Suppliers Second-tier Suppliers
Improvement rate Key finding
details		 Improvement rate Key finding
details
Total 82%   70%  
Labor and human rights 64%
  • Working hours, etc.
 69%
  • Working hours, etc.
Health and safety 90%
  • Regular inspections of fire safety infrastructure, etc.
 80%
  • Evacuation drills and record management, etc.
Environment 83%
  • Greenhouse gas reduction measures, etc.
 81%
  • Establishment of waste reduction goals, etc.
Ethics 89%
  • Anti-corruption training, etc.
 76%
  • Establishment of intellectual property protection procedures, etc.
Management system 84%
  • Legal compliance processes, etc.
 52%
  • Internal audits, etc.
* Improvement rate: (Number of violations found in the initial audit – Number of violations found in the closure audit) / Number of violations found in the initial audit

Working-hours management status

A table showing working-hours management status by year and supplier tier. It includes working-hours compliance rate, average working hours per week, and compliance rate of guaranteeing at least one day off per week for 2022, 2023 (first-tier and second-tier suppliers), and 2024 (first-tier and second-tier suppliers).
Items 2022 2023 2024
First-tier
Suppliers		 Second-tier
Suppliers		 First-tier
Suppliers		 Second-tier
Suppliers
Working-hours compliance rate* 93% 85% 78% 93% 93%
Average working hours per week 45 Hours 48 Hours 50 Hours 43 Hours 41 Hours
Compliance rate of guaranteeing
at least one day off per week		 96% 96% 95% 98% 97%
* Employees must not work for more than 48 hours per week or for more than 60 hours per week even when including overtime. They must be guaranteed at least one day off per week.

Samsung Electronics monitors its supplier’s employee working hours for any excessive overtime, and disclose the results. We look at three months’ of data, including those from peak, off-peak, and normal months, and check for compliance in working hours and weekly rest days. We continue to work with our suppliers to improve the working conditions for each employee by understanding their individual circumstances.

Following careful analyses of working hours among first-tier suppliers, we discovered that the compliance rate increased from 85% in 2023 to 93% in 2024, a level comparable to that of 2022. Following the end of the COVID-19 era, a temporary surge in factory operations led to a slight decline in compliance in 2023. However, with operations stabilizing in 2024, working hour compliance returned to previous levels.

We will continue our efforts to improve working hours through close collaboration with suppliers. This includes pursuing responsible purchasing practices such as providing forecasts to suppliers in advance, minimizing contract changes, and providing consultations on working hour management procedures.

Findings in labor and human rights items

A table summarizing the findings in labor and human rights items, including freely chosen employment, prohibition of child labor, protection of underage workers, wage and welfare benefits, humane treatment, non-discrimination, and freedom of association. The table outlines the specific items assessed, findings from first-tier and second-tier suppliers, and key details of those findings.
Item Details Findings Key finding details
First-tier Suppliers Second-tier Suppliers
Freely chosen
employment		 Prohibition of forced labor 4 2 Workers charged recruitment fees and penalty clauses not specified in contracts
Establishment of forced
labor prohibition policies
and procedures		 - -  
Employment contract
signing in native
language		 1 - Contracts not provided in native language
Prohibition of the storage
of an original copy of ID		 - -  
Guarantee of the
freedom of movement		 1 - Restrictions on
freedom of movement
Prohibition of
child labor		 Prohibition of child labor - -  
Establishment of child
labor prohibition policies
and procedures		 - -  
Protection of
underage
workers		 Protection of underage
workers		 - -  
Protection of trainees
and interns		 - -  
Wage and
welfare
benefits		 Accurate calculation and
payment of wage		 4 1 Policy not established
Issuance of pay slips and
prohibition on delay in
wage payment		 3 3 Wages paid after designated pay date
Payment of social
insurance		 17 3 Unclear criteria for social insurance calculations and lack of mandatory worker enrollment
Prohibition of unfair
penalty imposition		 1 9 Wage deductions as form of disciplinary action
Humane
treatment		 Prohibition of inhumane
treatment		 - -  
Establishment of
humanitarian treatment
policies and procedures		 - -  
Recording and
management of
disciplinary measures
taken		 - -  
Non-
discrimination		 Prohibition of
discrimination based on
gender and other
personal traits		 - -  
Establishment of
discrimination
prohibition policies and
procedures		 - -  
Provision of space for
religious activities		 - 7 Policy not established
Freedom
of association		 Guarantee of the right to
establish and join labor
unions		 - -  
Guarantee of the right for
collective bargaining		 1 - Policy not established
Guarantee of right to peaceful assembly - -  
Prohibition of
discrimination against
labor union members		 - -  
Last updatedJune 27, 2025