Sustainability in Supply Chain > Supply Chain Management

Responsible Purchasing Practices

Samsung Electronics is committed to responsible purchasing practices. We conduct all business operations according to the Global Purchasing Code of Conduct. By rendering basic transaction agreements obligatory, we build the basis for strengthening our suppliers’ legal compliance. Based on the system, we manage various risks, expand the scope of supply chain information management, and support compliance and mutual growth efforts for first-tier suppliers and some sub suppliers.

 
Global Purchasing Code of Conduct

The Global Purchasing Code of Conduct outlines essential regulations from our purchasing rules and manuals, along with the ethical obligations of purchasing staff. The Code supersedes other operational rules and manuals. We are committed to upholding it to ensure ethical purchasing practices, as detailed below.

  • When searching for new suppliers, we evaluate ESG performance, in addition to price competitiveness and technological advancement. Through open sourcing, we provide all global companies with sufficient opportunities to do business with us.
    (In 2025, the average transaction period with suppliers is 15 years.)
  • We finalize the unit price through the following four steps – market research, cost review, price negotiation, and price determination – based on mutual consent with suppliers.
  • When establishing new prices or renewing contracts, we consider changes in raw material costs and labor rates.
  • We do not require suppliers to provide their technical data to us or a third party for reasons regarding the transaction – price review – without justifiable grounds.
  • We provide demand forecasts for materials required for mass production in advance to allow suppliers to make necessary preparations.
  • We operate a system-based automated ordering system based on agreed minimum order quantities, lead times, etc. with suppliers.
  • We adhere to the principle of acquiring 100% of the ordered quantity. We prohibit any unilateral changes or cancellations to the quantity and delivery date without the supplier’s consent. If a change is necessary due to product discontinuation, specification changes, or demand changes, we negotiate with the supplier through the order change process.
    (In 2025, approximately 40% of all automated orders were adjusted through mutual agreement with suppliers after being placed.)
  • We determine and deliver all payments in consultation with suppliers pursuant to the terms and conditions specified in individual contracts.
    (In 2025, we completed full payments to all 574 of our small and medium-sized suppliers in South Korea within 10 days.)
 
Standard Supplier Contract

To help suppliers strengthen their sustainability foundations, Samsung Electronics explicitly outlines the obligation to comply with the Supplier Code of Conduct*, including greenhouse gas management, in our standard supplier contracts. Our global contracts, used at our sites outside South Korea, are provided in multiple languages, including English, Chinese, Vietnamese, and Portuguese, to ensure better accessibility for local suppliers. Furthermore, these contracts comply with local laws requiring the prevention of child labor, the prohibition of forced labor, and adherence to the legal minimum wage.

Requires compliance with obligations such as prohibiting child and forced labor, adhering to legal minimum wage standards, and following policies on minerals sourced from conflict-affected areas
 
System-based risk management

Samsung Electronics has defined various supply chain risk areas, including natural disasters, corruption, sustainability, and information security, and proactively identifies and mitigates these risks based on the Purchasing System.

  • Natural disaster risk
    • We immediately obtain relevant information from major global disaster information systems* upon the occurrence of a natural disaster.
    • In the event of a disaster, we analyze its impact on the supply chain using suppliers’ location details registered in our system. We automatically share this information with the purchasing manager.
  • Corruption risk
    • We ensure transparency by systematically preventing any abnormal business processes that may be related to corruption.
    • We regularly conduct on-site audits and monitor compliance with fair trade and subcontracting laws.
  • Sustainability risk
    • Through our system, we regularly monitor and manage our suppliers’ financial status, labor and human rights performance, environmental impact, health and safety, as well as their use of responsible minerals and hazardous substances.
  • Information security risk
    • To elevate our suppliers' information security, we operate a three-level security inspection system (self-assessment, professional solution, and on-site assessment).
Global Disaster Alert and Coordination System (GDACS) and The Weather Company
 
Sub supply chain management

To address increasing supply chain volatility and uncertainty, Samsung Electronics is expanding our information management beyond first-tier suppliers to include sub suppliers of key materials. Using our system, we map major suppliers with supply chain data (Supply Tree) by product category, creating a comprehensive supply chain map. By leveraging collected data, such as product groups and actual manufacturing site information (e.g., physical addresses), we can respond swiftly to various supply chain challenges.

Furthermore, to promote fair-trade practices and support compliance management, we stive to assist sub suppliers in entering into standard transaction contracts, improving payment terms, adhering to labor and human rights regulations, and establishing safe working environments.

Last updatedJune 26, 2026