Samsung Electronics operates the Hotline, an employee grievance handling system, to facilitate communication between the management and workers of our suppliers. Previously available only to first-tier suppliers, the Hotline was expanded in 2024 to include second-tier suppliers to better address grievances from workers in the lower tiers of the supply chain. We also run the Communication and Grievance Resolution Channel designed to gather diverse feedback and receive proposals concerning grievances or unfair practices from first-tier and sub suppliers as well as external stakeholders.
Since 2013, we have been operating the Hotline, accessible via telephone and email, to receive reports of labor environment or human rights violations within our suppliers. After verifying the facts of a report, we take necessary steps to remediate the issue. We also ensure the protection of informants’ confidentiality throughout the entire grievance process so that our suppliers’ employees can submit reports without fearing retaliation. We provide the Hotline guidance posters in local languages and post them in offices, corridors, production floors, dormitories, and cafeterias.
Our grievance management team verifies the factual grounds of all reports within one week of submission, notifies informants of the steps to be taken, and ensures that the respective suppliers have taken remedial actions. To build a more reliable grievance system, we collect workers' suggestions for improving the Hotline through compliance workshops and on-site audit interviews. These collected ideas are then integrated into advancing our grievance procedures. As part of these improvement efforts, we introduced informant satisfaction surveys in 2020 to assess the appropriateness of the procedures and overall informant satisfaction at the end of the process.
In 2025, we received 57 grievance reports from first-tier suppliers and 9 from second-tier suppliers. In collaboration with these suppliers, we identified the causes of these cases, provided training to prevent recurrences, and confirmed the implementation of corrective measures, ensuring all grievances were addressed.
Types of grievances submitted through the Hotline
(Unit: Number of submitted cases)
At DX Division, we operated the Cyber Sinmungo system since 2010 to receive complaints from various stakeholders, including first-tier suppliers, sub suppliers, and even non-manufacturing suppliers with whom we transact directly or indirectly. In 2025, we upgraded the system into the Communication and Grievance Resolution Channel to enhance user convenience and enable faster responses. Suppliers and their workers can anonymously report concerns and share various feedback through the Communication and Grievance Resolution Channel on our externally accessible Partner Collaboration Portal or via an external email account.
We process all cases promptly, transparently, and fairly, and each case is handled in accordance with established procedures and standards. Following a thorough fact-checking process, we share the outcomes. For cases requiring a long-term review, we work to resolve issues by forming stakeholder consultation bodies including relevant departments, even if it takes additional time. In 2025, we successfully handled all 42 cases we received.
Cases handled at the Communication and Grievance Resolution Channel
(Unit: Number of cases)| Type | First-tier suppliers | Second-tier suppliers | Lower-tier suppliers* | Total |
|---|---|---|---|---|
| Total | 4 | 9 | 29 | 42 |
| Verbal conduct and demeanor | - | 3 | 2 | 5 |
| Payment | - | 4 | 4 | 8 |
| Compensation | - | 1 | 7 | 8 |
| Other | 4 | 1 | 16 | 21 |
DS Division receives grievances from suppliers through various channels, including anonymous and full-disclosure bulletin boards via the partner collaboration portal, phone calls, and emails. We continuously promote these grievance channels to improve suppliers’ working environments. In 2025, we hosted On-Site Manager Meetings to capture workplace voices directly from our suppliers. These sessions were held twice a year for each business category, with participation from managers representing 132 suppliers.
Performance in 2025