- Corporate Citizenship
- Diversity & Inclusion
- Supply Chain
- Report & Policy
- Facts & Figures
- Responsible Labor Practice
Responsible Management of Supply Chain
We ensure that our suppliers build a stronger competitive edge through support and cooperation in order to establish a sound corporate ecosystem and a sustainable supply chain.
Driven by our philosophy of fairness, openness, and win-win cooperation, we operate our supply chain with approximately 2500 suppliers across the globe. We assist all our suppliers in complying with the ‘Samsung Supplier Code of Conduct’ and operating in accordance with relevant local regulations and international standards. Through assessing our suppliers, we manage supply chain risks in terms of sustainability aspects, such as environment, human rights, financials, and etc. Furthermore, we continuously support our suppliers to build mutual competitive edge and growth.
Supply Chain Management Strategy and Five Criteria
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.
We request that international standards and regulations be abided by in the areas of human rights management, work environment, ethics, and conflict mineral issues with an aim to build an open and transparent management accountability system that engages all stakeholders along the supply chain.
We work solely with Eco Partner-certified suppliers so that we can assess and manage the environmental impact that may occur in their components, raw materials, and manufacturing process.
At Samsung, we endeavor to build strategic partnerships with top-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 procurement portal(www.secbuy.com) anytime. 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.
Key Evaluation Items of Our New Supplier Registration Program
- 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.
Eight mandatory compliance items : Fire prevention equipment, hazards and waste, sewage and wastewater facility, etc.
- Labour Rights
- Perform mandatory on-site audits on 20 articles, including voluntary work, compliance with work hour regulations, and ban on discrimination.
Three mandatory compliance items : Ban on child labour, guarantee minimum wage, and ban on inhumane treatment.
- Conduct reviews on product environmental policy, education & training and the use of hazardous substances.
Conduct business solely with Eco-Partner-certified suppliers.
Comprehensive Evaluation Process
Partner Collabouration Programs
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 833.9billion : investment in the Win-Win Cooperation Fund
Create funds valued at KRW 1 trillion with commercial banks
18,777 Persons : Attendees of supplier training
Provide leadership, job expertise, global and other courses by using our supplier-only training facility
Support 1,000 suppliers and SMEs without business relationships with Samsung across the nation in improving their manufacturing capacity
* 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 (email@example.com), through an online whistle-blowing system on the Win-Win Cooperation Portal (www.secbuy.com), with on-site supplier consultations, and through various exchange meetings.
Supplier Work Environment
At Samsung, we fully take on our responsibility in advancing human rights management along the entire supply chain, abide by international human rights agreements to guarantee workplace safety and comply with the code of conduct set by the Responsible Business Alliance (RBA). We regularly monitor all our suppliers in accordance with EICC’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. In doing so, we contribute to building a sound ecosystem across our supply chain.
Conflict Minerals Management
Samsung Electronics ban the use of conflict minerals – including tantalum, tin, tungsten and gold – that are mined unethically in conflict areas in 10 African countries, including Democratic Republic of the Congo (DR Congo). We manage our supply chain based on the principle of an ethical distribution process. To ensure our suppliers to be held to the highest standards, we conduct thorough examinations on the minerals used in their products. To establish a conflict-free system, we have implemented a process of due diligence for conflict minerals in line with the ‘OECD Due Diligence Guidance’.
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.
Conflict Minerals-related RMAP Certification of Smelters alon the Supply Chain
(As of the end of Dec., 2018)
|Certification Completed||Certification in Progress||Total|