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Sustainable Management

Samsung Electro-Mechanics continues with its relentless endeavor to become the world’s most competitive and sustainable leader of its field.Sustainability management in the global market environment is an essential factor for global business, effective for diverse risk factor management, and contributes to continuous value creation. Based on such a perception, SEM consolidates these characteristics as an ongoing goal through the establishment of an effective system linked with our internal strategies.

Vision/ Strategy

Sustainability Vision

Samsung Electro-Mechanics is practicing sustainable management based on the trust among various stakeholders including customers and shareholders to move forward as, not just a leading global player that spearheads the cutting-edge technological fields in the world, but also as a creative innovator. We will fulfill our corporate social responsibilities by achieving sustainable growth through the maximization of corporate values as well as by catering to stakeholder demands.

To this end, Samsung Electro-Mechanics is committed to 6 core areas i.e. ‘Environmental management’, ‘Shareholders-valued management’, ‘Quality first management’, ‘Sharing management’ and ‘Win-win management’. Accordingly, we will pursue economic feasibility and a balance with the environment, and contribute to solving social problems.

Sustainability Management Strategy

Organization

Task Force on Sustainability

Samsung Electro-Mechanics runs a task force on sustainability to make proper responses based on a robust collaborative system on ESG management issues – Environment, Social and Governance. The council generates synergies based on an organic collaborative system to address questions asked by ESG evaluating bodies, the publication of sustainability reports and customers’ questions on sustainability.

We respond to latest issues by monitoring global and industrial trends and strategic directions on sustainability by subscribing to the ‘Sustainability Newsletter’ published on a monthly basis by the department in chargement of sustainability. Samsung Electro-Mechanics is catering to internal and external stakeholder needs and driving sustainability. We are responding to internal and external stakeholder demands and driving sustainable development driven by efforts of Business Support Team, Finance & Accountig Team, Human Resource Team, Safety Environment Team, Procurement Logistics Team, etc.

Stakeholder Communication

Samsung Electro–Mechanics values open communication with various interest groups. Through transparent corporate management and mutual trust opinions are actively obtained. These opinions are actively reviewed, applied in different sustainable management policies and made public through domestic and foreign channels.

Materiality Analysis

Discovery Process for Key Issues

Top 3 Issues by Sector

Product Stewardship
We monitor laws and regulations and operate our IT system to enhance the eco-friendliness of our products through appropriate management of hazardous materials within products. By July 2019, we will conduct a survey on the use of four kinds of phthalates (DEHP, BBP, DBP, and DIBP) and realize the complete elimination.
Investment in Environmental Facilities
We contribute to a better environment through systematic and proactive investment in facilities for water and air quality and waste.

We respond to risks and opportunities in climate change by targeting to reduce the GHG emissions by source over the mid and long-term goal.

Establishment of Safe Sites
Our top priority in management is safety of our employees and communities as we make preventive efforts in all our activities. We will strive to achieve zero-accident workplace by 2020.



Improvement of Labor-Management Relations
We pave the way for sustainable growth by forming a creative corporate culture based on mutual respect and understanding between the labor and the management.

We guarantee the respect for each individual, while striving for a work-life balance through continued inspection and training for each site.

Management Performance
We diversify our product line-up by developing new products continuously to adapt to rapid changes in the IT environment and to prepare ourselves for the future. We plan to develop high reliability MLCC by 2020.


Business Risks
We do the utmost to reduce financial and non-financial risks through continued risk inspection for global operation sites and supply chains.

We practice a corruption-free corporate culture in and outside Samsung Electro-Mechanics through activities to prevent and block corruption and irregularities while complying with local laws.

Risk Management

Internal Accounting Management

For the purpose of transparency, accounting information and for the proof of trustworthiness of the information disclosed among our stakeholders, Samsung Electro-Mechanics operates under an internal audit management system. Not only is the financial reported by the internal accountant at Samsung Electro-Mechanics, but there is also a much broader sense of an audit system that meets global standards in management of policies.

This helps us to prepare for any potential business risks, including CSR related issues, environment related regulations, conflicts on minerals management and environmental friendliness evaluations and more.

Business Continuity Management

Samsung Electro-Mechanics contributes to sustainable growth by ensuring a stable supply of products and services to customers based on the continuity of production activities. We have established the business continuity management in preparation for business suspension due to unexpected accidents.

Samsung Electro-Mechanics created scenarios to respond to crises caused by major accidents including fire and blackouts to secure business continuity. Periodic training and education on the business continuity procedure is conducted We categorize major stakeholders including internal/external customers, business partners and communities and maintain communication through stakeholder analysis.

Cliamte Chagne

Samsung Electro-Mechanics put in place a decision-making process to respond to the emission-trading scheme by operating the Climate Strategy Committee and regularly monitoring the financial impact resulting from the emission right trading. Site-specific annual safety check is carried out by an external agency, enabling comprehensive risk assessment and management of assets including on-site buildings, facilities and machinery occurring due to natural disasters.
As such, we do the utmost to maintain stable business activities.

Information Protection

We prescribed information security regulations and implementation guidelines to protect Samsung Electro-Mechanics’s critical information and assets, and operate physical and technical protection measures to abide by them. This helps us to maintain optimized sites in security through periodic inspection and improvement activities. Thanks to close business ties with related agencies outside, we explore industrial security trends and information leakage scenarios through preventive programs to safeguard against security accidents.

Tax risk

Samsung Electro-Mechanics fulfills the obligations on tax filing and payment of taxes by complying with tax laws of local countries as prescribed in Samsung Electro-Mechanics’s tax payment management guideline. To this end, we maintain transparent relationships with tax authorities in local countries where local subsidiaries of Samsung Electro-Mechanics belong, help with career management of personnel in local subsidiaries, and proactively utilize external specialists including accountants.

Taxpaying Management Guideline

Principle: Compliance with the HQ and tax laws of local countries

  • 1.All laws and regulations shall prioritize accounting standards and tax laws of the HQ and local countries.
  • 2.Parties involved shall recognize differences between tax laws in each country, comply with tax laws in all transactions, and implement tax filing and tax paying obligations.
  • 3.Employees in charge of tax payment at local subsidiaries shall maintain transparent relationships with the tax authorities in each country and strive to prevent tax risks.
  • 4.Management of internal personnel and utilization of external specialists must be maximized to comply with tax laws in local countries of overseas subsidiaries and prevent tax risks.

SEP&L

SEP&L

When global business trends settled in sustainability management, Samsung Electro-Mechanics is focusing on defining and measuring enterprise value. It is meaningful to analyze the positive and negative impacts across the value chain and reflect them in the enterprise value. Samsung Electro-Mechanics will continue to strive to reflect the externalities in our decisions.

Samsung Electro-Mechanics reflects four external environmental externality and three social externality in its corporate value. For environmental externality, we consider greenhouse gas emissions, energy savings, reduction of packaging costs, and water recycling, while social externality considers cooperation with supplier fund, industrial accidents, and community service.