In order to fulfill corporate social responsibilities based on ethical management, Samsung Electro-Mechanics obligates not only itself but also its business partners to agree on complying with ethical and compliance management and the CSR (Corporate Social Responsibility) measures. As a result, we do our best to comply with global regulations including the eradication of child labor, human rights protection, anti-discrimination and ban on noncertified conflict minerals.
We extend institutional backup to withhold trade with business partners that violate these rules. Samsung Electro-Mechanics seeks to realize values of mutual trust and achieve development based on a high level of corporate ethics and a clean corporate culture.
Registration and Evaluation
Samsung Electro-Mechanics selects business partners and cooperates with them based on transparent and fair evaluation criteria as partners for success in business. Compliance management and environmental assessment have been designated as mandatory options for them when we select new business partners. They are subject to general evaluation (on processes, etc.), quality and production evaluation and responses to social responsibilities and environmental issues (whether or not they use any prohibited materials), which have been recently reinforced.
They are also requested to mandatorily submit the ‘CSR Compliance Consent Form’ covering the compliance with the RBA(Responsible Business Alliance)ban on using conflict minerals and human rights issues like labor exploitation, and the ‘Environmental Management Warrant’ touching upon responses to regulations on environmentally hazardous materials, RoHS and REACH. These documents are translated in multiple languages and provided to all our business partners.
Grow Together Program
Samsung Electro-Mechanics reinforces its strategic partnership with business partners through the establishment of a mutually horizontal cooperation network based on mutual trust. A variety of win-win growth programs are available for their sustainable growth, while numerous efforts are poured in to spread the culture of win-win growth.
Strengthening Competitivenessin the Supply Chain based on Mutual Trust
Expanding Joint Technological Development
Samsung Electro-Mechanics has strengthened cooperation for joint development with business partners since 2015. We strive to secure core technological competencies and support business partners to grow further through technological development and sales growth. Samsung Electro-Mechanics shares future projects and technological roadmaps on an annual basis. Programs to comprehensively support excellent development suggestions of business partners are available in the form of development funds, technologies and personnel. In 2016, Samsung Electro-Mechanics selected 'Joint Development Awards' with its partner companies and operated 'WinWin Plaza', a space for technology development cooperation, and implemented 83 projects and provided KRW 1.9 billion.
Expansion of Support for Secondary Suppliers
Aiming to facilitate support of primary suppliers for shared growth with secondary suppliers, Samsung Electro-Mechanics extends favorable conditions for proceeds payment, pays the proceeds in cash and forms a consultative body for the suppliers. In order to support improvement of management of secondary suppliers, we have expanded our direct support by financing the win-win fund and providing them free training.
Listening to VOC
Samsung Electro-Mechanics runs various communication channels including direct phone (+82-31-8093-8282), E-mail (email@example.com) and the procurement portal website (http://www.semcobuy.com) by systematically accepting and handling the VOC from business partners to increase satisfaction levels.
Samsung Electro-Mechanics is making steady efforts to improve the environment and human rights in the areas with conflict minerals, by establishing a supply chain management system with a sense of accountability. Samsung Electro-Mechanics does not use conflict minerals (3TG: Tantalum, Tin, Tungsten, Gold) unethically mined in 10 countries. We run a business partner management process whereby thorough investigation takes place to detect if conflict minerals have been included in our products or not. We thus seek to provide products that have been derived through a normal distribution system.
Acceptance of the Consent Form for Non-use of Conflict Minerals
Samsung Electro-Mechanics requires its vendors to submit “Consent Forms for CSR Compliance,” which require vendors not to use noncertified tantalum (Ta), tin (Sn), tungsten (W), or gold (Au) mined in conflict areas (Congo, Rwanda, Burundi, Angola, Uganda, Tanzania, Zambia, Sudan, and Central African Republic), and clearly states the company’s plan to expand this policy.
Based on our policy of non-use of conflict minerals, we continue to encourage refineries without CFSP certification to acquire the certification. We also carry out activities to identify the place of origin for minerals. On-site inspection takes place for business partners to help us reach out to those that use 3TG, the conflict minerals. This helps inspection of their conflict mineral policies, management unit systems and conflict mineral information management systems, and helps them work on areas to be improved.
Supply Chain Risk Management
Compliance Management Policy
To improve the working environment of our vendors, Samsung Electro-Mechanics has set up a compliance checklist for five areas (workers’ rights, safety/health, environment, corporate ethics, and management system) based on the RBA(Responsible Business Alliance). We also provide our vendors with assistance with their compliance management practices through training, diagnosis, and improvements.
Samsung Electro-Mechanics shares its strong commitment for compliance management through opportunities including periodic forums for communication with business partners and workshops with heads of business partners, so that compliance officers of business partners including their executive managers are able to secure their commitment towards compliance management. Samsung Electro-Mechanics plans to conduct compliance management evaluations for 60 suppliers by 2020 by reducing the risks of sustainable management of suppliers such as labor, human rights and environment and improving the capabilities of suppliers.
Support for Improvement after Diagnosis
Samsung Electro-Mechanics is not complacent about evaluating risks of business partners. Improvement measures are devised based on the results of onsite diagnosis, and diverse joint efforts are poured in with business partners so that risks can actually be minimized. Based on the evaluation results, we have selected some companies where improvement had to be made. As a consequence of the joint efforts have been poured in with business partners so that risks can actually be minimized.
Safety Environment Support
Safety Environment Disaster Prevention
Since 2013, risk assessment is conducted in conjunction with specialized agencies for business partners subject to higher risks of safety accidents, to help them explore and address disaster factors. We provide consulting on environmental and chemical materials using our exclusive specialized workforce and we extend full support for disaster prevention including resolving legal environmental issues and preventing the leakage of chemicals. Suwon Plant acquired ‘A’, the highest grade, for the win-win cooperation program on safety and health in 2015.
Response to Climate Change
We take part in national policy tasks led by the government for business partners to establish the GHG inventory and bring in higher energy efficiency. We also provide support and training to set GHG emissions of products, striving for stronger competencies of employees in charge of the tasks in business partners.
Higher Efficiency in Energy
Samsung Electro-Mechanics provides programs to support better energy efficiency measures of business partners. They include consulting on the efficient use of energy using in-house specialists to acquire the energy management system certification supported under the agreement with IBK, establishing the energy management system, conducting energy diagnosis and discovering ways for energy reduction. There is the win-win energy Partnership Project between Large Enterprises and SMEs, a national policy task where Samsung Electro-Mechanics is engaged.