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.
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.
Samsung Electro-Mechanics continuously strives to improve the environment and human rights in conflict and high-risk areas by establishing a responsible supply chain management system. Samsung Electro-Mechanics does not use conflict minerals (3TG: Tantalum, Tin, Tungsten, Gold) and cobalt that are unethically mined from 10 conflict zones and global high-risk areas. Accordingly, Samsung Electro-Mechanics operates a supplier management process that thoroughly investigates whether the product contains conflict minerals or cobalt in order to provide products that have passed through normal distribution processes before reaching its customers.
Should the supplier fail to provide sufficient information necessary to check whether responsible minerals have been used, should the supplier intentionally provide information that is different from the truth, or should any risk be found within the supplier's supply chain that had not been appropriately acted against, Samsung Electro-Mechanics may suspend any further business with such partners.
Obtaining of Responsible Minerals Non-Usage Agreement
Samsung Electro-Mechanics stipulates in its “Partner CSR Compliance Agreement” that it may prohibit the usage of uncertified minerals that were obtained in conflict regions (Congo, Rwanda, Burundi, Angola, Uganda, Tanzania, Zambia, Sudan, Central African Republic, etc.) or minerals obtained in global high-risk regions, such as Tantalum (Ta), Tin (Sn), Tungsten (W), old (Au), and Cobalt (Co), and expand such policy to its sub-contracting partners.
Usage Status and Usage Review
Based on its Unethically Mined Responsible Minerals Non-Usage Policy, Samsung Electro-Mechanics continues to encourage RMAP certification for smelters that are not RMAP certified and conduct activities to verify the origin of minerals. In addition, by conducting on-site inspections of its partners, it checks partners that use 3TG and Cobalt, which are responsible minerals, with regards to their responsible minerals policies, management organization systems, and responsible minerals information management systems for any weaknesses and supports improvement in such areas.
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 Competitiveness in the Supply Chain based on Mutual Trust
Shared Growth Sophistication
- Raising performance for joint technological development
- Adopting the compliance management certification system
- Innovating productivity
- Sharing performance/protecting technologies
- Supporting secondary suppliers
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 (firstname.lastname@example.org) and the procurement portal website (http://www.semcobuy.com) by systematically accepting and handling the VOC from business partners to increase satisfaction levels.
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.