-
01. Raise suppliers’
awareness- Secure a commitment from
suppliers to ban the use of
conflict affected and high-risk
minerals from all
first-tier
suppliers - Distribute the conflict-affected
and high-risk minerals
management guide and support
working-level training - Request lower-tier suppliers to
expand their policy banning the
use of conflict-affected and
high-risk minerals
and to source
ethically and responsibly
- Secure a commitment from
-
02. Inspect the Use of
conflict-affected and high
risk minerals along the Supply
Chain- Monitor data on all first-tier
suppliers use of conflict-affected
and high-risk minerals as well as
smelters’ use of
such minerals
along the supply chain
- Monitor data on all first-tier
-
03. Conduct reasonable due
diligence and verification on
inspection outcomes- Conduct on-site inspections on
the data submitted by suppliers
- Conduct on-site inspections on
-
04. Verify and assess risk
factors within the supply
chain- Categorize suppliers into four
rating groups based on
inspection
outcomes
- Categorize suppliers into four
-
05. Develop improvement
plans for risk and report
relevant data- Restrict transactions with
suppliers that work with non-
third-party-audited smelters - Recommend smelters within the
supply chain to become third-
party certified
- Restrict transactions with
Sustainable Supply Chain
Sustainable Supply Chain
We ensure that our
materials are sourced
ethically and responsibly
We ensure that our materials are sourced ethically and responsibly
We support our suppliers to build a stronger competitive edge in order to
establish a sound corporate ecosystem and a sustainable supply chain
We support our suppliers to build a stronger competitive edge in order to establish a sound corporate ecosystem and a sustainable supply chain
In collaboration with our suppliers across the globe, we are continually working towards a sustainable business ecosystem based on a philosophy of fairness, openness, and co-prosperity. We provide support to our suppliers to operate in adherence to global laws and standards to fulfill its environmental and social responsibilities. We also operate a risk management system to minimize human rights infringements and environmental impacts in the mining process in high-risk areas.
Supply chain management strategy
Economic
We secure an all-encompassing competitive edge in cost, delivery, quality, technology, and human resources in order to maximize synergy, speed, and efficiency with our suppliers and create a corporate ecosystem that enables sustainable growth.
Social
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.
Environmental
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.
-
Supplier
operation -
Partner
collaboration -
Supplier work
environment -
Conflict minerals
management
Supplier operation
Samsung Electronics endeavors to build strategic partnerships with best-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 Supplier 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.
Requirements for new supplier registration
-
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. Nine mandatory compliance items : Fire prevention equipment, hazards and waste, sewage and wastewater facility, etc.
-
Labor rights
Request suppliers to satisfy the criteria set in 20 articles, including voluntary work, compliance with work hour regulations, and ban on discrimination.
Three mandatory compliance items : Prohibition
of child labor, guarantee minimum wage, and prohibition on inhumane treatment. -
Eco-Partner
Conduct reviews on product environmental policy, education & training and the use of hazardous substances. Conduct business solely with Eco-Partner-certified suppliers.
Annual supplier evaluation process and criteria
-
01
Year-round
self-assessmentSuppliers perform self-
assessment based on the
evaluation items
which is related with
business competitiveness
and sustainability. -
02
Self-
improvementSuppliers identify necessary
improvements on
their own
and make improvements.
Samsung
monitors risks and
offers feedback -
03
Evaluation
Suppliers are notified of
their final assessment
outcomes at the end of
each year -
04
Post-
managementSuppliers develop and
implement improvement
plans, and Samsung
provides assistance
Evaluation items for business competitiveness
-
Technology
The ownership of
technology patents
and R&D investment -
Quality
Failure rates and
quality management
system certification -
Responsiveness
Engagement in our
policies and activities
for innovation -
Delivery
On time delivery and
On time shipping -
Cost
Increase rate in
transaction value and
competitiveness in
cost
Evaluation items for sustainability
-
EHS
Workplace safety and
international
certification -
Finance
Credit rating and
debt ratio -
Law (Social)
Labor & human rights
in the workplace and
anti-corruption
Supporting our partners to be their best
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
974
billion
Investment in the
Win-Win Cooperation
FundFunding
Create funds valued at KRW 1 trillion with
commercial banks -
16,756
persons
Attendees of
supplier trainingEmployee capacity-building
Provide leadership, job expertise, global and other
courses by using
our supplier-only training facility -
375
companies
Suppliers that received
Smart Factory supportInnovation initiatives
Support 1,000 suppliers and SMEs without
business relationships
with Samsung across the
nation in improving their manufacturing
capacity
[2020 Outcomes of Our Key Win-Win Programs]
* 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 protected]), through an online whistle-blowing system on the Supplier Portal (www.secbuy.com), with on-site supplier consultations, and through various exchange meetings.
Supplier code of conduct and guide
We align our Supplier Code of Conduct with that of the RBA and share updates with our suppliers. We also provide a guide to help them comply with the Code and to put compliance management into practice.
Ensuring a safe workplace for everyone
We regularly monitor all our suppliers in accordance with RBA's (Responsible Business Alliance) 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.
Self-assessment
Annual self-assessment of all first- tier suppliers using a checklist based on 85 RBA criteria
On-site audits
On-site audits on high-risk suppliers
to identify improvement tasks.
High-risk suppliers : High impact based
on business volume or dependence,
Located in
geopolitically high-risk area,
Low grade with
self-assessment or
engaged in allegation
Conducted by independent
dedicated
audit staff, led by
RBA-certified
auditors
Square root of total number of
employees of suppliers interviewed
employees of suppliers interviewed
Third-party audits
RBA-certified third-party audit firms
randomly select suppliers and
conduct
Initial audits based on
RBA criteria
Only announce the selection of
the target and do not share the
specific schedule to ensure more
accurate audits since 2015
Take instant action on tasks that can
be immediately addressed Results
verified through Closure Audits
Our suppliers
Responsible sourcing of minerals
Samsung Electronics operates a mineral management system based on 'OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and manages smelters in the supply chain through suppliers we work with. We are actively sharing the smelter list with various stakeholders, including our customers. 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. The Responsible Minerals Report including smelter list and other information, outlines Samsung Electronics’ efforts to minimize the negative social and environmental impacts of mining operations, which are susceptible to human rights infringement and environmental destruction.
Samsung Electronics' minerals due diligence process based on OECD due diligence guidance
Smelter and refiner list
(As of the end of Dec., 2020)
| Certification completed |
Certification in progress |
Total | |
|---|---|---|---|
| Tantalum (Ta) |
38 | - | 38 |
| Tin (Sn) |
53 | - | 53 |
| Tungsten (W) |
42 | - | 42 |
| Gold (Au) |
107 | - | 107 |
| ※ Cobalt (Co) |
- | - | 27 |
