Samsung Stakeholder

Sustainability Overview

Stakeholder Engagement

Genuine Stakeholder Communication

Samsung Electronics uses an array of communication channels to engage stakeholders in productive and relationship-driven conversation. The company hosts public stakeholder forums and maintains online blogs in an effort to encourage stakeholders to express their honest points of view on any matter related to the company.

Number of students participated in CSR Forum

100 Over 100 students who is

Samsung Holds Student CSR Forum & CSR Sharing Concert

company’s social responsibility policies and ways of im-

As part of its 2012 efforts to expand stakeholder en-

The company also held a CSR Sharing Concert event

gagement in discussions about the company’s policies

that convened volunteers and beneficiaries to both

and management, Samsung held a student CSR forum

share past CSR accomplishments and discuss potential

in Korea.

improvements in future CSR direction and program con-

The forum consisted of in-depth discussions about the

tent.

proving them.

interested in CSR attended to “1st CSR Forum for University

Stakeholders Engagement

every effort to reflect lessons from the feedback in the

Students” held by Samsung

Samsung pursues open, relationship-driven commu-

company’s future corporate policies and actions. In order

Electronics.

nication with stakeholders in order to promote shared

to facilitate effective communication with stakeholders,

growth. Samsung’s’ diversity of stakeholders includes

Samsung Electronics has designated a specialized com-

shareholders, customers, employees, NGOs, local com-

munications department for various stakeholder groups.

munities, suppliers, mass media, and the government.

Each of these departments holds forums, responds to

Taking care to match the appropriate communication

inquiries, conducts surveys and runs advisory groups for

channel with each group, Samsung carefully considers

its particular group of stakeholders.

Student CSR Forum Plan

Samsung Actions



Stakeholder Actions

• Thinking: Raise college students’ interest in CSR

• Collection of students’ queries about CSR

• Analysis & Plan: Meetings with CSR club

• Summarizing students’ needs

member students revealed that they had hardly any opportunities to witness actual corporate CSR cases. Preparation

• Selection of CSR Forum issues

• Collection of questions about Samsung’s CSR activities

• Decision on the forum date

each piece of feedback from stakeholders, and makes

• Assignment of experts in personnel, CSR,

• Proposal of the forum date

product development and the environment

Communication channels with stakeholders

Forum

• With experts in various fields, Samsung

Operations

Electronics presented its socially responsible

• Participation in discussions • Q&A

case studies and held discussions with students. Improvements • Establishment of a system that enables students

Suppliers Workshop on shared growth; voice of customer (VOC) claim processing; informal meetings with subcontractors

• Proposal of improvements to Samsung’s CSR activities

to participate in improving Samsung Electronics’

Shareholders/investors Investor relations (IR) meetings; annual general meeting of shareholders; oneon-one meetings

CSR activities

• Presentation of improvements at the Samsung student CSR forum

• Enhance publicity in order to drive student participation

Sharing Concert Media Press releases, interviews and briefings with reporters

Local communities Community service centers, local community councils

Plan

Samsung Actions

• Thinking: CSR volunteers and beneficiaries need to meet after CSR events



Stakeholder Actions

• Continuous exchanges between volunteers and beneficiaries following CSR activities

• Analyse & Plan : Volunteers and beneficiaries will share CSR preparation processes and impactful CSR cases to promote a sharing culture among concert participants

Customers The Government

Customer satisfaction surveys, proactive consumer activities, VOC claim processing, corporate social responsibility activities

Policy meetings, city council meetings, and policy-related advisory organization participation

Preparation

• Preparation of stories about sharing participate in the concert

Forum

• Annual summary of Samsung Electronics’ CSR

• Beneficiaries: share personal stories

Operations

• Sharing volunteers’ stories

• NGO: Presentation of ways to strengthen

• Community service plays, etc. Improvements • Expanding pro bono activities with advanced technologies • Reflection of relevant opinions in CSR programs

NGO

Employees

Business networking events, NGO gatherings, corporate social responsibility activities

Standard Corporate Protocol surveys; labor management councils, counseling center

• Preparation of stories by beneficiaries and NGOs

• Securing beneficiaries and volunteers who will

partnerships • Proposals of expanded pro bono activities using Samsung Electronics’ technologies and core competencies

Since joining the Electronic Industry Citizenship Coalition (EICC) in 2007, Samsung Electronics has proactively participated in the various initiatives of the EICC including joint actions on the industry’s common issues. During the 2012 EICC Winter Membership Meeting hosted by Samsung in Korea, Samsung shared Korean companies’ CSR accomplishments and the local government’s “Shared Growth” policies. The meeting also served as a valuable opportunity for the electronics industry to share CSR best practices with audiences in Korea. ✽ Samsung Electronics abides by AA1000SES(Stakeholder Engagement Standard) in all stakeholder forums.

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Materiality Matrix

Incorporation of Stakeholder Feedback Stakeholders

Major issues

Stakeholder Feedback Incorporated

Shareholders / investors

Ensuring compliance

Launch of a team tasked with monitoring suppliers’ compliance with labor laws; expansion of due diligence concerning suppliers; supplier trainings

Environmental policy concerning water resources and climate change

Establishment of a water resource management policy; assessment of water resource risks at facilities; adoption of water resource reduction technologies

Workplace environment improvements

Assuring suitable work hours (on a weekly basis); work leave sessions providing education on the necessity of employee vacation days

Customers

Production facility conditions Elimination of conflict minerals

Establish transparent corporate culture by improving material issues and fostering law-abiding business environment

Materiality Matrix

Assurance of labor rights at production facility (including minimum wage observance); strengthening of workplace safety teams that improve environmental health & safety (EHS) management Auditing suppliers’ use of ores; smelter/refinery mapping; participation in the EICC Extractives Work Group

Samsung Electronics received consultation from PwC, an independent multinational professional services firm, regarding its selection of material issues for 2012. After checking with both internal and external stakeholders, Samsung Electronics selected the following as the material issues for 2012 and included them in the report: Feedback from External Stakeholders 132 cases in 2012

Trend Surveys Media Coverage & Industrial Surveys

Level of interest among stakeholders

Sustainability Overview

Evaluation of Social Concerns

Employee Diversity

Conflict Mineral

Contribution through products Recruitment

Climate Change

Mineral use

Supplier labor rights

Water Management

Shared growth

Shared growth

Expansion of shared growth policy with first and second suppliers; support system for supplier recruitment; development of ‘small but strong‘ support program

Strengthening of workplace safety

Strengthening of teams in charge of workplace safety management; strengthening of process improvement and diagnosis

Environmentally-friendly Product Development Subcontractor-related corporate social responsibility

Impact on business

Issues

Partners

Ethical facility management

Establishment of collaboration councils in local production communities; improvement of chemical emissions/wastewater discharge

Contributions to local communities

Expansion of the Hope for Children program; increase in corporate social contribution investment

Facilitating supplier business growth

Support system for ‘small but strong’ global businesses; operation of the Innovative Technology Company Council (ITCC); adoption of the Open Sourcing system

Fair pricing

Purchase of raw materials by Samsung for its suppliers to help manage component prices

Assistance for suppliers’ recruitment

Holding job expos to help suppliers hire employees

Major Contents

Page

Compliance

Compliance management, etc.

68, 69

Employment

Expanded employment & recruitment of underserved members of society

46, 47

Employee Diversity Promotion of inclusion in the composition of staff and executives by hiring a broad array of diverse groups

46, 47

Safety & Healthcare Promotion of employee health and creation of safe, pleasant workplaces

56~59

Conflict Mineral*

Local Communities

Environment

Social contribution

Biodiversity

Material Issue Government

Society

Professinoal Development

Distribution of procedure for banning the hiring of underage employees; routine monitoring for compliance Establishment of a biodiversity policy; appraisal of water resource-related risks and mitigation system adoption; measuring of GHG emission reduction; banning harmful materials in products

Human/Labor

Health & Safety

Disclosure of ore extraction sites; analysis of suppliers’ mineral use; smelter/refinery mapping; participation in the EICC Tin Initiative

Environmental policy

Selection of Material Issues

Compliance

Increase product accessibility

NGO

Evaluation of Business Impact & Control Degrees

Enhance the transparency of supply chain to ban the use of minerals in the conflict regions

Website

Suppliers' Corporate Suppliers’ compliance with rules relevant to human rights, labor and environmental safety Social Responsibility

54, 55

Social Contribution Supporting local community development and helping populations in need

34~41

Contribution through products

Creating Shared Value through the development of new products as well as helping to resolve social and environmental issues

26~33

Shared Growth

Enhanced supplier competitiveness and promotion of fair transactions

42~45

Increase product accessibility

Expanded accessibility for populations requiring special accommodations

32, 33

EnvironmentallyFriendly Products

Development of high-efficiency products to reduce environmental impact Environmentally-friendly packaging to conserve natural resources, etc.

48~51

Climate Change

Reductions in GHG emissions from to corporate activities

78~81 52, 53

Water Management Reductions in water consumption and waste water disposal * For more information please visit our sustainability website at www.samsung.com/us/aboutsamsung/sustainability/suppliers/conflictminerals/

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