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Upholding responsible
supply chain standards throughout the supply chain

Meeting stringent standards
through open communication

A responsible the
supply chain is a basis
for a safe and sustainable future

A responsible
supply chain
is a basis for a
safe
and sustainable
future

Fairness, openness and win-win. These are Samsung’s three values that inform how we manage our supply chain, one that is currently made up of some 2,200 partners around the globe. These values drive us as we strive for mutual growth with our partners through fair evaluations and open communication.

Keeping our partners safe and the
supply ecosystem healthy with a
responsible supply chain

Headquartered in South Korea, Samsung is a global company with offices around the world. And because we believe a safe and healthy work environment is the starting point for a safe and healthy future for our partners and their workers, we set and enforce the same high standards for all our partners wherever they are.

Samsung creates a
wave of socially
and environmentally responsible practices
throughout the supply
chain

As part of our efforts to build a responsible supply chain, we work hard to protect our suppliers and their workers. We provide support for our partners to conduct all their activities ethically and in full compliance with the local laws, rules and regulations.

An integrated work environment
management process

To ensure a responsible supply chain, we developed a self-assessment tool for our partners based on 85 standards set out by the RBA, and once a year, they use this tool to identify areas for improvement. As follow-up measures for self-assessments, Samsung carried out on-site audits at 376 partner companies that were found to be “high risk” in 2020. By applying the RBA-based method of calculating compliance rates and taking corrective measures, the average compliance rate of audited suppliers was found to be 95%.

Work environment management process
Self-assessment
  • Annual self-assessments
    using a checklist
    based on
    RBA criteria
  • All first-tier suppliers
    are
    required to carry
    out
    assessments
On-site audit
  • Carried out on high-risk
    suppliers to
    identify tasks
    for improvement
  • 376 suppliers were
    audited in 2020
  • Follow-up audits to check
    the completion of tasks
Third-party audit
  • RBA-certified third-party auditors
    randomly
    select suppliers and conduct initial audits
    based on RBA criteria
  • Action is taken on issues that can be addressed
    immediately, and corrections are verified
    through
    closure audits

Zero-tolerance policy
for child labor

Respecting and protecting human rights is a top priority for Samsung, and that is why we have a strict zero-tolerance policy for child labor. Every year, Samsung carries out intensive checks to monitor the implementation of the Child Labor Prohibition Policy. If a partner is found to engage in child labor or forced labor, we enforce immediate corrective actions and impose penalties on the supplier evaluation score and reduce our business volume with them. Audit results of 177 partners in 2020 revealed no instances of child labor violations. But we requested that some partners implement more stringent checks for age verification during the hiring process, such as ID verification and paperwork for documented evidence according to local laws and regulations.

Safeguarding our future by protecting human rights and work environments

Safeguarding our future by
protecting human rights and work environments

Samsung expects the highest ethical and working environment standards from our partners worldwide because our partners are the drivers of a sustainable future. That is why every day we strive to create a safe and healthy environment for the management and workers at our partner companies. And why we will continue to protect our partners by building a responsible supply chain.

  • Based on the RBA codes of conduct and local laws, Samsung’s own standards
    ensure partner compliance

    Supplier Code of Conduct

    • Labor and
      human rights

      We practice legal employment
      and protect the rights of all
      workers

    • Health and safety

      We ensure the safety of the
      worker, and build and maintain
      a healthy and safe working
      environment

    • Environment

      We strive to reduce our
      environmental impact and
      practice strict waste
      management

    • Ethics

      We uphold the highest
      standards of integrity and
      ensure compliance of local
      laws and regulations

    • Management
      system

      We establish a management
      the system that is committed to
      compliance with labor, health
      and safety, environment and
      ethics regulations

    Read the full Supplier Code
    of Conduct

    Read the full Samsung Electronics
    Supplier Code of Conduct Guide

    As a member of the Responsible Business Alliance (RBA), Samsung applies RBA’s Code of Conduct (Version 7.0) to the Samsung Supplier Code of Conduct. Our Code of Conduct is designed to ensure compliance with Samsung’s standards and local laws and regulations, which are essential for mutual growth. We also offer a supplementary Supplier Code of Conduct Guide to help suppliers understand the Code better and provide detailed guidance on labor & human rights, health & safety, the environment, ethics and management systems.

  • Samsung provides
    all-round support to partners

    Supporting supplier compliance efforts in 2020

    Compliance
    education

    Hosted workshops
    at 321 global partners

    Labor and human
    rights education

    Conducted training
    at 583 global partners

    Fair trade
    education
    in
    Korea

    Carried out training
    for 408 global partners

    Compliance
    special audit

    Provided customized
    consulting
    to 26
    partners in Malaysia

    To provide effective and practical support for our partners, we carry out regular assessments and identify areas for improvement. Depending on the assessments, we then follow up with practical training for management and working-level staff, and when needed, our experts visit partner sites to provide on-site consulting.

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