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Sustainable Management

Samsung Electro-Mechanics continues with its relentless endeavor to become
the world’s most competitive and sustainable leader of its field.

Vision / Strategy

Sustainability Vision

Samsung Electro-Mechanics is practicing sustainable management based on the trust among various stakeholders including customers and shareholders to move forward as, not just a leading global player that spearheads the cutting-edge technological fields in the world, but also as a creative innovator. We will fulfill our corporate social responsibilities by achieving sustainable growth through the maximization of corporate values as well as by catering to stakeholder demands.

To this end, Samsung Electro-Mechanics is committed to 6 core areas i.e. ‘Environmental management’, ‘Shareholders-valued management’, ‘Quality first management’, ‘Sharing management’ and ‘Win-win management’. Accordingly, we will pursue economic feasibility and a balance with the environment, and contribute to solving social problems.

Sustainability Management Strategy

Corporate Social Responsibility Pragmatizer

Fulfillment of Internal/External
Affiliated Personnel’s Demand

Sustainable Growth

  • Eco-friendly Management

    Environmental Management/
    Eco-efficiency/
    Climate Response

    Environmental
    Sustainability
  • Quality Management
    Centered on Shareholders

    Corporate Governance/
    Ethical Policy/
    Customer Satisfaction

    Economic
    Sustainability
  • Nurturing Skilled Human
    Resources, Sharing Management,
    Mutual Management

    Raising Human Resource/
    Social Contribution/
    Supporting Affiliated Companies

    Social
    Sustainability

Organization

Task Force on Sustainability

Samsung Electro-Mechanics operates a Sustainability Management Task Force to respond to environmental, social and governance (ESG) management issues through a strong collaboration system. The Sustainability Management TF creates synergies based on an organic collaboration system that includes responding to questions from ESG evaluation agencies, publishing sustainability reports, and inquiring about sustainability management of clients. Through this, we are able to respond to the latest issues by understanding global and industry trends, as well as strategic directions related to sustainability management. With various teams at the core—including our support, finance, human resources, safety and environment, and procurement teams—we respond to the demands of our internal and external stakeholders and drive sustainable development.

Samsung Electro-Mechanics is catering to internal and external stakeholder needs and driving sustainability. We are responding to internal and external stakeholder demands and driving sustainable development driven by efforts of Business Support Team, Finance & Accounting Team, Human Resource Team, Safety Environment Team, Procurement Team, etc.

Stakeholder Communication

Samsung Electro–Mechanics values open communication with various interest groups. Through transparent corporate management and mutual trust opinions are actively obtained. These opinions are actively reviewed, applied in different sustainable management policies and made public through domestic and foreign channels.

Stakeholder Communication
  • Customers
  • Business Partners
  • Employees
  • Communities
  • Environment
  • Shareholders

Significance Analysis

Discovery Process for Key Issues

  1. STEP 1 Issues
    Media Research
    Review Global ESG Standards
    (GRI, DJSI, CDP, EICC, etc.)
    Discovering Internal Management Issues
  2. STEP 2 Identification
    Grouping Issues
    Designating Stakeholder Groups
  3. STEP 3 Prioritization
    Analyzing the Stakeholder Questionnaire and Results
    Quantifying the Issues
  4. STEP 4 Key Issues
    Analysis of Top 3 Issues
    Selecting Issues to be Reported
  5. STEP 5 Materiality Matrix
    Final Verification
    Reporting Application

Top 3 Issues by Sector

Environmental Issues
Product Stewardship
We monitor laws and regulations and operate our IT system to enhance the eco-friendliness of our products through appropriate management of hazardous materials within products. By 2020, we will conduct a survey on the use of four kinds of phthalates (DEHP, BBP, DBP, and DIBP) and realize the complete elimination.
Investment in Environmental
We contribute to a better environment through systematic and proactive investment in facilities for water and air quality and waste.
Climate Change
We respond to risks and opportunities in climate change by targeting to reduce the GHG emissions by source over the mid and long-term goal.
Economic Issues
Management Performance
We diversify our product line-up by developing new products continuously to adapt to rapid changes in the IT environment and to prepare ourselves for the future. We plan to develop high reliability MLCC by 2020.
Business Risks
We do the utmost to reduce financial and non-financial risks through continued risk inspection for global operation sites and supply chains.
Ethical Management
We practice a corruption-free corporate culture in and outside Samsung Electro-Mechanics through activities to prevent and block corruption and irregularities while complying with local laws.

Risk Management

Internal Accounting Management

For the purpose of transparency, accounting information and for the proof of trustworthiness of the information disclosed among our stakeholders, Samsung Electro-Mechanics operates under an internal audit management system. Not only is the financial reported by the internal accountant at Samsung Electro-Mechanics, but there is also a much broader sense of an audit system that meets global standards in management of policies.

This helps us to prepare for any potential business risks, including CSR related issues, environment related regulations, conflicts on minerals management and environmental friendliness evaluations and more.

Business Continuity Management

Samsung Electro-Mechanics contributes to sustainable growth by ensuring a stable supply of products and services to customers based on the continuity of production activities. We have established the business continuity management in preparation for business suspension due to unexpected accidents.

Samsung Electro-Mechanics created scenarios to respond to crises caused by major accidents including fire and blackouts to secure business continuity. Periodic training and education on the business continuity procedure is conducted We categorize major stakeholders including internal/external customers, business partners and communities and maintain communication through stakeholder analysis.

Climate Change

Samsung Electro-Mechanics put in place a decision-making process to respond to the emission-trading scheme by operating the Climate Strategy Committee and regularly monitoring the financial impact resulting from the emission right trading. Site-specific annual safety check is carried out by an external agency, enabling comprehensive risk assessment and management of assets including on-site buildings, facilities and machinery occurring due to natural disasters.
As such, we do the utmost to maintain stable business activities.

Information Protection

We prescribed information security regulations and implementation guidelines to protect Samsung Electro-Mechanics’s critical information and assets, and operate physical and technical protection measures to abide by them. This helps us to maintain optimized sites in security through periodic inspection and improvement activities. Thanks to close business ties with related agencies outside, we explore industrial security trends and information leakage scenarios through preventive programs to safeguard against security accidents.

Tax Risk

Samsung Electro-Mechanics fulfills the obligations on tax filing and payment of taxes by complying with tax laws of local countries as prescribed in Samsung Electro-Mechanics’s tax payment management guideline. To this end, we maintain transparent relationships with tax authorities in local countries where local subsidiaries of Samsung Electro-Mechanics belong, help with career management of personnel in local subsidiaries, and proactively utilize external specialists including accountants.

Taxpaying Management Guideline

Principle: Compliance with the HQ and tax laws of local countries

  1. 1. All laws and regulations shall prioritize accounting standards and tax laws of the HQ and local countries.
  2. 2. Parties involved shall recognize differences between tax laws in each country, comply with tax laws in all transactions, and implement tax filing and tax paying obligations.
  3. 3. Employees in charge of tax payment at local subsidiaries shall maintain transparent relationships with the tax authorities in each country and strive to prevent tax risks.
  4. 4. Management of internal personnel and utilization of external specialists must be maximized to comply with tax laws in local countries of overseas subsidiaries and prevent tax risks.
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