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Sustainability

Overview Stakeholder Engagement


Genuine Samsung Electronics uses an array of communication channels to engage stakeholders in produc- Number of students Samsung Holds Student CSR Forum & CSR companys social responsibility policies and ways of im-
tive and relationship-driven conversation.The company hosts public stakeholder forums and main- participated in CSR Forum Sharing Concert proving them.
Stakeholder tains online blogs in an effort to encourage stakeholders to express their honest points of view on As part of its 2012 efforts to expand stakeholder en- The company also held a CSR Sharing Concert event

100
Communication any matter related to the company. gagement in discussions about the companys 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-
Over 100 students who is The forum consisted of in-depth discussions about the tent.
interested in CSR attended to
1st CSR Forum for University Student CSR Forum
Stakeholders Engagement every effort to reflect lessons from the feedback in the Students held by Samsung
Electronics. Samsung Actions Stakeholder Actions
Samsung pursues open, relationship-driven commu- companys future corporate policies and actions. In order
nication with stakeholders in order to promote shared to facilitate effective communication with stakeholders, Plan Thinking: Raise college students interest in CSR Collection of students queries about CSR
growth. Samsungs diversity of stakeholders includes Samsung Electronics has designated a specialized com- Analysis & Plan: Meetings with CSR club Summarizing students needs
member students revealed that they had hardly
shareholders, customers, employees, NGOs, local com- munications department for various stakeholder groups.
any opportunities to witness actual corporate
munities, suppliers, mass media, and the government. Each of these departments holds forums, responds to
CSR cases.
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. Preparation Selection of CSR Forum issues Collection of questions about Samsungs CSR
Decision on the forum date activities
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 Participation in discussions
Operations Electronics presented its socially responsible Q&A
case studies and held discussions with students.

Improvements Establishment of a system that enables students Proposal of improvements to Samsungs CSR
Suppliers Shareholders/investors to participate in improving Samsung Electronics activities
Workshop on shared growth; voice
Investor relations (IR) meetings; annual CSR activities Presentation of improvements at the Samsung
of customer (VOC) claim processing;
general meeting of shareholders; one- Enhance publicity in order to drive student student CSR forum
informal meetings with subcontractors
on-one meetings participation

Sharing Concert

Media Samsung Actions Stakeholder Actions


Local communities Press releases,
Community service interviews and Plan Thinking: CSR volunteers and beneficiaries need Continuous exchanges between volunteers and
centers, briefings with to meet after CSR events beneficiaries following CSR activities
local community reporters
Analyse & Plan : Volunteers and beneficiaries
councils will share CSR preparation processes and
impactful CSR cases to promote a sharing
culture among concert participants

Preparation Preparation of stories about sharing Preparation of stories by beneficiaries and NGOs
Customers
Securing beneficiaries and volunteers who will
The Government Customer satisfaction
participate in the concert
Policy meetings, surveys, proactive
city council meetings, consumer activities, Forum Annual summary of Samsung Electronics CSR Beneficiaries: share personal stories
and policy-related VOC claim processing, Operations Sharing volunteers stories NGO: Presentation of ways to strengthen
advisory organization corporate social
Community service plays, etc. partnerships
participation responsibility
activities Improvements Expanding pro bono activities with advanced Proposals of expanded pro bono activities using
technologies Samsung Electronics technologies and core
Reflection of relevant opinions in CSR programs competencies
NGO Employees
Business networking events, Standard Corporate Protocol surveys; Since joining the Electronic Industry Citizenship Coalition (EICC) in 2007, Samsung Electronics has proactively participated in the
NGO gatherings, corporate social labor management councils, counseling various initiatives of the EICC including joint actions on the industrys common issues.
responsibility activities center During the 2012 EICC Winter Membership Meeting hosted by Samsung in Korea, Samsung shared Korean companies CSR ac-
complishments and the local governments 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.

20 2013 Sustainability Report Samsung Electronics 21


Sustainability
Overview Materiality Matrix
Incorporation of Stakeholder Feedback
Establish transparent 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
corporate culture by and external stakeholders, Samsung Electronics selected the following as the
Stakeholders Major issues Stakeholder Feedback Incorporated improving material material issues for 2012 and included them in the report:
issues and fostering
Shareholders Ensuring Launch of a team tasked with monitoring suppliers compliance with labor laws; expansion Feedback
compliance of due diligence concerning suppliers; supplier trainings
law-abiding business Trend Surveys Evaluation of
/ investors from External Evaluation of Social Selection of
Media Coverage & Business Impact &
environment Industrial Surveys
Stakeholders Concerns
Control Degrees
Material Issues
Environmental policy con- Establishment of a water resource management policy; assessment of water resource risks 132 cases in 2012
cerning water resources and at facilities; adoption of water resource reduction technologies
climate change

Level of interest among stakeholders


Customers Workplace environment Assuring suitable work hours (on a weekly basis); work leave sessions providing education Materiality Matrix
improvements on the necessity of employee vacation days Employee Human/Labor
Contribution through products
Conflict Mineral Diversity
Compliance
Production facility Assurance of labor rights at production facility (including minimum wage observance); strength- Recruitment
Climate Change Society
conditions ening of workplace safety teams that improve environmental health & safety (EHS) management Health & Safety
Water Shared growth
Environment
Management
Elimination of conflict Auditing suppliers use of ores; smelter/refinery mapping; participation in the EICC Extrac- Social contribution

minerals tives Work Group Environmentally-friendly


Product Development
Increase product accessibility
Subcontractor-related corporate
NGO Mineral use Disclosure of ore extraction sites; analysis of suppliers mineral use; smelter/refinery map- social responsibility
ping; participation in the EICC Tin Initiative
Professinoal
Development

Supplier labor rights Distribution of procedure for banning the hiring of underage employees; routine monitor-
Biodiversity
ing for compliance

Environmental policy Establishment of a biodiversity policy; appraisal of water resource-related risks and mitiga-
Impact on business
tion system adoption; measuring of GHG emission reduction; banning harmful materials in
products
Material Issue Issues Major Contents Page
Government Shared growth Expansion of shared growth policy with first and second suppliers; support system for sup-
Compliance Compliance management, etc. 68, 69
plier recruitment; development of small but strong support program
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
Strengthening of Strengthening of teams in charge of workplace safety management; strengthening of
workplace safety process improvement and diagnosis Safety & Healthcare Promotion of employee health and creation of safe, pleasant workplaces 56~59

Conflict Mineral* Enhance the transparency of supply chain to ban the use of minerals in the conflict regions Website
Local Communities Ethical facility Establishment of collaboration councils in local production communities; improvement of
Suppliers' Corporate
management chemical emissions/wastewater discharge Suppliers compliance with rules relevant to human rights, labor and environmental safety 54, 55
Social Responsibility

Social Contribution Supporting local community development and helping populations in need 34~41
Contributions to local Expansion of the Hope for Children program; increase in corporate social contribution
Contribution Creating Shared Value through the development of new products as well as helping to resolve
communities investment 26~33
through products social and environmental issues

Shared Growth Enhanced supplier competitiveness and promotion of fair transactions 42~45
Partners Facilitating supplier busi- Support system for small but strong global businesses; operation of the Innovative Tech-
Increase product
ness growth nology Company Council (ITCC); adoption of the Open Sourcing system accessibility
Expanded accessibility for populations requiring special accommodations 32, 33

Environmentally- Development of high-efficiency products to reduce environmental impact


Fair pricing Purchase of raw materials by Samsung for its suppliers to help manage component prices 48~51
Friendly Products Environmentally-friendly packaging to conserve natural resources, etc.

Climate Change Reductions in GHG emissions from to corporate activities 78~81


Assistance for suppliers Holding job expos to help suppliers hire employees
recruitment Water Management Reductions in water consumption and waste water disposal 52, 53

* For more information please visit our sustainability website at www.samsung.com/us/aboutsamsung/sustainability/suppliers/conflictminerals/

22 2013 Sustainability Report Samsung Electronics 23