Sustainability Overview

Stakeholder Engagement
Samsung Electronics has been making an effort to establish trust with stakeholder through open communication
based on transparency, honesty and timeliness. We have strengthened communication with stakeholders including
shareholders/investor, customer companies, suppliers, NGOs, and government through meetings, conference calls,
survey and mail on both a regular and non-regular basis.
Key CSR issues raised by stakeholders are discussed during executive meetings with the executive in charge of CSR
and high priority issues are then discussed at management meetings hosted by the CEO for responses. This years
sustainability report contains information on sustainable management policies and achievements with focus on CSR
issues raised during the process of stakeholder communication.

Stakeholder Engagement in 2011

Shared growth is one the most discussed CSR issue today. In 2011, we held three all executive meetings on our shared growth promotion strategies and
implementation status. The key issues for each stakeholder and list of communication activities conducted on each issue is as follows.

Third-party customer satisfaction

surveys
Pro-sumer activities
Response on CSR-related
inquiries

IR Meeting
General Shareholders meeting
One on One Meeting

Shareholders/
Investors

Family Satisfaction Survey

Shared growth workshop
On-site interviews
Supplier networking and best
practice sharing

customers

Suppliers

Participation in policy
conferences and seminars

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Employees

Government

NGO

Employee satisfaction survey

Management-labor council
Online Reply Consultation Room
and Key Issue Discussion Board

CSR conference
Q&A on CSR issues
On-site survey of production
plants

Sustainability Overview Stakeholder Engagement

9 Material Issues

Facts & Figures

Appendices

Shareholders/Investors
We actively communicated our quarterly business results with our shareholders and investors and also hosted a number of meetings to communicate
our CSR policies and achievements. For example, many Socially Responsible Investment (SRI) companies visited the Samsung Electronics Headquarter in
Seoul and discussed key CSR issues relevant to the electronics industry. Key issues discussed included GHG emissions, waste management, environmental management targets, and occupational safety issues including allegation on leukemia cases, as well as compliance system management methods.

Agenda
Compliance risk management

Changes Made on Management Policy

Strengthened compliance management organization
Implemented signing of pledge on full compliance by all employees and training programs on awareness raising

Water resource management policy setup

Discussed water resource management as a key issue in executive meetings

Established water resource management policies and reduction targets

Leukemia

Established and operated Health Research Center

Disclosed result of health and safety assessment by independent assessment agency

Customers
Inquiries by customer companies on Samsung Electronics CSR activities dramatically increased in 2011. A significant number of suppliers were subjected to site audits and improvements were immediately made on some of the issues identified. Relevant policies and plans were also established to
address issues that required longer term effort.

Agenda
Reduction in work hours

Changes Made on Management Policy

Improved work shift system to reduce work hours
Maintain weekly record on time spent at work in order to reduce overtime (Individual record is accessible only by relevant head of
section and each individual)

Supplier CSR policies

Discussed supplier related CSR policies at working level and executive meetings on purchasing
Conducted self-assessment and site audits on suppliers CSR

Ban on use of conflict minerals

Key discussion agenda for CSR Executive Meeting and Procurement Executive Meeting
Compliance Letter sign-up and supplier training about conflict minerals
Investigation on use of conflict minerals and smelters

Compliance with Transparency in Supply

Announced Samsung Electronics commitment on supplier policies including ban on forced labor and trafficking

Chain Act in California U.S.

in all supplier companies

Employees
We created Samsung LiVE which is an online open communication platform for employees of all ranks. Many employees post memos on their person
lives as well as their opinions on internal issues. The members of top management posts reply on some of the memos posted to enhance understanding between each group and facilitate rich communication amongst members.
One of the online communication channels is named Reply Consultation Room and an active discussion on new products take place. Executives and
senior managers take note of opinions posted and reflect those opinions in new products and management policies.
A wide variety of information on guest lectures, new product information, in-depth stories and a series of executive interviews are also offered to
employees through Samsung Electronics LiVE. Real-time updates on news of its members are also offered. One of the key features of LiVE is a weekly
survey named Opinion Barometer which collects employee opinions on specific issues.

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NGO
Many of the international NGOs are going beyond collecting information through reading published materials but by making site visits
and conducting interviews with executives. In fact, some NGO representatives requested for visits to production plants in Europe and South East Asia
as well as interviews and surveys in 2011, and we provided support for their work. Samsung Electronics has been responding actively to various issues
raised by NGOs in the past and will sustain open communication with them.
Agenda

Changes Made on Management Policy

Employee welfare and safety

Made assessments on Samsung Electronics wage and benefits relative to the average wage in the electronics industry in respective countries.
Occupational health and safety policies

Environmental policies

Green management vision and implementation structure

and key achievements

Hazardous materials, waste water, waste generated

GHG emission reduction goals and achievements
Product energy efficiency improvement and eco-product development status

Government
Shared growth between large companies and SMEs was the policy focus of South Korean government in 2011. Samsung Electronics actively participated in a public-private dialogue, hosted by the Shared Growth Committee, in order to make active contribution in realizing shared growth objectives.
Samsung Electronics made its commitment for fair trade and supplier R&D support measures to strengthen their competitiveness.
As a member of Korea Business Council for Sustainable Development, Samsung Electronics also actively communicated our opinions on climate and
energy-related policies. We also raised awareness on the U.S. governments ban of use of conflict minerals, and how it can affect Koreas major industries including steel, automotive and machinery industries and held discussions to call for response on government level.
Agenda
Promotion of a culture of fair trade and shared growth

Changes Made on Management Policy

Maintained 100% case payment policy and increased payment frequency for better cash flow
Expansion of free capacity building programs for CEOs of supplier companies

Greenhouse gas reduction target management

Implementation of Energy Management System

10% reduction in electricity consumption and etc.

Ban on use of conflict minerals

Held seminars with Ministry of Knowledge Economy and Korea Electronics Association to raise awareness of the importance
of the ban on conflict minerals

Suppliers
Samsung Electronics has established various communication channels for the collection honest opinions from our suppliers. We have a dedicated supplier complaint and grievance handling system through which suppliers can communicate their problems and find solutions. We are also reflecting
supplier opinions collected through training sessions and seminars.
On November 2011, we held our first Shared Growth Communication Fair with 450 participants including CEOs from supplier companies, Samsung
Electronics CEO and executives. Information on various issues affecting suppliers were collected and discussed in order to find management solutions
for improvement.
Agenda

Changes Made on Management Policy

Provision of information for business forecasting

Hold business plan sharing meetings twice a year/Hold Seminars on market trend and product trend

Reasonable price setting

Monitor shared growth policy implementation status and create new policies

Reduction in order volume

Share information on changes in order volume and cost-absorption plans before a formal meeting is held

Improvement on payment requirement

Increase frequency of supplier payment within legally permitted range (Between 2 to 4 times per month)

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