How do Samsung work with sustainable suppliers?

As part of their supply chain management strategy, Samsung aims to support their suppliers to build a stronger competitive edge in order to establish a sound corporate ecosystem and a sustainable supply chain. They also operate a risk management system through their procurement and supply operation to minimise human rights infringements and environmental impacts in the mining process in high-risk areas.

Three key areas of Samsung’s Supply Chain Management Strategy 

Economic 

They secure an all-encompassing competitive edge in cost, delivery, quality, technology, and human resources in order to maximise synergy, speed, and efficiency with their suppliers and create a corporate ecosystem that enables sustainable growth.

Social 

Samsung requests that international standards and regulations be abided by in the areas of human rights management, work environment, ethics, and conflict mineral issues with an aim to build an open and transparent management accountability system that engages all stakeholders along the supply chain.

Environmental 

They work solely with Eco Partner-certified suppliers so that they can assess and manage the environmental impact that may occur in their components, raw materials, and manufacturing process.

Supplier operations and new supplier criteria 

As new suppliers approach Samsung’s International Procurement Centre, there are certain criteria they have to meet, to make sure they fit into the wider sustainable procurement and supply chain strategy.  

Environment and safety

Samsung request suppliers to satisfy the criteria set in 22 articles, spanning occupational safety, fire prevention equipment, occupational health, hazardous substances, and environmental facilities. There are nine mandatory compliance items, including fire prevention equipment, hazards and waste, sewage and wastewater facilities.

Labour rights

New suppliers are asked to satisfy the criteria set in 20 articles, including voluntary work, compliance with work hour regulations, and ban on discrimination.

There are three mandatory compliance items including prohibition of child labour, guarantee of a minimum wage, and prohibition on inhumane treatment.

Eco-Partner

They also insist on reviews on product environmental policy, education & training and the use of hazardous substances. Samsung also conducts business solely with Eco-Partner-certified suppliers.

Suppliers also have to work through an annual evaluation process, which includes year round self assessment, self improvement plans, yearly evaluation of outcomes, and a post-management process where improvement plans are formulated and Samsung provides assistance.  

Responsible procurement of minerals

Samsung Electronics operates a mineral management system based on 'OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’, and manages smelters in the supply chain through suppliers we work with. They actively share the smelter list with various stakeholders, including their customers. Additionally, they encourage suppliers to partner with smelters certified by the RMAP (Responsible Minerals Assurance Process), and require uncertified smelters in their supply chain to become certified by the RMAP. The Responsible Minerals Report, including smelter list and other information, outlines Samsung Electronics’ efforts to minimise the negative social and environmental impacts of mining operations, which are susceptible to human rights infringement and environmental destruction.

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Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine

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