1、Sustainability Report 2013with people, society& environment Samsung Electronics 2013 Sustainability ReportHarmonyGlobal IT . http:/ http:/ http:/ http:/ http:/ http:/ http:/ http:/ http:/ samsungtomorrow 74 11Tel82-2-2255-7337 EContentssustainability overview02 CEOMessage06 CorporateGovernance08 Man

2、agementResults10 MarketSharesbyBusinessArea12 GlobalNetwork14ContinuousGrowth16 OrganizationofBusinessAreas17 Investments&Patents20 StakeholderEngagement23 MaterialityMatrixMaterial Issue26 CreatingSharedValueandGivingBackwithSamsungProducts34 SocialResponsibility:MakingContributionsaroundtheGlobe42

3、 SharedGrowth46 HumanResources48 EcoProduct52 WaterManagement54 SupplierCSR56 Health&SafetyFacts & Figures62 CreationofEconomicValue68 TransparentManagement70 TalentManagement75SocialContributions76 SharedGrowthwithSuppliers78 GreenManagementenvironmental Reportenv02GreenManagementFrameworkenv12Clim

4、ateChangeMitigationenv24Eco-Productsenv38 GreenOperationSitesenv49 GreenCommunicationAppendices 90 AnIndependentAssuranceReport92 GRIIndex Samsung Electronics aims to create a new future that positively impacts the entire global community.Inspire the World Create the Future!In order to create value

5、for our stakeholders including customers, share-holders, investors, employees, suppliers and local communities Samsung Electronics has expanded our commitments to social and environmental re-sponsibility, embedding social contributions and sustainable practices into our core business. We are always

6、developing new goals to further improve upon our corporate citizenship and, in turn, helping to create a healthier global community. I look forward to your continued trust and support in these endeavors. Thank you. Dear Stakeholders, It has been twenty years since Samsung Electronics executed a seri

7、es of turnaround strategies that have fundamentally changed the way we manage our business.During the past two decades, Samsung Electronics has emerged as a leader in the IT industry, not only in terms of global sales but also in sus-tainability. This Samsung Electronics Sustainability Report for 20

8、13 pro-vides a comprehensive look at our efforts in environmental and social responsibility, from stories on our past successes to a focused vision for our future. The business environment in 2012 was tough for us just as it was for many others. However, Samsung has been able to successfully navigat

9、e the challenges of 2012s global IT marketplace and economy. This past year saw Samsung Electronics record its largest annual growth and oper-ating profits in its corporate history, further strengthening our leadership position in the global electronics industry. In 2012, external recognition of our

10、 companys value also continued to rise, as Samsung Electronics ranked 20th on the list of Fortune Global 500 Companies and 9th in In-terbrands Best Global Brands Report. The corporate value of Samsung Electronics skyrocketed all around the globe.Above all else, these successes are due to the hard wo

11、rk and expertise of Samsung Electronics employees, whose collaborative efforts enhance our companys competitiveness and accelerate innovation. There can also be no doubt that our companys achievements in 2012 would have been impossible without the keen interest and full support of all of our stakeho

12、lders like you. Let me take this opportunity, then, to extend my deepest gratitude to all of you for your great contributions to our companys accomplishments in 2012. I can personally assure you that Samsung Electronics will regard our success as an asset that positions us for future growth and real

13、ize our Vi-sion 2020 plan and become a leader in corporate citizenship. To that end, let me share with you some highlights of Samsungs sustain-ability efforts in 2012, specifically in terms of our contributions to both society and the environment. Under our philosophy of People First, Samsung contin

14、ued to hire great people around the globe who are the best and brightest in their field. Samsung took a variety of measures to make itself a world-class workplace. Samsung Electronics took great care to develop and foster a workplace environment that assured our workers health and safety. One highli

15、ght includes a program through hospitals, through which we offered various physical and mental health services to our employees. These services include onsite stop-smoking clinics, counseling centers and fitness facilities. Samsung is also committed to using our resources to help communities in need

16、. One of our most exemplary social contributions, the Samsung Hope for Children program, benefits around 200,000 children and young adults in the developing world in both education and healthcare and we will continue to increase our role in creating better lives for children around the world. In 201

17、2, in order to ensure the responsible management of our supply chain, Samsung Electronics intensified the systematic scrutiny of our sup-pliers in terms of labor conditions, human rights, and health and safety. In doing so, we identified key issues with which to measure our suppli-ers compliance som

18、e of which we took immediate measures to ad-dress. At Samsung Electronics, we view the growing imperative for eco-friend-liness as an opportunity for responsible business leadership. In 2009, we announced two key sustainability strategies in our 2013 Eco-Manage-ment Plan, namely reduction in GHG emi

19、ssions and increased eco-prod-uct launches. In 2012, Samsung Electronics exceeded its goals in these two strategies, whose work consisted of activities in three major areas: Green Operations, Green Products, and Green Communication. Through the release of this report, Samsung Electronics hopes to en

20、-hance communication with its stakeholders about the companys contri-butions to the economy, society and the environment. Wed also like to engage in open discussions with our stakeholders about the challenges we face while seeking ideas to address them. We firmly believe that a company can continue

21、to grow only when it maintains its stakeholders full trust and collaboration.Samsung Electronics aspires to further secure its position as a global electronics leader through creative business strate-gies that inspire future innovation and create opportunity for people around the world.Oh-Hyun KwonV

22、ice Chairman and CEOSamsung Electronics Co., Ltd. CEO MessageSamsung Electronics2013 Sustainability Report0203CEO MessageMakingthe smart Worldsec. 01sustainability overview06 CorporateGovernance08 ManagementResults10 MarketSharesbyBusinessArea12 GlobalNetwork14ContinuousGrowth16 OrganizationofBusine

23、ssAreas17 Investments&Patents20 StakeholderEngagement23 MaterialityMatrixA Global Leader in the IT Industry Committed to Making the World Smarter Since its founding in Suwon, Korea in 1969, Samsung Electronics has grown into a global in-formation technology leader, managing more than 200 subsidiarie

24、s around the world. The companys offerings include home appliances such as TVs, monitors, printers, refrigera-tors, and washing machines as well as key mobile telecommunications products like smart-phones and tablet PCs. Samsung also continues to be a trusted provider of key electronic components li

25、ke DRAM and non-memory semiconductors.Samsung pledges to create and deliver quality products and services that enhance conve-nience and foster smarter lifestyles for its customers around the world. Samsung is dedicated to improving the global community through its constant pursuit of groundbreaking

26、innova-tions and value creation.Throughout 2012, Samsung Electronics continued to advance its practice of sustainable management through responsible corporate governance. In addition to compliance with national and international law, Samsung also employs a set of ethical standards and values that gu

27、ide its decision making pro-cesses and work procedures. Through a corporate governance structure that centers on board of di-rector engagement, the company works to ensure transparent, responsible business management across all operations. Each policy and decision enacted by the board of directors s

28、eeks to maximize corporate value and enhance shareholder rights and interests.Specifically, the Samsung board of di-rectors is responsible for the execution of all matters as mandated by the Korean Commerce Act and the Samsung Electronics Articles of Incorporation, including those delegated by the c

29、ompanys gen-eral shareholders meetings. The board also makes important decisions on the companys manage-ment policies and oversees executive work performance.Responsibleand Transparent LeadershipCorporate Governance Vice Chairman & CEOOh-Hyun KwonVice Chairman & CEO, Head of Device Solutions, Samsun

30、g ElectronicsPresident & CEO Bu-Geun YoonPresident of CE, Samsung ElectronicsPresident & CEOJong-Gyun ShinPresident of IM, Samsung ElectronicsPresident & CFOSang-Hun LeePresident of Corporate Man-agement Office, Samsung Electronics Independent Director In-Ho LeeFormer President & CEO, Shinhan Bank I

31、ndependent Director Han-Joong KimPresident & Chairman, CHA Strategy Committee Independent Director Gwang-Su Song Advisor, Kim & Chang Law OfficeIndependent Director Byeong-Gi LeeProfessor of Electronic Engineering, Seoul National University Independent Director Eun-Mi KimDean, Graduate School of Int

32、ernational Studies, Ewha Womens University Major BOD Agenda Items in 2012DateAgenda Items DecisionDecision01/27/2012Three agenda items including 43rd financial statements and quarterly reportApproved4/402/20/2012Six agenda items including approval of LCD business spin-off Approved4/403/16/2012Three

33、agenda items including the appointment of the representative director and the assignment of director duties Approved3/404/02/2012Four agenda items including the report on and announcement of completion of the LCD business spin-offApproved4/404/27/2012Five agenda items including approval of the 44th

34、1Q12 financial statements and quarterly report Approved4/406/08/2012Appointment of the representative director and the assignment of director duties Approved4/406/25/2012Three agenda items including approval of the CEOs concurrent position as a director of Samsung Display Approved4/407/27/2012Two ag

35、enda items including approval of the 44th 1H12 financial statements, business report, and interim dividends Approved4/409/13/2012Two agenda items including the decision on the merger with SEHF Korea Approved4/410/26/2012Five agenda items including approval of the 44th 3Q12 financial statements and q

36、uarterly report Approved3/412/03/2012Three agenda items including the report on and announcement of conclusion of the merger with SEHF Korea Approved3/4Board of Directors (BOD) Composition The BOD is composed of four executive directors and a five-person independent director majority, an arrangement

37、 de-signed to both guarantee the boards independence and establish a transparent decision-making process with inputs from a broad spectrum of outside experts. In accordance with the Articles of Incorporation, the Independent Directors Rec-ommendation Committee initially selects candidates from among

38、 a pool of professional experts with in-depth knowl-edge and experience in a variety of areas including business management, economy, accounting, law, and technology. The independent directors meet separately from the BODs executive directors in order to promote a free exchange of ideas on all aspec

39、ts of the companys management. All direc-tors are prohibited from engaging in business activities within the same industry without the approval of the board. This ar-rangement is to prevent conflicts of interest as specified in the Korean Commerce Act and the Samsung Electronics Articles of Incorpor

40、ation.The BOD and CommitteesIn 2012, Samsung Electronics addressed 47 agenda items at a total of 11 BOD meetings. The three-year average director at-tendance rate (2010-2012) for BOD meetings stands at 94%. For swift and efficient decision-making throughout the com-pany, Samsung has established comm

41、ittees under the BOD in accordance with pertinent laws. The BOD refers certain mat-ters to the committees to be reviewed by members with in-depth experience and extensive expertise in the related fields.At present, six committees are in operation: Management Committee, Audit Committee, Independent D

42、irector Recom-mendation Committee, Related Party Transactions Commit-tee, Compensation Committee, and the newly-formed Corpo-rate Social Responsibility (CSR) Committee.The Related Party Transactions Committee helps boost the transparency of corporate management through the Fair Trade Autonomous Comp

43、liance System. The Audit Commit-tee, comprised of three independent directors, supervises and supports management through a process of checks and bal-ances to maximize corporate value. * For further details about the committees and meeting agenda items, please visit DART (Data Analysis, Retrieval an

44、d Transfer System) at http:/dart.fss.or.krEvaluation and CompensationEach year the BOD and its committees conduct self-evalua-tions of their annual activities and participation rates. For rea-sons of independence, their compensation includes only the basic salary and business travel expenses.Introdu

45、ction of the Corporate Social Responsibility (CSR) Committee Samsung has chartered the CSR Committee within its BOD in order to ensure legal compliance around ethical issues, over-see the companys contributions to promoting public welfare, and guide initiatives that satisfy ambitious corporate citiz

46、en-ship goals. The CSR Committee is composed entirely of inde-pendent directors. It has set up a subordinate research group in which many experts from a variety of fields take part. The CSR Committee recognizes a growing opportunity to further broaden Samsungs social contribution programs through co

47、l-laboration with external organizations. The committee will also ensure that the company promotes a culture of shared growth among the partners with whom it does business. Board of Directors (BOD) Total9Board of Directors4Board of Directors5Committee Status 6 Committees Management Committee Audit C

48、ommittee Independent Director Recommendation Committee Related Party Transactions Committee Compensation Committee CSR Committee(Independent Direnctors 5)Samsung Electronics2013 Sustainability Report0607Sustainability OverviewSamsung Electronics Revenue/Operating Profits TrendsA testament to its com

49、petitiveness and continued success on a global scale, Samsung Electronics became No.1 IT company in 2012 with annual revenue exceeding KRW 200 trillion. Independent of its current success, Samsung remains commited to future innovations and improvements in areas such as sustainable management, econom

50、ic value creation, and capacity to expand into new busi-ness areas. 200 Trillion KRW Annual RevenueManagement ResultsA Record in the Global Electronic Industry Global circumstances in 2012 posed a set of unique chal-lenges for Samsung Electronics. The global economic re-cession triggered by a worldw