SAMSUNG Electronics

SAMSUNG of creative Management :

"To leap to the Centennial Company”

SNUCSR NETWORK
 Contents

4-1. Overview of Samsung Electronics

4-2. CSR Activities of Samsung Electronics
4-3 Best Case
1)Eco-partnership
2)Samsung Software Membership
 Contents

4-1. Overview of Samsung Electronics

1)Vision and Mission
2)History and Performance
3)Organization
4-2. CSR Activities of Samsung Electronics
4-3 Best Case
1)Eco-partnership
2)Samsung Software Membership
 4-1. 1) Vision and Mission
Vision
SAMSUNG is guided by a singular vision: to lead the digital convergence
movement.
Mission
SAMSUNG is guided by their mission: to be the best “digital-ε
Company”.
Digital ε
To create technology products To put into place the most
and services that lead the To be the best efficient management and
industry Digital-ε production processes
Company

Company
To maintain a steadfast focus on strengthening our organization, on
continuing to be a global technology leader and trusted responsible
company
 4-1. 2) History and Performance
General Information History
Founded
Stock Price 1969 1969 SAMSUNG-Sanyo Electronics
Market Cap 683,000 KRW (2009. 7. 24) established
Headquarter 100,605 B KRW (2009. 7. 24) 1972 Began production of black-and-
s Seoul, Korea white televisions for domestic
CEO Yoon-Woo Lee 1986 sale
Business Manufacturing (Display, Cell Developed the world's
Area Phone, Semiconductor, etc) smallest, lightest 4mm video
1992 tape recorder
Performance Development of world's first
B USD CAGR 5Y: 11.4% 1998 64M DRAM completed
Achieved top share of world’s
106.0 110.4 2001 TFT-LCD market
89.5 Ranked No. 1 of world's Top
78.7 2003 100 IT Companies by
71.6
BusinessWeek
2007 SAMSUNG brand value ranked
25th in the world by Interbrand
2008 Developed the world's first
30nm-class 64Gb NAND
Flash™ memory
Profit(%) Samsung takes No. 1 spot in
13.2 9.5 9.3 7.5 4.6
U.S. cellphone market
Developed the world's first
2Gb 50 NANO
4-1. 3) Organization
 Contents

4-1. Overview of Samsung Electronics

4-2. CSR Activities of Samsung Electronics
1)Philosophy & Value
2)CSR with Business
3)CSR Programs
4)The Sustainable Report
4-3 Best Case
1)Eco-partnership
2)Samsung Software Membership
Philosophy & Values
CSR with Business
Employee
Local Community
Customer
Environment Business Partner
 CSR Programs
5 Values Sustainability Programs

People • HR Development • Scholarship

• Recruiting • Samsung Software Membership
• Working Condition • Open Recruitment – No Photo, Family
Background, and Physical description
• IRO (International Recruit Officer)
• GWP (Great Work Place)

Excellence • Product Quality • Process-specific quality assurance system

• CSM : Customer
Satisfaction Management (CS Certification, SQCI, SQA, IQIS,
Safety testing laboratory)
• MDC (Market Driven Change)
• Prosumer (Mobile Phones, PCs, Printers)
• Overseas Samsung Exclusive Service
Center
 CSR Programs
5 Values Sustainability Programs

Change • Climate Change • New Business (New and Renewable

• Eco-Friendly Product Energy)
• Environment Regulation Compliance
(RoHS)
• Improvement of Energy Efficiency

Integrity • Ethical Management • Cyber Auditors

• Anti-Corruption Educational Vedio
• Audit Committee

Co- • Social Contribution • Recycling

prosperity • Green Workplace • Eco-Partnership
• Business Partner • Volunteer Program for the local
community
• LCA
 The sustainable report
GRI G3Guidelines

Self Declared- ‘B’ ThirdPartyChecked- ‘B+’bySamjongKPMG

Assessmen Total Respondent (%)

t Area Indicator ○ △ Ｘ
s

Economic 9 4 (44%) 4 (44%) 1 (11%)

Environment 30 20 (67%) 7 (23%) 3 (10%)
Employee 14 1 (7%) 10 (71%) 3 (21%)
Human Rights 9 0 (0%) 3 (34%) 6 (67%)

Local 8 1 (13%) 5 (63%) 2 (25%)

Community
Product 9 4 (44%) 2 (22%) 3 (33%)
 Contents

4-1. Overview of Samsung Electronics

4-2. CSR Activities of Samsung Electronics
4-3 Best Case
1)Eco-partnership
a) Overview and Process
b)Scope of the Case
c) Benefits from the CSR Activities
d)Suitability and CSR Valuation
e) Suggestions
2)Samsung Software Membership
Case 2. (a) Overview and Process

Raw Material Supplier 650 Trained

Inspectors
Analysis Data Information

Part Supplier Environment Certificate

- Environmental Quality
- Management System
- Self Evaluation
- Analysis Data
Samsung Electronics
- Paper Screening
- Partner Companies
- Environmental Quality
- Management System
Evaluation
Eco-partner Certification - Sample Verification
procedure
 Case 2. (b) Scope of the Case

Raw Material Part Samsung Products &

Supplier Supplier Electronics Services

2 Entire Supply Chain

International SEC applies environmental
standard on its entire products
through eco-partnership and
plans to expand its scope into
first and second partner
companies as well
National 1 Detailed analysis report for
products
3 National/Internationa
1. Period of Validation: 1 year
l
2. Written language: English
3. Must contain analysis information
SEC certified all of its
on 6 harmful materials
partner companies both
4. Multiple reports are required for
at home and abroad in
individual part
July 2005
 Case 2. (c) Benefits from CSR Activities

It foster greenness of the entire supply chain

which eventually leads to more effective
environmental economy of the industry

Replacement Improvement Cost saving

Replacing Improve the Cost savings Cost savings

hazardous work through through the
substances in environment technology improvement of
the product through the transfer parent chemical
substitution improvement company holds processes
process
 Case 2. (d) (1) Suitability Valuation

Global Trend •Strong environmental standard is no longer an option.

•Consumers consider not only prices and qualities of
products but also reputations of manufactures rather
than before
•Eco-partnership of Samsung coincide with the global
trend
Korea •SMEs have no option but to comply with the green
standards for the sake of sustainable relations with large
companies
•It is very meaningful that Samsung, an IT giant, applies
its standard on partner companies
Industry KSF •Prices and qualities of products are less effective than
before
•With the emergence of consumers who check harmful
nutrients and manufacturing procedures, environmental
standards are becoming a must
Core •Products of SEC (Semiconductor, LCD-TV, etc) tend to
Competence generate sizeable toxic materials
•It would have to pioneer a core green business
Case 2. (d) (2) CSR Valuation

Social Aspect
Increase in public awareness and interest

Support fund raising

Participation increase in social issues

Change in public’s behavior

Increase in fund and other assets

Corporate Aspect
Strong corporate reputation created

Help connect business vision (philosophy) with profit

Attract and retain enthusiastic employees

Reduce operational cost

Reduce regulators’ control

Help attain marketing goals

Create close relationship with regional community

Highlight existing social contribution projects

: Bad : Good
 Case 2. (e) Suggestions

Need to support SMEs (include financial support)

•Forcing to meet standards without any support make SME’s profit
worse
•Especially, small enterprises which are hard to meet standards have
more possibility to liquidation
 Contents

4-1. 회사개요
4-2. CSR Activities of Samsung Electronics
4-3 Best Case
1)Eco-partnership
2)Samsung Software Membership
a) Overview and Process
b) History and Activities
c) Scope of the Case
d) Suitability for Vision, Missions and Key Strategy
e) Benefits from the CSR Activities
f) Suitability and CSR Valuation
g) Suggestions
 Case 2. (a) Overview and Process

Samsung Software Membership is designed to find gifted university

students in IT research and development and help them unleash their
full potential and become future leaders in the industry
Requirements Recruitment Activity Completion

그림 그림

• Active •Application • Environment • exempted from

Involvement Review –Private working essential tests of
• University spaces Samsung
Student / •Technical –Equipments(os –Only Aptitude
Graduate School Interview cilloscope, Interview
Students –Interviewed plotter) –1800 of 2400
• More than 1 year about past • Education, graduates are
away from projects Support working for SEC
graduation –Asked to –Participate in • Patent
• No specific demonstrate on-going R&D Application
Programming past projects Project
Language –SIGs, Seminars • Presented for
Preferred –Project funding Competitions
• No Majors are
 Case 2. (b) History and Activities

• Founded in 1991, Samsung software membership has produced 2400 graduates

for 18 years and they are working in various areas including SEC.
• Operates 8 Memberships: Sinchon, Gangnam, Suwon, Daejeon, Jeonju, Kwangju,
Daegu and Busan
• Won 55 awards in 2008, Applied 3 Patents including international ones
Year Activity
1991  Established membership office in Nonhyeon
1994  New offices in Suwon, Daejeon, Daegu, Busan, Gwangju
1998  New memberships in Seoul (Apgujeong)
2003  Expanded software membership ,
 Won 71 awards
2004  Opened new membership in Jeonju
 Won 97 awards
2005  Won 83 awards 각종 특허
2006  Won 73 awards
및 Award
2007  Won 49 awards
 Applied 3 patents including international ones 그림
 Organized 2 in-house competition led by IT division
2008  Operates 8 Memberships in Sinchon, Gangnam, Suwon, 1800 Graduates
Daejeon, Jeonju, Kwangju, Daegu and Busan
 Won 3 Microsoft Imagine Cups
 Won 55 awards (14 in Korea AI Robot Competition and 8 in
Korea Software Competition)
 Organized 4 in-house competition including SAIT
 Case 2. (c) Scope of the Case
National
•Available only for domestic
students
•Couldn’t find similar system for
students who studying overseas
Region: 8 Memberships in
Korea
•Minimize region unbalance by
operating numerous memberships
in different regions
•Sinchon, Gangnam, Suwon,
Daejeon, Jeonju, Kwangju, Daegu
and Busan
Category: Software, Hardware
SoC, Robot, Contents and etc
•Its requirements for new
members cover all IT fields
Participants
•University/Graduate Students
•Does not require special
qualifications
•Any students interested in R&D
can apply for the membership
 Case 2. (d) Consistency in Vision and Core
Strategies
Vision
Roadmap to Achieve SEC’s Vision to lead the
digital
Co- convergence
Excellenc
People Change Integrity prosperit movement.
e
y

Secure Growth Engine by Nurture Human Resource from within

Samsung Software Membership

•Nurture gifted IT talents
•Secure a dominant position in terms of acquiring IT
talents
•Reduce Additional Cost to educate new people
Innovation by Human Resource from Outside
 Case 2. (e) Benefits from the CSR Activities

Individua Industria
Business Regional Nationial
l l

• Alleviating
regional • Talent Pool for IT
• R&D
unbalances Industry
Environment
• Able to have more • Forging relations • Greater synergy
• Various
and better with local expected by • Strengthening
Support that
students than universities to strengthening National
school can’t
before. find gifted network Competitivenes
offer
• Early talent students • Lead to a better s
• Competitions
hunting • Strengthening competitiveness
and
• Talent Pool for regional network of the industry
Collaborations
SEC by
communication
between regional
memberships
 Case 2. (f) (1) Suitability Valuation

Global Trend •Software manpower is gaining more importance

•Diverse software development efforts led by SMEs and
individuals, not by large enterprises
•Talents pool is becoming a crucial standard in measuring
national IT competitiveness
Korea •Korea has been engaging in process-and-export due to
poor natural resources
•Membership carries a great suitability considering
Korea's unique position.
Industry KSF •KSF of IT industry is shifting from capital and
organizational capacities to diversity and creativity
•Maximizing individuals’ different capability is required
Core •A core competency of Samsung was a reliable production
Competence management system
•It was to secure a better cost competitiveness in various
manufacturing business including semiconductor
•In the future, however, core competencies will lie in
securing excellent human talents.
Case 2. (f) (2) CSR Valuation

Social Aspect
Increase in public awareness and interest

Support fund raising

Participation increase in social issues

Change in public’s behavior

Increase in fund and other assets

Corporate Aspect
Strong corporate reputation created

Help connect business vision (philosophy) with profit

Attract and retain enthusiastic employees

Reduce operational cost

Reduce regulators’ control

Help attain marketing goals

Create close relationship with regional community

Highlight existing social contribution projects

: Bad : Good
 Case 2. (g) Suggestions

1. Need to operate Global membership program

•Strengthening network with Research Centers of Developed
Countries (USA, Europe, etc)
•Talent Hunting in developing countries (India, China, South America,
etc)
•Expanding to global CSR activity by supporting talents in developing
countries

2. Need to operate membership for other kind of industries

•IT Related industry like Bio and Medical
•Building New growth engine
Q&A
SNUCSR NETWORK