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  1. 1. Samsung Company.
  2. 2. Ethical ManagementSocial ResponsibilityProject ManagementCompliance ManagementIntegrity Management
  3. 3. Samsung Securities is deepening trust with customers bycontinuously practicing ethical management. Continued effortsfor ethical managementAfter Samsung Securities implemented a fair trade self-compliance system in 2006, it focused on promoting ethicalmanagement during the period of 2007-2008. Since 2009, wehave been focusing on effectively managing our internalcontrol system.Assessment and training of employees awareness of ethicalmanagement Since 2008, Samsung has been providing cyber education onethical management for all employees once a year. Particularlyfor executives, we invite experts to conduct group training onmajor issues related to ethical management.
  4. 4. Since 2010, we have tested employees in the head office ontheir level of understanding of ethical management and re-tested those found to lack enough understanding, therebyraising their awareness of ethical management. Other effortswere also made to increase fairness in inter-subsidiarytransactions by installing the Internal Transaction Committeeunder the BOD in February 2012.Declaration of code of ethics and employees pledge topractice ethical managementSamsung established code of ethics listing six values as thestandards for employees thoughts and behavior. We alsocontinue our effort to build consensus on ethical managementby getting our employees to sign on the ethical managementcompliance pledge each year.
  5. 5.  Apart from developing innovative technology products, Samsung placesgreat importance on acting as a responsible corporate citizen in thecommunities where it operates. Its CSR programs respond to the socialand environmental needs and seek to give back to communities where itoperates. In 2009, Samsung launched the company’s Corporate SocialResponsibility initiative – ‘Samsung Hope Project’ with projects in theareas of education, culture, sports, social welfare and communitydevelopment. Each program under the Hope Project uniquely addressesthe needs of individual communities while emphasizing on innovationsfor development of the community including education, technology,engineering and IT technical training. Notable local programs include:•Samsung Hope for Children, an initiative designed to help under-privileged children through e-learning centers. These e learning centerslocated in different parts of the country impart computer literacy tounderprivileged youth and ensure placements as well.
  6. 6.  Innovations for development of the community, a partnershipbetween Samsung and various educational and media agencies tosupport grassroots innovations. Samsung has instituted twoprograms: Samsung Innovation Award with IIT, Delhi andSamsung Innovation Quotient which recognizes India’s bestgrassroots innovators from across the country. •Hope for Culture represents Samsung’s tribute to the rich Indiancultural heritage through Tagore Literature Awards thatrecognizes the best literary contributions in 24 Indian regionallanguages. Samsung is partnering with the Sahitya Akademi forthe Tagore Literature Awards. Additionally, Samsung partnerswith INKO to present the Samsung Women’s International FilmFestival that gives voice and expression to the perspective ofwomen and celebrates her spirit through the medium of Cinema. •Sports Sponsorship is an ongoing initiative wherein Samsungsupports top ranking athletes across individual sports disciplineswith their training expenses while they prepare for the Asian orthe Olympic Games. Samsung is also the Sponsor of the Indianteam to the forthcoming London Olympics.
  7. 7.  Project management system for business successSamsung Engineering has a comprehensivemanagement system from the EPC to maintenancephase. Project teams are comprised of professionalproject managers, engineers and staff with experiencedknow-how and superior technology. It is the objectiveof each project team to obtain the best result in termsof cost, quality, safety and schedule. To facilitatecommunication with partners and clients and toexecute projects successfully, Samsung Engineeringhas an integrated ERP (Enterprise Resource Planning)system for RTE (Real Time Enterprise) managementsystem for effective project management.
  8. 8.  Effective project management via project portalThrough the Samsung Engineering project portal site, ourcompany systemizes the process of detailed feasibilitysurveys, sets project schedules, and manages projectbudgets to maximize project management capacity andaccurately measure performance. The project portal site isan upgrade of PMS (Project Management System)which manages a project execution process, handles EPCfunctions as well as human resources, finances,machinery and equipment. Through the projectportal, Samsung Engineering can communicate with theheadoffice, clients, and partners on field sites and shareproject information in real-time. Furthermore, SamsungEngineering can efficiently manage projects by interfacingin real time with the project database in real-timewith CRM (Customer Relation Management), SCM (SupplyChain Management), KM (Knowledge Management)and EDMS (Electronic Document Management System).
  9. 9.  Quality management for maximum customer satisfactionAttaining world-class quality competitiveness is a prerequisitefor maximum customer satisfaction and sustainablegrowth of an organization. Samsung Engineering obtained ISO9001/KSA 9001 certification in 1994 and ISO 9001: 2000 in 2003. Recognized for its global quality managementsystem, Samsung Engineering pursues qualityinnovation efforts centered on field sites while preventingaccidents by thoroughly reviewing the constructionprocess in advance. All employees continue to receive qualitysafety education as well as a joint qualitymanagement system that is established with our partners.
  10. 10.  World class HSE systemSamsung Engineering is seeking to minimize risks to ensureour policy of allowing no accidents to occur duringconstruction. Samsung Engineering obtained OHSAS 18001certification by executing the proprietary safetymanagement system called A-Less (Accident-Less). There iscontinued effort and dedication to ensure safetyat all project sites. As a result, Samsung Engineering achieved20 million accident free man-hours without LTI(Loss Time Injury) for the TASNEE ethylene project in SaudiArabia and a total of 45 million accident free man-hourswithout LTI (as of end of 2007) for all our projects in theKingdom. ISO 14001 certification in 1996 was alsoobtained for creating a pleasant and healthy environment. Ourcompany also strictly abides by internationalenvironmental rules and regulations. We ban the use ofhazardous substances, reduce arsenic acid andparticles, thoroughly manage sewage and wastewater, andabide by construction noise and vibration rules,while reducing and recycling waste.
  11. 11.  Samsung Electronics is striving to strengthen ethicalbusiness management, legal compliance andintegrity management to provide positivecontributions to the advancement of the society inwhich we operate.Samsung Electronics considers the importance ofdetailed corruption prevention measures in order toprotect the company from undue negative businessimpacts caused by unethical conduct. Recognizingthis, we have been striving to improve our integritymanagement and legal compliance through astrengthened compliance management structure, aswell as employee training in business ethics tocultivate an organizational culture that stressescompliance
  12. 12.  Samsung Electronics has established a new compliance system toprevent and minimize business risks associated with issues such ascollusion and violation of intellectual property rights. We have instituteda compliance program that includes preemptive and year-round training,control and supervision in order to ensure adherence to pertinent lawsby the company and all employees and mitigate risks related to violationof laws and regulations. Our compliance activities are broadly classifiedinto prevention, monitoring and follow-up processes. Preventionactivities include employee education, distribution of manuals oncompliance, system-based self-inspections, and operation of a helpdesk to respond to questions on compliance matters. We also keep up todate with the introduction and revision of various laws and regulations.There is a separate team dedicated to monitoring activities. After dealingwith a compliance issue, we analyze the related process and outcome tofind the fundamental cause and pursue improvement measures. Real lifeexamples are used in training programs as a way of preventingrecurrence of any compliance problems that arise.
  13. 13.  Akib Siddiqui.