Samsung places great importance on ethical management and corporate social responsibility. It has implemented various initiatives to strengthen ethical business practices such as establishing codes of ethics, providing employee training on ethics, and instituting a compliance management system. Samsung also has extensive corporate social responsibility programs focused on education, community development, and supporting local culture and sports. It aims to contribute positively to the societies in which it operates through ethical business conduct and social programs.

1. Samsung Company.

2. Ethical Management
Social Responsibility
Project Management
Compliance Management
Integrity Management

3. 
Samsung Securities is deepening trust with customers by
continuously practicing ethical management. Continued efforts
for ethical management

After Samsung Securities implemented a fair trade self-
compliance system in 2006, it focused on promoting ethical
management during the period of 2007-2008. Since 2009, we
have been focusing on effectively managing our internal
control system.

Assessment and training of employees' awareness of ethical
management
 Since 2008, Samsung has been providing cyber education on
ethical management for all employees once a year. Particularly
for executives, we invite experts to conduct group training on
major issues related to ethical management.

4. 
Since 2010, we have tested employees in the head office on
their level of understanding of ethical management and re-
tested those found to lack enough understanding, thereby
raising their awareness of ethical management. Other efforts
were also made to increase fairness in inter-subsidiary
transactions by installing the Internal Transaction Committee
under the BOD in February 2012.

Declaration of code of ethics and employees' pledge to
practice ethical management

Samsung established code of ethics listing six values as the
standards for employees' thoughts and behavior. We also
continue our effort to build consensus on ethical management
by getting our employees to sign on the ethical management
compliance pledge each year.

5.  Apart from developing innovative technology products, Samsung places
great importance on acting as a responsible corporate citizen in the
communities where it operates. Its CSR programs respond to the social
and environmental needs and seek to give back to communities where it
operates. In 2009, Samsung launched the company’s Corporate Social
Responsibility initiative – ‘Samsung Hope Project’ with projects in the
areas of education, culture, sports, social welfare and community
development. Each program under the Hope Project uniquely addresses
the needs of individual communities while emphasizing on innovations
for 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 centers
located in different parts of the country impart computer literacy to
underprivileged youth and ensure placements as well.

6.  Innovations for development of the community, a partnership
between Samsung and various educational and media agencies to
support grassroots innovations. Samsung has instituted two
programs: Samsung Innovation Award with IIT, Delhi and
Samsung Innovation Quotient which recognizes India’s best
grassroots innovators from across the country.
 •Hope for Culture represents Samsung’s tribute to the rich Indian
cultural heritage through Tagore Literature Awards that
recognizes the best literary contributions in 24 Indian regional
languages. Samsung is partnering with the Sahitya Akademi for
the Tagore Literature Awards. Additionally, Samsung partners
with INKO to present the Samsung Women’s International Film
Festival that gives voice and expression to the perspective of
women and celebrates her spirit through the medium of Cinema.
 •Sports Sponsorship is an ongoing initiative wherein Samsung
supports top ranking athletes across individual sports disciplines
with their training expenses while they prepare for the Asian or
the Olympic Games. Samsung is also the Sponsor of the Indian
team to the forthcoming London Olympics.

7.  Project management system for business success
Samsung Engineering has a comprehensive
management system from the EPC to maintenance
phase. Project teams are comprised of professional
project managers, engineers and staff with experienced
know-how and superior technology. It is the objective
of each project team to obtain the best result in terms
of cost, quality, safety and schedule. To facilitate
communication with partners and clients and to
execute projects successfully, Samsung Engineering
has an integrated ERP (Enterprise Resource Planning)
system for RTE (Real Time Enterprise) management
system for effective project management.

8.  Effective project management via project portal
Through the Samsung Engineering project portal site, our
company systemizes the process of detailed feasibility
surveys, sets project schedules, and manages project
budgets to maximize project management capacity and
accurately measure performance. The project portal site is
an upgrade of PMS (Project Management System)
which manages a project execution process, handles EPC
functions as well as human resources, finances,
machinery and equipment. Through the project
portal, Samsung Engineering can communicate with the
head
office, clients, and partners on field sites and share
project information in real-time. Furthermore, Samsung
Engineering can efficiently manage projects by interfacing
in real time with the project database in real-time
with CRM (Customer Relation Management), SCM (Supply
Chain Management), KM (Knowledge Management)
and EDMS (Electronic Document Management System).

9.  Quality management for maximum customer satisfaction
Attaining world-class quality competitiveness is a prerequisite
for maximum customer satisfaction and sustainable
growth of an organization. Samsung Engineering obtained ISO
9001/KSA 9001 certification in 1994 and ISO 9001
: 2000 in 2003. Recognized for its global quality management
system, Samsung Engineering pursues quality
innovation efforts centered on field sites while preventing
accidents by thoroughly reviewing the construction
process in advance. All employees continue to receive quality
safety education as well as a joint quality
management system that is established with our partners.

10.  World class HSE system
Samsung Engineering is seeking to minimize risks to ensure
our policy of allowing no accidents to occur during
construction. Samsung Engineering obtained OHSAS 18001
certification by executing the proprietary safety
management system called A-Less (Accident-Less). There is
continued effort and dedication to ensure safety
at all project sites. As a result, Samsung Engineering achieved
20 million accident free man-hours without LTI
(Loss Time Injury) for the TASNEE ethylene project in Saudi
Arabia and a total of 45 million accident free man-hours
without LTI (as of end of 2007) for all our projects in the
Kingdom. ISO 14001 certification in 1996 was also
obtained for creating a pleasant and healthy environment. Our
company also strictly abides by international
environmental rules and regulations. We ban the use of
hazardous substances, reduce arsenic acid and
particles, thoroughly manage sewage and wastewater, and
abide by construction noise and vibration rules,
while reducing and recycling waste.

11.  Samsung Electronics is striving to strengthen ethical
business management, legal compliance and
integrity management to provide positive
contributions to the advancement of the society in
which we operate.
Samsung Electronics considers the importance of
detailed corruption prevention measures in order to
protect the company from undue negative business
impacts caused by unethical conduct. Recognizing
this, we have been striving to improve our integrity
management and legal compliance through a
strengthened compliance management structure, as
well as employee training in business ethics to
cultivate an organizational culture that stresses
compliance

12.  Samsung Electronics has established a new compliance system to
prevent and minimize business risks associated with issues such as
collusion and violation of intellectual property rights. We have instituted
a compliance program that includes preemptive and year-round training,
control and supervision in order to ensure adherence to pertinent laws
by the company and all employees and mitigate risks related to violation
of laws and regulations. Our compliance activities are broadly classified
into prevention, monitoring and follow-up processes. Prevention
activities include employee education, distribution of manuals on
compliance, system-based self-inspections, and operation of a help
desk to respond to questions on compliance matters. We also keep up to
date with the introduction and revision of various laws and regulations.
There is a separate team dedicated to monitoring activities. After dealing
with a compliance issue, we analyze the related process and outcome to
find the fundamental cause and pursue improvement measures. Real life
examples are used in training programs as a way of preventing
recurrence of any compliance problems that arise.

15.  Akib Siddiqui.