Samsung Electronics strives to identify, prevent, mitigate, and address actual and potential impacts on human rights throughout our global operations, supply chains, and business relationships. We integrate findings and insights learned from the due diligence into our process to ensure that appropriate policies and management systems are in place. In addition, we consider enhancing due diligence in response to pertinent situations such as entering new regional markets, initiating partnerships with new suppliers, or addressing emerging human rights issues in the global landscape.
Samsung Electronics defines salient human rights risks as areas of human rights that may be most seriously affected by our business activities.
To identify actual and potential human rights risks, Samsung Electronics conducts various assessments, including assessments of our business sites by internal experts, third-party audits based on RBA standards, and human rights impact assessments with external experts. In order to identify human rights risks related to our business activities, we also analyze reports from civil society organizations, media articles, conversations with stakeholders such as with human rights experts and investors, and grievances and complaints filed by employees. In February 2023, we disclosed 11 salient human rights risks as a part of Samsung Electronics Global Human Rights Principles.
Salient human rights risks |
Organizational units in charge |
Actually or potentially affected stakeholders |
Activities to prevent, mitigate, or address human rights risks |
---|---|---|---|
Working hours and adequate standard of living |
|
|
Working hours
Standard of living
|
Forced labor and child labor |
|
|
Forced labor
Child labor
|
Freedom of association and collective bargaining |
|
|
|
Occupational health and safety |
|
|
|
Non-discrimination & diversity and inclusion |
|
|
|
Anti- harassment |
|
|
|
Product responsibility including AI ethics |
|
|
|
Digital responsibility including privacy and freedom of expression |
|
|
|
Environmental responsibility |
|
|
|
Supplier responsibility |
|
|
|
Responsible minerals sourcing |
|
|
|
Samsung Electronics uses a labor and human rights risk management system to conduct human rights assessments and specific audits and assess the level of respect for human rights at its business sites.
In 2013, Samsung Electronics established a monitoring system to uphold labor and human rights and compliance management at our business sites. In 2023, we upgraded this system to the Business & Human Rights Benchmark (BHRB), which evaluates each business site’s compliance with international human rights standards, such as the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work and the UN Guiding Principles on Business and Human Rights (UNGPs). The assessment utilizes 39 items and 159 sub-indicators across four key categories: labor and human rights, organizational culture, working environment, and diversity, equity, and inclusion (DEI). We conduct annual evaluations of each business site and implement simplified human rights impact assessments for business sites in need of improvement.
Our internal labor and human rights experts select business sites in need of improving aforementioned indicators. They review various factors such as level of respect for labor rights in the country where our business sites are in operation, organizational culture, grievances, workforce changes, potential company policy violations, and human rights risks identified in the past. This process is known as the Simplified Human Rights Impact Assessment (sHRIA), which is a streamlined version of the full Human Rights Impact Assessment conducted by external experts. sHRIA involves interviewing vulnerable groups and stakeholders to gauge the company’s potential and actual human rights impacts in its operations, suggest preventive or mitigating measure to address identified impacts, and monitor implementation.
Samsung Electronics created assessment tools and conducted on-site audits to respect the rights of vulnerable groups in accordance with international human rights standards; vulnerable groups in the company include migrant workers and female employees among others. We have audited four subsidiaries employing migrant workers to make sure they follow our Migrant Worker Policy and Policy Implementation Guide leveraging the RBA audit methodology and key industry references. To identify potential discrimination against female employees in the workplace, we have also conducted audits using our Gender Equality Self-Assessment Toolkit which we developed with reference to the UN’s Women Empowerment Principles, RBA audit methodology, and the World Benchmarking Alliance’s Gender Benchmark methodology.
Human Rights Impact Assessment (HRIA) analyzes the impact of business activities on right holders such as employees, workers within supply chains, local community members, and consumers. HRIA typically involves more in-depth consultations with potentially affected stakeholders than other forms of human rights assessment. In turn, a Human Rights Saliency Analysis (HRSA), a type of human rights due diligence, prioritizes actual and potential human rights impacts based on the severity (scale of affected people, scope of the impact, remediability, among others) and the probability of occurrence. HRSA helps companies focus their resources on managing human rights risks that are likely to have an adverse impact and is concluded with the identification of salient human rights risks.
Samsung Electronics conducted its first human rights impact assessment at a Vietnam business site in 2017. We also conducted a human rights saliency analysis in Türkiye prior to the opening of our production site in the country in 2021.
As a member of Responsible Business Alliance (RBA), Samsung Electronics is committed to implementing the RBA Code of Conduct. Every year, we complete the Self-Assessment Questionnaire at our production sites. Furthermore, every production site is audited at least every two years, not only the site designated as high-risk. These audits follow the standards of the RBA’s audit protocols, known as the Validated Assessment Program (VAP). If any non-conformance is found at any production site, the corrective action plan (CAP) shall be developed to address the issues and prevent reoccurrence. The CAP must be reviewed and approved by auditors. We then ensure the approved corrective plan is implemented within the timeframe set by the RBA standards.
Category | 2023 | 2024 | 2027 |
---|---|---|---|
Human Rights Due Diligence on Business Sites |
100% | 100% | 100% |
Third-Party Audits on Suppliers |
100% | 100% | 100% |