We perform annual comprehensive evaluations of all suppliers to encourage them to raise their grades by improving their competency. We reflect the results of these evaluations in the purchasing policy for the following year. For outstanding suppliers, DX Division rewards them with preferential trading incentives.
At Samsung Electronics, we encourage our suppliers to obtain international certifications related to Environmental Management Systems (ISO 14001) and Occupational Health and Safety Management Systems (ISO 45001) to support improvements to environment and safety management. Attaining these certifications is a key factor in their annual comprehensive evaluations.
International specifications for an environment management system applicable to all industries and operations
International standards that specify requirements for the systematic management of safety and health
In light of the growing importance of sustainable supply chain management, we evaluate suppliers and penalize those with compliance violations, such as child labor or forced labor, and reward additional points in their annual comprehensive evaluations to those who effectively reduce greenhouse gas emissions.
We performed annual comprehensive evaluations on 92% of our suppliers* that have been in our supply chain for at least one year. As a result, 71% were rated outstanding, and 2.2% required improvement.
* Excluding cases such as suppliers with less than one year of registration