SAMSUNG SDI

SAMSUNG SDI respects the diversity of employees and ensures equal opportunity for all. We prohibit any type of discrimination on the grounds of gender, nationality, race, religion, and cultural background in hiring, assessment, promotion and compensation. At Samsung SDI, all employees have equal and fair access to a range of training and leadership opportunities, and we keep track of various diversity metrics, including the percentage of female managers.

1. Purpose

SAMSUNG SDI respects the human rights of its stakeholders, including clients, business partners, and local communities. SAMSUNG SDI follows the principle of human rights management to handle relevant risks that may arise from general business activities, as suggested below. SAMSUNG SDI supports and strictly complies with human rights principles proposed by international organizations, including the Universal Declaration of Human Rights, the UN Global Compact, the UN Guiding Principles on Business & Human Rights, the OECD Guidelines for Multinational Enterprises, and the ILO Declaration on Fundamental Principles and Rights at Work, and local directives applied to regulations on labor relations in areas the Company runs its business worldwide. Also, SAMSUNG SDI takes on Samsung’s core values (People, Excellence, Change, Integrity, Co-prosperity) and principles that materialize the core values as its standards and follows regulations based on the SAMSUNG SDI’s Code of Conduct to advance as an innovative Company loved and respected by its clients, shareholders, employees, business partners, and local community residents.

2. Scope

This Human Rights Management Directive is applied to SAMSUNG SDI and its employees, subsidiaries that SAMSUNG SDI holds more than half of their shares and its employees, and all business partners with whom SAMSUNG SDI concludes a contract.

3. Governance

SAMSUNG SDI manages and monitors the status of human rights management through the Sustainability Committee under the Board of Directors, top management meetings joined by the CEO and decision makers of major divisions, and working level meetings held by groups relevant to human rights management. The Sustainability Committee, the top management, and working-level meetings review and report, deliberate, and approve Revision & Amendment of the Human Rights Directive and Relevant Regulations, Risks Assessment and Responses to Results, Human Rights Violation Case Studies and Remedies, and items considered necessary for human rights protection.

4. Operating System

• 1) Human Rights Risk Management System

  * While complying with the UN Guiding Principles on Business and Human Rights on Respect, Protect, and Remedy, SAMSUNG SDI identifies and manages human rights risks that may arise from the overall Value Chain, including SAMSUNG SDI, its subsidiaries, and business partners.

  • ① Identify and Evaluate Human Rights Risks

    • SAMSUNG SDI regularly identifies and assesses practical and potential human rights risks. To assess labor and human rights impacts and monitor improvement activities, the Company utilizes self-diagnosis and on-site review programs of RBA (Responsible Business Alliance) and others.

  • ② Mitigate and Improve Risks

    • SAMSUNG SDI makes an effort to address, mitigate and prevent the identified tangible and potential impacts. SAMSUNG SDI manages the risk on the identified significant human rights risks so that fundamental remedies and mitigations can be applied, reflecting risk types, levels, and organizations in charge.

• 2) Grievance Procedures

  * SAMSUNG SDI runs On/Offline grievance channels to always listen to stakeholders’. When a case of human rights violations is reported, the Company reviews remedies after checking what has happened through investigations, then reports the results of applied measures to the reporter.
  SAMSUNG SDI takes a thorough approach to finding the best solution for every case of human rights violations. Our efforts include analyzing relevant judicial precedents, regulations from competent authorities, past internal processing practices, and seeking opinions from our legal team and external labor law firms.
  If a human rights violation case has a significant impact on the victim's freedom and rights or risks seriously damaging the company's reputation, the case is reviewed by committees consisting of top decision-makers and others, business management meetings, or working-level meetings to discuss potential remedies.

  • SAMSUNG SDI receives reports on human rights through diverse report channels, including anonymous or identified mails, landline calls, group/part leaders, and the HR department.
  • Also, the Company ensures anonymity and secrecy of information to allow reporters to raise issues without fearing retaliation and bans all activities that may harm the reporter.

• 3) Human Rights Policy Training and Announcement

  * SAMSUNG SDI runs training programs relevant to human rights management to improve employees’ understanding and recognition of human rights and complies with the Human Rights Principles. The Company encourages active reports of human rights abuse cases and risks and aims to spread a culture of respect for human rights. SAMSUNG SDI releases human rights violation cases, human rights risk review results, and measures taken to improve and address risks as a part of the Company’s human rights management activities on its sustainability report, homepage, or others to communicate human rights activities with employees and other stakeholders.

5. Principle

1. No Discrimination

   • SAMSUNG SDI does not discriminate in employment and work for reasons including ethnicity, race, nationality, sex, religion, place of birth, disability, marriage, pregnancy, child delivery, political orientation, gender identity, and labor union membership.

2. Humanitarian Treatment

   • SAMSUNG SDI bans all brutal and inhuman acts, including mental or physical violence, sexual violence, harassment, or abuse, punishment, psychological or physical coercion, torment, and verbal abuse. The Company clearly defines disciplinary policies and procedures immediately applicable in cases of violations.

3. Compliance with Working Hours and Minimum Wage Guarantee

   • SAMSUNG SDI sets the working hours of its employees, reflecting the characteristics of tasks and in compliance with the relevant laws and regulations of each country, and complies with regulations regarding extended, night and holiday work, break time, and holiday. The Company also conforms to rules, policies, and standards on working conditions, including minimum wage guarantee and social insurance, and also strives to secure wage levels surpassing living wages so that employees and their family can maintain a decent standard of living.

4. No Child Labor

   • SAMSUNG SDI follows the minimum age for employment standards stipulated in the regulations of each country and region, and it does not allow any form of child labor. Therefore, the Company runs a hiring process designed to prevent hiring youth under 15. When labor of a child under the age of 15 is found, the Company checks the health of the child and takes appropriate actions, such as providing mandatory education, following the child’s will. Also, SAMSUNG SDI in no case exposes children under 18 to working environments that could threaten health or safety.

5. No Forced Labor

   • SAMSUNG SDI bans all modern forms of slavery, including forced labor, bonded labor, involuntary servitude, human trafficking for exploitation, and human rights crimes related to deprivation of liberty, in principle. The company assures labor based on an individual’s free will, does not unreasonably restrain mental or physical freedom, force labor against employees’ free will, and requires transfer of personal documents, such as a passport or an ID card, as conditions to hiring. All work should be done voluntarily, and employees have the freedom to quit or resign from the job without any disadvantages when sending contractually reasonable notices. Also, the workers’ exit/entry and movement to common rooms, plants, and dorms within the place of business are not limited without reasonable cause.

6. Protection of Vulnerable Workers

   • Based on the Universal Declaration of Human Rights (UDHR) and ILO Declaration on Fundamental Principles and Rights at Work, SAMSUNG SDI takes all reasonably possible actions. The Company fulfills its duties to respect and protect the human rights of vulnerable workers, including females, workers with disabilities, and foreign workers.

7. Personal Information Protection

   • SAMSUNG SDI follows standards based on the Personal Information Protection Act to prevent the loss, theft, leak, forgery, or damage of personal information of employees, clients, and visitors. Also, the Company applies safety measures prescribed by the Personal Information Protection Commission to ensure the safety of private information and technical and administrative protection measures.

8. Guarantee of the Freedom to Organize and Collective Bargaining

   • SAMSUNG SDI ensures the right to form and join labor unions and collective bargaining to all employees, following each country’s relevant labor laws and collective agreements, and in no case discriminates or unfairly treats for the reason of relevant actions.

9. Local Community Human Rights Protection

   • SAMSUNG SDI endeavors to prevent the abuse of the human rights of residents running businesses in the community and conserves the environment. The Company respects and defends residents’ right to life, freedom of movement, right to personal safety, and property ownership, and listens and tries to reflect stakeholders’ opinions in the local community.

10. Guarantee of Safety and Health

    • SAMSUNG SDI regularly inspects facilities and equipment in the place of business for all the employees to work in a safe working condition, takes appropriate actions to provide support to prevent physical and mental risks, and manages afterward.

11. Responsible Sourcing

    • SAMSUNG SDI appropriately manages and acts to prevent human rights violations and environmental pollution in the supply chain. Also, the Company does not use minerals directly/indirectly excavated in risky and disputed areas or ones negatively impacting human rights and the environment. When a risk that could damage the supply chain is identified, the Company takes necessary actions to stop or prevent the impact.