Board of Directors (BOD) is mandated to comprehensively manage a range of risks that may occur in the business environment concerning operations, finance, and workplace safety while making major decisions. To systematically manage such risks, SAMSUNG SDI has stipulated business-specific risks and responsible departments. The results of risk reviews conducted by responsible departments and their response strategies are reported to the BOD either through the Management Committee or the Sustainability Management Committee.
We analyze climate-related risk and opportunity factors and develop response plans from the mid-to long-term perspective to effectively address the tightening global climate regulations and the needs of customers, investors and other stakeholders. Climate-related risks are categorized into transition risks and physical risks.
Supply chain risks include risks that may occur when partners purchase components to supply to SAMSUNG SDI as well as environmental and social risks that arise at partners themselves. SAMSUNG SDI’s purchasing risk management consists of four steps as below illustrated.
SAMSUNG SDI truthfully and faithfully fulfills its obligation of tax reporting and payment in countries where SAMSUNG SDI does business. SAMSUNG SDI do not use a tax structure without commercial substance for tax-avoiding purposes, nor do we engage in cross-border income transfer or tax-avoiding transactions using tax havens. At the same time, SAMSUNG SDI actively deals with changing taxation policies in various countries. To this end, all tax employees of the company perform their work according to SAMSUNG SDI’s legitimate tax strategy.
SAMSUNG SDI exerts efforts to minimize tax risks in its every business area. In all areas such as transactions of general goods, acquisition of shares, entry into a new business, international transactions, and changes in transactional structure, the company tries to identify potential unexpected tax risks and deals with identified risk factors to make improvements through the partnership with independent experts when necessary.
The management of tax risk should be open to the public and unified. For prudent tax risk management, SAMSUNG SDI has established a consistent decision-making system, offered compliance education to employees, and operated unified corporate management guidelines. From general expenses to international transactions, the company keeps and manages lawful evidential documents that each country’s taxation authorities may require. Especially, the company has maintained normal-range prices for the arm's length and related transactions.
Through the tax payment that fits the taxation policies of each country, SAMSUNG SDI contributes to the development of local communities where SAMSUNG SDI operates. The company’s corporate tax imposed on the income of the company, VATs on every transaction, and withholding taxes arising from job-creation have a positive influence on the growth of local communities.
SAMSUNG SDI Co.,Ltd, as a global company, hereby declares that it shall strictly recognize the importance of strategic items export management to contribute to international security and sustainable management through the following principles.
First,
all our executives and employees shall strongly recognize that complying with export control of strategic items is critical to fulfilling our corporate responsibility for the promotion of international security and world peace and shall endeavor to share this.
Second,
all our executives and employees shall actively strive to establish the necessary organizations and systems within the company to manage the strategic items autonomously, and all organizations of the company shall actively cooperate for the efficient and systematic operation of the autonomous export management organization.
Third,
all our executives and employees shall actively cooperate with the government’s policy on export control of strategic items and do our utmost to prevent any violations of the Foreign Trade Act including the illegal export of strategic items.
SAMSUNG SDI Co., Ltd.
Yoonho Choi, CEO
