SAMSUNG ELECTRO-MECHANICS

Bottom-up communication culture

Samsung Electro-Mechanics pursues an employee-centered, bottom-up culture based on horizontal communication. We encourage all employees to use honorifics with each other regardless of position and conduct organizational culture activities that involve employee participation for smooth communication.

Valued Leader, Colleague Awards

Samsung Electro-Mechanics recognizes employees who help create a culture where people want to work through communication and collaboration, and who set an example for others. Cash prizes, plaques/frames, and flowers are awarded on the company’s founding anniversary, and employees receive HR performance points.

Self-directed Work System

Samsung Electro-Mechanics provides an autonomous commuting work system that allows employees to autonomously choose their own working hours according to their lifestyles and job responsibilities in order to improve work efficiency and work-life balance. In addition, we operate an hourly annual leave system and a system that allows employees to individually manage their working hours and vacation schedules, and pregnant employees and employees with child/family/personal care needs can work reduced hours if they wish.

Lifecycle Benefits

Samsung Electro-Mechanics provides a wide range of welfare benefits to all employees regardless of contract type, including permanent employees and contract employees. With the exception of some benefits for
long-term service, we provide all employees with lifestyle and culture-related benefits such as welfare points, daycare centers, and dormitory support, and medical benefits such as medical expenses, comprehensive health check-ups, and the operation of affiliated clinics. In the case of welfare points, employees can selectively redeem items of their choice, such as clothing, food, and travel. Samsung Electro-Mechanics also operates a welfare benefits system that is tailored to the lifecycle of employees to promote employee growth and job satisfaction. We offer programs to assist employees with personal and family stability during their employment, as well as retirement planning programs for employees over the age of 50.

Childcare and Family Care Support

Samsung Electro-Mechanics operates various programs to support employees’ childbirth, childcare, and family care. We provide pre- and post-natal leave, infertility leave/leave of absence from work, and maternity care rooms for female employees, while male employees also receive infertility leave (5 days paid leave) and up to 15 days of paid spousal maternity leave (20 days for twins or more). We provide child tuition for employees with children and provide full tuition support for employees with children with disabilities. In addition, we support employees’ work-family balance through programs such as Children’s Day events and employee family camps.

Building an organizational culture that satisfies everyone

Samsung Electro-Mechanics conducts the Samsung Culture Index (SCI) for all employees once a year to create a workplace where people want to work in and drives improvements after analyzing the diagnostic results in various aspects. In 2022, the existing job satisfaction survey was revamped into an organizational health diagnosis, which is measured in three categories: “Enjoyable work”, “Colleagues working together”, and “Company to be proud of”. The results are shared with employees and feedback is given to leaders in each department to identify areas for improvement. In addition, we strive to improve our organizational culture through upward evaluation and peer evaluations, an honorific survey, and a survey on the level of internalization of core values. Survey results are reflected in internal policies such as resolving employee VOC and identifying improvements.

Caring for the Mental Health of Employees

Samsung Electro-Mechanics operates the Mind Health Center, a professional psychological counseling center staffed by certified and licensed professionals. The center provides individual/couple/child counseling, leadership coaching, and department-level counseling, and offers meditation programs in conjunction with
in-house meditation rooms and external meditation training facilities to help employees manage stress.
To make counseling services more accessible to domestic and overseas employees, we operate online channels such as instant messaging services and mobile applications dedicated to psychological counseling, and a 24-hour telephone counseling channel is also available for urgent counseling needs.

Introductory Training

Samsung Electro-Mechanics offers a variety of training programs for new employees to help them adjust to the organization early and lay a foundation for growth. We provide various essential trainings, including training on the basic mindset and attitude required as an employee and the organizational culture, as well as a mentoring system to enhance job understanding and adjustment to the department, site visits, and assignments such as identifying improvement items, to help new employees grow into talented professionals with
Samsung Electro-Mechanics’ distinctive sense of professionalism and expertise.

ESG Education for New and Experienced Employees

Samsung Electro-Mechanics has been mandatorily including ESG courses in the introductory training for new employees and in the training for experienced employees since 2022. Employees are educated on the direction and purpose of ESG management pursued by Samsung Electro-Mechanics and are encouraged to learn about and participate in what Samsung Electro-Mechanics aims to contribute to its customers and human society in line with “Harmony with” in its core value RiGHT^©.

Job Training

Samsung Electro-Mechanics conducts a systematic job training program to strengthen the professionalism of its employees. We provide various training through Samsung Electro-Mechanics’ integrated learning platform, “SEM Academy”, and support employee growth by building roadmaps according to the competencies required for each job and level.

Leadership Skill Development Training

Samsung Electro-Mechanics conducts position-specific leadership training to promote leadership in managing the organizational workforce and managing performance. The training focuses on the necessary competencies for each role, and regular leadership courses are held twice a year, especially for Group Leaders and Part Leaders, with the goal of strengthening leadership skills and fostering technical expertise.

Leadership Coaching Training

Samsung Electro-Mechanics conducts leadership coaching training to help build empathy and communication between leaders and department members, thereby contributing to the development of employee competencies. In particular, we have developed and distributed the “One-on-one Guide for Executives and Group Leaders”, which can be used as a reference for one-on-one dialogues with department members. Samsung Electro-Mechanics will continue to develop online microlearning content on performance management and coaching to help leaders improve their coaching skills.

Samsung Electro-Mechanics offers a variety of language programs to help employees improve their communication skills in foreign languages. We offer a variety of courses, including intensive courses in an educational environment separate from work and courses that are conducted in parallel with work, so that employees can choose a program that suits their situation and needs. We also support employees in regularly taking foreign language assessment tests through in-house language assessment testing.

Samsung Electro-Mechanics conducts various training programs to strengthen the skills of its employees.
By providing employees with various training opportunities, we strengthen their expertise while motivating them to work. Through training on future technologies, employees can develop their potential to not only enhance their skills but also create opportunities for new businesses.

Operating a Goal-Based Evaluation Process

All Samsung Electro-Mechanics employees set MBOs to establish clear work directions and take initiative in performing their duties and are evaluated based on them. Evaluations consist of performance evaluations of job performance and competency evaluations of work ability and attitude, and the results are reflected in promotions, annual salaries, and performance incentives. To ensure fairness and acceptance, mid-year performance reviews are conducted, and feedback is provided through one-on-one meetings with managers.
If there is any disagreement with the final evaluation results, employees can request a re-evaluation through the Appeals System.

Evaluation Compensation Principles

Evaluation process

Consultation process for setting KPIs

Human Rights Policy

Samsung Electro-Mechanics is committed to protecting the human rights of its employees in accordance with the Labor Standards Act. Samsung Electro-Mechanics does not discriminate against employees for any reason, including nationality, gender, religion, education or status, and recognizes and proactively complies with human rights protections under the Constitution of the Republic of Korea and labor laws. In addition,
we prohibit human trafficking, forced labor, and child labor in accordance with global guidelines such as the International Labor Organization Core Conventions, the United Nations Declaration of Human Rights, the RBA Code of Conduct, and the labor laws of each business site around the world.

Human Rights Protection System

Samsung Electro-Mechanics strives to protect the human rights of its employees through the collaboration of the Legal Team, Compliance Team, People Team, Audit Team, and Counseling Office. In addition, Samsung Electro-Mechanics operates the Labor-Management Council, which is composed of elected employees,
to resolve various employee grievances and protect their human rights. The grievance resolution activities of the Labor-Management Council are transparently disclosed to employees through the Council’s website.

Human Rights Inspections

Samsung Electro-Mechanics strives to establish a culture of respect for human rights in the company through regular human rights inspections. Every year, we conduct human rights respect inspections for all employees at domestic business sites through organizational diagnosis and check the status of mutual respect among employees and the internalization of a human rights protection culture. If problems are found, we analyze the causes and make improvements.
Samsung Electro-Mechanics also has a grievance officer for each business site to assist employees in handling grievances. We operate a reporting center within the Knox portal and a dedicated e-mail account for anonymous reporting. In the event of business expansion, such as mergers and acquisitions, we conduct a preliminary review to ensure that the target company does not pose significant potential human rights risks.
In addition, we have foreign-language (English and Japanese) employment rules for foreign employees, and each of our overseas corporations also publishes employment rules in the local language to ensure respect for human rights.

Compliance with Initiatives

Samsung Electro-Mechanics complies with the Responsible Business Alliance (RBA) Code of Conduct and inspects the entire supply chain, including domestic and overseas business sites and business partners, in accordance with the five areas of the RBA Code of Conduct (labor, health and safety, environment, business ethics, and management systems). In addition, in 2023, Samsung Electro-Mechanics became the first Korean company to join Drive+, a council of automotive electronic component supply companies pursuing sustainable management in the automotive industry. As such, Samsung Electro-Mechanics complies with the global initiative’s code of conduct and strives to ensure a sustainable working environment for employees and business partners.

Inspection and Improvement

Samsung Electro-Mechanics conducts annual RBA Self-Assessment (SAQ) and on-site inspections by specialized third party auditors based on RBA VAP standards at its domestic and overseas business sites.
Initial audits are conducted every two years for RBA VAP site inspections and every one to two years for sites that conduct RBA Non-VAP. Improvement plans are developed and implemented by each relevant department for any findings identified as a result of the audit. A third-party audit organization conducts a Closure Audit of the improvements made.

Samsung Electro-Mechanics is committed to supporting the resolution of grievances related to human rights violations.

Human Rights Reporting Channel

Samsung Electro-Mechanics operates a reporting channel for human rights violations such as discrimination and harassment by setting up a sexual harassment and harassment reporting center on the company’s intranet and takes appropriate action in accordance with the internal report handling process. We also operate a dedicated e-mail account for anonymous reporting, and if the damage caused by the report is substantiated, the perpetrator may be subject to appropriate disciplinary action such as a reprimand, reduction in pay, or suspension. In addition, we support the resolution of grievances through internal counseling centers and mobile messenger reporting channels.

Operation of the Hanwoolim Council and Grievance Handling

Samsung Electro-Mechanics operates the Hanwoolim Council, a labor-management council, in accordance with the “Act on the Promotion of Employees’ Participation and Cooperation”. It operates by reviewing various issues related to employees’ working environment every month through the Board Consultation Body and then submitting them to the Business Site Council for resolution, and important issues related to employees’ working conditions are disclosed to all employees within five days after the monthly consultation. We receive suggestions such as grievances and comments from employees through the Hanwoolim website at all times. We strive to resolve grievances by responding within 24 hours of receiving the suggestions, taking action within 10 days, and communicating the results.

Samsung Electro-Mechanics is committed to building an inclusive corporate culture where everyone is given a fair chance regardless of their background, including gender, age, nationality, race, religion and sexual orientation.

Diversity by Gender - Age - Country

Samsung Electro-Mechanics strives to spread a culture of gender equality within the organization and create an environment where all employees can demonstrate their abilities based on equal opportunities. In addition,
as our employees are composed of various age groups ranging from 20s to 50+, we strive to help them understand each other and communicate smoothly through various intergenerational exchange programs.

Developing Women Leaders

Samsung Electro-Mechanics is committed to the career development and empowerment of female employees. We are expanding the pool of leaders by targeting talented female employees and annually selecting key employees who have the qualities to be future leaders and training them in various leadership training courses. In addition to motivating female employees by increasing the number of key female employees from 5.6% in 2020 to more than 10% in 2021 and beyond, we also enroll two female employees each year in the Next Generation Leader Training Program to develop future female business leaders with growth potential.

Hiring people with disabilities

Samsung Electro-Mechanics is working to increase the number of employees with disabilities. We recruit employees with disabilities through a fair process in accordance with the special case for calculating the number of employees with disabilities.

Safety and Health Policy

Samsung Electro-Mechanics has created a safety culture in which all employees participate in preventing safety incidents and creating a pleasant working environment in accordance with the management principle of
“A safe environment is our top priority”.

Safety and Health Management System

Samsung Electro-Mechanics strives to provide a safe work environment for its stakeholders, including employees, business partners and visitors, at all business sites based on the ISO 45001 safety and health management system. All Samsung Electro-Mechanics business sites have completed the transition audit for ISO 45001 safety and health management system certification as of 2022, and the system is regularly validated through internal audits and follow-up audits by third-party certification organizations.

Operating Safety and Health Advisory Groups

Samsung Electro-Mechanics holds quarterly meetings of the Industrial Safety and Health Committee, which is composed of an equal number of labor and management representatives, including worker representatives and business site representatives, to deliberate and resolve important issues related to safety and health.
In addition, to build a safe workplace, Samsung Electro-Mechanics holds the Safe Environment Meeting and the Safe Environment Consultative Group, in which managers of each business unit, including the person responsible for safety and health management, directly participate to share and discuss safety and health issues and safety activities.

Serious Accident Response System

Samsung Electro-Mechanics has established 13 compliance guidelines to prevent serious accidents and developed an implementation management system to check and monitor the implementation of the safety and health management system.

Samsung Electro-Mechanics conducts work environment surveys to build a safety-centered site and takes action to improve it when necessary.

Hazardous and Dangerous Work Safety Management

Samsung Electro-Mechanics requires that when performing work involving the risk of exposure to hazardous and dangerous substances and 9 types of hazardous work (fire, asbestos, electricity, etc.), a work plan including a safety work plan must be prepared and approved in advance through the hazardous work permit system.

Workplace Risk Assessment

Samsung Electro-Mechanics conducts regular risk assessments each year and evaluates them as changes occur. Through risk assessment, we identify hazardous risk factors, establish measures to reduce them,
and make improvements. We also strengthen our capabilities by utilizing internal and external instructors to train risk assessment specialists each year.

Employee safety assessment

Samsung Electro-Mechanics sets objectives for safe environment activities for management and managers’ objective management (MBO) to establish an autonomous safety culture and safe business sites. We conduct annual safety culture level assessments for employees to identify and analyze the level of safety management.

Prevention Management of Serious Industrial Accidents

Samsung Electro-Mechanics has developed and operates a management system for 12 items of Process Safety Management (PSM), including fire and explosion, to achieve the highest level of PSM and zero major industrial accidents. For processes that handle large amounts of hazardous substances, we strive to thoroughly manage safety through process safety information materials, risk assessments, safe operating procedure manuals, and the preparation and evaluation of process safety reports. In addition, to improve the level of process safety management operations, we use the PSM system to conduct drawing reconciliation and qualitative/quantitative evaluations every year and obtain third-party verification of process safety management implementation from external professional organizations. As a result, our Suwon and Busan business sites received the highest grade, P, in the PSM implementation grade evaluation organized by the Ministry of Employment and Labor in 2022 and have maintained it to date.

To establish an autonomous safety culture, Samsung Electro-Mechanics defines roles and responsibilities for each position and conducts safety culture activities in which all employees participate. Management and supervisors conduct monthly safety inspections and identify and implement improvements, and employees participate in creating a safe workplace through self-directed potential risk identification activities and safety communication suggestions.

Safety Incident Prevention Activities

Samsung Electro-Mechanics prevents safety incidents through activities such as the dissemination of CSO safety messages, employee safety pledges, and the creation of a “Not To Do List,” which is a list of basic safety rules. We conduct safety culture activities to build a safe workplace by introducing potential risk identification activities and a real-time safety communication system (SEM-S) in which all employees can voluntarily participate, and we organize grid inspection teams to conduct safety activities to discover and improve any unreasonable problems at all business sites.

Employee Safety and Health Training

Samsung Electro-Mechanics provides customized safety training for executives, managers, indirect workers, production workers and others according to their positions and duties. Using the in-house experiential training center, we enhance employees' risk management skills according to the situation through evacuation training such as earthquake and fire evacuation, safety accident experience using virtual reality and mixed reality, cardiopulmonary resuscitation practice, and the use of automated external defibrillators. In addition, employees are required to attend courses offered by external safety and health organizations as needed, such as accident investigation and risk assessment specialist training, to enhance their expertise in their respective fields.

Disaster Preparedness Drills

Samsung Electro-Mechanics has established 15 crisis response scenarios and conducts regular drills every month to ensure quick response and minimize damage in the event of emergencies such as fires, earthquakes, chemical spills and food poisoning. In addition, we are building an organic cooperation system to prepare for disaster situations through joint public-private drills.

Employee Health Promotion

Samsung Electro-Mechanics offers a wide range of health check-up programs for its employees, including general and special health check-ups, mental health check-ups, and comprehensive and precise medical check-ups to assess cancer throughout the body. In addition, to promote employee health and to prevent and manage illness and occupational disease, we operate an in-house medical clinic with specialists such as family medicine and dermatology, as well as a physical therapy room and a posture correction room. In addition, we support employee health improvement through three health screening programs, including a return-to-work program after sick leave, a hazard risk assessment for mothers, and smoking cessation/obesity/mobile health coaching.

Infectious disease prevention

Samsung Electro-Mechanics prevents infectious diseases from entering the workplace and has established emergency response scenarios for suspected and confirmed cases and four-step standards for internal response. In the event of an infectious disease outbreak, we immediately open a disease control center to identify and respond in real time.