SAMSUNG ELECTRO-MECHANICS

Regular audit of ethical management

Samsung Electro-Mechanics conducts audits after establishing an inspection plan for its domestic and overseas production and sales corporations. Through the inspections, we support the practice of ethical management by identifying problems and taking improvement measures for vulnerable management areas within the organization. In addition, based on the Ethical Management Guidelines, we analyze fraud risks at domestic and overseas business sites and detect abnormalities to prevent the escalation and spread of incidents, and strive to eradicate fraud by improving vulnerable processes.

Components of Ethical Management

Ethical Management Program

Samsung Electro-Mechanics conducts ethical management programs for domestic and overseas employees every year based on employee guidelines to internalize the practice of ethical management. We strengthen the implementation of ethical management by providing ethics training for all employees, operating channels for reporting ethical management violations (available in Korean, English, Chinese, and Vietnamese), and conducting regular ethical management inspections.

Key Ethical Management Programs for Employees

Ethics Training for Employees

Samsung Electro-Mechanics prevents corruption risks such as business partners, company public funds and assets, work ethics, and information and personnel leakage by incorporating the Anti-Corruption Code of Conduct into employee guidelines to build a corruption-free organizational culture. We conduct annual
anti-corruption training for all employees at domestic and overseas subsidiaries and provide separate ethics training for leadership levels (executives, heads of positions, expatriates, etc.).

Efforts to Prevent Recurrence of Corruption

Samsung Electro-Mechanics provides customized training and guidelines to prevent the recurrence of corruption-related incidents, and annually conducts the “Pledge to Practice Compliance and Ethical Management” for all employees, including the management team. Quarterly incident reports are posted on the intranet, and regular inspection plans are established and implemented at each production and sales corporation base to take immediate improvement measures for vulnerable processes.

Samsung Electro-Mechanics Anti-Corruption Program

Samsung Electro-Mechanics has established and maintains various reporting channels for fair and prompt handling of Code of Ethics violations.

Operation of the Cyber Audit Office

Samsung Electro-Mechanics is always open to reports through the Ethical Management Cyber Audit Office website, email, mail and telephone. The website is available in Korean, English, Chinese, Japanese and Vietnamese, and allows domestic and international stakeholders and whistleblowers to report employee corruption or unethical conduct at any time.

Ethics Management Violations Reporting Channel

To make the reporting channel more accessible to employees, a window for reporting ethical management violations is posted on the main page of the company's website. We take corrective action after investigating the facts of the case and strictly discipline employees who commit corruption. After the report is processed,
the person who made the report will be informed of the outcome, and the identity of the person who made the report will be kept strictly anonymous.

Reporting process

Samsung Electro-Mechanics has established the “Charter of Ethics for Business Partners” to spread the will to practice ethical management and requires all business partners to sign an ethics agreement and submit a pledge to practice it. Since January 2013, we have established “Business Guidelines” with business partners and posted them on business websites used by business partners and customers to help establish a clean business culture. In addition, we contribute to the spread of a corruption-free culture by prohibiting employees from accepting condolence or congratulatory offerings or standing wreaths from business partners for funerals or weddings.

Establishing a Code of Conduct for Business Partners

Samsung Electro-Mechanics has established the Code of Conduct for Business Partners to strengthen compliance management, which is the foundation for shared growth with business partners and requires business partners to fulfill ethical management. We also require all lower-level supply chains that provide assembly, components, raw materials and packaging to business partners to comply with the Code of Conduct, which is posted on the Samsung Electro-Mechanics website.

Encouraging Business Partners to Practice Ethical Management

Samsung Electro-Mechanics sends ethical management practice notices twice a year, including traditional holidays, to all domestic and overseas business partners to encourage them to practice ethical management when doing or seeking to do business with us.