Samsung Electronics Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Tue, 20 Aug 2024 06:11:06 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 Case study: How Samsung Electronics creates economic value for its stakeholders https://sustaincase.com/case-study-how-samsung-electronics-creates-economic-value-for-its-stakeholders/ Tue, 20 Aug 2024 06:10:04 +0000 https://sustaincase.com/?p=19466 Samsung Electronics’ global business network consists of 232 production sites, sales offices, R&D centres, and design centres. With global headquarters in Korea, Samsung Electronics has 15 regional offices, including in North America, Southeast Asia, Europe, and Africa. Active communication with its stakeholders is an important part of fulfilling Samsung Electronics’ responsibility as a global company, as is creating sustainable value for all. This case study is based on the 2023 Sustainability Report by Samsung Electronics, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability […]

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]]> Samsung Electronics’ global business network consists of 232 production sites, sales offices, R&D centres, and design centres. With global headquarters in Korea, Samsung Electronics has 15 regional offices, including in North America, Southeast Asia, Europe, and Africa. Active communication with its stakeholders is an important part of fulfilling Samsung Electronics’ responsibility as a global company, as is creating sustainable value for all.

This case study is based on the 2023 Sustainability Report by Samsung Electronics, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

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Abstract

Generating, through its global operations, long-term value for employees, shareholders, suppliers and all its stakeholders, is a top priority for Samsung Electronics.  Tweet This! In order to create economic value for its stakeholders Samsung Electronics took action to:

  • create economic value for employees
  • create economic value for suppliers
  • create economic value for shareholders and investors
  • create economic value for creditors
  • create economic value for governments
  • create economic value for communities

What are the material issues the company has identified?  

In its 2023 Sustainability Report Samsung Electronics identified a range of material issues, such as climate action and energy management, talent development and quality of life, human rights management. Among these, creating economic value for its stakeholders stands out as a key material issue for Samsung Electronics.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Samsung Electronics engages with: 

Stakeholder Group                Method of engagement
Customers (B2C & B2B)

 

 ·      Customer satisfaction surveys

·      Contact centres and service centres

·      Samsung Electronics Newsroom

·      Samsung Semiconductor Newsroom

·      Sustainability Website

·      Sales Channels

·      Product Environmental Report
Shareholders and Investors

 

 ·      Annual General Meeting N

·      on-Deal Roadshows, Investor Meetings

·      Earnings Releases

·      Investors Forum

·      ESG Roadshow

·      IR Website
Employees

 

 ·      Labour unions, work councils

·      Counselling centres

·      Satisfaction surveys on organizational health, work concentration, and employee experience

·      Sustainability Website

·      Communication with the executive management

·      Online communication platform, including Samsung NOW

·      Compliance and ethics whistleblowing channels
Suppliers

 

 ·      Global Supplier Relationship Management System

·      Hotline, online whistleblowing channels

·      Partner Collaboration Day, supplier dialogues

·      Partner Collaboration Academy

·      Sustainability Website
Local Communities

 

 

 ·      Local volunteer centres

·      Sustainability Website

·      CSR Website

·      Local community councils
International Organizations, NGOs, Associations, Specialized Organizations

 

 ·      Corporate dialogues

·      NGO meetings

·      Stakeholder forums

·      Meetings between civil society organizations and executive management

·      Sustainability Website
Government

 

 ·      Policy conferences

·      National Assembly

·      Public hearing for policymaking

·      Policy advisory bodies

·      Sustainability Website
Media

 

 ·      Press releases

·      Sustainability Website

·      Samsung Electronics Newsroom

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Samsung Electronics engaged with its stakeholders through surveys.

What actions were taken by Samsung Electronics to create economic value for its stakeholders?

In its 2023 Sustainability Report Samsung Electronics reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees
  • In 2022, Samsung Electronics paid KRW 37.6 trillion in personnel expenses.
  • Creating economic value for suppliers
  • In 2022, Samsung Electronics paid KRW 219.8 trillion to suppliers.
  • Creating economic value for shareholders and investors
  • In 2022, Samsung Electronics paid KRW 9.8 trillion in dividends.
  • Creating economic value for creditors
  • In 2022, Samsung Electronics paid KRW 0.8 trillion in interest costs.
  • Creating economic value for governments
  • In 2022, Samsung Electronics paid KRW 13.0 trillion in taxes and public duties.
  • Creating economic value for communities
  • In 2022, Samsung Electronics spent KRW 0.4 trillion in CSR costs.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

References:

This case study is based on published information by Samsung Electronics, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.samsung.com/global/sustainability/media/pdf/Samsung_Electronics_Sustainability_Report_2023_ENG.pdf

Note to Samsung Electronics: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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