Our Company AppendixApproach to Sustainability Facts & Figures PrinciplePlanet
43
People
Samsung Electronics Sustainability Report 2023
Right to an Adequate Standard of Living
The payment of living wages is essential to guarantee an adequate
standard of living, resolve inequality, and ensure decent working
conditions such as decent working hours. Although universal consensus
on the definition and calculation method of a living wage has yet to be
reached, the term is generally understood as the level of remuneration
a worker receives for a standard workweek in a particular place which
is sufficient for the worker and dependent family members to afford a
decent standard of living. We remain committed to ensuring an adequate
standard of living for our employees and providing remuneration for a
regular workweek, which satisfies the basic needs of workers and their
dependent family members.
We have collaborated with BSR to calculate living wages. In 2018, we
began conducting research to estimate living wages in countries where
our production sites are located. In 2022, we assessed the impact of the
economic recession and inflation amid the pandemic on the basic living
conditions of our employees.
To ensure the accuracy of the estimates, we used the widely accepted
Anker methodology and identified diverse items such as food and non-
food expenditure per household and the number of employed and
dependent family members in each household by referring to economic
indicators released by credible organizations such as the OECD, UN, and
Eurostat. In 2022, we performed an internal living wage gap analysis
targeting production workers at 20 global business sites. Based on the
findings, we are making improvements to the wage and benefits of some
of our production sites to align them with the living wages calculated in
accordance with the Anker methodology.
We are currently recalculating living wages in collaboration with BSR
based on the figures updated in 2023. To enhance the understanding
of living wages within our organization, we leverage our human rights
training to help our employees in key roles such as HR and procurement
recognize human rights risks related to excessive overtime and failure
to provide adequate wages. We also engage in industry-led living wage
discussions and task forces to learn from our peers and work with the
wider industry to establish a more effective approach.
Non-Discrimination and Diversity
Discrimination is defined by ILO as any distinction, exclusion, or preference
made on the basis of race, sex, religion, political opinion, national extraction,
or social origin that has the effect of nullifying or impairing equality of
opportunity or treatment in employment or occupation.
Given the large share of female workers in the global electronics industry,
gender shall be considered when it comes to the working environment. As
a member of the RBA we comply with the RBA Code of Conduct and thus
prohibit discrimination in hiring and employment practices – including
wage, promotion, reward, and access to training – based on gender and and
pregnancy among others. We exempt pregnant and nursing employees
from potentially harmful tasks and conditions, take appropriate measures to
eliminate or reduce workplace health and safety risks related to the tasks of
pregnant and nursing employees, and provide spaces that meet the needs of
nursing employees.
We developed the Anti-Harassment Guidelines in collaboration with BSR in
2018 and revised them into the Anti-Discrimination and Harassment Policy in
March 2022. This Policy reflects our commitment to respect our employees’
right to work in an environment free from discrimination and harassment
and to build an environment where our employees are respected, equal
opportunities are guranteed, and their full potentials are realized.
In 2022, we developed the gender equality self-assessment toolkit with
144 indicators – in areas including policy, grievance mechanism, audit
and due diligence, capacity-building, and communication – based on UN
Women’s Women Empowerment Principles, RBA's VAP protocols, World
Benchmarking Alliance's Gender Benchmark methodology, and a set of
questionnaires from NGOs to further integrate a gender lens into our due
diligence work. Assessments performed at 20 of our global production sites
indicated that we require improvement in the areas of women leadership,
gender-related internal audit, gender equality training, and local stakeholder
engagement. Based on the results of the assessments, we developed
and distributed the Essential Guide on Gender Equality, which includes
best practices in the areas of policy, training, infrastructure, and maternity
support. We will continuously monitor the implementation of the Guide at
our global business sites and review its application in our supply chains.
Moreover, we strive to prevent incidents of discrimination by raising
awareness of our employees through continuous training. In 2022, a total of
seven cases were reported – six of which were resolved to take the meausres
of suspension or warning and one of which was found to be a case for another
Samsung affiliate company.
Freedom of Association and Collective Bargaining
Freedom of association is the right of workers and employers to form
and join organizations of their own choosing or not to engage in any of
those activities. Collective bargaining, closely related to freedom of
association, is one of the key vehicles that help employers and workers'
legitimate trade unions jointly work toward fair working conditions,
equal opportunities, and sound industrial relations.
We respect the activities of trade unions and other forms of employee
representation. We ensure that no workers are discriminated against,
retaliated against, harassed, or adversely affected due to their
joining or forming of a labor union, request for collective bargaining,
participation in collective bargaining, and exercise of the right
to organize or bargain collectively. We engage in open collective
bargaining based on mutual trust and strive to resolve issues through
good faith and constructive discussions, taking into account the labor
practices of the respective region.
In Korea, the executive management and the joint bargaining group of the
labor unions concluded their first collective agreement in 2021 and the
first wage agreement that encompasses wages, leaves, and performance
evaluations in August 2022, laying a foundation for constructive relations.
Employees of our production site in Türkiye, established in 2021, are under
the collective agreement reached by the local employers’ federation and
the trade union of the sector in early 2022.
In 2020, we established the Labor Relations Advisory composed of four
external experts under the Board of Directors to enhance our industrial
relations practices. The advisors review our labor relations issues
through meetings with management and executives from the People
Team and make recommendations for our practices in the mid-to-long
term. In addition, as part of our human rights training for all employees,
we reiterate the freedom of association and right to collective
bargaining and provide hands-on guidance on how to exercise these
rights. For executives, we outline the dos and don’ts to ensure that
these worker rights are duly protected and practiced.
Our efforts to enhance Diversity, Equity, and Inclusion