3 things from the Sustainability Report 2014 that we need to talk about

on October 7, 2014
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As the corporate social and environmental responsibilities increase, sustainability does matter for businesses in terms of corporate management. To communicate its efforts for sustainable management and the performance with people, Samsung Electronics has been publishing the Sustainability Report since 2008.

Three constituent parts of Sustainable Development

Three constituent parts of Sustainable Development (Source: Wikipedia)

Samsung Electronics has been committed to its sustainable growth in a wide aspects including Human Resources, Shared Growth, Green Management, and Global Social Contribution. Today, we’re going to review some of important and interesting facts from the Sustainability Report 2014, which is, however, not much known yet.

Making a Family-Friendly and Creative Workplace

Of Samsung Electronics’ 300,000 employees, female employees comprise 27 percent of the workforce in Korea and 47 percent of the workforce elsewhere, a ratio that continues to trend upward. Samsung Electronics is growing its programs to balance work and family life, including leave for fertility treatment, longer daycare center operation, an extended parental leave period, and an expanded scope of employees eligible for leave. As a result of such efforts, Samsung Electronics was certified as a family friendly company in 2013.

At Samsung Electronics, all employees are allowed to have flexible working hours, telecommuniting and home office options, in addition to on-site daycare for the children of working parents. It also provides female employees with children mentoring programs to help maximize their performance at both work and home.

Samsung is also making concerted efforts to promote gender equality organizational culture and encourage the next-generation of female leaders and promote their growth in the company. It continues to focus on promoting its female employees, providing leadership education, and mentoring.

Samsung Electronics’ goal is to raise the percentage of female executives in the company to more than 10 percent by 2020.

Percentage of Women Employees and Returning Rate from Maternity Leave

In order for a company to achieve continued growth, it needs to create new products and services all the time, while it also enhances the capabilities of its existing business. This simple truth informs Samsung Electronics’ belief that it is important to have a company culture that fosters creative thinking.

Samsung Electronics’ Creative Lab (C-Lab) is an initiative where the company provides personnel and budget to support projects proposed by employees. Employees can undertake the projects for as long as they want, wherever they want. The C-Lab was launched as a pilot in 2012 with four projects. Employees use their projects to explore personal passions while achieving tangible business results. Based on the C-Lab’s initial success, the company in 2013 expanded the project across the company by creating the Creative Development Center.

At Samsung, there’s a system that encourages team members to present creative concepts and ideas for product improvement, called Idea Open Space. In 2013, Samsung employees submitted 14,000 ideas to the Idea Open Space. Samsung designers and engineers have applied many of the ideas to improve the performance of the company’s products.

Enhancing Product Accessibility: IT for all

By conducting research on enhancing accessibility of smart devices, Samsung Electronics is committed to help all people including persons with disabilities and the elderly benefit from IT advancements.

In 2012, Samsung Electronics created a dedicated research organization that aims to not only improve IT product user-convenience for general consumers, but also enhance convenience for people with disabilities by taking into consideration the different types of disabilities and special needs. It also explores intuitive interface and interaction methods while surveying and analyzing related laws and regulations around the globe to reflect new innovations in future product development.

Development process for products with enhanced accessibility consists of three parts: Environmental analysis, development of core technology, and application to products. In the first stage, Samsung conducts a survey or analysis on related laws and regulations around the world, does a thorough research on the needs of persons with disabilities and the challenges they face using IT products, and benchmarks new products and related technologies. Then, based on the results, it starts developing core UI that increases user convenience and technologies that can overcome disabilities including visual, auditory, physical, and cognitive impairments. Also, usability assessments are conducted to ensure the function and performance. Lastly, in the third stage, core technology are implemented and product designs are made for the products to be commercially launched.

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Launched in February 2014, Galaxy Core Advance, is one of the products made through an 18-month development phase. Samsung engaged employees with visual impairments in the product’s development stage* and from their feedback, approximately 700 accessibility features for visually impaired and the elderly were made. The Galaxy Core Advance was presented as a gift to students from 14 schools for the blind nationwide, including Jin-seok Choi. Mr. Choi said he most often uses the Galaxy Core Advance’s optical scan function to read printed materials, e-mails and receipts aloud. He also said that thanks to the ultrasound cover that vibrates when it detects an obstacle in his path, he has noticed that he can move about more easily without stumbling or falling.

*Through the “Stepping Stone” program, which created in 2011, Samsung Electronics also offers job opportunities to people with disabilities. Also, its internal facility certification program, “Samsung Barrier Free (SBF),” helps employees with disabilities work in an easier, more comfortable environment.

Assuming Responsibility on Resource: Water Management

Water Saving Product_Samsung WW9000 Washing Machine

▲Water Saving Product – WW9000 Washing Machine

In 2013, Samsung developed and launched water-saving products including a drum-type washing machine which features ‘no water’ drying technology. Water shortage has become a prominent a prominent issue worldwide. In order to fulfill its responsibility as a global IT leader, Samsung Electronics has established company-wide water resource management policies, conservation goals, and strategies. In addition, the company has joined global efforts to resolve the issue of water depletion while working to minimize serious management risks. In 2012, the company developed comprehensive water conservation plans and has since expanded its efforts to reduce water consumption by analyzing its water-related risks.

Water Resource Flow

With the basic philosophy of being responsible for global water shortage, Samsung has set four courses of action. First of all, Samsung tries to reduce water consumption and minimize risks associated with potential water shortages. It actively implements conservation activities to achieve its goal of reducing the use of water by 50 tons/KRW 100 million by 2015, in terms of water consumption relative to sales. The company’s efforts can be broadly divided into two types: (1) minimize water consumption by improving manufacturing processes, and (2) optimize water use by retreating and recycling waste water. As a result of these efforts, Samsung Electronics conserved 45,262,000 tons of water in 2013.

Secondly, Samsung tries to engage employees on the importance of water reduction and engrain it to the corporate culture. It educates employees on the impact of the company’s water consumption and the risks of water shortages on the business, communities, and environment.

Furthermore, Samsung proactively contributes to establish and implement the water management policies by cooperating with international institutes, the government, and local authorities. In local communities, the company hosts river ecosystem preservation activities in collaboration with NGOs, employees’ families, and students.

Lastly, Samsung discloses the company’s policies and activities on water resource management. By disclosing water resource-related information of its operation sites to its stakeholders including employees and local communities, the company provides water conservation guidelines to its employees and encourages them to make them part of their daily lives. Employees can also check the status of Samsung Electronics’ water resource management.

Samsung believes that it can deliver the best value by protecting the environment and improving social conditions of the communities in which it operates while generating a positive financial performance. Samsung does and will make the world smarter, but also grow together.

Related articles on Sustainability Report 2014:

Ÿ• Samsung’s 10-Year Plan Turns Five: The Sustainability Report 2014

 Notable Numbers from the Samsung Sustainability Report 2014

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