Samsung Electro-Mechanics Announces Compliance Control Plans for This Year Including 'Implementation of Compliance Monitoring Committee Agreements for Effective Compliance Oversight'
[Asia Economy Reporter Ki-min Lee] Samsung Electro-Mechanics has elevated its Fair Trade Compliance (Compliance Management) program, introduced in 2011 to ensure employees' adherence to laws, to a CEO-directly controlled organization and established an operational plan for 2020.
On the 29th, Samsung Electro-Mechanics announced, "To promote employees' voluntary compliance, the compliance program introduced in April 2011 will strengthen its status as a CEO-directly controlled organization this year based on last year's compliance control results."
Since its introduction in April 2011 as a Fair Trade Autonomous Compliance Program, Samsung Electro-Mechanics' compliance program earned an 'AA' rating in the Fair Trade Autonomous Compliance (CP) grade evaluation in January 2014 and established an internal transaction review and subcontract monitoring system in January 2018.
On this day, Samsung Electro-Mechanics disclosed results including ▲focused education and prevention system establishment related to antitrust risk ▲corruption risk inspection and prevention education, process improvement ▲subcontract risk inspection and establishment of a continuous inspection system through a monitoring system ▲pre-review system operation such as internal transactions among affiliates, competitor contact reporting, and CP issues in major meeting materials ▲mandatory, introductory, high-risk sector, and special education for personnel in contact with partners for all employees ▲self-assessment by all employees and one-on-one consulting by each compliance organization.
Additionally, Samsung Electro-Mechanics' compliance control plans for this year include ▲implementation of compliance committee agreements for effective compliance monitoring ▲strengthening compliance review related to external sponsorship funds ▲intensified inspection and prevention education on technology leakage risks ▲continuing special education for executives and high-risk sectors ▲implementation of a practice pledge for all employees to activate compliance practice ▲raising interest in compliance culture through employee participation programs ▲voluntary risk identification and action by employees through self-assessment ▲strengthening support for voluntary compliance activities through field meetings and consulting.
This is interpreted as Samsung Electro-Mechanics' proactive effort to strengthen compliance management ahead of the launch of the Samsung Group-level Compliance Committee early next month. Along with Samsung Electro-Mechanics, seven companies including Samsung Electronics, Samsung C&T, Samsung Life Insurance, Samsung SDI, Samsung SDS, and Samsung Fire & Marine Insurance plan to hold board meetings by the 31st of this month to approve the establishment of the Samsung Compliance Committee chaired by former Supreme Court Justice Ji-hyung Kim (currently lead attorney at the law firm Jipyung).
Earlier, former Justice Kim held a press conference on the 9th of this month, announcing plans for rigorous compliance monitoring activities without exceptions. He stated, "It will not be limited to fair trade areas such as external sponsorships with legal violation risks, internal transactions among affiliates or related parties, subcontracting with partner companies, and preferential treatment of orders, or corruption areas such as bribery and improper solicitation. Legal risk management in issues like labor unions or succession matters will also not be exempt," emphasizing comprehensive compliance oversight.
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