Samsung Display operates various win-win cooperation programs to enhance the competitiveness of partners and to develop together with them as a companion partner.
Samsung Display supports its partners to become competitive in order to establish a healthy corporate ecosystem and sustainable supply chain. Samsung Display builds a vision for win-win with partners, such as establishing strategic partnerships based on the philosophy of fairness, openness, and win-win. To this end, Samsung Display operates a fair and transparent registration process for new partners and conducts regular evaluations every year to enhance partners' competitiveness and minimise risks. In addition, Samsung Display pursues a win-win path by operating various shared growth programs such as supporting R&D funds and smart factory construction for small and medium-sized partners.
Since 2018, Samsung Display has been rated Excellent in the "Shared Growth Index evaluation" for 4 consecutive years and has been selected as the "Best Honorary Company". The "Shared Growth Index evaluation" is a system to calculate the level of shared growth by evaluating win-win cooperation, fair trade, and the perception of partner companies to promote shared growth between large and small businesses, and has been in operation since 2011.
Samsung Display operates various shared growth programs for small and medium-sized partners, pursuing healthy win-win management and continuous shared growth with its partners.
"CrePas (Creative Partnership)", one of Samsung Display's representative win-win programs, is a program that supports technology and R&D funds to small and medium-sized companies with ideas and technologies. This system has been in effect since 2010, Samsung Display, together with the government, provided 52.5 billion won to SMEs for 82 tasks, including free research grants of up to 1 billion won and providing necessary technical guidance.
The "CrePas" system not only contributed to the creation of an industrial ecosystem so that the domestic display industry and technology could become the best in the world, but also laid the foundation for win-win cooperation, such as by providing opportunities for sustainable growth. As a result, Samsung Display was also selected as an excellent case by the Korea Fair Trade Commission in 2016.
Samsung Display has created "Win-win fund" and "Financial support fund for the payment of purchased items" to support partners who are having difficulties in managing funds. Since 2017, Samsung Display has created a total of 500 billion won in funds with about 100 partner companies, providing funds that can be used according to the necessary purposes such as facility investment, R&D expenses, and working capital.
Win-win fund is a low-interest loan support system that can be used according to the needs and uses of business partners, such as working capital, facility investment funds, R&D funds, etc., and also available on second-tier and third-tier partners. Financial support fund for the payment of purchased items is a system that is being implemented to spread a healthy payment culture among partners. Samsung Display provides interest-free support for the entire amount of funds required when the payment terms between first-tier and second-tier partners (or between second-tier and third-tier partners) are improved to win-win payment within 30 days or cash payment.
Samsung Display, together with the Ministry of SMEs and Startups, is carrying out the “large, small and medium-sized win-win smart factory construction support project”, and is providing up to 10 billion won in support to partner companies to enhance their manufacturing competitiveness for 5 years. This support project, which started in 2018 and is in its fourth year this year, has provided 3.4 billion won to a total of 61 companies so far. The smart factory construction support project is a win-win program that improves manufacturing competitiveness by systemising the entire production process of partners, and Samsung Display supports manufacturing process know-how mentoring and system establishment. Through this, it was found that partners achieved 30-40% improvement compared to the previous period in terms of major production efficiencies such as reduction of process defect rate and inventory cost reduction. Samsung Display plans to operate this project so that its partners can grow into small hidden champions through step-by-step and continuous support considering the level of its smart factories.
Samsung Display reflects the RBA Code of Conduct and shares updated contents with partners.
In addition, Samsung Display provides a guide to the Code of Conduct to ensure compliance with the Code of Conduct and practice law-abiding management.
Samsung Display is operating a mineral management system based on “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”, and encourages its partners to transact with RMAP-certified smelters. In the case of uncertified smelters in the supply chain, Samsung Display supported those smelters to become certified.
Accordingly, Samsung Display is continuously striving to minimize negative impacts on society and the environment, such as human rights violations and environmental destruction, that may occur during the mineral mining process, and is actively sharing the responsible minerals management reports (including the list of smelters) with various stakeholders such as customers.
(100% certified as of the end of 2020)
Samsung Display prohibits the use of unethically exploited conflict minerals, except for minerals from target countries supplied by smelters and smelters that have obtained RMI (Responsible Minerals Initiative)'s RMAP (Responsible Minerals Assurance Process) certification. Accordingly, Samsung Display manages the list of smelters and related materials that have obtained CFS (Conflict Free Smelter) certification, and checks all materials supplied every month. In addition, Samsung Display checks all smelters that supply 3TG (tantalum, tin, tungsten, gold) every year, and investigates the use of conflict minerals based on the CMRT submission information of partners.
Samsung Display continuously monitors and manages conflict minerals management. Samsung Display requests its partners who do business with non-certified smelters to stop doing business with them, and if a partner continues to do business with the smelters after the request to stop doing business, Samsung Display reviews volume reduction and business termination. Samsung Display plans to improve the system so that it can provide products that have undergone an ethical distribution process by strictly managing conflict minerals used in its products.
Samsung Display plans to improve the system so that it can provide products that have undergone an ethical distribution process by strictly managing conflict minerals used in its products.
(As of the end of December 2020)