Management Process Samsung Company.

Ethical Management

Social Responsibility

Project Management

Compliance Management

Integrity Management

Index/Contents.

Samsung Securities is deepening trust with customers by continuously practicing ethical management. Continued efforts for ethical management

After Samsung Securities implemented a fair trade self-compliance system in 2006, it focused on promoting ethical management during the period of 2007-2008. Since 2009, we have been focusing on effectively managing our internal control system.

Assessment and training of employees' awareness of ethical management

Since 2008, Samsung has been providing cyber education on ethical management for all employees once a year. Particularly for executives, we invite experts to conduct group training on major issues related to ethical management.

Samsung’s Ethical Management.

Since 2010, we have tested employees in the head office on their level of understanding of ethical management and re-tested those found to lack enough understanding, thereby raising their awareness of ethical management. Other efforts were also made to increase fairness in inter-subsidiary transactions by installing the Internal Transaction Committee under the BOD in February 2012.

Declaration of code of ethics and employees' pledge to practice ethical management

Samsung established code of ethics listing six values as the standards for employees' thoughts and behavior. We also continue our effort to build consensus on ethical management by getting our employees to sign on the ethical management compliance pledge each year.

Apart from developing innovative technology products, Samsung places great importance on acting as a responsible corporate citizen in the communities where it operates. Its CSR programs respond to the social and environmental needs and seek to give back to communities where it operates. In 2009, Samsung launched the company’s Corporate Social Responsibility initiative – ‘Samsung Hope Project’ with projects in the areas of education, culture, sports, social welfare and community development. Each program under the Hope Project uniquely addresses the needs of individual communities while emphasizing on innovations for development of the community including education, technology, engineering and IT technical training.

Notable local programs include:

•Samsung Hope for Children, an initiative designed to help under-privileged children through e-learning centers. These e learning centers located in different parts of the country impart computer literacy to underprivileged youth and ensure placements as well.

Company’s Social Responsibility.

Innovations for development of the community, a partnership between Samsung and various educational and media agencies to support grassroots innovations. Samsung has instituted two programs: Samsung Innovation Award with IIT, Delhi and Samsung Innovation Quotient which recognizes India’s best grassroots innovators from across the country.

•Hope for Culture represents Samsung’s tribute to the rich Indian cultural heritage through Tagore Literature Awards that recognizes the best literary contributions in 24 Indian regional languages. Samsung is partnering with the Sahitya Akademi for the Tagore Literature Awards. Additionally, Samsung partners with INKO to present the Samsung Women’s International Film Festival that gives voice and expression to the perspective of women and celebrates her spirit through the medium of Cinema.

•Sports Sponsorship is an ongoing initiative wherein Samsung supports top ranking athletes across individual sports disciplines with their training expenses while they prepare for the Asian or the Olympic Games. Samsung is also the Sponsor of the Indian team to the forthcoming London Olympics.

Project management system for business success

Samsung Engineering has a comprehensive management system from the EPC to maintenance phase. Project teams are comprised of professional project managers, engineers and staff with experienced know-how and superior technology. It is the objective of each project team to obtain the best result in terms of cost, quality, safety and schedule. To facilitate communication with partners and clients and to execute projects successfully, Samsung Engineering has an integrated ERP (Enterprise Resource Planning) system for RTE (Real Time Enterprise) management system for effective project management.

Samsung Project Management

Effective project management via project portal

Through the Samsung Engineering project portal site, our company systemizes the process of detailed feasibility surveys, sets project schedules, and manages project budgets to maximize project management capacity and accurately measure performance. The project portal site is an upgrade of PMS (Project Management System) which manages a project execution process, handles EPC functions as well as human resources, finances, machinery and equipment. Through the project portal, Samsung Engineering can communicate with the head office, clients, and partners on field sites and share project information in real-time. Furthermore, Samsung Engineering can efficiently manage projects by interfacing in real time with the project database in real-time with CRM (Customer Relation Management), SCM (Supply Chain Management), KM (Knowledge Management) and EDMS (Electronic Document Management System).

Quality management for maximum customer satisfaction

Attaining world-class quality competitiveness is a prerequisite for maximum customer satisfaction and sustainablegrowth of an organization. Samsung Engineering obtained ISO 9001/KSA 9001 certification in 1994 and ISO 9001: 2000 in 2003. Recognized for its global quality management system, Samsung Engineering pursues quality innovation efforts centered on field sites while preventing accidents by thoroughly reviewing the construction process in advance. All employees continue to receive quality safety education as well as a joint quality management system that is established with our partners.

World class HSE system

Samsung Engineering is seeking to minimize risks to ensure our policy of allowing no accidents to occur during construction. Samsung Engineering obtained OHSAS 18001 certification by executing the proprietary safetymanagement system called A-Less (Accident-Less). There is continued effort and dedication to ensure safetyat all project sites. As a result, Samsung Engineering achieved 20 million accident free man-hours without LTI (Loss Time Injury) for the TASNEE ethylene project in Saudi Arabia and a total of 45 million accident free man-hourswithout LTI (as of end of 2007) for all our projects in the Kingdom. ISO 14001 certification in 1996 was also obtained for creating a pleasant and healthy environment. Our company also strictly abides by international environmental rules and regulations. We ban the use of hazardous substances, reduce arsenic acid and particles, thoroughly manage sewage and wastewater, and abide by construction noise and vibration rules, while reducing and recycling waste.

Samsung Electronics is striving to strengthen ethical business management, legal compliance and integrity management to provide positive contributions to the advancement of the society in which we operate.Samsung Electronics considers the importance of detailed corruption prevention measures in order to protect the company from undue negative business impacts caused by unethical conduct. Recognizing this, we have been striving to improve our integrity management and legal compliance through a strengthened compliance management structure, as well as employee training in business ethics to cultivate an organizational culture that stresses compliance

Integrity Management

Samsung Electronics has established a new compliance system to prevent and minimize business risks associated with issues such as collusion and violation of intellectual property rights. We have instituted a compliance program that includes preemptive and year-round training, control and supervision in order to ensure adherence to pertinent laws by the company and all employees and mitigate risks related to violation of laws and regulations. Our compliance activities are broadly classified into prevention, monitoring and follow-up processes. Prevention activities include employee education, distribution of manuals on compliance, system-based self-inspections, and operation of a help desk to respond to questions on compliance matters. We also keep up to date with the introduction and revision of various laws and regulations. There is a separate team dedicated to monitoring activities. After dealing with a compliance issue, we analyze the related process and outcome to find the fundamental cause and pursue improvement measures. Real life examples are used in training programs as a way of preventing recurrence of any compliance problems that arise.

Compliance Management

Compliance Committee : Highest decision-making body on compliance that receives

periodic briefings on related activities. It sets the direction of compliance activities and is authorized to grant approval for

key compliance issues.Global Legal Affairs & Compliance Team : Oversees

compliance activities and proposes compliance policy and direction. It is responsible for consolidating/adjusting

compliance matters across the company, operates the help desk and manages reports of irregularities

Compliance Organization.

Presentation By- Akib Siddiqui.