Question: Has the company reviewed business KPIs to ensure they are not increasing risk of modern slavery? (E.g. expansion to production countries that have a lot of migrant workers)
Answer:
Yes
18036624
Walk Free
2022
Verified by Steward check_circle
updated about 2 months ago by Aditi Chatterjee

While there is no one paragraph about business KPIs, a full read of the statement highlights that there are certain aspects of the business that are carefully reviewed for its impact on modern slavery risks, and proactive measures are taken. These would include business supply chains where the company foresees risk of recruitment fees when migrants are being employed, employment of children, use of conflict minerals, and impact of its production facilities in risky geographies for human rights like Turkey. Based on that, I have marked a 'yes' to this metric, instead of a 'no'.

 

 

Page 11 - "In 2021, we introduced a process to conduct the HRRA prior to the opening of new operations. Weconducted our first HRRA in Turkey to identify potential human rights risks for future Samsung employees, supply chain workers, and surrounding communities in the macro-context of Turkey's human rights track record. With the support of sustainable business and human rights consultancies, Enact and twentyfifty, we identified four potential salient human rights risks of our own production sites in Turkey; decent working conditions, health and safety, supplier responsibility, and freedom of expression. A total of 21 actions were recommended to be fully in line with UNGPs, 20 of which were completed by December 2022."

 

Page 11 - "From 2019 to 2021, we organised workshops for the executive management and HR staff of our production sites and suppliers employing migrant workers and recruitment agencies, with the International Organization for Migration (IOM), to raise awareness on the importance of the protection of migrant workers’ rights within our supply chains. We also provided access to our in-house counseling services for migrant workers who were experiencing difficulties in the wake of the pandemic.In 2022, we performed our own on-site audits on four production sites staffed by migrant workers to verify their compliance with the Policy and Guidelines. These audits were based on the RBA methodology centering on the needs and rights of migrant workers and key industry references. We conducted interpreter-supported interviews with migrant workers, their families, and other vulnerable workers such as employees from Ukraine in addition to interviews with the HR managers of the production sites and staff members of the recruitment agencies. These interviews were complemented by document verification and inspections of dormitories and off-site residential facilities for migrant workers. The audit results showed that most practices of the production sites were in compliance with the Policy and Guides. However, it was discovered that 307 migrant workers hired by one of the four production sites had paid for part of the transportation expenses incurred while moving from their homes to the location to meet with the recruitment agency in their home country. The amounts paid by the workers (approximately USD 9,876 in total) were reimbursed after the audit. To prevent the recurrence of similar incidents, we have continued to engage in activities to raise the awareness of local HR managers, recruitment agencies, and workers on our internal standards for migrant workers’ rights, including the prohibition of recruitment fees. The four production sites developed corrective actions for minor non-compliance with the Internal Guide for Migrant Worker. Local employee relations experts are monitoring the follow-up steps taken by the sites. Through the audits, we confirmed that the total amount of outstanding reimbursements decreased by 88.6% since the introduction of the revised Migrant Worker Policy in 2020 compared to the 3-year period of 2017 to 2019."

 

Page 15 - "In addition to our on-site audit program, we conduct special audits of suppliers. We maintain zero tolerance for child labour for our suppliers and perform special audits of their recruitment practices every year to eliminate child labour. In 2022, we performed audits on 119 first-tier suppliers and 31 second-tier suppliers during school vacation periods when the likelihood of employment of minors notably increases. Based on our 2022 audits, none were found to have recruited child workers. However, some of the audited suppliers failed to implement recruitment practices of importance, such as the lack of facial recognition for identity authentication, and failure to include child labour prohibition provision in the employment contract"

 

 

Page 16 - "We strive to minimize any possible adverse impacts of mineral mining, including human rights abuses, child labour exploitation, sexual violence, and environmental destruction. We take human rights and environmental issues related to mineral mining in conflict-affected and high-risk areas, such as some African countries, very seriously. To address these risks we use responsible minerals in strict compliance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.To support our responsible minerals management system, we conduct investigations on the status of responsible minerals use and identify and remedy risk factors of our mass-produced materials suppliers. In 2022, we reviewed the credibility of data submitted by 438 suppliers around the world and their conflict minerals policy implementation status.. All of our suppliers are obligated to fully comply with our responsible minerals policy. We only accept minerals supplied by smelters and refiners accredited with RMAP certification. As a result, we are able to screen out conflict minerals mined and sourced in an illegal manner from conflict-affected areas, such as DR Congo, and only handle minerals supplied by internationally accredited smelters and refiners."

Aditi Chatterjee.....2024-03-06 11:41:00 UTC