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37PEOPLE1. OUR PEOPLE2. COMPLIANCE3. HUMAN RIGHTS

38SAMSUNG SUSTAINABILITY REPORT 2016Based on the idea that the main power of a company lies in its people, Samsung is committed to establishing a creative environment where all employeescan work with pride, while providing opportunitiesfor growth. We also aim to fulfill our social roles andresponsibilities as a global company by implementingethical management while observing all laws and principles. In addition, we will continuously work hard torespect and protect human rights, our most importantobligation as a member of a global society.PEOPLE

39PE O PLE1. OUR PEOPLE40Human Resource Management42Management System42HR Development for the Future43Creative Performance-based System46Dynamic Organizational Culture482. COMPLIANCE52Organization and Operational Structure54Compliance56Data Protection59Global Code of Conduct61Business Conduct Guidelines62Tax Risk Management633. HUMAN RIGHT64Philosophy and Principles66Key Areas of Human Rights Protection66Human Rights Impact at Worksites Risk68Pursuit of Diversity77

40SAMSUNG SUSTAINABILITY REPORT 20161PEOPLEMaterial issues1. Talent management and development2. Stakeholder engagement and dialogueO U R P E OPLEOURV I SIO NBased on the faith that “a company is nothing butpeople (people first),” Samsung believes that everyone is a talented person—with unique competenciesand potential—and that each one is a driving forcemoving the world. Therefore, Samsung made humanresource management one of its three key management initiatives under its “Vision 2020: Inspirationfor a future society, the creation of a new future.”PEOPLETRENDS & CHALLENGESEconomic Recession and Youth Employment Companies need to secure top human resourcesin order to maintain a competitive edge in today’s slow recovery of the global economy. Also, thecurrent youth unemployment crisis is a serious issue around the world. In fact, Korea had the highestyouth unemployment rate (ages 16-29) compared to the unemployment rate of core production population (ages 30-54) among all OECD member countries as of 2013. Human resource management isvery meaningful in terms of the company’s gaining competitiveness and job creation, but is also oneof Samsung’s social responsibilities as a global company.Support for Growth and Revelation of Competencies Social and stakeholder expectations forindividual employees (both current & retired) are increasing. Accordingly, individual career management and career consulting services are required. To collect employees’ creative and diverse opinions,a proper work environment and organizational culture need to be established. For global worksites,local employment based on a fair performance-based system needs to be strengthened to acceptdiverse ways of thinking and to invigorate communication.OURCO MMITME NTWe prohibit discrimination due to gender, academic background, race, and age. We also observe alllaws and regulations in the countries and localcommunities where we carry out business and respect the rights of all employees. In addition, weencourage the self-development and creativity oftalented people from around the world and aim tostrengthen diversity. Furthermore, we support performance-based compensation so that the companycan always achieve the very best results.INT H I S R E P O RTSamsung work environments are places where employees can fully display their competencies andbring about the very best results. In this chapter, wedescribe Samsung’s training systems and programsfor human resource development, as well as the various activities that ensure a dynamic organizationalculture.W HAT W E ARE DOINGHR Development for the FutureCreative Performance-based SystemOperating a three-layer training system consisting of Core, Leadership, and Expertise programsto develop employee competencies and to fostercore talent; providing various training programsaccording to self-assessment results; respecting individual opinions and continuously running the JobPosting program and the Career Consulting CenterNot only for fair evaluations, rewards, and benefitsbased on performance, but also an award systemto promote employee competency developmentDynamic Organizational CultureEstablishing an environment where all employeescan display their own distinct personalities andtalents in a free and creative culture; especiallycommitted to improving organizational vitalitythrough in-house club activities and mental fitness programs

1. Our People2. Compliance3. Human Rights41Link to SDGs[Goal 8] Promote sustained, inclusive and sustainable economic growth, full and productiveemployment and decent work for all 8.5 By 2030, achieve full and productive employment and decent work for all women and men,including for young people and persons with disabilities, and equal pay for work of equal valueFUTUREPLA NS1A Company Where theWorld’s Top TalentsWant to Work2015 Employee Benefits inKorea and abroadKRW 3,853 BILLIONTraining time peremployee in 201578One of the qualitative goalsof Vision 2020 is to be acompany where the world’stop talents want to work.2hoursImproving EmployeeSatisfactionCareer Consulting CenterEmployees using the center5,500 persons (cumulative)Re-employed employees outside Samsung4,823 persons (cumulative)Employees whochanged postsinternally throughJob Posting732 personsMonitor the results ofHR management bycontinuously collectingfeedback from employees,such as through surveys,and establish a cleardirection for the future

42SAMSUNG SUSTAINABILITY REPORT 20161PEOPLEHuman Resource ManagementSamsung follows a simple business philosophy. We devote our human talent and technology to create superior productsand services to help contribute to global society. It is indeed significant that Samsung’s business philosophy first mentions “human talent.” Based on this belief, we have been focusing on developing and nurturing our employees since theearliest days of our company's foundation, knowing that people lie at the heart of any company. We do encourage ourpeople to reach their full potential by providing the self-regulating and creative environment. Samsung also respectsemployee diversity and places a priority on protecting the rights of our employees and prohibiting and discrimination byrace, age, gender, sexual orientation, ethnicity, disabilities, pregnancy, religion, political inclinations, union membership,nationality or marital status. We are committed to complying with relevant laws and regulations in the countries we carryout our business, while respecting all worker rights. All employees are required to follow 'Employee Code of Conducts and'Business Conduct Guidelines' at their daily work.Management SystemIn order to foster human resources for the future, to support employee growth, to establish a creative culture, and topursue diversity, Samsung operates a well-organized system through specialized units for each goal. Our human resources team includes specialized groups focused on areas such as training and development, organizational capability, andcreative culture. HR professionals embedded within each business unit at Samsung have listened to voices from actualworksites as we efficiently cooperate with one another, from the establishment of HR strategies through to their execution.Management SystemHuman Resource FirstHR DEVELOPMENTFOR THE FUTUREDYNAMAIC ORGANIZATONALCULTURECREATIVE PERFOMANCE-BASED SYSTEMFostering Based on IndividualCapabilitiesFlexible Work EnvironmentFair Evaluation System· Flexible working hours· Systematic assessment & selectionof candidates (EDP / STaR Session)· Various training programs(Core/Leadership/Expertise)· Mobile officeSupport for Cultural Activities· Concerts· Support for in-house clubsSystematic Career Management· Evaluation process· Regular training for evaluatorsPerformance-based RewardsMental Health Management· Award system· Job posting· Life Coaching Center· Career Consulting Center· Healing Campus· Selection & promotion

1. Our People2. Compliance3. Human Rights43HR Development for the FutureLearning and Development ProcessSamsung supports all of its employees around the world so that they can grow within the same systematic trainingsystem. Every year, the company conducts an EDP (Expertise Development Process) assessment for all employees andfocuses on self-directed learning by allowing them to set their own annual training plan according to the results of theassessment on individual expertise and skills.Employee Learning and Development FrameworkSTaR SessionInternalCoreSelection of EDPcandidatesExternalLeadershipUnderstanding Samsung’svalue, vision,and culture‹*E DP : Expertise Development ProcessBuilding leadership skillsfor different levels ofemployees based on theSamsung LeadershipFrameworkExpertiseKey AreasImproving expertisebased on 8 core businessprocessesWorkplace Learning(Mentoring/Coaching/OJT)Samsung MBAAcademic trainingAcademic-IndustrialcooperationIn-house graduate schoolL&D Open InnovationKnowledge Network (Web 3.0/SNS/Mobile-based)1. myCoach2. Smart Learning3. Collective Intelligence4. Knowledge ContentsAssessment and Selection of CandidatesSamsung conducts its STaR (Samsung Talent Review) Sessions in association with its EDP (Expertise Development Process). The STaR Sessions are a comprehensive talent nurturing process that supports employees in designing an individual career path and establishing a clear vision with their supervisor. Through this process employees can apply forvarious human resource development programs, such as an MBA, academic training, regional expert class, or job expertcourse. STaR Sessions provide employees with a fair and transparent opportunity in their developmental process throughwhich they can experience a variety of innovation and creative programs, while also allowing the company to build apool of selected candidates to infuse employee learning and a development system into our strategic and organizationalneeds. Every year, over 2,000 employees apply for the company’s learning and development programs through the STaRSessions, and Samsung manages the human resource development pool that consists of the most important selectedcandidates from a mid- and long-term perspective.STaR Session ApplicantsAssessment and Selection ProcessColleague assessment (Adjustingthe study plan)Candidate application‹‹Self-assessment(Setting astudy plan)Korea(Every year)STaR SessionRecommendation‹EDPSelection2,000persons