Sustainability Smart Solution for a Green World
Since accidents and crises arising from corporate activities not only impact the company, but also influence the local community, they are receiving increasing attention from society. As a result, throughout 2012 Samsung SDI launched various initiatives to establish a process that can reinforce its swift and professional response to the major risks.
Samsung SDI reestablished its risk management & reporting system in order to enable prevention through early warnings of risks and to minimize losses through swift reporting in the event an incident or accident does occur. Firstly, it identified 50 key potential risks for each area, such as quality-related incidents, fires, law violations, lawsuits, environmental safety accidents, natural disasters, security breaches,corruption, and labor-management conflicts. Also, it defined the criteria for the activation of early warning and the reporting of incident/accident to enable the identification of signs for each type of risk, and established a procedure for prevention management and efficient reporting.
Social demand is rising regarding rescues and reinforced communication with the local community and other stakeholders in the event of an accident; in response to this, Samsung SDI is working on implementing a new ERT operation system at each of its domestic plants to clearly specify the R&R of the existing Emergency Response Team (ERT) and reinforce its expertise. It modified the team��s response scenarios and R&R, focusing on process-related fires, leakage and explosion of chemical substances (toxic gas, dangerous substances, and toxic materials), radiation leaks, epidemics (virus, etc.), typhoons, blackouts, and other risks that have become major issues. It then conducted an evaluation on the company-wide emergency response capabilities to gauge its current status and emergency equipment. After assessing the status and response capabilities of its stakeholders,including the local community, the police, and the fire fighters, it also reinforced the response procedure and its role as a window for civil petitions in order to ensure seamless support in emergency situations. To further boost its emergency response expertise, the company has plans to hire experts for each ERT area in order to supplement its Command Team, Control Team, Liaison Team, Security Team, Medical Team, and Protection & Restoration Team. After establishing detailed operation standards and appointing employees in charge of each job function for its domestic plants by the first half of 2013, it will do the same for its overseas subsidiaries in Malaysia, China, and other countries. Furthermore, it plans to create an organization culture that is immune to risks by linking its completed risk reporting system and the BCM system.
The Business Continuity Management (BCM) is a management system aimed at minimizing damage in emergency situations, such as abrupt work disruption caused by a disaster, and restoring core business operations within a fixed target period. Since 2008 Samsung SDI has been expanding and improving its BCM system, which it had first implemented for its domestic and overseas battery operations. In 2012 it completed its risk assessment and system implementation at its Vietnamese subsidiary, and it plans to establish the BCM system at its new battery operation in Malaysia in 2013.
When devising business strategies, Samsung SDI takes into account various risk factors including ch-anges in the market pattern, exchange rate fluctuations, raw material costs and environmental regulations and calculates their potential impact on the business. At the same time, the company sets up plans to neutralize risks and puts them into action.
Natural disasters, terrorism, and conflagrations can inflict massive damages to a company which may threaten the continuation of a business. The CRO system was introduced to deploy measures to prevent and eliminate risks threatening social, environmental and safety aspects of the company. The CRO system enables the company to shift the contingency mode to a state of emergency and enables control and remediation of the situation to take place quickly so that normal business can continue as soon as possible. The Corporate Director of HR is currently co-executing the role of CRO and directly reports its activities to the CEO and the Management Committee.
Samsung SDI operates its own electric and electronic system of internal control. The internal control system is devised to enhance reliability and transparency of information related to the company's business activity. The system includes the Internal Accounting Management Scheme devised to enhance the credibility of financial information, as well as other accreditation and evaluation procedures that protect the company's assets and prevent corruptive activities from taking place within the firm. Through this system the company is able to fulfill its legal certificatory obligations regarding the reasonability of accounting and management information, and proactively overlooks all general internal activities to ensure that they take place in full compliance with legalities, policies and procedures.
Samsung SDI runs a Plant Operation Approval System to enable management of potential risk factors that may arise when developing new business opportUnities and making investments into the incubating businesses. The Plant Operation Working Committee is centered around nine key departments including development, purchase, quality, manufacturing, environmental safety and utility which monitor the progress of the construction of new or additional production lines and eliminates risk factors proactively from the project planning stage to the very initiation of commercial production. Samsung SDI minimizes its trial and error in the investments it makes through the Plant Operation Approval System and continuously monitors whether standards and processes applicable to investments are being followed and applied correctly.