2010 Sustainability Report
CreatING Shared Value
Contents
Creating Shared Value
2010 Sustainability Report
01 2010 Highlights
02 Message from the CEO
04 Company Profile
for Sustainability
12
Sustainability Vision of Samsung Securities
Diverse Stakeholder Engagement
Sound Corporate Governance
Ethical and Principled Management
13
Integrated Risk Management System
08
09
10
with People
24
Sustainable Shareholder Values Generation
Customer Delight beyond Satisfaction
[special] Empathy 36.5, POP EYE, Blog POP C
Mutual Growth with Employees
30
Stakeholder Communication through the Brand
16
18
21
as Corporate Citizen
38
Efforts for a Sustainable Society
Social Contribution through Finance
Education for Future Generations
40
Step toward Global Corporate Citizenship
34
36
by ECO-Finance
46
Investment for a Greener Tomorrow
Green Management through Consensus
Environmental Performance and Data
48
[special] Nami Island Sangsang Maru
44
45
Appendix
50
52
53
Recycled papers and soy ink, certified by Forest Stewardship Council (FSC), were used to print this report
Designed by d.forever Tel : 82-2-734-9000
56
Third-party Assurance Statement
Review Opinions
GRI Checklist
Awards · Organization Chart
CREATING SHARED VALUE
This is the second sustainability report of Samsung Securities.
This report contains Samsung Securities’ effort and will to create shared
values and grow together with all our stakeholders.
Outline of the Report
Significance of the sustainability report
Every year Samsung Securities shares its sustainability management
activities, performance, and future goals with all our stakeholders through the
Sustainability Report. We also use the sustainability report as a channel for
reflecting the opinions of internal and external stakeholders in our management
activities.
Creating
Reporting period
The reporting period is from January 1, 2010 to December 31, 2010, and where
necessary for trend analysis, includes data from the past three years. Some
qualitative data effects 2011 activities. For the consistency of financial reporting,
we used data from April 1, 2010 to March 31, 2011 (the fiscal year).
Scope of reporting
Samsung Securities became the first domestic
financial company to be incorporated into the financial service
sector of DJSI (Dow Jones Sustainability Index) World.
This report covers our Company Headquarters, IT Center, domestic branches,
overseas subsidiaries. Environmental data is limited to the Company
Headquarters, IT Center and domestic branches.
Reporting principles
This report was prepared in accordance with the GRI (Global Reporting Initiative)
G3 Guideline and the GRI Financial Services Sector Supplement (FSSS), and the
reporting status of the items recommended by the GRI Guideline is described in
the GRI Index on page 53~55.
As a signatory to CDP (Carbon Disclosure Project),
Samsung Securities is encouraging listed companies in Korea
to participate in the Carbon Disclosure Project.
Assurance
This report was assured independently by a third-party entity. Please refer to
pages 50~51 for related information.
Shared Value
2010
Highlights ▶▶
•
••
•••
••••
The first financial company in Korea
to be incorporated into DJSI World
Ranked No. 1 in NCSI (National Customer
Satisfaction Index) for 5 years in a row
Global volunteer service in Mongolia
First sustainability report published
Share price rose by +39.4% in 2010
2,060 persons participated in social
contribution activities.
Participated in CDP
(carbon disclosure project)
% of completely sold financial
products 99.9%
Launched the premium wealth
management brand SNI
A cumulative total of 114,902 took part
in the economy education for youth.
Integrated risk management system
firmly established
Hired 133 college graduates
First donation consulting in Korean
securities industry
Invested 14% of principal investment
in new and renewable energy
Saved 43.5 million sheets of paper
Completed the Nami Island project
‘Sangsang Maru’
Message from the CEO
Greetings to everyone in our Samsung Securities community!
We are pleased to welcome the start of a new decade by publishing our second sustainability
report on the economic, social, and environmental performance of Samsung Securities.
I’d like to extend my deepest gratitude for your ongoing encouragement and continuing
support enabling Samsung Securities to fulfill our responsibility as a global corporate citizen.
Globally recognized sustainability performance
In 2010 , Samsung Securities gained worldwide recognition for
its sustainability performance. Samsung Securities became the
first ever domestic financial company incorporated into the DJSI
(Dow Jones Sustainability Index) World financial services sector,
ranking us alongside the global investment banks. The recent global
financial crisis brought about the collapse of several global financial
companies, but Samsung Securities has been making efforts to
win the trust of our customers and the market on the basis of the
principles of sustainability management.
Also in 2010 , Samsung Securities strengthened the foundation
for financial sustainability. Capitalizing on our differentiated wealth
management capabilities and infrastructure, our private client assets
exceeded 100 trillion won for the first time in the history of the Korean
securities industry. In the past three years, our key financial indicators
and overall profitability have continued trending upward, with our
share price rising by 39.4% in 2010, contributing to increased value
for our shareholders.
Samsung Securities will never stop striving to extend the principles
of sustainability management to all our management activities, and
becoming a leading global financial company.
Emerging as a world-class investment bank
through empathy with customers
For Samsung Securities to become a global investment bank, it is
more important than anything else to win the unwavering support
and trust of our customers. This year Samsung Securities is carrying
out 「Empathy 36.5」 activities to win the trust of customers so that
we can become a leader not just in the securities business, but also
in the entire financial industry. 「Empathy 36 . 5 」 is a number that
02
symbolizes the warmth between people and represents Samsung
Securities’ will to understand customers from their viewpoint and
communicate with them ‘365 days’ per year. Samsung Securities is
moving beyond passive customer satisfaction focused on remedying
customer complaints, and transforming into a proactive financial
institution that delivers services customers desire like a ‘sales warranty’
before they ask for it. Meanwhile, Samsung Securities pursues GWP
(Great Workplace) valuing both work and family. Through various
events like ‘Consensus Networking’ and ‘Family Month’, we are
building mutual trust among all employees and helping them feel pride
in the company. Employee satisfaction will lay the foundation for our
transformation into a global investment bank.
Global citizenship for mankind and future generations
Samsung Securities’ 「2020 Global TOP 10」 vision represents our
will to lead global markets beyond Asia. It also reflects our sense
of responsibility : that is, we will not just become a global company
in size only, but we will perform our role as a truly global corporate
citizen. To this end, Samsung Securities has continued our overseas
volunteer services for the destitute and neglected in various Asian
countries since 2009. We started in Nepal in 2009, and extended our
volunteer services to Mongolia in 2010 and to India this year.
On the domestic front,Samsung Securities is engaged in social
contribution activities that make the most of the characteristics of the
financial industry, such as 「Donation Consulting」 and Youth Economy
Academy. In particular, the Youth Economy Academy is a representative
social contribution activity of Samsung Securities that has continued
for the past 6 years. It is contributing to imparting financial knowledge
to children and youths. Samsung Securities has grown into a global
corporate citizen spreading the ‘value of sharing’ all over the world. We
are not only spreading financial knowledge to our next generation, but
also helping the poor in Asia.
sustainability report underscores Samsung Securities’
“ Thiscommitment
to ‘shared value’ and ‘shared growth.’
”
Creating eco-friendly values by green investment
Armed with a strong sense of responsibility for the environment,
Samsung Securities is working hard to create environment-friendly
values in all our management activities. In particular, since 2001 when
we introduced the 「Samsung Eco Fund」 investing in environmentfriendly enterprises for the first time in Korea, we have lead in the
promotion of green investment products. Since 2010, as a signatory
to the Carbon Disclosure Project (CDP), Samsung Securities has
been doing what little we can to spread the importance of responding
to climate change across all industries in Korea. Moreover, Samsung
securities has conducted various activities, including the “Let’s
make a green workplace” campaign, to build a consensus among
employees about ‘Green Management’ and reducing greenhouse gas
emissions.
As a global investment bank we will make even greater efforts to
share the values we create through our business activities not only
with our shareholders, but also with our customers, employees,
local communities and future generations. This sustainability report
underscores ‘Samsung Securities’ commitment to ‘shared value’ and
‘shared growth’.
Thank you.
Chun-Hyeon Park,
President and Cheif Executive Officer
June 2011
03
Company Profile
2020 Global Top 10
Samsung Securities will
excel on the world stage.
[Overseas presence]
[Domestic branches]
44
Seoul
Backed by unrivaled business competence and differentiated service,
Samsung Securities leads the Korean capital market.
We will reinforce our position as a top global player by building advanced
management infrastructure and expanding our global business.
Samsung Securities consists of the head office, 98 domestic sales
branches, 3 overseas subsidiaries, one overseas branch,
and one representative office. We are working hard to provide creative
financial solutions to our local and overseas customers.
3
Gangwon
Shanghai
18
Incheon • Gyeonggi
London
Chungbuk
Daejeon • Chungnam
Jeonbuk
2
Established
Established
in November 2002
in December 1995
No of employees : 7
No of employees : 7
Shareholders’ Equity : $26 million
1
Daegu • Gyeongbuk
Hong Kong
10
Tokyo
New York
Established in January
2009 No of employees : 5
Established in October 1998
No of employees : 10
Shareholders’ Equity : $27 million
Established in April 2001
No of employees : 104
Shareholders’ Equity : $100 million
Samsung Securities
2
Busan • Ulsan • Gyeonnam
Gwangju • Jeonnam
Seoul (HQ)
No of employees
3,110 (including overseas manpower)
12
Total shareholders’ equity
￦2.7 trillion
5
Total assets
￦12.25 trillion
Market capitalization
￦5.9 trillion
(As of the end of December 2010)
jeju
1
History
1998
1992
Joined Samsung Group,
ranked 25th in the
securities industry
1997
Made it to the one of top
10 securities companies
in Korea
Introduced country’s
first mutual funds
2000
(As of the end of December 2010)
2001
Declared code of
ethics
04
Shareholders’ Equity :
￦187 billion
Customer assets :
￦11 trillion
Launched
CMA,
first in Korea
Shareholders’ Equity :
￦2.1 trillion
Customer assets :
￦131 trillion
Became No. 1 in the
domestic industry,
Merged with Samsung
Investment Trust and
Securities
2009
Shareholders’ Equity :
￦1.5 trillion
Customer assets :
￦64 trillion
Shareholders’ Equity :
￦91.8 billion
Customer assets :
￦1 trillion
2004
Shareholders’ Equity :
￦2.7 trillion
Customer assets :
￦198 trillion
2005
Declared that all
salespeople are private
bankers
2007
25th Anniversary,
Proclaimed 2020 Global
Top 10 Vision
2008
Concluded alliance in
M&A with Rothschild
Launched Brand
Management with Slogan
‘create with you’,
Expanded Hong Kong
business
2010
Launched ‘SNI’ a premium
brand for UHNW,
Became the first domestic
financial company to be
included in DJSI World
05
for Sustainability
Samsung Securities is laying a solid foundation for sustainable
growth through sound corporate governance, ethical management,
and systematic risk management. We also communicate with our
stakeholders through diverse channels, and actively reflect their
opinions in our management activities.
2010 Performance
1st
Published the 1st
Sustainability Report
DJSI World
Became the first domestic financial
company to be incorporated
into DJSI World
99.9%
% of completely sold financial
products 99.9%
Integrated
Firmly established
the integrated risk
management system
2011 Goals
• Establishing sustainable management with focus on stakeholders
• Reinforcing ethical management and compliance
• Improving competency to respond to risks in case of emergency
06
Sustainability Vision of Samsung Securities
08
Diverse Stakeholders Engagement
09
Sound Corporate Governance
10
Ethical and Principled Management
12
Integrated Risk Management System
13
07
Creating Shared Value
for Sustainability
Sustainability Vision of Samsung Securities
Diverse Stakeholders Engagement
2020 Global Top 10
Endeavors for sustainability management
Stakeholder communication
Materiality test and selection of issues to be reported
Pursuing <2020 Global Top 10>, Samsung Securities will lead the
sustainable growth of the global financial markets not only in the
economic sector, but also in the environmental and social sectors.
With a differentiated business portfolio, we will grow with our
customers, and generate more values and contribute to improving
their quality of life. Samsung Securities’ commitment to sustainability
management has been recognized by authoritative institutions both
at home and abroad, and will drive our sustainable growth, and
eventually lay the foundation for our emerging as one of the <Global
Top 10> financial services providers in 2020.
Samsung Securities’ commitment to sustainability management is
concretely realized through our vision, strategy, and organization.
Sustainability management consultative body consisting of 22
departments regularly checks sustainability management activities
and establishes future implementation strategies. The sustainability
management consultative body tries to ensure that the philosophy
of sustain ability management is aligned with our existing internal
regulations. As a result, Samsung Securities awards additional points to
asset management company managing SRI funds in accordance with
the revised assessment for qualified asset management companies
and established new evaluation standards for environment-friendly
The diverse stakeholders of Samsung Securities are shareholders,
customers, employees, partners, local communities, media,
NGOs, and government agencies. Samsung Securities collects
stakeholders’ opinions and ideas about sustainability management
through various communication channels, and continues to
communicate with each group of stakeholders about issues of
high interest. We will continue to maintain open communication
with stakeholders and thus establish stakeholder-centric
sustainability management.
On the basis of various items for assessing the level of
sustainability management, such as the GRI G3 guideline, DJSI
index and ISO 26000 guideline, we picked a pool of 30 issues.
We selected core issues, considering the interest of internal and
external stakeholders and the impact on the business. Samsung
Securities discloses those policies and activities of the company
which are related to the core issues selected in this report.
materials when selecting interior construction vendors. (enforced in 2011)
Stakeholder participation process
[STEP 1. Identify diverse stakeholders' interest]
Establish green management
system
Aggressive global expansion
Future new business opportunities
• Trading & PI expansion
• Creative IB capabilities
• Enterprise-wide risk management
•
Strong customer-centric management
• Creative and innovative organizational culture
• Diverse strategic social contribution
•
•
Strategies
ie
Reinforce internal and external
customer-centric Management
n it
Build a sophisticated business
infrastructure and portfolio
Active participation in environmental initiatives
Participation in the green financial market
• Rigorous environmental performance
management
•
• Fair compensation
• Self-development
• Promote
• Support
and
investment
contribution
activities
work-life
balance
corporate
governance
• Compliance
with tax obligation
• Transparent
management disclosure
s
NGO
•
Named the best company in the DJSI Korea financial service sector for 2 years in a row (2009~2010)
•
Included in the KRX SRI (Social Responsible Investment) index (2009~ present)
•
Ranked No. 1 in Korea Securities Industry Sustainability Index for 2 years in a row (2010~2011)
• Transparent
PR
expert
knowledge
in
• Sharing
social issues
• ECO-friendly
business
Fair vendor
selection
• Win-win
management
•
Pa
rtne
rs
The first Korean financial company to be included in the DJSI World index (2010)
rs
dividend
policy
• Social
• Engagement
de
• Sound
•
[Major external ratings]
•
s
mu
Environment
om
Society
• Stable
h ol
ent
Economy
Share
nm
Sustainable Growth with Green
ye es
ver
Sustainable Growth with Stakeholders
p lo
Go
Strategic
direction
Sustainable Growth with Creation
L o c al c
Slogan
Em
External stakeholders’ evaluation
2020 Global TOP 10
Sustainable Growth with You
Vision
[STEP 2. Conduct materiality test]
• Satisfaction
with diverse
needs
Internal stakeholders evaluation
Me
dia
[Structure of sustainability vision]
• Systematic
follow-up service
ers
om
Cust
•
Economic values generation
•
Improvement of employment conditions
•
Customer information protection
•
•
Education & training to reinforce
employee competencies
Distribution of outcomes according
to market status
•
•
Compliance with laws /
anti- corruption / fair competition
Social contribution activities for
local communities
•
•
Labor relations and interests
and rights of employees
Effort for providing adequate product
information
•
Indirect economic effect
[Vision strategy]
Entry
1
phase
2009 - 2010
Establish a basis for
sustainability management
•
•
•
08
Establish sustainability
consultative body
Publish sustainability report
Reinforce client-centric
management
2011 - 2012
Growth
2
phase
Internalize sustainability
management practices
•
•
•
Entrench stakeholder-driven
management
Establish strategic system for
sustainability management
Build market leadership in the
domestic financial retail market
Take-off 2013 -
3
phase
Build leadership in
sustainability management
•
•
Establish sustainability
evaluation system
Secure global IB competencies
[STEP 3. Communicate with our stakeholders]
Analyze the trends in domestic
and overseas financial industry
•
•
Domestic and overseas trends
Sustainability management
status of the domestic and
overseas financial industry,
etc.
Conduct media research and
review global standards
•
•
Analyze news related
Samsung Securities
(317 articles in 2010)
GRI G3 and DJSI financial
sector index, etc.
Internal stakeholder
communication
•
•
External stakeholder
communication
Conversation with the CEO
•
Internal stakeholders research
(Date : March every year,
Target : all departments)
•
Customer satisfaction survey
Interview with external
stakeholders, etc.
09
Creating Shared Value
for Sustainability
Sound Corporate Governance
Corporate governance for sustainability
External evaluation of Samsung Securities’ sustainable
Samsung Securities established the ‘Samsung Securities
Corporate Governance Charter’ in a bid to realize sound corporate
governance and become a trusted company. Based on our
management specialist system, we are working hard to establish
transparent and efficient corporate governance by holding the
BOD responsible for management, securing the independence
of the BOD and audit committee, and transparently disclosing
information.
corporate governance
Samsung Securities has received “Good” or “Better” grade
in the corporate governance evaluation conducted each year
by the Corporate Governance Service (CGS) for 7 years in a
row (2004~2010), and has been listed in the Korea Corporate
Governance Stock Price Index (KOGI) selected by KRX for 7 years
in a row. Our performance in this area is well recognized.
Committees under the Board of Directors
management objectives to determine their compensation levels,
while the annual regular meeting of general shareholders decides
on the limits of compensation for the management team.
With a view to improving corporate governance and enhancing
the professionalism and impartiality of the Board of Directors
and its members, Samsung Securities has installed five
functional committees under the Board of Directors, which are
the Executive Committee, the Audit Committee, the Outside
Director Recommendation Committee, and the Risk Management
Committee.
Transparency of the BOD
Transparency is essential to improving stakeholder values,
alongside the professionalism and impartiality of the BOD and
improvement of the corporate governance. The “Best Practice
Criteria for Outside Directors in Financial Investment Companies”,
enforced by the Korea Financial Investment Association in April
2010, stipulates that large-cap securities firms with total assets
over ￦5 trillion should separate the board chairmanship and the
chief executive officer.
Performance evaluation of the management
Samsung Securities’ BOD
Korea Corporate Governance Stock Price Index (KOGI)
As of the end of 2010, Samsung Securities’ BOD consists of 5 outside
directors and 3 executive directors. As the highest decision-making
body, the BOD handles matters stipulated as BOD responsibilities by
the laws and the articles of incorporation, and general matters included
in the BOD regulation. The BOD is chaired by an outside director, which
cannot be anyone who has a special relationship with the company,
in order to maintain the independence of the BOD. Outside directors,
consisting of experts in various fields, such as economy, management
and policy, make decisions on and supervise important management
activities, such as the revision of Samsung Securities’ internal control
standards, the approval of financial statements and sales reports,
and overseas fund investment. Regular meetings of the BOD are held
according to the annual plan, and if other important management
issues take place, extraordinary BOD meetings can be held to respond
to emergencies. Issues involving disputes among stakeholders are
KOGI (Korea Corporate Governance Stock Price Index) is an index
to induce the voluntary improvement of corporate governance by
giving opportunities for rational evaluation to companies with excellent
corporate governance in the market.
The Korea Corporate Governance Stock Price Index consists of 50
companies with an excellent corporate governance evaluation score.
To accomplish annual management goals, management
clearly defines major action initiatives and individual targets.
Each executive is regularly evaluated in terms of performance
and percentage of objectives accomplished. At the end of the
business year the Executive Personnel Committee is convened
to assess the performance of each executive as compared to their
[Samsung Securities’ BOD and committee organization chart]
[Samsung Securities’ major BOD agendas in 2010]
History
BOD
Major agendas
2010-02-19 • 1st Regular
- Change of the head office building lease contract
2010-04-19 • 2nd Extraordinary
- Change of members of the Outside Director
Recommendation Committee
- Revision of the BOD regulations
2010-05-11 • 2nd Regular
- Appointment of compliance officer
- Revision of the internal control standards
2010-06-01 • 3rd Extraordinary
- Appointment of the BOD chair
- Approval of the commercial paper (CP)
issuance limit
2010-08-26 • 3rd Regular
- Revision of the regulation on outside directors
handled in accordance with the articles of incorporation.
[BOD meetings]
Executive Committee
Committee
100%
96.90%
94.50%
BOD meeting
attendance rate
8
7
2008
7
Name
Responsibilities
Chun-Hyeon Park CEO
Date of
appointment
Executive Committee
Audit committee member
Gyeong-Yeol Min
Standing audit committee member
June 4, 2009
Jae-Hwang Park
Head of the Management Support Division
June 4, 2009
Outside director/BOD chairman
Chang-Eon Shin
Law Firm Namujeil’s representative attorney
June 1, 2007
Outside director
Chairman of the audit committee
Ju-Seok Lee
Woongjin Group Vice chairman
June 1, 2007
Former deputy governor of the Bank of Korea
June 4, 2009
10
Term of office
June 5, 2008
Senior vice president
Yeong-Gyun Lee
Key activities
Making decisions on general business of the company except for BOD
decisions(2 executive directors)
General management activities including the establishment of
management policies and strategies
• Matters concerning properties, such as changes in capital and
investment
Auditing the general accounting of the company and directors’ execution
of duties(1 executive director and 3 outside directors)
Matters concerning the general meeting of shareholders, such as
requesting a special general meeting of shareholders
• Matters concerning the BOD, such as violations of laws and
regulations by directors
• Matters concerning auditing, such as investigation of properties
• Other matters, such as lawsuits between directors and the company
(as of the end of 2010)
President
Outside director
Responsibilities(Composition)
•
[BOD members of Samsung Securities]
Outside director/audit committee member
Risk Management Compensation Committee
Committee
•
Audit Committee
Outside director/audit committee member
Outside Director
Audit Committee Recommendation
Committee
2010
2009
Title
As we have already separated the CEO from the board chairmanship
in 2006, Samsung Securities is considered a leader in enhancing
transparency in corporate governance.
Jong-Nam Oh
Head Professor, Science & Policy Advanced Research Course, Seoul National University
June 4, 2009
Yeong-Sang Yoo
Visiting Professor, School of Mechanics and Aerospace Engineering, Seoul National University
June 1, 2010
Outside Director Recommendation
Committee
Recommending outside director candidates to the general meeting of
shareholders(2 executive directors and 3 outside directors)
3 years
Risk Management
Committee
Establishing the risk management policies needed for the business of the
company and efficiently supervising risk management
(2 executive directors and 1 outside director)
Compensation Committee
Evaluating and deliberating on the appropriateness of the operation of the
employee performance compensation system(1 executive director and 2
outside directors)
1 year
3 years
•
•
Review of the necessity of additional outside directors
Recommendation and evaluation of outside director candidates
Establishment of risk management policies
Establishment, revision and abolition of risk management regulations
• Establishment of risk capital utilization plans and risk adjustment
performance measurement goals
•
•
Evaluation on the appropriateness of the performance
compensation system
• Check with best performance compensation practices
• Decision on the best practices and the subject
•
11
Creating Shared Value
for Sustainability
Ethical and Principled Management
Integrated Risk Management System
Internal control and ethical management
Improvement of anti-money-laundering system
Systematic risk management
Risk management organization
The Compliance Team and the Audit Team of Samsung Securities
prevent corruptions and irregularities by providing ethics and
compliance education for all employees, monitoring the fair trade
autonomous compliance program, and operating the whistle blowing
The anti-money-laundering system uses a risk-based approach
to classify customers, and lays the foundation for monitoring
suspicious transactions. It is significantly contributing to an
efficient response on the part of the company to the requirements
of related regulations, and is protecting the company from moneylaundering crime risks.
The risks faced by Samsung Securities can be broadly divided
into financial risks and non-financial risks. The Risk Management
Team works with related departments like the Compliance Team,
the Legal Team, the Compliance Teams, and relative Business
Divisions to systematically analyze the impact of specific business
activities on the entire company and thoroughly manage risks.
Beyond general risk management in the financial industry, we are
trying to continuously create values for all stakeholders based on
comprehensive risk management, including reputation risks and
The Risk Management Committee under the Board of Directors
controls and manages various risks, and for systematic and
effective management we delegate part of its authority to the
Risk Management Operating Committee. Company-wide
risk management is implemented independently by the Risk
Management Team.
system and the pre-audit system.
Declaring the code of ethics and the code of conduct
Samsung Securities added the ethical management menu on our
homepage. We share the code of conduct and our commitment
to ethical management with our employees and customers.
We established 6 types of ethics codes as the standards for
employees’ thoughts and behavior, and induce them to practice
them. Employees promise to practice ethical management
through the ethics observance pledge. In addition, we deliver
CEO’s commitment to ethical management through New Year's
addresses and monthly addresses so that ethical management
can be firmly established as part of our culture.
Ethical management education
Our employees understand ethical management, and voluntarily
practice ethical management in daily management activities
with cyber education for all employees every year. To be more
specific, the education covers ethical management, prevention of
corruption, and other regulations*. In particular, in 2010, we tested
the employees of all departments in the head office on their
understanding of compliance, thereby greatly raising the level of
employees’ interest in and understanding of ethical management.
* Other regulation is related to employee transactions, prevention of conflicts of interest,
customer information management, and anti-money-laundering, etc.
Reinforcement of the monitoring of fair trade
We are checking the status of fair trade compliance and allowing
compliance officers to review activities at all times, with an IT
based monitoring system, ‘Scan System’. If employee corruption is
detected, the issue is promptly handled through fair and appropriate
disciplinary regulations and procedures.
Reinforcement of internal education
There are various regulations and policies to prevent internal
corruption and bribery at Samsung Securities, along with the
relevant support systems and programs. In 2010 we provided
special education on anti-corruption for 205 frontline workers.
We encourage our employees to report financial irregularities
and possible ethical breaches in real time, through the intranet.
The Audit Committee conducts daily audit, all-time and audit for
branches, and irregular special audit and ad-hoc audit for specific
sectors.
legal risks.
Risk Management Policy
In the financial industry, systematic risk management is essential
to corporations. Having the best risk management competency
in Korea, Samsung Securities established its “Risk Management
Regulations and Enforcement Rules” to ensure the efficient control
and management of various risks likely to take place in the process
of business activities. With comprehensive risk management,
including social and environmental areas under our systematic
regulation, we respond to economic and non-economic impacts on
the business.
•
We will perform our duties honestly and fairly, adhering to the highest
standards of ethical conduct.
•
We will act in our customers’ best interests, keeping with our fiduciary duty.
•
We will protect shareholder values by generating profits through effective and
efficient management.
•
We will comply with all applicable laws, regulations, and company policies,
and compete fairly to promote healthy growth of the industry.
•
We believe that what is good for the Company us good for us all, and we will
treat each other with most mutual trust and respect.
•
We will continue to strive for self-development and enhance our professional
financial expertise.
Samsung Securities ensures continuous and uninterrupted service
through the Business Continuity Plan(BCP). BCP is designed to
minimize financial losses and disaster recovery costs which are
incurred as a result of business disruptions, while protecting our
customer assets and company properties from disasters. It also
ensures service resumption within one hour.
Real-time risk management system
The Suwon Disaster Center of Samsung Securities implemented a
risk management system at the same level as the operating system
for 48 systems and 73 tasks, and can resume service within one
hour after the occurrence of a disaster.
[Risk Management Framework]
[Samsung Securities’ ethical management and whistle-blowing site]
Risk
management
system
Source
Source data
Ledger information
• Research information
• Asset management info.
• CAS information
• Investment information
• Company information
• Fixed-income information
• OTC information
• Exchange-traded
derivatives info.
• Offshore fixed-income info.
• Market data
• Financial information
•
Inquiry/
Report
- Risk data mart area -
•
[Code of ethics]
Disaster recovery plan
Staging
Area
•
Common area
•
Operational risk area
•
Market risk area
•
Total risk area
•
Credit risk area
•
AML area
New application area
Self-developed area
External
data
Market risk
calculation
system
Credit risk
calculation
system
Operational
risk calculation
system
Total risk
calculation
system
Interest/Liquidty
NCR calculation
•
Market risk
report
•
Credit risk
report
•
Operational
risk report
•
Total risk
report
•
AML
(Anti-Money
Laundering)
report
Credit assessment model
KBP data
12
13
with People
Samsung Securities is maximizing shareholder value by generating
superior financial performance fit for its status as a top securities
company in Korea, and pursuing customer-centric management
through a differentiated customer delight strategy. We are also
pursuing an advanced organizational culture in which the company
can grow with employees. We are trying to communicate and
empathize with stakeholders through Brand Management.
2010 Performance
+39.4%
Stock price rose by
+39.4% in 2010.
No.1
Ranked No. 1 consecutively
in the Korea Service
Grand Prix and NCSI
133
Hired 133 college
graduates
SNI
The premium wealth
management brand
2011 Goals
• Maximizing shareholder value with
leadership in the Korean market
• Executing the new customer delight campaign “Empathy 36.5” successfully
• Expanding our employee welfare and
self-improvement support policy
• Doing business creatively through Brand Management
14
Sustainable Shareholder Values Generation
16
Customer Delight beyond Satisfaction
18
[special] Empathy 36.5, POP EYE, Blog POP C
21
Mutual Growth with Employees
24
Stakeholders Communication through the Brand
30
15
Creating Shared Value
with People
Sustainable Shareholder Values Generation
Financial Performance over the past three years
Our shareholders
Continuous generation of economic values
As of the end of March 2011, our major shareholders are Samsung
Life Insurance and Samsung Fire & Marine Insurance, and the
National Pension Service and major securities companies.
We host IR events, NDR, overseas road shows and one on one
meetings, to provide timely and adequate information to our
shareholders and investors.
In 2010 we generated ￦1.0286 trillion in economic value through
brokerage, wealth management, investment banking, trading
income, and interest income. The generated economic value is
distributed to stakeholders, i.e. shareholders, employees, partners,
the Government and local communities, in various ways. In
particular, 1/3 of it goes to our employees, the core resources of our
business, in the form of wages and benefits.
[Shareholders of Samsung Securities]
In the past three years, the key financial indicators of Samsung
Securities, such as net income and operating income, have
continued trending upward. As a result, the economic value
distributed to stakeholders is also rising continuously. In response
to the improving performance and stronger market power, the
stock price of Samsung Securities went up by 39.4% in 2010,
17.5% point higher than the market benchmark KOSPI. The rise
in stock price has contributed to increasing the asset values of
our shareholders.
• Samsung Life Insurance .................... 12%
• Samsung Fire & Marine Insurance .......... 8%
• Korea Investment Management ............. 8%
• National Pension Service ...................... 7%
• Samsung Securities’ treasury stock ........ 3%
• Others (minority shareholders) ............. 62%
Meanwhile, Samsung Securities is also working hard to create
social values as a global corporate citizen. In 2010 we invested
￦6.1 billion in NGOs and local communities, including ￦2 billion
in the Micro Credit Bank and ￦1.5 billion in support of bid for the
2018 Winter Olympics in Pyeongchang.
(As of the end of March 2011)
[Samsung Securities creating shareholder values]
Dividends to shareholders
￦83.5
Net Revenue (Unit : ￦ billion)
895.7
FY 2008
FY 2009
2,393.7
2,598.7
FY 2008
FY 2009
Brokerage ￦409.6
Investment Banking
￦34.2
Trading Income
￦105.2
Interest Income
￦227.5
Others
￦35.7
Depreciation
￦41.4
Local community/
NGO
(contributions)
￦6.1
Retained
earnings
FY 2008
FY 2009
FY 2010
Retail customers’ assets (Unit : ￦ trillion)
2,798.7
FY 2010
238.3
FY 2008
FY 2009
FY 2010
Number of HNW customers (Unit : 10,000 persons)
108.0
88.2
FY 2008
245.3
229.7
51
FY 2010
FY 2009
82
67
FY 2008
FY 2010
FY 2009
※ The financial data is from April 1, 2010 to March 31, 2011.
Major Performance Indicators
[Reinforced power in the stock brokerage market : While the Market Turnover decreased, our market share increased thanks to our differentiated
service, and retail customers' equity assets also rose by about 40%.]
Equity market turnover (Unit : ￦ trillion)
Brokerage market share
-5%
3,964
Retail equity assets (Unit : ￦ trillion)
+0.3%p
3,764
+39%
6.3%
6.0%
75
54
FY 2010
FY 2009
External advisor type wrap account (Unit : ￦ trillion)
34% of
market
growth
￦154.8
FY 2010
2.6
Wrap account fee market share
8.2
• Samsung ............ 36.5%
• Company A .......... 14.9%
• Company B ........ 13.0%
• Others .................. 35.6%
5.1
0.5
(financial charge : fees and
insurance premium)
Net operating
revenue
Current income
￦238.3
￦1,028.6
FY 2009
FY 2010
FY 09 market
Other companies’
growth
Samsung’s
growth
Wrap account balance (Unit : ￦ trillion)
+350%
0.9
FY 2009
FY 10 market
3.9
FY 2010
[Doing well in the sluggish fund market : Stock-type fund sales recovered quickly despite the stagnant fund market, pushing our market share upwards]
Equity-type fund market (Unit : ￦ trillion)
Other operating
costs
￦41.1
Partners
(other management
expenses)
Building owner
(rent)
￦34.5
￦81.2
Non-operating loss
Associations/
related agencies
(various utility bills)
￦34.4
Government
(corporation tax)
￦99.8
Various media
(advertising & PR
expenses)
￦45.5
Shareholder
(dividend)
Equity-type fund sales market share
+0.3%p
-18%
115
￦83.5
94
3.8%
4.1%
Equity-type fund sales (Unit : ￦ billion)
+19%
1,781
1,509
￦12.2
(Unit : ￦ billion)
※ Financial data is data from April 1, 2010 to March 31, 2011, our fiscal year.
16
315.5
[An absolute edge in wrap accounts : Our wrap account balance rose by a whopping 350%, Outperforming competitors in terms of the contribution
to growth of the market and account fee market share]
336.6
Banks / asset managements /
investment advisers /
insurance companies
￦75.4
Wealth management
￦216.4
Net Income (Unit : ￦ billion)
356.4
270.3
68.9
FY 2009
wages/severance pay, welfare
expenses, training expenses)
FY 2010
Total Shareholders’ Equity (Unit : ￦ billion)
[Flow of economic values in 2010]
Employees
1046.5
777.1
We will continue to pursue sustainable growth, and try to
distribute greater economic values to all our stakeholders,
including our shareholders.
billion (￦1,250 per share)
Operating Income (Unit : ￦ billion)
FY 2009
FY 2010
FY 2009
FY 2010
FY 2009
FY 2010
17
Creating Shared Value
with People
Customer Delight over Satisfaction
Customer-delighting services of Samsung Securities
Frontline customer satisfaction activities
Proactive and prompt response to voice of customer (VOC)
Selecting employees to honor via VOC
Samsung Securities serves its customers. For customer
convenience and satisfaction, we are reinforcing our customer
satisfaction organization, implementing related systems, and
engaging in various CS activities. In particular, to get closer to our
customers, we built the VOC system, and respond to customer
needs in real time. As a securities company, we are doing
everything we can to ensure customer information security, and
try to go beyond satisfaction to give our customers delight.
Through friendly CS activities we are accelerating the building
of a customer-friendly image and the internalization of customer
satisfaction management. Each branch picks a theme that
customers can appreciate, posts customer reactions in the Happy
Maru bulletin board, and shares best practices with all employees
through internal broadcasting and notices. To effectively support
the branches’ Morning CS activities, the CS Planning Team
makes ‘CS Energy’ every week, and provides it to CS leaders.
‘CS Energy’ consists mainly of the customer response manual
practice, mind training, and simple stretching. We are also
planning to collect the opinions of frontline workers on a quarterly
basis to develop contents utilization epilogues, outstanding CS
To find fundamental solutions to key VOCs, we accumulate data,
analyze the data, provide feedback, and try our best to reflect
customer requirements in our management activities.
We host the VOC Day on a regular basis to review core issues
requiring policy decisions, make quick decisions, and manage
long-term assignments, and delayed cases. In addition, through
the IT-based VOC meeting, we share current issues related to
VOCs with the relevant departments.
We introduce those employees who have been complimented
by customers every month via Happy Maru. The ‘VOC-picked
employee’, which is selected through the homepage, phone calls
via the Call Center for compliments, and customer opinion cards,
will receive a congratulatory card and a gift. We are trying to
ensure that all employees will share their attitude and expertise in
customer delight based on the voice of customer (VOC), the most
important asset, and their compliments.
We are encouraging employees to reinforce customer satisfaction
activities through various CS awards, and trying to establish
customer-centric management across the organization by creating
a culture in which we solve customers’ problems preemptively.
leader and branch video materials.
[VOC analysis process]
01
Data
자료
Happy with You CS 2010 !
02
Extract/
analyze
data
In 2010 we conducted the ‘Happy with You CS 2010 campaign’
to make customers feel happy from greeting to finish. Rather than
simply providing excellent services and products, we engage
in diverse activities to make customers happy, by having our
employees follow basic rules to delight customers, from greetings
through interacting with customers and counseling to the final
wrap-up.
03
Identify/review
improvement
projects
04
Reflect
improvement
projects
[Positive responses to our customer satisfaction activities]
•
NCSI : No. 1 for 5 consecutive years (2006~2010)
•
KS-SQI : No. 1 for 3 consecutive years (2008~2010)
•
KCSI : No. 1 for 5 consecutive years (2006~2010)
•
KNPS : No. 1 for 4 consecutive years (2007~2010)
•
Korea Service Grand Prix : Won the grand prize for 2 consecutive years (2009~2010)
•
▶
Korea’s Most Admired Companies : No. 1 for 4 consecutive years (2007~2010)
friend • ly CS [frendli si:es]
2009
72
69
71
69
71
63
70.6
68.7
2006
69.7
2007
Receiving system data, business system data and new product
suggestions.
•
Classifying and managing received data in the VOC integration
system.
•
Sorting data by contents, department, period and customer
for analysis.
•
Reporting improvement projects at the monthly executive
meeting to check whether to develop or reflect
•
Providing feedback from related departments
•
Reporting progress on the projects at the monthly executive
meeting
•
Spreading VOCs for which improvements have been made
nternally and externally every month
67
69.2
2010
•
Expanded automated ordering service
•
Improved bond business/the UMS system
•
Provided foreign stock online trading and foreign indexes
in real time
•
Improved the standard investment recommendation rule work
procedure in relation to the Capital Market and Financial Investment
Services Act
•
Alleviated customer complaints and convenience after the
enforcement of the payment and settlement system
•
Improved the POST Office CMA process and reduced
inconveniences
•
Expanded online and phone processing work
•
Improved major contract works (allowing dispatch according to
contract change), allowing change to another account for regular
account transfers, and cancellation
•
Expanded holiday transfer (from ￦50 million to ￦3 million)
•
Return process (allowed clearance on SMS/HTS)
60.9
2005
Accumulating received data in the VOC integration system.
•
2008
2009
2010
[VOC, Fn Family Center, November 2010]
Calm and courteous ‘Hye-Ran Lee’
I was completely ignorant of stocks. I called in to open an
account. Ms. Lee Hye-Ran answered my call. She helped me
download the HTS program in a calm and courteous manner,
and gave me basic training so that I was now able to trade
in stocks. As she is courteous and hardworking in everything
she does, she will become a great asset to the company. Let’s say
I called in to ask questions, and her answers were not good
enough. Then, how frustrated will I be?
[Improvements via VOC]
2008
① Samsung Securities’ own beautiful and ‘truthful’ service
[Samsung Securities NCSI evaluation]
• Samsung Securities
• Average of the securities industry
Receiving data via Call Center, homepage, branches and head office
•
friend • ly [frendli]
① kind (in action) ② kind, tender and familiar (in atmosphere) ③ close, being friends
▶
•
We linked our intranet to the integrated VOC system so that
our MOT departments (branches, Call Center) can connect to
the VOC system immediately after collecting VOC. All employees
are authorized to receive VOC, and can check the progress
and processing results for the VOC they received in person. In
addition, registered VOCs will be posted on the intranet so that all
employees can share them in real time.
- Compliment from the homepage -
[VOC, Branch, July 2010]
‘Younsang Choi’ of Wonju Branch’ was kind and smiles a lot
Samsung Securities is the Best Number Plus One Company
leading the Korean securities market. I hope that Samsung
Securities will always lead the securities market with pride.
In addition, Choi Yeon-Sang of Wonju Branch deserves to be
praised. He is kind and smiles a lot.
- Compliment from the customer opinion card -
* The industry-wide drop in satisfaction in 2008 was due to the market downturn caused by the financial crisis.
18
19
Creating Shared Value
with People
Empathy
Customer Delight over Satisfaction
Reinforcement for providing correct product information
Differentiated institutional customer service
New campaign for Customer Satisfaction
Information on all of our financial products and services is
provided to customers via notes, posters, brochures and
electronic PR materials. Our disclosures clearly describe our
financial products, and compliance officers conduct a preliminary
review of the content to strictly prevent any false or exaggerated
claims. We comply with the fair trade laws related to consumer
protection, the regulations concerning broadcasting, advertising
deliberations in advertising production, and the advertising review
regulations.
As the representative investment bank in Korea, Samsung
Securities is working to provide valuable information to institutional
customers in a timely manner, and to satisfy the needs of
institutional customers with its differentiated sales and corporate
access service. We also upgrading and enhancing our ordering
system in pursuit of Best Execution.
In the spring of 2011, Samsung Securities launched ‘Empathy
36 . 5 ’, a new customer satisfaction campaign for meeting
our customers with a new attitude and heart. The name of
the initiative, ‘Empathy 36 . 5 ’, comes from the normal human
body temperature. It expresses a warm heart, sympathy, and
understanding and communicating from the customer’s viewpoint
at ‘36.5.’ It is our CS innovation campaign slogan for 2011.
In an attempt to move beyond an approach of simply reacting
to customer complaints, Samsung Securities switched its CS
to understand the hidden needs of customers and preemptively
provide them with a differentiated experience. We will deliver the
values of honesty and authenticity by communicating with our
customers.
We actively use our homepage to disclose product and service
information. If any information is changed, it must be immediately
modified, and the change is reported via the homepage, e-mail
and SMS so that customers are informed. All information on our
products and services must go through a rigorous preliminary
screening by the Korea Financial Investment Association, and
comply with laws relating to the provision of information.
[Samsung Securities’ complete financial product sales ratio]
99.8%
2008
99.8%
2009
Samsung Securities brokers the largest amount of institutional
stock orders of any Korean securities company, and provides
differentiated customer service and research to institutional
customers in a way that befits our reputation. In 2004, we became
the first in the domestic industry to host a global conference, and
are proactively responding to the interest in Korean stocks among
domestic and foreign institutional investors with systematic and
diverse services. In particular, Samsung Securities has been
named the best research house for several years by a international
business newspapers. Samsung Securities is rated as the best
research house in the Korean market.
[Our services for institutional customers]
99.9%
•
Samsung Global Conference: The largest road show in Korea, which
was first held in May 2004 and is attended by about 500 local and foreign
investors. The 8th conference will be held this May.
•
Analyst call service in tune with market issues
•
Analyst Day for institutional customers, Sector Community, Corporate
Day and NDR.
myManager service allows customers receiving 1:1 management
service from a branch PB to request that the PB be replaced. If
you find it uncomfortable to be serviced by a PB who does not fit
your investment preferences, or if you are not satisfied because
your investment style does not match that of the PB, this services
finds the right PB for you.
•
•
•
With our annual customer information inspection plan, we inspect
branches, head office and departments handling large quantities
of information every quarter. The inspection checks whether
customer information is neglected, whether prohibited customer
information is being stored, whether customer information is sent
outside of the company, whether customer information is properly
encrypted, and whether the customer information management
log is being kept in the appropriate manner.
20
•
[Representative awards in relation to institutional customers]
•
• Ranked No.1 in the Korean research sector by Asiamoney, 2005~2010
• Named the Overall Winner of the Analyst Awards by Joongang Ilbo &
Thomson-Ruters, 2010
• Awarded the Best Securities Company by Moneytoday & MTN, 2010
Withdrawal service is that if you purchase a financial investment
product warranted by Samsung Securities, and request withdrawal
for an inevitable reason within 5 business days, we will repurchase
the product and return the commission we collected.
We communicate and sympathize with customers with a true
heart, and are happy when we can truly delight them. To do this,
we constantly advocate for the ‘rights of customers’, and try hard
to restore them.
[Samsung Global Investors Conference 2010]
To protect the privacy of our customers, we established the
“Customer Information Management Guideline” that stipulates
the procedures for conducting jobs related to the generation,
inquiry, use, modification, disposal and management of customer
information and financial transaction information.
Incomplete sale compensation service is that we refund the
invested principal if the conditions for incomplete sale are met.
We conduct monitoring and inspection independently, and
compensate investors for incomplete sales.
Finding the best PB for you - myManager service
•
Customer information security
We provide an incomplete sale compensation service and a
withdrawal service to actively protect the rights of customers
when they receive financial advisory or purchase a financial
product.
Sincerity to our customers
[Customers’ rights]
2010
Actively protecting the rights of customers
- financial investment product warranty service
•
You have the right to receive investment recommendations from
Samsung Securities that are appropriate for your investor type.
You have the right to hear a sufficient explanation of the key
information and loss risk for the product you are purchasing.
Samsung Securities is obliged to recommend investments that fit
your investor type, to provide you with a sufficient explanation of
the key information and loss risks for the product, and to give the
investment brochure to you.
Sincere follow-up service for customers
- TrueCare service
The TrueCare service is our follow-up service. We help customers
manage assets wisely by systematically managing their investments
after the sale. We regularly analyze customers’ assets, and if there
are important issues that may affect their assets, we provide the
relevant information in a timely manner so as to help customers
make the right investment decision.
If the above obligations are not met, you have the right to claim
compensation within 15 days.
If you purchase a product based on an incorrect judgment,
you have the right to withdraw within 5 days of purchase.
After purchasing a product, you have the right to receive regular
investment performance reports, and investment information
about key issues related to changes in the assets.
You have the right to request that the PB be replaced if the PB fails
to pay the role of a bona-fide asset manager.
21
Creating Shared Value
with People
Pleasant Pop C story of Taepyeongro
Samsung Securities’ new service : POP EYE
(www.samsungpopeye.com)
POP EYE is our unique online service for online investors.
Targeting online stock and fund investors, it is a new online service
based on “participation, sharing and reality”.
‘Premium investment counseling’, available anytime and
anywhere
Special Club ‘investor club AIC (Active Investor Club)’
exclusively for stock investors
The Investor club AIC is a real-account information sharing service.
It provides real-time information on the stocks of AIC members,
a table of ranked popular stocks, investor status by stock, and
investor portfolios as well as general stock (trading) status for each
stock in table and chart format. It also allows you to view the yields
of individual anonymous investors, and the popular stocks most
frequently traded by AIC members in real time.
Premium investment counseling is a differentiated POP EYE
investment counseling service exclusively offered to our customers.
The premium investment counseling service allows you to receive
1:1 online investment counseling from our professional PBs. You
can use the services provided by the PB you designate through
the POP EYE service. You can also receive the stock market data,
news and reports you desire through the investment information
bulletin board. This premium service program allows you to watch
a live or VOD broadcast of your PB for investment information,
and provides you with the appropriate service, regardless of time
or location.
POP EYE provides diverse online services for online investors who
want to make their own investment decisions. We provide a stock
selection service based on a carefully selected logic, offer various
trading tools available anytime and anyplace, and facilitate diverse
online services useful for stock trading on your own account. In
addition, POP Express Premium provides customers with real-time
market information, such as the target prices, yield, ceiling/floor,
current prices, news and disclosure of the items you selected on
your own, to their cell phones.
22
Taepyeongro, a pleasant Pop C story, is the official blog of
Samsung Securities. With the goal of sharing diverse contents, this
online space was opened on July 1, 2010. It originally targeted the
G generation in their mid-20s and early 30s, and has since been
extended to reach potential customers in their early 40s. Samsung
Securities intends to use ‘Taepyeongro, a pleasant Pop C story,’
to talk with customers openly about the stories of Samsung
Securities employees, their jobs, the stories of office workers, and
real estate, and the valuable opinions of customers will be shared
interactively.
Customer response to our real-time interactive network
for communication
‘e-learning’ for inexperienced investors
‘Personal trading’ for investors who want to make their
own investment decisions
Pleasant Pop C story of Taepyeongro
(blog.naver.com/samsung_fn)
e-learning provides a range of learning contents, from the
investment stories of novice to inexperienced investors to the
basics in stocks and derivatives, how to use online services (HTS,
etc.). It also provides a variety of enjoyable multimedia content
about stock investment methods of renowned local and foreign
experts selected by Samsung Securities. You can also search the
lectures of each instructor, and download the lecture notes. You
can use the scrap function to keep lectures you want to view again
or lectures you will take in the future in your own individual area.
More than 700,000 people visited ‘Taepyeongro, a pleasant Pop C
story’ in the 10 months after it was opened ; on average, 2,300 people
drop by the blog per day. There are a great number of avid fans who
visit the blog consistently. Also, we provide real-time information
via Twitter (@SamsungPoP), which is very popular among young
people accustomed to social networks. In particular, the investment
presentation given in July 2010 by Pauline Dan, CIO of Samsung
Asset Management Hong Kong and the investment presentation given
in August 2010 by Chae-Won Lee, Senior Executive VP of Korea
Investment Asset Management, were broadcast in real time via Twitter,
so that the questions of followers could be answered instantly. It was
real-time communication, connecting the online and offline worlds.
Now, Samsung Securities intends to shift from pursuing a quantitative
expansion in communication to using the blog and Twitter to provide
differentiated services that will proactively meet customer needs, by
selectively delivering valuable information.
Contents that can be shared with everyone
The themes of the blog are the “employment in the late 20s,
investment techniques in the 30s, investment and retirement in
the 40s, the interests of different age groups, and fun stories
about finance.” ‘Taepyeongro, a pleasant Pop C story’ is divided
into 5 general sections.
•
OPEN investment techniques : sharing asset management
information involving stocks, foreign stocks, financial products
and real estate, and financial knowledge
•
BRAVO office workers : sharing stories about investment
techniques, and tips for office workers
•
BEST jobseekers : job-seeking tips and stories about various
qualifications
•
CREATE Samsung Securities : stories of daily life told by
employees, and donation activities of Samsung Securities
•
Fun & Empathy : sharing fun stories about digital life, health,
tours and leisure
The writers, members of the “cheerful writers club”, consist of 50
employees of Samsung Securities. We are continuously recruiting
internal and external writers who are interested in blogging.
[Contents of the key blog sections]
BEST The BEST job seekers corner
provides information on getting a
job at Samsung Securities, and
information that will be useful to
people who are seeking a job. It
provides detailed information for
those who want to work at Samsung
Securities.
OPEN The OPEN investment
technique corner provides information
on stock, bond and gold market
conditions on a daily basis, and
discloses the professional investment
know-how and tax tips of the
employees of Samsung Securities.
CREATE The job story section
of CREATE Samsung Securities
introduces various jobs performed
by the employees of Samsung
Securities. It will enable you to easily
understand many jobs that may be
unfamiliar to you.
BRAVO The BRAVO office workers
section introduces reporting
expertise and tips you need at work,
investment techniques, and stories
about retirement and retirement
pensions that will provide you with
investment techniques useful to new
employees.
23
Creating Shared Value
with People
Mutual Growth with Employees
Efforts to recruit excellent talents
Experienced workers and overseas recruitment with diversity
Our employees
Improvement of the personnel system
Samsung Securities recruits excellent talents by understanding the
characteristics and strengths of job applicants in diverse ways, and
our systematic talent management program prevents the defection of
outstanding talents. Since 2011, we have utilized a mock investment
contest to hire proven professional manpower. We are planning to
diversify our recruitment channels, and will continue to recruit outstanding
human resources who can lead the growth of Samsung Securities.
Samsung Securities is trying its best to ensure that outstanding
talents with excellent competencies can display such talents to
to their fullest through the Employees Recommendation System,
CEO presentations, and the overseas MBA internship program.
As of the end of 2010, our employees working across the country
totaled 2 , 945 . Among them, 1 , 673 are males and 1 , 272 are
females. We have 75 employees with disabilities and we are
increasing the percentage of the disabled year after year. In
compliance with the philosophy of gender equality, Samsung
Securities treats both sexes equally in all working conditions,
not only in recruiting, but also in wages, promotion and duties.
Comparing wages of the same job group and the same position,
in high-level jobs where the percentage of female professionals is
high, the average wage of female employees is higher than that
of males, and in recent years the percentage of female executives
has increased every year.
To proactively respond to changes in the labor market and
business environment, Samsung Securities continues to improve
its personnel system and secure outstanding human assets. To
do so, we are making efforts to present the career vision, promote
a rational performance-based system, and establish the rolecentric personnel system.
In particular, to become a global leader, Samsung Securities is
hiring more people who can speak a second or a foreign language.
New employee recruitment with impartiality
Employee
recommendation
system
To ensure impartiality and utilize a bigger pool, we give all job
applicants with basic qualifications the opportunity to take the SSAT
(Samsung Aptitude Test) regardless of nationality, gender or academic
background. We recruit through fair competition without any regional
discrimination. When it comes to overseas subsidiaries and branches,
we hire local manpower through local hiring processes rather than
sending an employee there. We also hire for different job groups, and
assign people with the right talents to the right positions to minimize
the dissatisfaction of new employees.
•
Presenting career vision
Providing a solution for the uncertain career paths e.g. high percentage of high-level
employees and reduced opportunities for promotion
•
Promotion of a rational performance-based system
Reinforcing the inherent function of monthly wages by reducing the variability of salaries
•
Establishment of a role-oriented personnel system
Focusing on securing internal fairness by adding the concept of roles to the
group-based personnel system
CEO
presentation
Hiring experienced
workers and foreign
nationals to secure
outstanding human
resources
Number of employees
% of regular employees
Turnover rate
※ Excluding overseas manpower
Overseas
MBA
internship
2,945
85.7%
2,786
86.2%
2,626
Also, to help new recruits settle early, we operate the ‘Dual Care
System’ that consists of the Field Master and the Guardian.
The Field Master is in charge of providing job training in the
field, whereas the Guardian gives advice on their concerns and
career management. In particular, the guardian system is an
official channel for new employee counseling and peer network
implementation, and greatly contributes to improving the
emotional stability of new employees and their satisfaction with
the organization. Meanwhile, with a view to creating a sense of
unity with the organization for experienced workers of diverse
backgrounds, we offer the group entry-level course and the
securities entry-level course, and the sympathy networking system
provides an opportunity to strengthen communication with the
person in charge at the Support Divisions in the head office.
2008
[Employee recommendation system]
•
Based on the recommendation by employees, this system makes it possible
to secure a pool of excellent experienced workers, and reduce the uncertainty
of hiring experienced workers.
•
Employees who recommend excellent experienced workers will receive
appropriate rewards so that they can be motivated.
2009
2010
Ratio of female wages to male wages
• ratio of female labor force
• ratio of female middle mangers
•
• male
※ With the wages of male employees in the same job
The CEO hosts a job fair, introduces the company and shows our vision to
42.5%
44.0%
43.0%
24
group and the same job class being 100 Wages of
female employees (as of 2010, including bonuses)
172
163
258
203
18.1%
[Overseas MBA internship]
13.7%
Internship for the purpose of expanding the overseas networks and
preemptively securing outstanding human resources
2008
96
14.3%
2010
2009
Advanced intern program
In order to preemptively secure outstanding talents with proven
competencies based on field experience, and to comply with
the Government’s policy of creating jobs, Samsung Securities is
operating an advanced intern program. The internship program
consists of 2 weeks of group training and 6 weeks of on-thejob training, and after the internship program is over, outstanding
interns will be hired as regular employees through interviews.
2010
2009
female
% of employment for the disabled
[Samsung Securities’ guardian system]
2010
New hires by sex (Unit : person)
recruit outstanding overseas talents.
•
2009
Employment of females
[CEO presentation]
•
2.7%
2.2%
Early settlement programs for new recruits
2.0%
2.0%
2.2%
2.7%
legal rate of
employment
2009
2010
Foreign hires by site (Unit : person)
• Hong Kong
• Head Office
• Other
59
66
Chief
101
Assistant
manager
105
Section
Chief
111
142
conductor department
head
% of local employees at overseas subsidiaries
67%
67%
2009
2010
6
2
8
6
2008
2009
2010
2009
2010
25
Creating Shared Value
with People
Mutual Growth with Employees
Employee welfare
Retiree support program
Win-win labor-management culture
Effort to prevent unfair labor practices
Samsung Securities has rational and competitive benefit systems
so that employees can be proud of the company and display their
abilities to the fullest. To give our employees real benefits that meet
their needs, we have put various welfare programs in place.
In July 2009, Samsung Securities established the Career Development
Center(CDC), and has since been supporting our retirees by working
in cooperation with an outplacement company.
In February 2010, we launched our program to support retired
employees, and supported 3 retirees in 2010.
In May 2010 Samsung Securities entered into the “Senior Startup
School” MOU with the Small & Medium Business Administration,
and sent interested retirees-to-be to the SMBA startup school.
Samsung Securities respects the collective bargaining right of
the labor union, and complies with the labor union’s requests for
collective bargaining. We clearly state the guarantee of the 3 labor
rights based on the collective agreement we concluded with 2
labor unions through collective bargaining, and hold the labormanagement council every quarter to promote mutual interests,
such as working conditions, education & training, wages, maternity
protection, welfare system, health and safety.
We guarantee the autonomy of the labor union, and discuss the
employment environment with the labor union every month. When
company systems such as the personnel system are changed, we
solicit input from the labor union.
We comply with the UN Global Compact labor principles, ILO
Convention Concerning the Prohibition and Immediate Action
Toward the Elimination of the Worst Forms of Child Labor) and the
Labor Standards Act.
[Samsung Securities’ welfare / internal welfare facilities]
Statutory welfare
Occupational health
and safety insurance
Medical insurance
National pension
Employment insurance
Top 4 welfare systems
Support for spare time
Others
Vacations
Support for family
events
Recreational support
Support for commute
vehicles
Residential support
Health support
Children’s education
Support for cultural life
Stable life after
retirement
Club activities
-
Performance evaluation and compensation system
[Targets of medical examinations]
[Home loans]
① To support the housing stability of employees, we loan funds for housing
purchase and rent at a low interest rate
② Company housing is provided for employees assigned to a location far
from home
Samsung Securities provides monetary compensation including
basic annual salary, bonus and welfare, as well as nonmonetary compensation, and makes efforts not only to ensure
fair and systematic compensation, but also to provide competitive
compensation. Our compensation system is balanced with the
general compensation level of the industry.
Samsung Securities investigates the compensation level of the
industry once a year. On this basis, we differentiate the levels of basic
pay in consideration of job types, duties and market values, and try
to ensure competitive compensation.
[Support of medical expenses]
① Target : spouse and direct ancestors and descendents listed in the health
insurance card
② Support ratio : employees (100%), spouses / direct ancestors and
descendents (80%)
③ Medical expenses covered by the National Health Insurance supported :
medical expense, surgery expenses, hospital room charges, doctor’s
bills, medication and prescription, dispensing costs, injection costs,
blood transfusion costs, oriental medicine treatment costs, and costs of
examinations for treatment
④ Amount : up to ￦10 million in 3 years
(including dental costs up to ￦3 million)
[Support of medical expenses]
3.0
3.8
[Samsung Securities’ performance evaluation system]
Classification
Performance evaluation
methods
Performance
evaluation times
16,991
26
2009
•
New employees and experienced hires will not be
evaluated for one year and 6 months, respectively.
• For
self-evaluation of performance, the original
objective will be the standard.
• Performance
20,004
2010
Cycle
Labor-management
council
Quarterly (4 times a
year)
Labor-management
meetingl
Every month,
ad-hoc (12 times or
more a year)
Collective bargaining
Every two years
Wage negotiations
Every year
Objection to education
is evaluated twice a year, with the
first-half evaluation conducted in June, and
the second-half evaluation in December.
professionals and research professionals
will be evaluated once a year.
Description
can make an objection after a
performance evaluation.
Wages, working
conditions, personnel
system, etc.
Others
CEO, executives
(Management Support
Department head,
Strategic Personnel
Department head),
union head
Wage conditions
Cooperative
labor-management
relationship based
on dialog and trust
Activities
•
We negotiate wages with 2 labor unions each year
and enhance labor-management stability through
the collective agreement
•
Labor and management visit leading overseas
companies every year and build a cooperative
labor-management relationship.
•
When a system related to the working environment
of employees is introduced or changed, we listen
to what the labor union has to say about it in advance.
Meeting between
management and the
executive of the labor
union
•
The CEO gives a presentation about management status every
quarter via the internal public announcement system.
•
We share management results and various current issues with
the labor union every month.
Operate multiple
channels for stronger
communication with
employees
•
Dasomi, a communication channel for female employees, is
for communication between the company and female
employees, and aims to boost morale.
•
Opinion leader group is a communication channel for new
employees who are college graduates and experienced
workers. A regular meeting is held every month.
• IB/CM
• Employees
Support for spare time
[Samsung Securities’ labor-management communication activities]
Description
employees except executives, employees on
leave of absence, and research professionals
•
Workers’ representatives participate in health and safety inspections, auditing
and accident investigation.
•
Whether there is a system for handling complaints
•
Right to refuse unsafe work
•
Compliance with ILO Convention
•
Carrying out a program for external safety investigation
※ S1 is exclusively in charge of security at Samsung Securities, and all
employees of S1 have completed safety and human rights education.
[Samsung Securities’ labor-management consultative body]
• All
Regular performance
evaluation targets
3.5
18,567
2008
If there is any significant change to the business, such as
restructuring, sale or acquisition of business and merger, we report
it to the labor union 50 days in advance, and consult with the union.
Communication channel
① Comprehensive examination (￦600,000) : every year for employees 40
years of age and older, and every other year for employees 35 years of age
and older and spouses
② General examination (￦200,000) : every other year for employees younger
than 35 years of age
③ Examination by life stage (￦1.4 million) : for employees who are 45 years
old, 50 years old and 55 years old
• Amount (Unit : ￦ billion)
• No of cases
In addition, we are providing various job-seeking services, such
as the real estate asset manager program, the traditional Korean
cooking program, and the professional golf course manager
program to help retirees successfully prepare for their life after
retiring in different ways. We introduced the retirement pension
system in 2006, and as of the end of December 2010, ￦25.7 billion
has been invested in the DB type, and ￦16 billion in the DC type.
[Matters covered by the official health and safety agreement]
A system for
handling the
employee
grievances
•
We use the grievance handling system to handle the
grievances of employees promptly.
•
A high-level manager of the personnel department conducts
on-site interviews to handle the grievances of employees.
Prevention of sexual harassment and employee
grievance handling
To create a sound atmosphere in the company based on mutual
trust, Samsung Securities has the ‘what shall I do bulletin board’
to receive reports on sexual harassment at work, has appointed a
person in charge of preventing sexual harassment, and operates a
channel for sexual harassment counseling.
We offer a sexual harassment education program for all employees
once a year for 1 hour~1 hour and 30 minutes, and to enhance the
accessibility of education, we post a video about sexual harassment
prevention education on our portal, Happy Maru.
Also, to identify and resolve the employee difficulties Samsung
Securities runs the VOE (Voice of Employee) program, and
assures confidentiality. We will continue to listen to the voice of
employees, and ensure efficient communication between labor
and management, while making efforts to create a working
environment where employees can work happily.
[Number of employees belonging to labor union]
273
241
185
2008
2009
2010
27
Creating Shared Value
with People
Mutual Growth with Employees
Reinforcing our global competency to become a global
Top 10 financial company
Samsung Securities has introduced a creative and autonomous
talent development methodology based on the educational
needs of the field, and aims to develop talents who are sufficiently
competitive to accomplish the ‘Global Top 10’ vision.
“Global Top 10 Finance Academy”
Samsung Securities is aiming to become a ‘Global Top 10 Finance
Academy’ by building the infrastructure for creative and efficient
learning/education and fostering practical job competency through
the university-type ‘SS Academy’. To this end, we are utilizing our
pool of internal instructors to run the programs of SS Academy,
which consist of educational programs for 6 different types of jobs.
Reinforcing the global competency of employees
Samsung Securities’ GWP (Great Workplace Initiative)
Strong and creative organizational culture
We are concentrating our energy on improving the practical English
proficiency of our employees, and give employees additional points
during promotion tests according to their conversational English
level. In particular, in the global school among the 6 educational
programs by job, we offer diverse in-house English courses, such
as Writing/Speaking, and business English conversation. In 2011
we are planning to reinforce practical English proficiency by hiring
professional instructors and making it mandatory to speak English
at departmental meetings. In addition, our MBA program and
Regional Expert program are cultivating the next global leaders
who will explore future business opportunities.
Our dynamic organizational culture, based on creativity, communication,
challenge, and innovation, will accelerate our transformation into a
global financial company, and serve as an engine that will enable us
to continuously grow in the ever-changing business environment. At
Samsung Securities, we trust our bosses and the management, and
are proud of our jobs and the organization. We are also trying to work
with our colleagues and work happily. In this way, Samsung Securities
is actively improving the organizational culture through GWP (Great
Workplace Initiative) activities.
Our GWP activities will lay the foundation for open communication
based on a profound and tolerant leadership, and create a sense of
unity in the organization by expanding Consensus and communication
between top and bottom and between different job classes, to
ultimately embrace a ‘creative organizational culture to accomplish
the Global Top 10 vision.’ With this goal in mind, our activities for
improving the organizational culture can be generally divided into three
themes : Profound Leadership, Open Communication, and Unity of
the Organization.
[Strategies for developing human resources needed to accomplish
the global TOP 10 vision]
•
Reinforce global competency : cultivating talents capable of global-level practices
•
Field-driven : Responding timely to the issue of reinforcing the competency in the field
•
Creative solution : Providing a creative talent development solution that goes
beyond traditional educational solutions
•
Autonomous learning culture : Creating an company-wide learning culture by
encouraging and supporting employees’ autonomous learning activities
English Facilitator, Ashley
New employee training
Annual average education
time per person (hours)
Average education expenses per
person (￦ million)
159
117
186
[Profound leadership, ‘Tolerance’]
[Open ‘Communication’]
Through CEO Consensus Management, the Cross Sponsorship
Program, and the Leadership Guide, we are trying our best to ensure
that profound leadership can be displayed to the fullest extent, which
must include respect for ideas, support, encouragement, recognition and
compensation.
We provide various communication opportunities, such as Consensus
networking, Lunch with a head of other department, and Operation of
the Consensus Bulletin, to creatively innovate the organizational culture.
162
Beautiful Samsung Securities Employee Award
2009
[SS Academy educational program]
2009
Sc
h
oo
l
Program name
Global School
l
PB School
Details
We provide an industry-university cooperative program covering
global financial knowledge and skills. A total of 5 sessions were
conducted, and 150 people completed the program.
Berlitz in-house
language course
Students took a placement test, and assigned to different
classes according to their score. The class was held two
times a week for 10 weeks in total. A total of 35 people
completed the program.
Logical Thinking
Course
The objective of this course is to systematically acquire
the ‘planning capabilities’ and ‘practical capabilities’ of the
workforce in the support divisions.
A total of 140 people completed the one-night 2-day
program which consists of 17 hours of class.
Through activities like Family Month, the GWP Fair, and the Art Festival,
we are enhancing loyalty to and pride in and creating a cheerful and
dynamic organizational culture.
2. PB School : cultivating PBs who will lead the market by reinforcing their asset
management competency
Special Lecture on
Business Issues
The objective of this program is to promote co-work and
synergies between different business divisions of the
company. This 1.5-hour-long lecture is given at 4:00pm in
the third week of every month.
Entry-level program
for new experienced
employees in overseas
subsidiaries
The objective of this 2-night 3-day program is to promote
their sense of unity with the organization among the
foreign employees in overseas subsidiaries and offices
and their loyalty. This program was offered three times,
and a total of 63 local employees in overseas subsidiaries
participated and completed the program.
3. IB School : Phased development of IBs with global competitiveness
4. Leadership School : Cultivating growth-oriented leaders who will embrace the
vision through a creative organizational culture
5. Global School : Language programs and localization courses to cultivate global players
6. General School : Diverse professional/basic knowledge and core value courses by job
28
Supervisors/
Management
Trust
Members of the
organization
uc
ro
d
Int
1. Introductory school : preparing new employees /experienced workers to work
more efficiently
Consensus Bulletin
[GWP model]
[Unity of the organization, ‘Integration’]
Sungkyunkwan
University Global PB
Advanced Course
to
ry
S
ch
oo
IB School
Lunch with a head of other department
2010
[Major educational programs of 2010]
ip
de
rs
h
Le
a
Global School
2010
Beautiful Samsung Securities Employee Postings
Pride
Work/Organization
Inviting the children of employees
Camaraderie
Co-workers
Samsung Securities Art Festival
29
Creating Shared Value
with People
Stakeholder Communication through the Brand
Brand management
[Brand platform]
We completed our brand platform, encompassing the brand essence,
brand slogan and core values, in 2009, and started Brand Management.
To boost the brand power of Samsung Securities on the basis of the
brand platform, we launched a new brand management program, and
are taking the initiative in presenting creative financial solutions.
Brand essence
Sensibly Ahead
Brand slogan
create with you
Samsung Securities offers reasonable financial
solutions based on our insight into the market
and customers. We always take a step ahead of
customer needs to provide innovative and reliable
products and services that fit the characteristics
and lifestyle of customers, and the diverse business
environments.
Brand statement
Innovative
Samsung Securities’ brand slogan ‘create with you’ clarifies our
will towards creating customer value as well as new financial
culture together with customers.
Top 4 brand stakeholders
Creative Idols and Financial Creators
Our brand is our identity. We are delivering a consistent brand
identity and continuously managing our identity across the board,
including our products & services, employees and communication
systems. We are implementing a customized branding system for
4 kinds of stakeholders to build a consensus with our stakeholders
on our brand identity.
We have selected ‘Creative Idols’ twice a year since 2010, and
capitalize on the flexible thinking and fresh perspectives of our
junior employees to get creative ideas with the potential to raise
the brand value that we can reflect in our work. We also have the
“Financial Creator” system, a creative suggestion program in which
employees present and share creative ideas.
[Brand management customized to stakeholders]
[Ideas suggested by Creative Idols]
Customers
Enhance brand power by differentiating customer
satisfaction
Employees
Improve brand management by innovating our
organizational culture
Reliable
Core brand values
Insightful
Proactive
Sophisticated
Investors
Community members
[“Asset management for everyone” Our representative retail brand]
POP Portfolio
Investment recommendation based on the global
market views and specific investment strategies,
and regular follow-up service
POP System
Expected yield/risk analysis based on scientific
methodology, best investment proposals, and
systematic performance management brand
based on diverse performance analysis tools
POP Service
Customer management service, such as
professional consulting and POP Honors Club
Goal-oriented account service, Caller ID service,
1st term
Unlisted stock brokerage service, and
Dual screen for customers
Creative contest for college students,
2st
Build the image of an admired company through
differentiated social contribution
CMA marketing using social commerce, SsAmvatar
term
smart phone application, Samsung CMA+Dream²,
and Donation-type wrap
[“Griffin keeping the Golden Gate” UHNW customer asset management brand]
The premium wealth management brand SNI for UHNW means
‘provision of customized investment solutions to customers’
(Samsung and Investment), and service for 'Special, Noble and
Intelligent' customers, and service regarding customers as a main
character (Samsung and I).
Small-scale premium
investment seminar
•
Breakfast seminar for Samsung Securities’ SNI customers
•
Corporate succession planning seminar
[Financial Creator mechanism]
To proactively respond to diverse customer needs concerning financial
products in keeping with our brand essence of ‘Sensibly Ahead,’ we
have developed innovative financial products (services), and applied
for patents. To actively derive outcomes that are in keeping with our
brand values (creative financial solutions), we have thorough patent
application processes including the in-service invention (patent
pending) program, and are working to turn inventions into rights
for the sake of a consistent brand policy, and the protection and
management of knowledge properties. We have diverse patents,
including the CMA Check Card settlement service, all-time deposit
and withdrawal financial product accounts, loans backed by the
Process
Financial Creator
Registration
High-class lifestyle
Feedback
financial product repurchase money, and investment competitions.
Registration
[Creative Idols’ idea meeting]
•
Seminar for UHNW featuring celebrities
•
Golf events
Register employee
suggestions
•
Overseas seminar
•
•
Marina JEFE yacht seminar
•
Seoul Arts Center year-end concert
Using the Financial
Creator Program
to receive employees’
suggestions
Process
Sort, review and
execute suggestions
Select excellent ideas
•
1, 2, 3 principle
Detailed classification
(product/service/business)
•
Feedback within a day
•
Feedback of review
results within 2 weeks
•
Feedback of excellent
ideas through the
regular cons within
30 days
Select outstanding
ideas based on review
by frontline workers in
related departments
Recruit monthly theme ideas
Ex) February 2010 : Fund
portability system\
March 2010 : Green & Nanum
management
•
Feedback to contributors
- 1, 2, 3 principle
•
Recruit monthly
theme ideas
•
Feedback
•
•
* UHNW : Ultra High Net Worth (super-rich people)
30
Name of suggestion
Enhance reliability through the integrated management
of our global/online PR channels
Intellectual property rights management
POP stands for Platform of Private Banking Service. It is an
integrated brand of asset management that represents large-scale
innovation and service for our customers.
Classification
Induce patent application
for excellent suggestions
•
Select excellent ideas
￦50,000 gift certificates
given for excellent ideas
31
as Corporate citizen
Samsung Securities has made continuous efforts to bring about
sustainable growth and mutual prosperity in our society. Our
volunteer services, which began back in 1995, continue in affiliation
with local community organizations across the country. We are
engaged in social contribution activities fit for the characteristics
of the financial company, such as donation consulting, support for
Smile Micro Credit Bank, and Youth Economy Academy. In recent
years, as a global corporate citizen, we are also conducting volunteer
activities for the poor people in underdeveloped countries like
Mongolia and Nepal.
2010 Performance
2,060 persons
Donation consulting
Activities of employees
participating in social
contribution in 2010
The first in the domestic
securities industry
to launch it
Mongolia
Global volunteer service
114,902 persons
Cumulative participants
in the Youth Economy
Academy
2011 Goals
• Encouraging employees’ voluntary participation in social contribution activities
• Diffusing donation consulting and supporting
social minorities
• Diversifying economics education programs and cultivating next-generation economic education leaders
• Diffusing overseas volunteer activities and
increasing support for underdeveloped countries
32
Efforts to for a Sustainable Society
34
Social Contribution through Finance
36
Education for Future Generations
38
Step toward Global Corporate Citizenship
40
33
Creating Shared Value
as Corporate Citizen
Efforts for a Sustainable Society
Social contribution system of Samsung Securities
To ensure sustainable growth and mutual prosperity, we are
building a systematic social contribution system. We are
presenting three directions of social contribution, which are
‘Positioning’, ‘Differentiation’ and ‘Brand’, as well as companywide volunteer service and the implementation of a system
supporting volunteer service.
Social Contribution Framework
Social
contribution
vision
Direction
of social
contribution
Leader of ‘Economy of Sharing’ promoting the sustainable
growth and mutual prosperity of society
•
A representative securities company in Korea, aiming to become a
Global Top 10 securities company
•
Pursuing the sustainable development of the economy, society and
environment
•
Becoming a representative icon of sharing and communicating well
with stakeholders
•
Diffusing Nanum leadership with a focus on leadership in society
•
Cultivating next-generation leaders as a group of economic experts
•
Aiming at sustainable development through global CSR
•
Abolishing the conventional simple donation method behind, and
growing together through mutual prosperity
Diverse and systemic social contribution activities
Samsung Securities has been conducting diverse social
contribution activities since 1995 with focus on the philosophy
of fulfilling our ethical and moral responsibilities as a corporate
citizen. Along with the activities of Samsung Securities Social
Volunteer Group, born in 1995, we conduct various activities,
including advanced donation programs like matching grants,
and social contribution programs taking advantage of the
characteristics of the company. Our social contributions are not
limited to Korea alone, but extend to countries like Haiti where a
helping hand is urgently needed, and underdeveloped countries
like Mongolia, Nepal and India that continuously need help from
the international society, and our effort to become a global citizen
will continue down the road.
‘Positioning’, ‘Differentiation’, ‘Brand’
We present ‘Positioning’, ‘Differentiation’ and ‘Brand0’, based
on brand 3i* as the direction of our social contributions, and we
are implementing 4 themes of social contribution in conformity
with this direction. ‘Positioning’ means that we will make serious
efforts with regard to global issues in line with our Global Top
10 Vision, and ‘Differentiation’ refers to the direction of our
social contribution different from that of other companies in the
financial industry. Lastly, ‘Brand’ means engaging in participatory
social contribution activities based on communication with all
stakeholders and thus enhancing the brand value. To put this our
social contribution themes into programs, we are implementing
4 themes of social contribution, i.e. Samsung Securities Social
Volunteer Group activities, donation consulting, Economics and
Securities Education for the Youth, and Global CSR.
Objectives
of social
contribution
Social
contribution
themes
•
Donation consulting
•
Financial education
•
Volunteer service of employees
•
Global DSR
Investment and Fund-rasing for local communities
In 1995, Samsung Securities Social Volunteer Group was founded,
with the aim of fulfilling our ethical and moral responsibilities as
a corporate citizen. As of 2010 there are 110 volunteer teams in
total.
The amount of money contributed to our social contribution activities
is increasing every year, and the amount of contributions in 2010,
including donations to various local community organizations, NGOs,
and the Micro Credit Bank, totaled ￦5.86 billion. Out of the total, about
￦560 million was used for education and social welfare activities.
To support employees participating in volunteer activities, we are
running a volunteer activity support program. First of all, to induce
employees to voluntarily participate in social contribution activities,
we have a paid volunteer activity program that enables volunteer
activities during office hours, and allow paid leave for corporatelevel remote-location volunteer service activities lasting more than
one day, such as emergency relief. We are also operating the
volunteer service leader program, which has involved organizing
a volunteer team with volunteer service leaders recommended by
individual departments.
As part of the incentives for volunteer activities, we reward
outstanding volunteers and give them additional points during
performance evaluation. On the Foundation Day, the special contribution
prize and the ‘Man of Hope’ are given to outstanding volunteers and
volunteer teams. Those are the representative awards in Samsung
Securities’ social contribution. good examples of this practice.
Positioning
The Nanumi Fund, the representative fund-raising activity of Samsung
Securities, is a fund based on the monthly voluntary donations from
employees. As of now, 77% of our employees are participating in the
fund spontaneously, and a certain amount of funds is raised each month.
Besides these voluntary donations from our employees, the company
donates an amount matching the amount donated by the employees,
which is called the matching grant program.
[Financial support for social contribution activities]
Education
Welfare
•
Focusing on themes related to global issues like ‘environment and donation’
•
Providing innovative and reliable services in consideration of the characteristics and
lifestyles of our customers, and diverse business environments
Supporting sustainable growth of every sector of society as
Korea’s leading securities company
•
Implementing diverse social contribution programs by considering the
economy, society and the environment
•
Reproducing and diffusing the meaning of social contribution through
education and campaigns
•
Reflecting the growth strategy of the company and the characteristics of
the industry
Total employees
Number of participants
303
259
256
(Unit : person)
2008
Creating and diffusing a differentiated brand image by leading
values compliant with Market 3.0
B
DP
2009
2010
2,559
2,060
1,959
2008
2009
[Annual contribution to the Nanumi Fund]
2008 : ￦151,761,000
2009 : ￦151,870,000
2010
￦155,176,000
[Annualized volunteer hours]
19,244
Contributing to the enhancement of brand value through
stakeholder-participatory social contribution
•
183
99
2,945
Brand
Enhancing internal and external satisfaction by getting customers
and employees to take part in the programs (Internal + External
Branding)
5,865
5,400
2,786
2008 : 21,090 hours
2009 : 19,908 hours
•
(Unit : ￦ million)
[Employees participating in social contribution activities]
2,626
Differentiation
Total amount
5,138
296
Concentrating on global issues with the aim of becoming a Top 10
global company
*Brand 3i, created by Phillip Kotler, represents Image, Integration, Identity.
34
Social Volunteer Group activities
[Number of Samsung Securities’ volunteer groups]
110
107
100
2008
2009
2010
Communication with local communities
hours
Our social contribution activities are conducted through
communication with local communities. To understand the needs
of local communities, we start by seeking recommendations
from local governments and social welfare organizations and
foundations, and conduct interviews with potential beneficiaries.
Communication regarding social contribution activities is not
only carried out in the early stage, but also in the middle of the
activity and after the fact. We conduct beneficiary satisfaction
surveys and interviews as well as volunteer satisfaction surveys. In
addition, we evaluate the programs of our partner organizations in
the local community, and use the results to raise the quality of our
future social contribution activities.
35
Creating Shared Value
as Corporate Citizen
Social Contribution through Finance
Social contribution related to the financial industry
Donation consulting of Samsung securities
Key programs of donation consulting
Financial support for the needy
To make a bigger impact than would be possible with simple
donation-based contributions, we are conducting differentiated
social contribution activities that reflect the characteristics of
the financial industry. First of all, donation consulting refers to a
service that provides customers, who have donation needs, with a
consulting service regarding support methods, such as establishing
a public foundation or donating directly to a public organization.
This is our second social contribution business utilizing our
professional knowledge and expertise. We are also providing
financial support for low-income families and small and mediumsized businesses that have difficulty accessing financial services.
In 2010, Samsung Securities launched its donation consulting
business, which was a first in the industry. The donation consulting
service was developed in order to respond to the donation needs
of wealthy people, and to reinforce VIP marketing and provide
asset management service at the same time. This service is very
significant, in that customers contribute to the diffusion of the value
of mutual prosperity through donations, and it is a professional
social contribution activity that suits the characteristics of the
securities industry. In April 2010 we entered into an MOU with
‘Community Chest of Korea,’ and are working hard to develop
more professional services suited to customer needs.
The key programs of donation consulting include customized
designated donation, establishment of public foundations and
inheritance donation. Customized designated donation is a
program that selects the public organization best suited to
the targets and public services desired by the customer, and
makes the connection. Establishment of public foundations is a
program that supports the establishment of a foundation, social
welfare organization or corporation. It provides information on
the establishment procedure, supports the preparation of related
documents, and supports core target business and basic asset
management planning. Finally, inheritance donation provides
The Micro Credit Bank lends small amounts of money to individuals
who are needy but lack the collateral or surety required to obtain
financing from mainstream banks. This assistance helps them
to become self-reliant, both socially and economically. Samsung
Securities donated ￦2 billion to the Samsung Micro Credit bank
in 2010, as well as in 2009. The loans provided by Samsung
Micro Credit Bank exceeded ￦10 billion in just one year after
its foundation. By supporting the Micro Credit Bank business,
Samsung Securities is putting ‘management of sharing’ into
practice, and contributing to the social integration of the needy
while supporting their initiative and employment. We will continue to
expand our financial support in this area.
[4 steps of “customized donation” consulting]
1
Step
2
Step
Select donation targets.
The donation consultant meets
the customer and analyzes
donation needs.
In this step, the customer
understand the motive behind the
decision to make a donation, e.g. “if
there was something in your life that
you were really grateful for, what was
it?” In other words, the customer
determine the correct ‘intention’
regarding the donation, the target of
We use statistical data about
media, government and non-profit
organizations to analyze recent
social issues, find areas in which the
Government alone cannot provide
solutions or for which the solutions
are not legally guaranteed, and
present the best public organization
Step
3
Step
4
information on the procedure for donating an inheritance or on
bequeathal. In relation to the establishment of a foundation through
donation consulting and donation-related information, we receive
3~4 inquiries or consulting requests in a month, and the number
has been increasing gradually.
Classification
•
Make donations and provide
feedback.
Find ways to ensure that the
donation is used well in places
where it is needed.
The public organization
recommended by the donation
consultant is connected to
the customer, and the public
organization specifically informs
the customer of how the donation
will be used, and they jointly make
The result of donation execution is
given to the customer. The impact of
the donation is not assessed simply
by the numbers, but by how the
life of the beneficiary was improved
thanks to the donation, and what
social contribution has been made
Customized
designated
donation
and will be shared.
plans.
for solving the issues.
Description
Selecting the best public
organization suited to the targets
and public services desired by
the customer, and making the
connection
•
Administering a 1-year fund that is
distributed intensively in the year,
or 3~5-year fund that can be
distributed on an year-by-year
basis.
•
Supporting the establishment of
foundations/social welfare
organizations/corporations
•
Providing information on the
establishment procedure and
supporting preparation of related
documents, and providing
consulting service related to operating
the foundation after the key target
business and basic asset
management plan are presented.
Customized
designated
donation
donation and the amount.
Co-work
Duration
Community
Chest of Korea
and General
nonprofit public
organization
1~2
months
Internal tax
accountant
and external
accounting firm
2~3
months
To support the disabled and increase their access to financial
services, we are expanding financial services for the convenience of
the disabled, such as Braille security cards.
Financial support for small and medium-sized
enterprises (SME)
We are providing financial support for small and medium-sized
enterprises that have difficulty raising funds. We underwrite the
floating of CBO (Collateralized Bond Obligation) by outstanding
SMEs, and have done so 5 times since 2007. The total floated
amount is ￦ 623 . 9 billion, and we have underwritten ￦ 156 . 3
billion. As the economic recovery became apparent in 2010, the
fund-raising needs of SMEs greatly decreased, and the amount
underwritten by Samsung Securities decreased as a result.
However, the % of the underwritten amount against the floated
amount rose to 33%, up 10% from the previous year. In keeping
with the recent clamor for mutual growth, we are planning to further
reinforce our support for SMEs.
[CBO floated for SME]
Issued amount
Underwritten amount
(Unit : ￦ billion)
421.8
•
[Case Study]
Samyun Scholarship Foundation’, which was founded in 2010, was established through the donation consulting service of Samsung Securities.
Founder and Chairman Su-Eok Bae is a customer of Samsung Securities. He had a rough time of it after his father died when he was 9 years old, and
made his fortune on his own. Saying that he wanted to return the help he received until he succeeded, he asked for help in establishing the scholarship
foundation, and used the donation consulting of Samsung Securities to realize his dream. Now this foundation will give substantial help to many youths
so that they can grow without losing their dreams.
Customized
designated
donation
•
Presenting how to use the donation
in a way that best reflects customer
needs, by the Donation Consulting
Committee, consisting of the fundraising and distribution experts of the
Community Chest of Korea, and lawyers.
111.0
93.5
91.1
Community
Chest of Korea
2
months
32.8
30.0
Providing information on inheritance
donation and on bequeathal.
2008
2009
2010
“It is my small wish that no youth in Korea will quit school for Economical reasons. I will give and share all I have to help the youths in the local
community realize their dreams.” (Chairman Su-Eok Bae)
36
37
Creating Shared Value
as Corporate Citizen
Education for Future Generations
Youth Economy Academy
The Youth Economy Academy is a social contribution program
that began in 2005 to instill an understanding of the economy in
children and juveniles. Currently, it has become the representative
social contribution initiative of Samsung Securities.
The objective of the Youth Economy Academy is to teach
students living economy, such as the economy of production,
the economy of consumption, savings and investments, through
games and hands-on experience. It mostly targets 4th graders
through 8th graders, and provides them with education fit to the
level of the students.
[Cumulative number of participants]
114,902
[With Staffs. Interview with stakeholders related to social contribution]
persons
[Cumulative number of classes]
5,919
[Number of participants]
classes
32,632
Youth Economy & Securities Education Program
Having started out as a program exclusively offered by Bizworld,
it now runs 5 programs, including the Economics Playground, the
Economics Academy, the development of currencies and allowance
management. Backed by this program, about 5,000 children and
youths are taking systematic economic education each month at
the 60 branches of Samsung Securities. From 2009 we entered
into an agreement with 9 social welfare organizations across the
country, and we are taking advantage of the “College Student
Volunteer Group YAHO”, made up of 200 college students, to build
a network for nation-wide education and distribution.
The Youth Economy Academy is also capitalizing on several
cooperative relationships to provide diverse opportunities for
participating children, organizations, and volunteers. We are
cooperating with organizations specializing in economic education,
such as the Kids & Future Foundation, the Jeonju Education Center
of the Korea Leadership Center and the Economic Education
Association of KDI in order to continuously develop new programs.
21,810
20,855
18,363
16,355
2005
2006
2007
2008
2009
Supporting selected 40 organization intensively
•
Supporting operating expenses of organizations
twice a month
•
Connection to the “College Student Volunteer
Group YAHO”
38
d
su
pp
ort
(Min-Jeong Hyeon & Ae-Jeong Hyeon, Jeju Univ.)
“I began to meet children at the local children’s center in 2010.
Regardless of their individual interests, I came to believe that what
they all need is the interest and love of society. While working as
a volunteer, I think I am the greatest man on Earth, contributing to
mankind while sacrificing the most beautiful moment in my life.”
(Seung-Gyun Kang, Jeju Univ.)
* ‘YAHO’(Young Assistant Happy Opportunity for Youths) means
“Let’s take advantage of economics education opportunities together with
the young teachers of Samsung Securities, who are also college students.”
2010
[With Children. Youth Economy Academy satisfaction survey]
g
E
•
Holding events for children in the participating
organizations, such as a Children’s Day event,
summer camps, visiting to organizations, etc.
Was economy
education
interesting?
Intensive support for
children in low-income
families
e
liz
ua
Ann
•
“I flew to Seoul to attend the workshop. It was more pleasant
than expected. I have a relatively small number of opportunities to
communicate with college students in other regions, but I feel like
I communicated a lot and received energy from them. I want to
teach a lot to the children in Jeju Island.”
(Unit : person)
at
he
rin
g
Using it as a site for volunteer service
nec
ti
S e on
cu
r
•
Sa
to i e s
it
Co n
Connecting a branch close to the selected
organization
(Se-Je Seong, Myonggi Univ.)
(Ye-Ri Lee, Economics Education Team leader,
Kids & Future Foundation)
nt
ve
•
“To help others understand economy easily, I need to study more
myself. I will try and become a partner that sees eye to eye with
the youths, not a teacher for them. I will give them a small seed
of hope, and someday the children will grow up to become good
volunteer workers.”
In addition to teaching the basic concepts necessary for economic
activities through long-term programs, we expect that these
programs will enable them to better design and plan their life.”
4,887
[Direction of the Economics Playground]
un
ms
[With YAHO. Comments from participants in the kickoff ceremony
for the second-term YAHO held in February 2011]
“As a partner organization of Samsung
Securities, the Kids & Future Foundation,
a social welfare foundation, has been
running the Youth Economy Academy,
a representative social contribution
initiative, since 2005. For the past 6 years
at local children’s centers and welfare
centers, the Youth Economy Academy
has been providing education for children
and youth from low-income families who have been neglected
with regard to economics education, and has developed, modified
and supplemented economics education programs in a way that
reflects the characteristics of the children and youths in the lowincome bracket. We have tried to avoid one-time and short-term
economics education, and are working to ensure that youths from
low-income families can continuously receive economics education
at organizations, which shelter them for one year. In particular,
the Youth Economy Academy enabled youths to learn the most
basic concepts they need for their economic activities by providing
basic educational opportunities, and induced them to change their
consumption habits and attitudes through long-term programs.
ta
Da
G
•
Tracking change in children’s interest
•
Presenting studies and cases on educational
effects
Was the
teacher easy to
understand?
• Very interesting ............................
• Interesting ....................................
• Neither .........................................
• Uninteresting ................................
• Very uninteresting .........................
• Very easy ......................................
• Easy .............................................
• Neither .........................................
• Difficult .........................................
• Very difficult ..................................
42%
28%
20%
7%
3%
35%
35%
24%
4%
3%
39
Creating Shared Value
as Corporate Citizen
Step toward Global Corporate Citizenship
Samsung Securities’ actions responding to global issues
2010 Create Love in Mongolia
2011 Create Love in India
In recent years, issues related to sustainable development, such
as support for developing countries, the gap between the rich
and the poor, and environmental problems, are being brought to
the fore around the globe, and the role of the corporate citizen
is increasingly emphasized. Accordingly, Samsung Securities
is working hard to actively respond to these global issues as
a financial company that is aiming to become a Global Top 10
investment bank.
Following ‘Create Love in Nepal’ ( 2009 ), Samsung Securities
conducted volunteer activities for Mongolian children under the
theme of ‘Create Love in Mongolia’. In a 7-day program that started
on August 23, 27 volunteers conducted various activities at the
‘Mongolia-Korea Culture & Welfare Center’ and a nearby school in
the Chaiz area, Ulaanbaatar, Mongolia. The activities included facility
repairs, building a playground, Hangeul education for children, and
cultural exchange. Besides volunteer activities, we delivered them
RED DEVIL T-shirts for the last World Cup, books and cameras,
donated by our employees.
In India, female literacy is 30~40% lower than male literacy, and
in some areas 40% of female students drop out of school. Also,
some females in India endure hardships from early marriage, early
childbirth, child labor and prostitution. They are so deprived of
human rights and educational opportunities that it has emerged
as a global social issue, and the need to protect female students
and guarantee their educational environment is emerging as an
urgent task.
Mongolia
Nepal
India
To fulfill our role as a corporate citizen, we are addressing issues
like global poverty and disaster. Every year, we send our overseas
volunteer group to places where help is needed due to natural
disasters.
Stakeholder activities in Asia
Our overseas social contribution activities go hand in hand
with our business expansion. In line with our strategy for
penetration into the Asian market, we are expanding stakeholder
communication in Asia, and are also conducting local volunteer
activities to a great extent. We are building a hostel for female
students in Kolkata, India, with completion planned for 2011. This
project is also part of the stakeholder activities we are conducting
prior to our intended penetration of the Indian market.
Sustainable society through global CSR
Our overseas social contribution activities include donations,
overseas volunteer group activities, and building local infrastructure.
To be of help to everyone around the world who needs us, we will
make continuous efforts to expand the global social contribution
program.
These overseas volunteer activities of our employees are conducted
on a purely voluntary basis, and we select 20 volunteers each
year. Mostly, the volunteers are sent to underdeveloped Asian
countries, where they participate in various programs, such as
facility repairs for local children and youths, Hangeul education and
cultural exchange. In addition, even after the volunteer activities
are over, our employees’ interest in the recipients of the volunteer
services continues. We also made ‘Love Bags’ containing school
supplies, and donated them to the children in the Bogasion area,
Nepal, where our overseas volunteers were sent in 2009. Through
campaigns in which.
In consideration of the situation in India, and to meet the needs
of beneficiaries, Samsung Securities decided to build educational
facilities for children. In December we started the design of the
hostel and established the budget, and are now in the process
of building the SHIS Girls’ Academy Hostel in the Bhanger area
near Kolkata, Bengal State, India, with the aim of completing it
in December 2011. This hostel is expected to allow poor female
students to stay safe after school is over.
The social contribution activities in India will not only build
partnership with the local community, but also create a positive
and friendly atmosphere for Samsung Securities to enter the India
market and do business successfully.
[Our Mongolia Story. Bayar-la, herte]
[Su-Yeol, Seong, Managing director of COPION]
[Fund-rasing for Haiti]
We have joined hands with Samsung Securities to carry out our
international development cooperation project. We are planning
to gradually expand the participatory volunteer activities, which
are planned and participated in by employees themselves,
and our programs for developing countries, such as poverty
reduction, educational support and local development. Through
these global social contribution activities, we expect that
Samsung Securities will contribute to the resolution of global
problems, and become a global corporation leading the culture
of voluntary and progressive corporate social contributions.
We hope that Samsung Securities will become a model of winwin relationship between corporations and NGOs through this
partnership with COPION.
To help Haitian children suffering from the earthquake, Samsung
Securities solicited donations from employees from January
2010 to February 2010 via intranet, and delivered ￦8,433,000
to the Korean Committee for UNICEF. We will continue to take
an interest in urgent issues worldwide, and offer a helping hand.
The children of various age groups at the center were a little shy at first, but when I said “Senbeno~ Seno~” in Mongolian, they soon began to
smile and treat us without reserve. I have many vivid memories of my time with these kids. Among these, the memory of a 5-year-old boy, who held
his 2-year-old brother all day long, stands out. He was at a loss for what to do during the earmuff making hour, and kept watching without doing
anything. One volunteer cared for the little kid, and he finished his earmuffs with some difficulty and put them on his brother. I was so moved... The
small earmuffs made the boy smile a happy smile, as if he had everything in the world. I will remember his smile for a long time. Sometimes they had
to beg to get small things from strangers. If you are willing to share, you are already qualified. Bayar-la, herte!!
* ‘Bayar-la, herte’ means ‘thank you’ and ‘I love you’.
(Seunghyun, Product Sourcing Team)
* COPION (Cooperation and Participation in Overseas NGOs) is an
organization specializing in overseas volunteer service. It has sent about
3,000 overseas volunteers to 150 or so NGOs in 43 countries since 1999.
40
41
by ECO-Finance
Samsung Securities was the first in Korea to launch the ECO Fund,
and invest in new and renewable energy companies. We are leading
the green investment trends in the Korean financial industry,
and internally we are engaged in various campaigns to create a
consensus among employees about Green Management. In addition,
we are building a systematic environment management system by
expanding the scope of environmental data collection.
2010 Performance
14%
Principal investement
in new and renewable
energy
CDP
Signatory to Carbon
Disclosure Project
43.5mil sheets
Reduced paper
consumption in 2011
Sangsang Maru
Completion
of the Nami Island
Sangsang Maru
2011 Goals
• Expanding the eco-friendly management
policy of internal regulations
• Spreading Consensus on Green Management to all employees
• Expanding continuously the scope of environmental data collection
42
Investment for a Greener Tomorrow
44
Green Management through Consensus
45
Environmental Performance and Data
46
[special] Nami Island Sangsang Maru
48
43
Creating Shared Value
by ECO-Finance
Investment for a Greener Future
Green Management through Consensus
Samsung Securities as a Green Finance Pioneer
Investment in new and renewable energy
Building a consensus on Green Management
ECO-Happy Maru
In 2001, when green finance was still an unfamiliar concept in
Korea, Samsung Securities launched the ‘Samsung Eco Fund’,
the first fund of its kind in Korea, which invests in eco-friendly
companies. We have played a leading role in increasing the
level of socially responsible investment in the domestic financial
industry. Besides active green investment, we are making effort to
create a green office environment and expand green spaces. In
recent years, we have been moving beyond Green Management
to take the lead in finding solutions to global problems, such as
global warming.
Due to the sharp increase in oil prices and the nuclear disaster in
Japan in recent months, the global interest in the development of
new & renewable energy and related investments has been rising.
In line with this trend, the Government is continuously increasing
investment in new & renewable energy, and is expected to invest
￦1 trillion in 2011. Amid these changes, Samsung Securities
is responding to the green industry growth policy by actively
investing in the new & renewable energy industry, and supporting
the growth of companies that hold technologies related to new &
renewable energy.
Our efforts related to Green Management and green practices
go beyond Green Management, and we are taking the lead in
responding to global warming, which is a global issue. As part of
these efforts, we are conducting the “Let’s make a green workplace
campaign” to build a consensus among employees about Green
Management and global warming, as well as ‘ECO-Happy Maru’ to
actively support employees’ Green Management practices.
disposable cups and straws through the ‘ECO-Happy Maru’
campaign, choosing to use mugs instead. The elimination of
160,000 disposable cups annually is equivalent to the reduction of
about 138tCO₂ of greenhouse gas.
Accordingly, as of the end of 2010, Samsung Securities invested
about 14 % of its principal investment investment amount in
enterprises related to new & renewable energy, and is taking a
positive approach to environmental/social issues in the investment
decision.
Samsung Securities is holding various events to build a consensus
among employees about Green Management, including
campaigns, education and awards. Since April 2010, we have
been conducting the “Let’s make a green workplace campaign”,
and in 2010 we selected ‘Green Management’ as one of the
themes of the ‘GWP Fair’. We are focusing our energies on
increasing employee interest in eco-friendly management activities.
[equity capital investment amount by industry]
In particular, we are trying hard to reduce the consumption of paper,
one of the important environmental impact factors of Samsung
Securities. First of all, to reduce the paper used for the pamphlets
for customers or the paper used by employees, we are conducting
the ‘2-up print’ activity. This means that we always print two pages
on one sheet of paper. Employees are encouraged to set the default
print option as 2-up print unless there are special circumstances,
which means that we can cut our paper consumption in half. Also,
we are utilizing ‘Anyflow’, our internal electronic approval system,
and the Mobile Office system to make a “Paperless Office”. As a
result of these efforts, the paper consumption in 2010 was 206
million sheets, down by 43.5 million sheets compared to 2009.
Various green investment products
During this period in which eco-friendly industries are growing
as environmental regulations are constantly being strengthened,
Samsung Securities was the first company in Korea to launch its
own eco fund, the “Samsung ECO Fund”, which invests in ecofriendly companies. Since then we have been releasing various
green investment products, ranging from the SRI Fund to the
carbon credit fund. For example, the ‘Samsung Global Water
Fund’, which invests in the stocks of outstanding companies
around the world related to water resources and water, is one
of the typical SRI Funds, and the ‘Samsung Global Alternative
Energy Fund’ is newly emerging as a popular SRI Fund. In
addition, we made a privately placed fund aiming to invest in
Korea’s first CDM (Clean Development Mechanism) business and
carbon credit. Samsung Securities is making a continued effort to
popularize financial products that consider green growth.
[Samsung Securities’ green investment products]
Green investment product
Amount sold
• New & renewable energy .........
• Shipbuilding/machinery .............
• IT .................................................
• Others .........................................
14%
38%
13%
35%
Let’s make a green workplace campaign
In 2010, our company cafe, ‘Happy Maru Cafe’, stopped using
The effort to make an ‘ECO-Happy Maru’ went beyond the effort to
simply reduce greenhouse gas, and is used as an opportunity to create
a consensus among employees about Green Management. Prior to
‘ECO-Happy Maru’ we generated voluntary interest and consensus
through the ‘Mug Making Contest.’ Also, if one has to use a disposable
cup, he/she has to pay ￦500 per cup as the environment charge. The
money raised in this way goes to the environmental fund, and social
contribution activities related to environment. When we opened the
Happy Maru Cafe in the Suseo Call Center building in January 2011,
we enforced the mug use program.
[Annual reduction of paper use]
43.5mil
Annual reduction of paper use
sheets
[Reduced greenhouse gas emissions]
138
tCO₂ reduced by the use of mugs
tCO₂
[Green Management activities in 2010]
(Unit : ￦ billion)
Korea Investment Privately Placed Carbon
Special Asset Investment Company No. 1 (Note)
76.0 (25.0)
Korea Investment Privately Placed Carbon Credit
Investment Company No. 1 (Note)
29.0 (9.0)
Samsung Global Alternative Energy Fund
13.1
Samsung Global Water Fund
33.8
Samsung Global Green Growth Fund
0.9
Korea Investment Global Green Power Fund
0.6
Event
Give awards to outstanding
departments on the
Foundation Day
Event
Hold a Green Cup Making Contest
Event
Educate on Green Management for a GWP
leader of each department
Event
Distribute Green Management stickers
Deliver Green Management message via ‘Happy Maru’, the online community, and the internal broadcasting
Conduct the “Let’s make a green workplace campaign”
(Note) The total subscription amount of carbon credit-related private equity funds, for
which Samsung Securities participated as a fund advisor and seller. The figure in the
parentheses is the amount sold through Samsung Securities.
Select ‘Green Management’ as a theme for the ‘GWP Fair’
Jan
44
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
45
Creating Shared Value
by ECO-Finance
Environmental Performance and Data
Samsung Securities’ Green Management Activities
Greenhouse gas reduction
Disclosure of Environmental Information over the past three years
Through efforts to reduce greenhouse gas, save energy and reduce
the consumption of raw materials like water and paper, Samsung
Securities is practicing Green Management, and responding to global
warming as well. Details of our efforts to reduce greenhouse gas, save
energy, and reduce the consumption of raw materials are as follows.
Like most companies in the financial industry, at Samsung Securities,
greenhouse gas is mostly generated by the use of electricity, heating
fuel and paper, and we are trying to reduce our resource use in all of
these areas. Along with campaigns like 2-up print and ECO-Happy
Maru, we have set reduction goals for each work space, and are trying
to achieve them. Also, for systematic performance management, we
are expanding the scope of greenhouse gas index management.
Samsung Securities is expanding the scope of environmental data monitoring under sustainable management principles. We are especially
trying to expand the data inventory on greenhouse gas(GHG) emission, so we have been monitoring the electricity consumption of our
IT center since 2009, as well as the gasoline consumption of all domestic branches since 2010. Also, we are calculating the per capita
GHG emissions of headquarters and monitoring the data as a key index of reducing GHG emissions activities. We plan to monitor all the
environmental data of our entire sites with advanced eco-friendly policies.
Energy reduction
To put Green Management into practice, we are reinforcing the
monitoring of energy consumption, and trying to prevent unnecessary
energy consumption as well as reducing energy consumption. To
reinforce systematic monitoring, we expanded the scope of electricity
consumption management from the head office to include the IT
Center in 2009. In 2010 we expanded the scope of Gasoline and
Diesel consumption aggregation to all domestic sites.
As part of the high energy efficiency policy, we are considering
energy efficiency when purchasing all electric products ranging from
head office lighting to IT system and individual PCs. We are planning
to use the per-person electricity use to monitor energy reduction
performance. Currently our main energy sources are electricity and
city gas(LNG), and electricity consumption in 2010 was 2,001MWh
and 6,627MWh in the head office and the IT Center respectively, and
the city gas consumption in the head office was 95,106㎥.
Our Efforts
1. Let’s make a green workplace campaign,
2. High energy efficiency policy, 3. Expansion of scope of environmental data
[Energy consumption in 2010]
Electricity consumption
City gas consumption
8,628
MWh
95,106
As a signatory to the Carbon Disclosure Project (CDP), we are disclosing the
crises and opportunities related to greenhouse gas emissions and climate
Diesel consumption
46
Item
change, and encouraging other companies to disclose their carbon data.
Gasoline
Energy consumption
[Greenhouse gas emissions in 2010]
m
223,980
12,359
• Scope 1
• Scope 2
................................ 748 tCO₂
............................ 4,047 tCO₂
Scope1
Greenhouse gas
emissions
Scope2
Reduced paper and water consumption
We are also trying our best to reduce water and paper consumption.
In particular, along with the ‘2-up print’ campaign, we are reducing
paper consumption by encouraging the use of recycled paper and
scrap paper. At the end of 2009, we relocated the company building
to Samsung Building on Taepyeongro, installed recycling bins on every
floor and removed personal garbage cans, thus inducing employees to
voluntarily recycle resources. In 2011, we are planning to expand our
index management to waste emissions in the head office. We are also
making efforts to reduce water consumption by constantly checking
water-related facilities like bathrooms and water purifiers. In 2010, water
consumption was 19,320㎥ in the head office, and 4,735㎥ in the IT
Our Efforts
1. ‘2-up print’ campaign, 2. Encouragement of the use of recycled paper and scrap paper,
Paper
Water
Unit
Classification
2008
2009
2010
㎥
HQ
188,166
167,394
95,106
ℓ
HQ vehicle
-
55,820
55,048
ℓ
Branch vehicle
-
-
168,933
ℓ
Bus
-
10,208
12,359
MWh
HQ
1,424
1,438
2,001
MWh
IT Center
-
6,107
6,627
tCO₂e
HQ
425
378
215
tCO₂e
HQ vehicle
-
125
123
tCO₂e
Branch vehicle
-
-
378
tCO₂e
Bus
-
26
32
tCO₂e
HQ
668
675
939
tCO₂e
IT Center
-
2,864
3,108
Documents
mil sheets
Company-wide
-
20.96
19.84
Reports
mil sheets
Company-wide
-
5.68
4.38
Copying Paper etc
mil sheets
Company-wide
-
223.42
182.34
Subtotal
mil sheets
Company-wide
-
250.06
206.56
Water supply
㎥
HQ
38,324
38,400
19,320
Details
Unit
Classification
2008
2009
2010
City gas
㎥
HQ
221
184
104
Electric power
MWh
HQ
1.67
1.58
2.18
[Relative indicators]
Item
Energy consumption
Greenhouse gas
emissions
Scope1
tCO₂e
HQ
0.50
0.42
0.23
Scope2
tCO₂e
HQ
0.78
0.74
1.02
Electric power
tCO₂e
HQ
1.28
1.16
1.26
* Samsung Securities moved its head office from the Jongno Tower Building to the Taepyeongro Samsung Main Building as the end of 2009. Thus, among the
Company Headquarters environmental data, the 2010 data came from the Taepyeongro Samsung Main Building, and the data prior to 2009 came from the
Jongno Tower Building. As the equipment of air conditioning and heating and management methods of the two buildings are different, some items are poor in data continuity.
In detail, the air conditioning system of Samsung Main Building uses only electricity, whereas one of Jongno Tower Building uses both electricity and water.
[% paper used in 2010]
ℓ
Documents .................................. 10%
Reports ....................................... 2%
ℓ
Diesel
Electric power
Center. We are sending all waste water to the sewage disposal system.
3
Details
City gas
Our Efforts
1. ECO-Happy Maru, 2. Expansion of index management, 3. CDP signing
3. Installation of recycling bins on each floor
Gasoline consumption
[Absolute indicators]
•
•
• Copy paper etc. ...........................
88%
* Among the greenhouse gas emissions, Scope1 means the direct greenhouse gas emissions due to the use of fossil fuel, such as oil for heating,
and Scope2 means the indirect greenhouse gas emissions due to the use of electric power.
* For calculation of carbon emissions and unit conversion, IPCC, Energy Management Corporation, and WBCSD/WRI data were referenced
(Electricity emission coefficient : 0.469kgCO₂/MWh)
* The relative indicators per person were calculated on the basis of the electric power and city gas consumption of the HQ alone.
47
Creating Shared Value
Sangsang Maru
Stories of Nami Island Sangsang Maru
Story1. Initiation of the ‘Nami Island project’
We initiated the ‘Nami Island project’ to recycle the waste from relocation of the head office at the end of 2009. After much trial and error,
we finished the project successfully a year later. 12.5 tons of waste was recycled as a result of the project, among which 413 sheets of
large glass were recycled to build ‘Sangsang Maru’ and ‘First Kiss Bridge’ and furniture such as desks and chairs, were reused to create
education facilities.
Quantity recycled by the
Nami Island project
12.5
Recycled large waste glass
ton
413
Recycled desks and chairs
70
sheets
Environmental cost reduced
by the project
sets
￦15,268,000
Story2. Sangsang Maru : The symbol of Samsung
Securities’ sustainable management
Story3. Nami Island : New place for us to imagine and
communicate together.
The Nami Island project provided an opportunity for us to create
a consensus about sustainability in the company, with employees
engagement for naming the artwork and transporting the waste.
With much interest of employees, 110 ideas were submitted
to the naming contest. SangSang Maru became the symbol of
Samsung Securities’ sustainable management even before the
completion of construction.
The name ‘Sangsang Maru’ came from the combination of
‘Sangsang’ based on our brand slogan ‘create with you’ and
‘Maru’ culled from ‘Happy Maru’, our GWP portal. Thus, it
symbolizes the imagination and communication in the company.
Although the project is completed, Samsung securities is
continuing to conduct various activities to spread the meaning of
‘Sangsang Maru’ in cooperation with the Nami Island corporation.
Samsung Securities’ CEO announced the commitment to
sustainability at the completion ceremony in October 2010 ,
surrounded by the employees, staffs, and visitors of Nami Island.
Samsung Group also cites the project as a good example of
creative recycling. We received the ‘Samsung Green Awards’ in
the local community green activities section.
In particular, we have been conducting a new employee training
program in Nami Island since 2011. The program takes 2 days
and it consists of various events and activities such as special
lectures from celebrities, suggesting ideas for recycling and finding
creative symbols in Nami Island, whereby new employees can
recognize our efforts for creativity, imagination, and sustainability.
Sangsang Maru
48
First Kiss Bridge
Appendix
Entry-level course for new employees
49
Third-party Assurance Statement
Dear Samsung Securities stakeholders
The Korea Productivity Center (referred to as ‘auditor’ hereinafter) was
asked by Samsung Securities to perform a third-party assurance of
‘Samsung Securities Sustainability Report 2010 (referred to as the ‘Report’
hereinafter)’ and submits the following assurance statement.
Responsibility and independence
Samsung Securities is exclusively responsible for the information and
opinions described in this report. The auditor will be held responsible for
the assurance statement about the report, and has never taken part in the
preparation of this report as an independent assurance authority, and has
no stake in the company whatsoever that will damage the independence
of the auditor.
Assurance standards
This assurance was conducted in accordance with AA1000AS (2008),
assurance type 1 and moderate assurance level. In compliance with the
AA1000APS (2008) assurance principle, compatibility with the principles
of inclusivity, materiality and responsiveness was confirmed. Also, the
auditor made sure that this report complied with the GRI G3 Guideline.
Limitations
This assurance statement did not include assurance of the reliability of the
data that was presented in this report according to the aforementioned
assurance standards. On-site assurance was conducted only at the
headquarters in Seoul. It excluded overseas and domestic branches as
well. Accordingly, if additional assurance is conducted, the result may vary.
Methodology
To provide the statement of assurance, the auditor used media research
and benchmarking to check the appropriateness of the selection and
description of the key issues handled in this report; examined what % of
the GRI G3 Guideline indicators and subsidiary financial industry indicators
are reported, and how they are described in order to check whether the
GRI Application level A requirement is satisfied; checked whether this
report complies with the principles of the GRI G3 Guideline with regard
to the contents and quality; analyzed the suitability of what is described
in this report and compared the errors with other sources; and visited the
headquarters in Seoul to check the grounds of key data and information
and internal processes and systems.
Assurance results
The auditor confirmed that this report reflects Samsung Securities’
sustainability management activities and the outcomes faithfully and
fairly. The auditor also confirmed through this assurance that this reports
satisfies the requirements of the self-declared GRI Application level A
Samsung Securities.
1. Inclusivity: stakeholders’ participation
Through this assurance, the auditor confirmed that Samsung
Securities clearly classify its stakeholders into shareholders,
employees, customers, local communities and partners, and
built divers communicati on channels to actively communicate
50
with the stakeholders. The channels for communication with
stakeholders include the IR sessions to provide shareholders with
information, the Consensus Networking and Employee Grievance
Handling System for communicating with employees, and the
VOC process to proactively respond to customers’ opinions. In
particular, Samsung Securities implemented a SNS-based twoway communication channel to communicate with customers in
real time and proactively induced the participation of stakeholders.
The auditor rates it highly. It is recommended that Samsung
Securities should systematically build participatory channels
accessible to various types of stakeholders in order to induce the
participation of a wider range of stakeholders, and continuously
manage and report the participation process and performance.
2. Materiality : Selection and reporting of key issues
Samsung Securities identified major stakeholders of the financial
industry, and key issues related to sustainability management. In
this process, Samsung Securities conducted surveys and interviews
with internal and external stakeholders, analyzed the trends of the
domestic and overseas financial industry, and analyzed media and
global sustainability management standards in order to build a pool
of diverse issues. The company also conducted the materiality test
to select key issues. As a result of the materiality test, Samsung
Securities selected, as key issues, compliance/anti-corruption/fair
competition, labor-management relationship, rights and interests of
employees, protection of customer information, and effort to provide
information about products. In particular, the auditor confirmed
that Samsung Securities reports special issues of a financial
institution by intensively describing social contribution activities
through finance, such as donation consulting and microcredit, in
this report. It is recommended that Samsung Securities should
systematically build channels for communicating with stakeholders
and manage them continuously so that the company can identify
more detailed and diverse issues, and fully reflect them in the report.
3.Responsiveness: the organizations responses to issues
The auditor confirmed that Samsung Securities is engaged in diverse
activities in order to appropriately respond to issues related to
sustainability management. The fact that Samsung Securities became
the first domestic financial institution to be incorporated into the DJSI
(Dow Jones Sustainability Indexes) World Financial Services Sector is a
good indication of this effort. The Samsung Securities Social Volunteer
Group, which has been in existence for 17 years, plays a leading role in
local and overseas social contribution activities, such as the securities
education for youth and volunteer service in developing countries, at
the corporate level, and in socially responsible investment (SRI) and
green finance. These endeavors to fulfill the social responsibilities of a
financial institution can be rated highly. Samsung Securities’ responses
to sustainability management issues can be understood through the
economic, environmental and social performance described in the
annual sustainability report. The auditor confirmed that this report
faithfully reflects Samsung Securities’ sustainability management
performance of 2010. It is recommended that Samsung Securities
should describe the organization’s sustainability management
strategy in the report by disclosing not only the results of its
responding to diverse issues, but also its mid-to long-term strategies
and plans so that stakeholders can understand them more easily.
Recommendations
This auditor rates Samsung Securities’ diverse efforts to enhance
sustainability and its performance highly, and recommends the
following so that the level of future reports and sustainability
management can be raised:
1. That Samsung Securities should establish mid-to long-term
sustainability management plans and goals, and reports the results in the
report;
2 . That Samsung Securities should build an enterprise-wide
sustainability management system, continuously develop it,
a n d d e s c r i b e t h e a c t i v i t i e s a n d p e r f o r m a n c e i n t h e re p o r t ;
3. That Samsung Securities should build a channel for more systematic
participation of stakeholders, and link it to its sustainability management;
4 . That Samsung Securities should develop indexes for measuring
the outcomes of sustainability management, link them to financial
performance in order to raise the level of sustainability management; and
May 2011
Choi Dong-Kyu,
Chairman of the Korea Productivity Center
5 . That Samsung Securities should manage the performance
indexes related to sustainability management through the enterprisewide integrated system, and utilize them when preparing the report.
Kim Dong-soo, Head
The Korea Productivity Center is a professional training institution,
which has played a leading role in fostering industrial manpower
since its foundation in 1957, and a professional consulting firm with
accumulated know-how. In particular, Korea Productivity Center
established the Sustainability Management Center to support the
sustainability management activities of enterprises, and to improve
the sustainability management of domestic industries. Since 2009
KPC has been publishing the Dow Jones Sustainability Indexes IDJSI
Korea) jointly with the US-based Dow Jones Indexes, and SAM of
Switzerland, which allows domestic enterprises to compare their level
of sustainability management with those of foreign counterparts from
an objective point of view, and improve the level. The Sustainability
Management Center of the Korea Productivity Center is an assurance
authority officially certified by Accountability, which established the
global standard for stakeholder participation and verification, AA1000.
As such, KPC is qualified to conduct independent assurance. Also,
the assurance team consists of professionals who have experience in
sustainability management consulting and assurance and completed
professional education.
Park Tae-Ho, Consultant
Park Ju-Mi, Researcher
Kim Young-Hwan, Researcher
51
Creating Shared Value
Review Opinions
GRI Checklist
The report provides an overview of Samsung Securities performance over the last year, as well as a general indication of its goals
going forward. There are a number of things to commend in this report as well as a number of areas where I would like to see
Samsung Securities use its leadership position to influence more significant change in the financial markets.
I was pleased to see that there was an emphasis not only on managing internal sustainability impacts but also on ensuring that
sustainability is considered in investment decision-making.
Having said this I would like to see Samsung Securities achieve much greater integration of financial and non-financial considerations
in investment decision-making. For example, in May 2011 Samsung Securities published a presentation on FY2010 earnings.
There was no mention of sustainability issues and how they have affected financial performance in this presentation. In the 2010
Sustainability report there is some very useful discussion of Samsung Securities approach to risk identification and management.
While the risk matrix presented includes both financial and non-financial risks, it does not make clear if or how they are connected by
those responsible for assessing risk. There is no discussion of how non-financial risks affect financial performance and no discussion of how financial decisions
affect nonfinancial performance. And while it is good that 14% of funds are in ‘green’ investments, it would show real leadership to demonstrate how sustainability
issues are mainstreamed in all investment decision-making.
Samsung Securities reports with justifiable pride that it has been recognized as best in class for its work on risk. I would like to see them take advantage of this
standing by developing a more connected risk framework and raising the bar for beast practice even further.
They have done some very good work with various stakeholder groups, especially customers, employees and youth. I was pleased to see initiatives designed
to develop financial literacy (although it would be good to see this broadened to developing broader value-based literacy); there are some excellent employee
welfare programs; and it is encouraging to see a first step taken in publicly recognizing consumer rights.
Time has obviously been invested in getting governance right. And there are many positive aspects to the current governance system. However, it is not made
explicit how sustainability is integrated into board committees and roles. There is no explicit reference to it in any of the committee mandates. And even though
there is a useful presentation of value flows there is no explicit reference to senior executive remuneration, a sensitive but important issue internationally.
Some performance data is provided. This data would be much more useful if presented in a broader sustainability context. The presentation of data should also
be carefully evaluated in terms of clarity of presentation. We are offered data on the CO₂e emissions saved by changing form the use of disposable cups to reusable coffee mugs in the cafe. But we are not told how much CO₂e is emitted per unit of consumption by the mugs used to replace the disposable cups, so we
do not know the net impact.
It is good that Samsung Securities has chosen to participate in the Carbon Disclosure project. However, they have only reported on scope 1 and 2 emissions.
This presents a very incomplete picture in a world where scope 3 emissions often represent as much as 75% of a company’s carbon footprint.
I think this is a useful report that would benefit significantly from a clearer articulation of the interconnectedness of financial and non-financial matters and from a
greater mainstreaming of sustainability issues in investment decision-making.
Dr Alan Knight, Former Head of Standards and Related Services at AccountAbility
Samsung Securities’ Sustainability Report 2010 is quite faithful to the textbook principles of sustainability, it can become an example
to other enterprises. To the question “Why do you operate a corporation named Samsung Securities?” this report clearly answers
“sustainable growth with you”, and presents the strategy for accomplishing it in three areas of economy, society and environment.
However, the report vaguely says that its mission, a concept above strategy, that is, what it should do, is “Global Top 10”. I am afraid
that Samsung Securities needs to present a more specific quantitative goal.
With respect to corporate governance, it has all the general form requirement for the so-called sound corporate governance. However,
I believe that it would have been more conducive to raising the transparency of the enterprise and winning the trust of external
stakeholders if the report had clarified the criteria for selection of outside directors or whether there is any special relationship between
the current outside directors and the management of the company. When it comes to ethical management, I was deeply impressed by
the fact that the % of incomplete sale of financial products was lower than 0.01% in relation to the reliability of an enterprise.
Taking a look at social contribution, the vision and contents of its activities are solid, and Samsung Securities does a good job of utilizing its advantages as a
securities company. Considering the fact that recently the focus of corporate social responsibility is shifting to “strategic CSR” pursuing economic performance
and social performance at the same time, youth economy education and donation consulting are particularly worthy to be highly praised. The only thing is that the
report fails to provide the details of the investments in local communities to the tune of ￦5.8 billion and its investment principles, and I find it quite regrettable that
Samsung Securities’ overseas CSR activities have only a weak direct connection with its growth strategy.
As far as environment is concerned, the report shows performance with specific numbers, and particularly, it is taking an active part in global initiatives like the
Carbon Disclosure Project (CDP). So as a leader of the securities industry, it has set a good example. In particular, the fact that Samsung Securities is increasing its
Social Responsibility Investment (SRI), which is becoming quite the global trend these days, arrests my attention. I recommend that Samsung Securities should join
the United Nations Principles for Responsible Investment (UN PRI) and include “Responsibility Investment Academy (RI Academy)” in its economy education, and
thus present a long-term vision for realizing green finance both in name and reality.
On the whole, I assure, this report contains solid contents without any unnecessity and is an exemplary sustainability report. I look forward to seeing Samsung
Securities grow into a global leading securities company both quantitatively and qualitatively.
Yang Chun-Seung, Executive director of Korea Sustainability Investing Forum
52
Performance
index
GRI disclosure requirement
Reporting
level
Page
1.1
Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy.
●
2~3
1.2
Organization and sustainability: key impacts, risks, and opportunities
●
9, 13
2.1
Name of the organization
●
4~5
2.2
Primary brands, products, and/or services
●
30~31
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures
●
56
2.4
Location of the head office/headquarters
●
5
2.5
Number of countries where the organization operates and names of countries with either major operations or that are specifically relevant to the sustainability issues
covered in the report
●
4~5
2.6
Nature of ownership and legal form
●
16
2.7
Markets served
●
4~5
2.8
Scale of the reporting organization
●
5
2.9
Significant changes during the reporting period regarding size, structure, or ownership
●
4~5
2.10
Awards received in the reporting period
●
56
3.1
Reporting period (e.g., fiscal/calendar year) for information provided
●
0 (cover)
3.2
Date of most recent previous report
●
0 (cover)
3.3
Reporting cycle
●
0 (cover)
3.4
Contact point for questions regarding the report or its contents
●
55
3.5
Process for defining report contents
●
0 (cover)
3.6
Boundary of the report
●
0 (cover)
3.7
State any specific limitations on the scope or boundary of the report
●
0 (cover)
3.8
Basis for reporting on entities that can significantly affect comparability from period to period and/or between organizations
N/A
No case in this report
3.9
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the process
of data gathering
N/A
No case in this report
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
N/A
No re-statement in this report
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report
N/A
No significant changes in structure
3.12
GRI Indicators
●
53~55
3.13
Policy and current practice with regard to seeking external assurance for the report
●
50~52
4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or
organizational oversight
●
10~11
4.2
Indicate whether the Chair of the board of directors is also an executive officer
●
10
4.3
For organizations that have a unitary board structure, state the number of independent and/or nonexecutive members
●
10~11
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the board of directors
●
10~11
4.5
Linkage between compensation for members of the board of directors, and the performance of the organization
●
11
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided
●
10 (See the articles of incorporation)
4.7
Process for determining the qualifications and expertise of the members of the highest governance body to guide the organization’s strategy on economic,
environmental, and social topics
●
10~11
4.8
Internally developed statements of mission or values, codes of conduct and principles relevant to economic, environmental and social performance and the status of their
implementation
●
8
4.9
Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental and social performance,
including relevant risks and opportunities and adherence or compliance with internationally agreed standards, codes of conduct and principles
●
4.10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance
●
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization
●
13
4.12
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses
●
43, 46
0 (Cover)
10~11
10~11
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy organizations
●
4.14
List of stakeholder groups engaged by the organization
●
9
4.15
Basis for identification and selection of stakeholders with whom to engage
◐
9
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
◐
9
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including
through its reporting
●
9
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained
earnings, and payments to capital providers and governments
●
16~17
EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change
●
46
EC3
Coverage of the organization’s defined benefit plan obligations
●
26
EC4
Significant financial assistance received from government
●
No financial assistance received from government
EC5
Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation
●
25
N/A
Not applicable due to knowledge-based industry
EC7
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation
●
5, 25
EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement
◐
34~41
EC9
Understanding and describing significant indirect economic impacts
●
16
53
Creating Shared Value
GRI Checklist
Performance
index
Reporting
level
Page
EN1
Materials used by weight or volume
●
47
EN2
Percentage of materials used that are recycled input materials
●
46
EN3
Direct energy consumption by primary energy source
●
47
EN4
Indirect energy consumption by primary source
◐
47(Scope 2)
EN5
Energy saved due to conservation and efficiency improvements
●
45, 48
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives
●
46
EN7
Initiatives to reduce indirect energy consumption and reductions achieved
●
46, 47
EN8
Total water withdrawal by source
EN9
Water sources significantly affected by withdrawal of water
N/A
EN10
Percentage and total volume of water recycled and reused
●
46
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
N/A
No office is located in protected areas
EN12
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas
N/A
No office is located in protected areas
◐
Performance
index
SO1
47
GRI disclosure requirement
Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering,
operating, and exiting
Reporting
level
Page
●
35
●
All business units are exposed to
risks due to financial industry (100%)
SO2
Percentage and total number of business units analyzed for risks related to corruption
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures
◐
12
SO4
Actions taken in response to incidents of corruption.
●
No case of corruption
SO5
Public policy positions and participation in public policy development and lobbying
●
37, 44
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country
N/A
Not applicable
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
N/A
Not applicable
SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
●
No case of noncompliance
PR1
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services
categories subject to such procedures
N/A
Not applicable due to nonmanufacturer
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life
cycle, by type of outcomes
N/A
Not applicable due to nonmanufacturer
EN13
Habitats protected or restored
N/A
Not applicable
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity
N/A
Not applicable
EN15
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk
N/A
Not applicable
PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements
●
20
47
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
●
No case of non-compliance
EN16
Total direct and indirect greenhouse gas emissions by weight
●
EN17
Other relevant indirect greenhouse gas emissions by weight
●
47
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
●
18~23
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
●
45~47
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship
●
20
EN19
Emissions of ozone-depleting substances by weight
N/A
no significant emission due to non-manufacturer
EN20
NOx, SOx, and other significant air emissions by type and weight
N/A
no significant emission due to non-manufacturer
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion,
and sponsorship by type of outcomes
●
No case of non-compliance
EN21
Total waste water discharge by quality and destination
●
48
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
●
No case of relevant complaints
EN22
Total weight of waste by type and disposal method
◐
46, 48
EN23
Total number and volume of significant spills
N/A
no significant spills due to non-manufacturer
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of
transported waste shipped internationally
N/A
EN25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and
runoff
N/A
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
EN27
Percentage of products sold and their packaging materials that are reclaimed by category.
EN28
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations
EN29
Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the
workforce
PR9
Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services
●
No case of non-compliance
FS1
Policies with specific environmental and social components applied to business lines
●
33, 34, 43, 44
Not applicable due to non-manufacturer
FS2
Procedures for assessing and screening environmental and social risks in business lines
●
33, 34, 43, 44
Not applicable due to nonmanufacturer
FS3
Processes for monitoring clients’ implementation of and compliance with environmental and social requirements included in agreements or transactions
●
13
FS4
Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines
●
12, 45
FS5
Interactions with clients/investees/partners regarding environmental risks and opportunities
●
45
FS6
Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector
◐
44
FS7
Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose
◐
37
FS8
Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose
●
44
FS9
Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures
●
10~11, 13
39, 40, 44
●
44~46
N/A
No packaging materials due to non-manufacturer
●
No case of non-compliance
N/A
Not applicable due to nonmanufacturer
EN30
Total environmental protection expenditures and investments by type
●
LA1
Total manpower by employment type, employment contract, and region
◐
25
LA2
Total number and ratio of employee turnover by age group, gender, and region
◐
Total rate of turnover is 3%
LA3
54
GRI disclosure requirement
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations
●
44
26 (No case of discrimination)
LA4
Percentage of employees covered by collective bargaining agreements
●
100%, Labor Union ,representative of
employees, proceeds collective bargaining.
LA5
Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements
●
27
LA6
Percentage of total workforce represented in formal joint management-worker health and safety committees
N/A
No health and safety
committee is organized.
LA7
Number of injuries, occupational diseases, lost days, and absenteeism, and number of work-related accidents by region
●
Rates of injury, occupational
diseases are all zero (0%)
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases
●
26
LA9
Health and safety topics covered in formal agreements with trade unions
●
27
LA10
Average hours of training per year per employee by employee category
◐
28
LA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
●
26
LA12
Percentage of employees receiving regular performance and career development reviews
◐
26
LA13
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership,
and other indicators of diversity
◐
10, 25
LA14
Ratio of basic salary of men to women by employee category
●
25 (By level)
HR1
Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening
◐
12
HR2
Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken
◐
12
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees
trained
●
12
HR4
Total number of incidents of discrimination and actions taken
●
No case of discrimination
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to
support these rights
●
27
HR6
Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor
●
27
HR7
Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced
or compulsory labor
●
27
HR8
Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations
●
A security company train all
security personnel (100%)
HR9
Total number of incidents of violations involving rights of indigenous people and actions taken
●
No case of violations
FS10
Percentage and number of companies held in the institution’s portfolio with which the reporting organisation has interacted on environmental or social issues
◐
FS11
Percentage of assets subject to positive and negative environmental or social screening
●
44
FS12
Voting polic(ies) applied to environmental or social issues for shares over which the reporting organisation holds the right to vote shares or advises on voting
●
10~13
FS13
Access points in low-populated or economically disadvantaged areas by type
◐
37
FS14
Initiatives to improve access to financial services for disadvantaged people
◐
37
FS15
Policies for the fair design and sale of financial products and services
●
12
FS16
Initiatives to enhance financial literacy by type of beneficiary
●
38~39
Contact information
For any inquiries or comment on this sustainability report, please contact the following.
Strategic Planning Unit, 15th Floor, Samsung Main Building 250, 2-Ga Taepyeong-Ro, Jung-Gu, Seoul, Korea
•
Tel : +82-2-2020-8000
•
Webpage : english.samsungfn.com/csr
•
Fax : +82-2-2020-8097
•
e-mail : sustain_fn@samsung.com
55
Creating Shared Value
Awards
Management excellence
Customer satisfaction
•
Grand prize (Financial Services Commissioner’s Award) for Capital Market
Awards by Herald Business, 2009
•
Korea Service Grand Prix in securities sector by Korea Standards
Association, for 2 years in a row, 2009~2010
•
Best Private Bank in Korea by Asiamoney for 4 years in a row, 2006~2009
•
•
Dasan Financial Award (Financial Service Commissioner’s Award)
in Securities sector by Korea Economy Daily, 2009
Winner of in Korea Service Quality Index (KS-SQI) in the Securities sector
by Korea Standards Association, for 3 years in a row, 2008~2010
•
Winner of Korea Customer Satisfaction Index (KSCI) by Korea
Management Association, for 5 years in a row, 2006~2010
•
Winner of National Customer Satisfaction Index (NCSI) in securities sector
by Korea Productivity, for 5 years in a row, 2006~2010
•
Winner of Korean Net Promoter Score (KNPS) in securities sector by Korea
Management Association Consulting, for 4 years in a row, 2007~2010
•
Overall winner of the Analyst Awards by Joongang Ilbo &
Thomson-Reuters, 2010
•
Best Broker for Country Award by FinanceAsia, for 2 years
in a row, 2009~2010
•
Best Private Bank for Country Award by FinanceAsia, for 3 years in a row,
2008~2010
•
Best Research House in Korea by Asiamoney, for 6 years
in a row, 2005~2010
•
Winner of National Brand Competitiveness Index (NBCI) by Korea
Productivity Center, for 7 years in a row, 2004~2010
Employees
•
Great Workplace Award in the financial sector by GWP Korea,
for 4 years in a row, 2007~2010
•
Best Employer Award in the securities sector by Korea Management
Association Consulting, for 3 years in a row, 2008~2010
Social contribution
•
True Company Gold Prize in recruitment category by Korea Employment
Promotion Agency for the Disabled, 2008
•
Excellent Employer Award, Citation by the Minister of Labor (in recruitment
category) by Korea Employment Promotion Agency for the Disabled, 2009
•
Citation by the Minister of Health and Welfare
(in social contribution category), 2011
Sustainability management
•
Best Compliance Member by Korea Exchange, 2009
•
Best Company of DJSI Korea in the Financial Service sector,
for 2 years in a row, 2009~2010
•
The first Korean financial company incorporated into DJSI World, 2010
Organization Chart
Board of Directors
BOD Bureau
Audit Committee
Member
CEO
Audit Division
Retail Business
Division
Marketing
Division
Global Equity
Business Division
Pension Plan
Business Division
Capital Market
Business Division
Investment Banking
Business Division
Management
Support Division
Strategic Planning
& HR Division
Risk Management
Division
Gangnam
Regional BU
Product
Marketing Unit
Institutional
BU
Pension Plan
Business Unit 1
Trading BU
Coverage BU
Management &
Control Unit
Strategic
Planning Unit
Risk
Management Unit
Corporate
Communication Unit
Gangbuk
Regional BU
Portfolio
Management Unit
Korean Equity
Sales BU
Pension Plan
Business Unit 2
Fixed
Income BU
Advisory BU
Information
System Unit
Human
Resources Unit
Compliance Unit
Research Center
ECM BU
Corporate
Finance Unit
Eastern
Regional BU
Central
Regional BU
Derivatives &
E-trading BU
DCM BU
UHNWBU
Samsung Securities’ ‘Sustainability Report 2010’ meets all the requirements corresponding to level A+ of GRI G3 Guideline.
Online Asset
Management BU
Sales Promotion
Unit
56
(+ in the logo means that a third party performed assurance.)
(As of the end of March 2011)