Samsung Compliance Committee 2nd Term Holds First Regular Meeting... Establishment of 'ESG Subcommittee'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Hye-young] The 2nd Samsung Compliance Committee held its first regular meeting on the 14th at the committee office inside Samsung Life Seocho Tower in Seocho-gu, Seoul, officially commencing its activities.

At the meeting, the new chairman Lee Chan-hee selected the committee's principal tasks for compliance monitoring activities to prioritize ▲human rights-centered management ▲fair and transparent management ▲ESG (Environmental, Social, and Governance)-focused management, as announced at last month's press briefing.

To this end, the committee explained that it established a new ESG subcommittee separate from the existing Labor Subcommittee and Civil Society Communication Subcommittee, and plans to closely communicate with the top management, boards of directors, compliance officers, and compliance teams of the seven Samsung affiliates under the compliance committee, including Samsung Electronics.

Since improving governance is considered a core task of the 2nd committee, in-depth discussions on this issue are expected. At the press briefing held on the 26th of last month, Chairman Lee emphasized, "The issue drawing the greatest attention regarding Samsung currently is governance improvement," and added, "Governance improvement is a task that Samsung must resolve to leap forward."

The compliance committee received reports and discussed matters such as internal transactions within affiliates, external sponsorships, and whistleblower reports. The committee plans to hold regular meetings on the third Tuesday of every month going forward.

The Samsung Compliance Committee was established in February 2020 following the retrial court's order for Vice Chairman Lee Jae-yong to establish an internal compliance monitoring system amid the 'state affairs manipulation scandal' case.

The compliance committee is an independent organization that is not subject to Samsung's instructions in appearance, with seven major affiliates?Samsung Electronics, Samsung C&T, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Life Insurance, and Samsung Fire & Marine Insurance?participating as signatories.

With the 2nd committee officially starting its activities, a meeting between Vice Chairman Lee and the compliance committee members is expected to be arranged soon. Chairman Lee stated at last month's press conference, "To guarantee complete independence and autonomy regarding the committee's composition, I did not meet (Vice Chairman Lee) beforehand," and added, "Once inaugurated, I plan to meet quickly to exchange detailed opinions on the compliance committee's activities."

This content was produced with the assistance of AI translation services.