The new Samsung C&T, created through merger of Cheil Industries and Samsung C&T, has inaugurated the Governance and Corporate Social Responsibility committees to improve shareholder-friendly management.
The move is an expression of the company’s willingness to reflect the views of diverse shareholder groups and improve continuous communication with them.
Samsung C&T held a board of directors’ meeting on Oct. 2 to finalize members of the two committees. The Governance Committee is composed of six members three inside directors and three outside members. The three outside members are Chairman Jang Dal-jung of the Korea Employment Welfare Center, President Lee Jong-wook of the National Happy Fund, and Prof. Yoon Chang-hyun of the University of Seoul Business Administration Department. Members of the Corporate Social Responsibility Committee include Samsung C&T President for Resort and Construction Kim Bong-young; Seoul National University Emeritus Professor for Political Studies Kwon Jae-chul; Prof. Chun Sung-bin of Sogang University Business Administration Department; and Prof. Lee Hyun-soo of Seoul National University Architecture Department.
The Governance Committee is charged with examining matters such as M&As and the acquisition of major assets that have a big impact on shareholders’ rights and submitting views on them to the board of directors. The committee may be considered as a body designed to prevent the company from executing management activities that run counter to shareholders’ best interests.
The Corporate Social Responsibility Committee is a body designed to study the practices of multinational companies’ contributions to shareholders, market and society and reflect them into Samsung C&T’s policies or establish ways of promoting communication with individual shareholders.
The Governance and Corporate Social Responsibility committee is not mandatory bodies in accordance with such laws as the Commercial Act, but it has been created as part of Samsung C&T’s efforts to improve its shareholders-friendly management in the wake of the inauguration of the converged Samsung C&T.
The Governance Committee was originally planned to consist only of three inside directors, but it has changed to include three more outside experts. One of the three outside experts is selected on the recommendation of major shareholders, who share values on the corporate development and future vision.
Samsung C&T plans to raise its social contribution fund to 0.5 percent of its net profits through the operation of the Corporate Social Responsibility Committee. The company plans to share information of the company’s management and plans with shareholders on a regular basis and hold regular meetings with shareholders to reflect their views.
One month since the launch of the merged company, the Samsung C&T’s four divisions construction, general trading, fashion, and resort/construction are looking for synergic effects under the so-called “separate and together” conception. Samsung C&T President for Construction Choi Chi-hoon, now the chairman of the Board of Directors, is focusing on strengthening efforts to enhance corporate values, including attending an IR session for foreigners that took place last month.
Samsung C&T President for Fashion Yoon Joo-hwa toured the IFA 2015 in Berlin last month and discussed ways of exploring the convergence of electronics and fashion industries as new growth engines. While visiting Samsung C&T’s operation in Milano, Italy, President Yoon told relevant officials to examine foreign fashion trends and local fashion developments and reflect them in planning new products.
The new company was launched as the virtual holding company of Samsung Group, the nation’s largest conglomerate, on Sept. 1.
The merged company made its debut on the global stage at IFA 2015, which was held from Sept. 4 to 9 in Berlin. The new Samsung C&T showcased new garments and miscellaneous goods combining IT and fashion. It is rare in Korea and abroad that a fashion company participates in the IFA, one of the world’s largest IT fairs. The new Samsung C&T had an exhibition space, part of Samsung Electronics’ pavilion.
President Yoon Joo-hwa and other ranking officials toured the trade fair. The new Samsung C&T’s bold move may be construed as efforts to maximize the synergic effects of the merged company covering construction, trading, fashion, leisure, food & beverages and bio. The fashion business division of the new Samsung C&T displayed the “smart suit” connected with a smartphone; “perfect wallet,” a wallet embedded with NFC; “body compass,” a smart shirt measuring heart beats and breaths; and “on bag,” with such functions as mobile charging of smartphone and location tracking.
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