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updated: 9/4/2012 8:37 AM

Samsung to audit all of its suppliers in China

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Associated Press

SEOUL, South Korea -- Samsung said it plans to examine all of its Chinese suppliers for possible violations of labor policies.

Samsung Electronics Co. said it will carry out audits of 105 Chinese companies that are its exclusive suppliers this month.

The move comes after Samsung's audit of a supplier, HEG Electronics, in response to an allegation it used child labor.

Samsung said its audit found no under-aged workers at the Huizhou, China-based company but it discovered other practices that failed to meet its policies.

The company will also review records of 144 Chinese firms that have contracts with Samsung and conduct on-site inspections if necessary.

Samsung said it could terminate contracts if suppliers are violating labor laws.

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