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    Corporate Social Responsibility

    Social Responsibility Implementation Status

    The Company has established “Corporate Social Responsibility Best Practice Principles” to implement corporate social responsibility (CSR). The Principles are divided into “Caring for Employees”, “Caring for Customers”, “Commitment to Shareholders”, “Preserving Public Welfare”,“Fostering a Sustainable Environment”, “Corporate governance” and “Improving disclosure of CSR information”.

    The Principles would be reviewed and modified based on actual practice

    The Company has established “Corporate Social Responsibility Committee”. Human Resource & Administrative Division is the dedicated unit in charge of CSR activities and representatives from every department are Committee members. The result described in this table.

    Assessment Items Status Non-compliance and Reasons
    Yes No Description
    1.          Implementation of corporate governance
    (1)      Does the Company establish a corporate social responsibility policy and evaluate its implementation? V (1)      The Company has established “Corporate Social Responsibility Best Practice Principles” to implement corporate social responsibility (CSR). The Principles are divided into “Caring for Employees”, “Caring for Customers”, “Commitment to Shareholders”, “Preserving Public Welfare”, and “Fostering a Sustainable Environment”. The Principles would be reviewed and modified based on actual practice. None
    (2) Does the Company hold training sessions for CSR? V (2)      The Company holds CSR training sessions and promotes relevant policies through posters or internal booklets. All employees are required to attend those sessions or participate on-line. Their participation is incorporated in to their performance review.
    (3)      Does the Company have an exclusively (or concurrently) dedicated CSR unit with senior management being authorized by the Board to handle relevant issues and report to the Board? V (3)      The Company has established “Corporate Social Responsibility Committee”. Human Resource & Administrative Division is the dedicated unit in charge of CSR activities and representatives from every department are Committee members. Each member shall report the operation status to the chairperson of the committee.
    (4)      Does the Company have a reasonable compensation policy which incorporates employees’ performance review with CSR policy and a specific and effective disciplinary system? V (4)      The Company has established “Code of Ethical Conduct” where the ethics and responsibilities for business transactions conducted by Directors, Supervisors, management and all employees are specified along with the reward-disciplinary mechanism. New recruits are informed of annual performance evaluation and reward-disciplinary rules and their connections with ethical conducts. Directors and Supervisors shall attend relevant sessions for their external continuing education.
    2.          Sustainable environment development
    (1)      Is the Company committed to improving resources utilization and the use of renewable materials? V (1) To enhance the utilization of resources, promote the concept of recycling and reduce the adverse impacts on the environment, the Company takes the following actions:
    A.    Waste solvent recovery rate:
    137,477 Kg was processed in 2017 and generated 23,235 Kg. Recycling saves energy, diminishes adverse impacts on the environment and avoids wastage.
    B.    The Company adopts the concept of 3R (Reduce, Reuse and Recycle) in recycling. Total volume processed was 487,556 Kg. This mitigates the impact of incineration on the environment.
    C.    Packaging materials of raw materials are returned to vendors for reuse to avoid waste on resources. 8,360 Kg were returned in 2017.
    (2) Does the Company establish environmental management system designed to industry characteristics? V (2)      The Company obtained ISO14001 Environmental Management Systems certification in October, 2004; IECQ-QC080000 HSPM certification in January, 2007; and CNS15506 Taiwan Occupational Safety and Health Management System and OHSAS18001 Occupational Health and Safety Management Systems certification in October, 2008. In September, 2014, it expanded ISO14001 Environmental Management Systems and received OHSAS18001 Occupational Health and Safety Management Systems certification (for Kunshan fab). In addition, it received Excellent Prize for Excellence in Labor Safety and Health in 2011 and Golden Award for Co-Prosperity from supplier, Unimicron in 2014. The Company strives to provide a safe work environment to employees.
    (3)      Does the Company track the impact of climate change on operations, carry out greenhouse gas inventories, and set energy conservation and greenhouse gas reduction strategy? V (3)      The Company was re-verified and passed the ISO14064 Greenhouse Gas Accounting and Verification in August, 2017. Strategies to reduce greenhouse gas and carbon footprints were established based on the Company’s emission level to diminish the negative impact on the environment.
    A.   In 2017, the Company purchased 678,076 kWh of green solar power, which reduced CO2e emission by 19.87 million Kg. Green power refers to electricity which has zero or close to zero CO2 emission during the production process.
    B.    Factory Two is expected to have rotors in place by 2018. Processing condensed VOCs through RRTO reduces fuel consumption. It is estimated to save natural gas of 40,000 cubic meter/year and reduce CO2 emission by 116,000 Kg/year.
    3. Promotion of social welfare
    (1)      Does the Company comply with relevant labor regulations and respect internationally recognized human right principles, including protection of employees’ rights and interest and adoption of equal employment policy, and set up appropriate means and procedures for management purpose? Please specify the execution status. V (1)      The Company has established “Code of Conduct”. The rights and obligations of employees and management are in conformity with labor regulations and internationally recognized human right principles. Equal opportunity is provided to all, regardless of gender, age, group and religion. None
    (2) Has the Company established complaint mechanism and channels for employees and appropriately managed relevant issues? V (2) The Company has set up President Mailbox and HR hotline and email at each factory. Auditing Office will soon establish a whistleblowing system to prevent unethical behavior or misconduct.
    (3) Does the Company provide a safe and healthy work environment and periodic safety and health training? V (3)      Pursuant to “Procedures for Safety, Health and Environment Protection Training” in Taiflex’s occupational safety and health management system, employees are taught of dangerous machinery and equipment and “Regulations for Occupation Safety and Health Education and Training”. With regards to employees’ health, relevant caring facilities and management are in place. Measures taken include semi-annual environment monitoring, above-standard health check-up, and annual special health examination. Outcome of these examinations are analyzed to provide improvement schemes and guidance is given to employees with unfavorable outcomes. Health-related seminars are available to employees.
    (4)      Has the Company established a mechanism for regular communication with employees and use reasonable measures to notify employees of operational changes which may cause significant impact to employees? V (4)      The Company periodically holds management-labor meetings to facilitate the communication between both parties. The meeting minutes would be announced to all employees. In addition, there are on-line discussion forums for employees to voice their thoughts and ask work or system-related questions, which would be answered by dedicated personnel. Surveys on employee satisfaction are conducted annually to improve the less favorable aspects in management and services.
    (5)      Has the Company established effective career development training plans? V (5)      The Company has introduced performance and career interview system in March 2015 to personalize employee career development training.
    (6) Has the Company set policies and consumer appeal procedures in its R&D, purchasing, production, operations, and service processes? V (6)      The Company places a great deal of importance on consumer rights and interests and the satisfactory level of each service rendered. Thus, a stakeholder section is created in the official website to receive instant feedbacks and take actions accordingly.
    (7)      Does the Company follow regulations and international standards in the marketing and labeling of products and services? V (7)      Taiflex actively obtains various international safety certifications due to market globalization to ensure the quality, safety and reliability of its products.
    Underwriter Laboratories Inc. (UL)
    UL is an U.S. non-profit organization which aims to ascertain the safety level of products by inspecting and classifying samples from raw materials, components, system, structure, process and conditions of usage and conducting follow-up tests. The ultimate goal is to ensure the safety of users’ life and property. Certification logos are issued for identification purpose.
    Japan Electrical Safety & Environment Technology Laboratories (JET)
    JET is a laboratory designated by Japanese government to inspect factories manufacturing electrical products and test the outputs. It issues certification logos to electrical products which meet the safety standards stipulated by Japanese government. According to Japanese DENTORL, safety certifications are required for 498 types of products before entering the Japan market.
    TUV Rheinland (TUV): German safety certification institution. It provides certification services for product safety, quality and management system.
    (8)      Does the Company evaluate environmental and social track records before engaging with potential suppliers? V (8)      The Company would conduct a social and environmental responsibility audit on key suppliers and contractors with environmental and social risks to ensure their compliance with Electronic Industry Code of Conduct or local regulations. Besides fulfilling the CSR, the Company would like our suppliers to join us in improving the sustainable management capability and enhancing the eco-performance of the value chain.
    (9)      Do the Company’s contracts with major suppliers include termination clauses if they violate CSR policy and cause significant environmental and social impact? V (9)      The Company is entitled to terminate the contract if the counterparty has a serious breach of CSR policy.
    4. Enhancement on information disclosure
    (1)    Does the Company disclose relevant and reliable CSR information on official website or MOPS? V (1)      The Company’s official website, www.taiflex.com.tw, has CSR section where relevant and reliable information, including quality policy, environmental policy and charity activities, is disclosed. None
    5.          If the Company has established its CSR principles according to “Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies”, please describe the operational status and difference:
    The Company has established “Guidelines on Corporate Social Responsibility” providing guidance on topics of environmental protection, community participation, contribution to society, service to society, social and public interests, consumer rights and interests, human rights and safety and health, etc. Information can be downloaded from the website. Please refer to Corporate Social Responsibility under Corporate Governance (page 42 to 47) or CSR report for details.
    6.          Other important information to facilitate better understanding of the Company’s CSR practices (e.g., systems and measures that the company has adopted with respect to environmental protection, community participation, contribution to society, service to society, social and public interests, consumer rights and interests, human rights, safety and health, other corporate social responsibilities and activities, and the status of implementation.):
    (1)      System and measures taken for environmental protection and safety and health and the implementation status:
    Taiflex applies ISO14001: Plan-Do-Check-Act (PDCA) cycle to improve its environmental protection management policies. Resource is recycled based on the concept of 3R (Reduce, Reuse and Recycle). The total processed volume is 487,556Kg. Packaging materials are reused to reduce waste and cost. The Company aims at zero waste for recycled resources. Other than compliance with national environmental protection policies and regulations, the Company also spends an enormous amount on improvement of environmental protection and green research. Optimal prevention equipment is applied to achieve process efficiency of 98% and above. In addition, the Company adopts the framework of Taiwan Occupational Safety and Health Management System CNS15506 for the risk assessment and management strategies and regulation identification under OHSAS 18001 Occupational Health and Safety Management System in order to comply with changes in regulatory requirement and reduce hazardous risks. The goal is to control risks and eliminate potential disaster. On top of persistently improving work environment for an enhanced comfort and safety level at work, Taiflex attaches great importance to employee health and continuously launches health promotion projects and health management measures. The goal is to fulfill the Company’s responsibilities concerning social environment and safety.
    (2)      Community participation, contribution to society, service to society, social and public interests:

    Taiflex establishes charity clubs, i.e. Taiflex Youth Care Association and Taiflex Volunteers, to organize fund-raising events. In addition, they provide voluntary services to the community and disadvantaged teenagers.

    The Company has been sponsoring outstanding student clubs at remote areas, such as Chinese Orchestra at MeiLun Junior High School, for a long period of time. Children would have sufficient resources to develop their potentials and courage to realize their dreams, and could enjoy different perspectives and experience. The Company also participates in blood donation and charity events held by schools or welfare organizations in Kaohsiung as ways to enhance its community participation and contributions.

    Social activities took place in 2017 are summarized as follows:

    May 2017 Sponsored the painting event of Siao Gang Senior High School’s charity foundation
    Jun. 2017 Invited students of Siao Gang Senior High School’s charity foundation to watch movies at Cinemark
    Jun. 2017 Provided internship to 10 students from National Kaohsiung First University of Science and Technology, National Kaohsiung University of Applied Sciences, Kao Yuan University, Cheng Shiu University, Shih Chien University, Chung Yuan Christian University, etc.
    Aug. 2017 Hosted the Taiflex Youth Care Concert
    Aug. 2017 Co-organized the Summer Camp of Puren Youth Care Foundation in Kaohsiung
    Aug. 2017 Donated secondhand items to the Good Shepherd Social Welfare Foundation
    Aug. 2017 Invited the Syin-Lu Social Welfare Foundation and the Good Shepherd Social Welfare Foundation to participate in the 20th anniversary charity sale of Taiflex
    Sep. 2017 Sponsored the scholarship programs of Kaohsiung United Charity Association
    Oct. 2017 Sponsored the 2017 donation program organized by cnYes.
    Oct. 2017 Hosted charity basketball games with Siao Gang Senior High School
    Dec. 2017 Hosted the study tours of Puren Youth Care Foundation in Kaohsiung
    Dec. 2017 Assisted Kaohsiung United Charity Association to organize items for food bank
    (3)      Consumer rights and interests:
    The Company performs its contractual obligations to protect the rights of the Company and consumers.
    (4)      Human rights:
    The Company provides equal opportunities for employment to all individuals, regardless of gender, religion and political affiliation. It also establishes a safe environment to protect employees from discrimination and harassment.
    (5)      Safety and Health:
    The Company complies with the Occupational Safety and Health Act and establishes safety and health management organization and dedicated unit accordingly to draft, plan, promote and monitor the implementation of various safety and health measures.
    7. Other information regarding CSR report which is verified by certification bodies: None.