Innolux’s CSR Committee leads the CSR organizations and is responsible for formulating the Company’s short, medium, and long-term CSR policies. The Innolux chair appointed Chih-Ming Chen (vice president of the Tainan TFT Manufacturing Center) to represent management and top manufacturing center executives in Taiwan and China as committee members. The management representative and committee members are asked to host quarterly committee meetings and annual management review meetings to review any risks involving corporate governance and CSR issues (environmental and social aspects) in the Company and devise adaptive measures accordingly. Action is subsequently taken by the responsible departments, who report their implementation results at the aforementioned meetings, achieving the goals of CSR.
Innolux introduced a total of 14 CSR objectives in 2018 which included energy and water conservation, reductions in greenhouse gas emissions, RBA working hour management, and social welfare. The CSR objectives contain 44 sub-objectives, 29 of which were fulfilled and 15 not fulfilled. Innolux will continue to work hard to engage in cross-department communication and resource integration to fulfill its objectives and sub-objectives.
Innolux Corporate Code of Conduct (the “Code”) lays the foundation of its corporate social responsibility. The Code requires all innolux’s employees to adhere to a higher level of moral standard,create more value for society, and refrain from engaging in unethical or unlawful business conduct to derive frowth or profit of Innolux when facing various challenged in business competitions.
The following provisions have been specifically instated to enact the Code (specified in the CSR Management Manual; Doc. No. II1QM-0002) and fulfill the responsibility of sustainable corporate operation.
The Code is applicable to all Company factory, service, and business locations worldwide, including all management and general staff. Additionally, it is expected that the subsidiaries, joint ventures, and suppliers of the Company, as well as all dependent entities, abide by the Code.
3. Anti-Corruption Policy
The Company adheres to utmost integrity and impartiality in its business practices and mandates that all members of the board, executives, and employees abide by its anti-corruption policy, which prohibits dishonest behaviors and the provision, request, or acceptance of illegitimate interests. If such violations are identified, any and all employees are obligated to report such misdemeanors, along with tangible evidence, through the Company’s reporting system (Corruption Reporting E-Mail: speak-up @innolux.com). The Company will protect informers against any potential retaliation owing to the report.
4. Prohibition of Illegal Political Contribution and Improper Donations to Charity
The Company shall not make political contributions in order to gain commercial interest or trading advantage. In addition, The Company shall not donate to charity, which may constitute to bribery.
5. Disclosure of Information
To achieve information transparency, important information is published on the Company website, as well as in its annual reports and prospectuses. The Company’s external provision of labor, health and safety, environmental activities, commercial activities, organization structure, financial situation, and corporate performance are recorded and presented in a complete, appropriate, correct, promote, and understandable manner. The Company has also appointed a designated spokesperson and responsible unit to represent the company externally to ensure the consistency and correctness of the information released to the public.
The Company values the information of all its business relations (including suppliers, customers, consumers, and employees), and instates rigorous standards to protect such information.
7. Compliance with Laws and Regulations
The Company abides by local laws and regulations when engaging in business practices and follows a legitimate corporate governance framework and relevant ethical standards. In addition, the Company reinforces the compliance awareness of its employees through education, training, and internal communication.
In the instance that employees are in violation of the law, labor safety regulations or legislation, labor contract, or the Company’s ethical code of conduct, correctional action shall be enforced in accordance with relevant laws and disciplinary measures. The employee’s compliance will consistently influence his/her performance appraisal.
8. Fair Competition (Antitrust)
To maintain market order and ensure fair competition, the Company requests its employees to strictly abide by all applicable laws in relation to fair trade or antitrust laws.
9. Insider Trading
The Company requests that its employees strictly abide by relevant insider trading regulations, prohibiting the unauthorized disclosure of crucial insider information and any behaviors that violate insider-trading laws.
10. Compliance with Health and Safety Standards and Regulations
Innolux ensures that its occupational safety, emergency preparedness, occupational injury and illness, physical demanding work, machine safeguarding, sanitation, food, and housing, and health and safety standards comply with local regulations and Electronic Industry Code of Conduct (EICC) provisions.
Respect for Human Rights
11. Compliance with International Labor Standards
The Company has created a corporate culture centered on the equality of opportunity based on the United Nations (UN) Universal Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, EICC labor human rights, and local labor laws.
12. Equal Employment Opportunity and Non-Discrimination
The Company supports diversity and equal opportunity, and shall not tolerate any form of discrimination in the workplace, including but not limited to race, complexion, age, gender, sexual orientation, ethnicity, disability, pregnancy, religion, political affiliation, union membership, and marital status.
13. Anti-Immorality and Anti-Harassment
The Company prohibits harsh and inhumane treatment of employees, including but not limited to sexual harassment, sexual assault, corporal punishment, mental or physical coercion, and verbal abuse. Additionally, threatening others to engage in the aforementioned behaviors shall not be tolerated.
The Company has established a complaints system (Employee Care E-Mail: 67885.HQ@innolux.com) for employees to report human rights, labor, and sexual harassment issues. Complaints are handled by the Employee Relationship Department, which also supervises responsible unit to promptly process the issue and submit improvement proposals. In the case of sexual harassment, complaints are first verified by the Sexual Harassment Review Board, and disciplinary action is enforced based on the severity of the incident.
14. Compliance with Environmental Protection Standards and Regulations
The Company endeavors to uphold their environmental responsibilities in all production and operation processes, complying with international standards, local laws and regulations, and the EICC Code. The Company’s environmental management system operations are simultaneously maintained in the attempt to promote environmental protection measures, reduce the negative impact on the surrounding communities, environment, and natural resources, and ensure public health and safety.
15. Energy and Resource Management
The company’s use of resources and generation of waste of all types, including water and energy, are to be reduced or eliminated at the source or by practices. The company also has to look for the best creative chance in its value chain to reduce the environmental impacts and to enhance the resource efficiency.
16. Pollution Prevention and Reduction of Environmental Impact
The company should efficiently deal with the air emission, waste water, wastes and noises, constructing the comprehensive equipment of pollution prevention to achieve the goal of environmental friendly.
17. Prohibiting the Use of Conflict Materials
The Company and its suppliers prohibit the use of “conflict materials.” The Company ensures that the tantalum, tin, tungsten, and gold used in its products do not directly or indirectly finance or benefit armed groups that are perpetrators of serious human rights abuses in the Democratic Republic of the Congo or an adjoining country. The Company shall exercise due diligence one the source and chain of custody of these minerals.
Community and Charity Involvement
18. Corporate Citizenship
The Company fully understands the social responsibilities of a corporate citizen. Additionally, the Company endeavors to promote community participation, public environmental awareness, and social welfare in its various countries and regions of operation in order to prosper concurrently with the community. The Company also takes into account relevant community assessment models to quantify social welfare, which is used as a reference when formulating social welfare-related decisions.
Be the influential leader in supply chain
19. Supplier Management
The Company delivers CSR requirements to lead suppliers in assuming mutual responsibility. Additionally, the Company reinforces the environmental/social/governance (ESG) management and monitor the CSR performance of it supplies through management procedures, and requests suppliers’ commitment of relevant undertakings to mutually fulfill CSR.
Balancing and Continuing improvement of Performance Friendly, Socially and Environmentally
20. Corporate Social Responsibility Management
Based on relevant management systems, such as the CSR Management System, the Company sequentially follows the PDCA procedure, which respectively present “plan,” “do,” “check,” and “act,” to carry out economic, social, and environmental management. Additionally, the Company reviews performance and results through quarterly CSR committee meetings and annual management review meetings.
In accordance with the regulations characterized in RBA Code of Conduct 6.0, the Company created the RBA Audit Training Course for those responsible for the implementation of the RBA Code. This served to strengthen their knowledge of the RBA audit mechanisms, focal management items, and ensure that the relevant principles are implemented.
To comply with the RBA and customer demands, internal audits are conducted every year to ensure the effective operation of the CSR management system.
Innolux has established and implemented relevant measures based on the latest version of the Responsible Business Alliance (RBA) Code of Conduct.
In terms of supplier management, in both Taiwan and China we assess the RBA compliance of labor brokers and on-site service providers, such as catering, security, and cleaning staff; we also require that they perform self-assessments.
In 2018, a total of 57 customer questionnaires were responded. Work hours and the number of consecutive work days remained the topics that customers were most concerned about in relation to labor rights. Environmentally, many customers were concerned about our greenhouse gas (GHG) emissions and management. Innolux began the GHG inventory and emissions reduction program several years ago and discloses its carbon management performance in the Carbon Disclosure Plan (CDP) and CSR report.
In addition, a total of 16 on-site audits of the Company's CSR performance were collectively conducted over 44 days. Five of the 16 examinations were RBA VAP audits. A total of 101 nonconformities were highlighted, 13 of which were priority nonconformities mainly in the work hour management, foreign labor expenses, and fire prevention, and safety categories. The aforementioned nonconformities have been addressed. They are also actively monitored, and customers are constantly updated on management progress.