After establishing the Corporate Social Responsibility Department (CSRD) designated to handle CSR affairs, we established the Corporate Social Responsibility Committee (CSRC) in 2011 chaired by Chairman Jyh-Chau Wang as the committee chair. Further in 2017, Chairman Wang appointed Vice President Chih-Ming Chen as the CSR management representative, with OU heads of all production centers in Taiwan and Mainland China as committee members. Together with all function departments and the Low-Carbon Green Management Workgroup, the Employee Care Workgroup, and the Risk Management Workgroup, they constantly improve the performance of our sustainable development.
To ensure the effectiveness of CSR operations and to perform the functions and duties defined in the Social Corporate Responsibility Management Manual (CSR Manual), the board of directors has authorized the chairman or his proxy to propose and implement the CSR policy, CSR management plan, and CSR implementation plan and to report to the board of directors regularly. In October 2017, they completed the assignments and reported CSR operations to the board of directors, with major content covering outcomes, performance, and future plans and projects. Through supervision of and assistance to the management to practice corporate social responsibility, the board of directors strengthens the coherence of CSR and organizational operations.
CSRC is responsible for establishing CSR policy and short-, medium- and long-term CSR strategies. Through its quarterly committee meetings and annual management reviews, CSRC examines the organizational achievements in the risk management in governance and environmental and social aspects. In 2017, CSRC regularly gathered information regarding international sustainability trends and issues that concern stakeholders, such as the change and trend of the Carbon Disclosure Project (CDP), the defects and risks found in the RBA Validated Assessment Process (VAP), topics on public welfare and environmental education; and reported to the management representative and committee members. The responsible units reported the achievements of annual CSR goals. In 2017, we promoted 11 CSR goals covering 38 targets. Although 25 targets were achieved, 13 targets were unachieved. In 2018, we will continue to make improvement of issues in all aspects.
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.
CSR Internal Audit
To comply with the RBA-CoC and customer requirements, CSRD conducts an internal audit every year to ensure the effective operation of the CSR management system.
In human rights for labor, the EICC-CoC 5.1 and aspects, including the weekly work hours, continuous attendance, and recruitment/employment workflows in China that concern customers, were essential parts of the 2017 internal audit.
In ESH, as both the ISO 14001 and OHSAS18001 management systems have been implemented in all plants, the effectiveness of implementation in the routine work is the focus of the internal audit, We will continue to improve and reinforce ESH topics through the ISO 14001 and OHSAS18001 management systems.
In November 2017, we conducted the RAB internal audit on 5 out of the 6 INX plants, including the Jhunan and Tainan plants in Taiwan and the Ningbo, Foshan, and Nanjing plants in China. The internal audit was implemented based on the EICC VAP Operations Manual 5.1 and the customer and regulatory requirements. With an audit rate of 83.3%, we found 19 risk points for which all responsible units took coherent and continual improvement actions.
Compliance with the Personal Information Protection Act
At INX, we have established appropriate data protection mechanisms according to the Personal Information Protection Act to prevent personal data from abuses. In addition, for employees to get familiar with related laws and regulations, we constantly arrange online education and training activities for employees, hoping to raise the compliance awareness of employees regarding personal data and privacy protection.
To communicate the importance of trade secrets to employees, we request all indirect employees to attend the education and training activities for trade secrets and constantly publicize the importance of trade secret protection to employees with screensavers, system startup screens, and e-newsletters. If employees violate the trade secret protection regulations, we will punish them according to the severity of the offense and related regulations, and take legal actions where necessary as well.
Compliance with Antitrust Laws
We strictly abide by the anti-trust laws and regulations of Taiwan and abroad. To raise the compliance awareness of employees, we actively arrange various education and training activities for employees. Apart from the anti-trust courses in the orientation for newcomers to fully understand our anti-trust polices, we offer focus education and training for assistant managers and officers above that level, as well as staff engaging in procurement, sales, R&D, marketing, and other duties having direct contracts with customers or suppliers. We also request employees to sign the Agreement on Compliance with Antitrust/Competition Laws and conduct regular anti-trust surveys to facilitate control.
To deepen the compliance awareness of employees, we constantly publicize the anti-trust concept by means of screensavers, system startup screens, and e-newsletters.
To monitor mail communication with competitors, we request employees to apply for permission to send mails to the competitor’s domain where necessary, in order to take effective precautionary actions against mail communication with a competitor’s domain.
Customer Concerns Regarding RBA
After the Electronic Industry Citizenship Coalition (EICC) was renamed the Responsible Business Alliance (RBA) in October 2017, the former EICC Code of Conduct 5.1 was also renamed the RBA Code of Conduct 6.0. In this new version, the RBA incessantly raises the requirements for human rights for labor and occupational safety. Aiming to achieve legal compliance, we constantly disclose the status of the Code of Conduct (CoC) management to customers and voluntarily follow up and supervise our CoC performance through internal audits.
In 2017, customers conducted 9 onsite audits on our CSR performance, including 4 EICC VAP audits, and collected 35 responses. Work hours and the weekly work hours and continuous attendances are topics that concern customers in human rights for labor.
Environmentally, many customers were concerned about our GHG emissions and management. Fortunately, we began the GHG inventory and the emissions reduction program many years ago and disclose carbon management performance through channels including the Carbon Disclosure Plan (CDP) and CSR report. Our performance has earned customer recognition.