chicony群光電子股份有限公司

Since 2013, Chicony Group has had the great honor of being included consecutively in《 CommonWealth》 Magazine´s Taiwan Top 2000 large manufacturers. Beside of continuing to grow within the electronics industry, consolidating our position as leader in the fields of computer peripheral equipment and digital imaging, including camera module, multiple-function products with wireless communication technology, we have further expanded into other fields such as eSports and intelligent living, by investing in R&D for eSports equipment, UAV and sports camera, and obtaining representation of intelligent life products.

In order to follow through on our philosophy of green R&D, we have invested in energy-saving product categories such as LED lighting and green building solutions.We are not limiting ourselves to meeting customer needs under basic requirements, but strive to provide to our customers high value-added products and services that are also more efficient and friendly to society and to the environment. In 2016, the top leadership of Chicony was honored to be included in 2016 Taiwan TOP 50 CEO by 《Harvard Business Review》 and ranked No.1 in the electronic components group.

This great achievement was only possible due to the professionalism; dedication and hard work of our strong team over thirty-thousand employees, who propels the Group’s sustainable development. For this reason, this CSR report returns to “people” value and strive to give every partner the best care and attention, protect and provide worker rights and benefits, build friendly and diversified working environment. In addition to vacation travel subsidies, training and a wide range of community activities, we also provide supporting measures such as natality incentives to meet the varied needs of our employees.

As a member of the Responsible Business Alliance (RBA), we established the Corporate Social Responsibility Committee in 2014 to support and comply with its Code of Conduct ( RBA Code of Conduct) and pledged to begin in 2017, to hold semi-annual CSR-related meetings to meet the objectives of the RBA Code of Conduct, to continue the pursuit of the highest value in corporate sustainability under the four core values of "enforcing corporate governance", "safeguarding human rights and welfare of workers", "creating product values and profits, while taking into account the protection of Earth's environment” and the "social and cultural participation". As we are about to go into our 35th year in business, we expect to prove our determination to keep rooted in Taiwan and strive to build a lasting cooperation with all sectors of the society in sustainable development. In addition to contribution to the national economic development, we will continue to focus our enterprise´s development on values such as green innovation, intelligent living, worker welfare and social welfare. Chicony Group will keep all internal and external communications channels open to welcome encouragement, criticism and advice from the public and turning them into the motivation force for progress. Through this report, we sincerely invite you to join us in making progress for sustainable development.

The Group implements CSR practices in accordance with our four main principles of " enforcing corporate governance" , " developing a sustainable environment ", "supporting social welfare" and "strengthening information disclosure ". The Chicony Group CSR Code of Conduct is set out to further regulate and improve areas such as labor, health, safety, the environment, management system and business ethics, in addition to strictly abide to the EICC Code of Conduct from Electronic Industry Citizenship Coalition, all aimed at meeting our sustainable operation goals.

Organizational Chart of Chicony CSR

The Group has set up a corporate social responsibility committee that is fully authorized by the board of directors. The CSR committee comprises of senior executives from our subsidiaries and is chaired by the top leader of the Group. It meets from time to time to promote the various issues in response to the expectations of the stakeholders, including corporate governance, customer relations and supplier management, green products, environmental protection, employee care and social welfare, etc. Starting in 2017, CSR meetings will be held every six months by the production plants and the Taipei headquarters, so as to stay on top of the major issues identified at each plant, and to implement measures for various improvements.

For Chicony Group’s sustainability, it is necessary to identify important issues, plan management mechanism and implementation practices and to review them at regular intervals. The following is a description of the relevant major issues and scope boundary procedure for the development of corporate social responsibility.

In order to maintain our corporate governance structure, with the Code of Conduct serving as highest guiding principle, the Group has set up a "Board of directors", a "Remuneration Committee" and a “CSR Committee”, just as the subsidiaries have done in accordance with respective needs, to provide sound governance and the best decision-making for the overall development of the Group.

Board of Directors

In accordance with the Code of Corporate Governance Practices, the Group has appointed to the Board of Directors members of various industrial undertakings experienced professionals with strong academic background, taking into account as well criteria such as gender, age, nationality and culture. The Group encourages the directors to participate in courses for further learning, the courses are mainly organized by the Taiwan Corporate Governance Association, the courses are multidimensional and include topics such as corporate governance and CSR trends, the latest development trend in international anti-tax evasion BEPS and criminal risk management. The directors are required to take at least two courses during the term and the duration to exceed at least seven hours.
Members of the Board of Directors adhere to the "Code of Integrity" to avoid conflicts of interest. In order to raise the standard of reviewing the management status and operational efficiency within the Group, the Board of Directors proposed and adopted the "Board Performance Evaluation Method" and the assessment methods in June 2015. In addition, follow-up on the implementation of corporate governance policies by the Group's divisions is done by the Audit Office, which reports directly to the Board of Directors and is responsible for risk management and the implementation of the Group's internal control system, including CSR-related performance monitoring.

Remuneration Committee

In order to ensure the independence of each committee member, we believe that a sound compensation structure is a key factor to attract high-level talent and improve the overall quality of employees. The Chicony Group Remuneration Committee was established in accordance with the “Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or Traded Over the Counter”, its chief responsibilities include using annual and long-term performance evaluations of directors, supervisors and managers as well as the opinions of stakeholders such as investors, employees and customers deciding the compensation policy and standard, taking into consideration as well of the performance appraisals for individual compensation adjustments.

Risk Management

Chicony Group’s risk management includes constant monitoring of the eight main risk factors: external market, supply of material, talent, production R&D, customer credit and collection, foreign exchange rate, corporate finance and MIS system. In addition to the classification of the risks for management, the Group also monitors closely the external market changes and internal operation status to ensure our ability for timely responses.

Total Quality Control Management

Chicony´s total quality control means system-wide quality management to cover every step of the way, from the beginning of the project, during design and after mass production, including in depth exchange with customers to fully understand their needs, performing a variety of product testing and analysis to maximize product quality stability and making the best product possible. Quality improvement efforts are continued even once mass production begins with rigorous product quality screening based on 6-Sigma. Lean manufacturing and Value Analysis/Value Engineering (VA/VE) are also applied to reduce cost and waste during production to maximize end value for the customer. In addition to rigorously implement Total Quality Management (TQC), we have also a "Customer Quality Service Team" (CQS Team), including dedicated team to our ODM plants, all to ensure our ability to understand and provide solutions to customer problems in a timely manner.

To protect the competitiveness of customer products and safeguard customer intellectual property and patent protection are part of our customer relations management. We not only have adopted the Control Objectives for Information and Related Technology (COBIT) framework and an organizational "IT Security Management Guidelines" is in place, but also we sign non-disclosure agreements(NDA) with our assigned teams and customers and have extended the scope to cover project team members as well as suppliers. We organize personal data protection seminars as part of our training program and have formulated the "Personal Data Protection and Control Regulations" to further stable sustainable development and mutual growth with our partners.

The Group's headquarters are responsible for R&D and sales development. The main production sites are located in China with the six main plants spread between Huanan, Huadong and Huazhong regions. Chicony Electronics, Chicony Power and XAVi production sites around the world generally purchase semi-fi nished components from suppliers along with small amounts of plastics, iron, tin, aluminum and silver. Other suppliers include food service, transportation, building security, office equipment maintenance, janitorial service, etc. Our Taiwan headquarters and China plants all strive to follow the principle of "local purchasing".

We encourage suppliers to self-manage with EICC Code of Conduct, and further construct a material control mechanism for Chicony Group´s "Material standard for Environmental Management", "Restricted Substances" and "Conflict Minerals" to ensure that supplier procurement not only meets international standards and customer requirements, but also produce green value chain sustainability. In order to strengthen supervision, in addition to the Industrial Safety and Health Service as the environmental supervision department, project audit teams will also be formed integrated by R&D, QC, procurement, HR, Audit Office, environmental safety and health centers and other departments to evaluate issues such as quality, delivery time, price, yield, environmental safety and health and social responsibility. Irregularities will be reported through SCAR (Supplier Corrective Action Request).

The Group has a worldwide presence with sites across Asia, Europe and the USA with currently more than 30,000 professionals spread around the world each contributing their talent and serving together as the foundation for Chicony Group’s sustainable development. We pledge to all Chicony members to strictly abide by the RBA Code of Conduct, the International Labor Convention and the Global Sullivan Principles.
Race, sex, age, religion, creed or political position are not part of the criteria for determining salary and benefits, performance appraisal and promotion or transfers to ensure equal employment rights of all Chicony employees.

Employee Welfare

Chicony Welfare employees is not only reflected in the hardware equipment upgrades and the mechanism renewal, but we have further asked the question: "how to make Chicony employees feel happy because of the Chicony Group ?" Therefore, it came the Worker Welfare Committee ("Welfare Committee”). The planning of worker welfare activities is organized as follows:

Chicony Group College of Competitiveness

The Chicony Group houses a wide range of professional specialties and develops a wide range of products. The College of Competitiveness offers multidimensional course programs created to meet the needs of different functions, departments and management positions, to provide the resources needed and to assist members of Chicony in achieving their personal goals. Detailed planning of the curriculum framework is made for both the management and general staff, for the management members, the main focus are team management, interpersonal communication, talent identification and leadership, planning and mentoring, decision-making and adaptability; for the general staff, the course is designed according to its functions, such as marketing and sales skills, persuasion and communication skills for the sales team, and workshop and seminars on planning for innovation, trend insight and technology implementation for the R&D team. In addition to the above-mentioned training system design, the College of Competitiveness also includes on-the-job training, such as job rotation, overseas stations, project internships, so every member of the Chicony Group can benefit from the guidance and feedback of the management, senior colleagues and peers, to improve and grow under the care of the Chicony family. In addition, we also provide career planning for retired employees, enabling them to attain spiritual satisfaction and prove their self-worth through making continuous contribution in their area of expertise.

Chicony Group believes that in order for a corporation to be firmly placed in the society, we must first root ourselves; we project our corporate resources and love into every corner in Taiwan, starting from fulfilling our civic responsibility as a citizen.
Self-motivated concern for the disadvantaged by our staff shows how Chicony Group is surrounded from inside out by good social values such as kindness. Our object of caring is regardless of age or class, we actively show our care to disadvantaged groups whether it is physical or mental disabilities or social adjustment disorders, hoping to contribute our efforts for the greater good and bring more caring and warmth to the society.

As part of the global electronics industry, Chicony strives to take full corporate responsibility to society. We support and take part in the “Electronics Industry Citizenship Coalition” and abide by the EICC Code of Conduct, this includes the strengthening of the corporate operational system, protection of the rights of workers and their welfare, the creation of product value and profit while paying attention to environmental protection as well as social and human participation. We produce high added-value products through continuous innovation and development and also create a work environment that allows employee potential to be best developed in their own interest, as well as that of stakeholders and society.

Our commitments are：
Create corporate values, enhance stockholder and all stakeholder interests.
Maintain good corporate management, strictly abide by business ethics and comply with all legal regulations.
Provide employees with a safe and healthy work environment and encourage them to take part in public social interest activities.
Strive to promote corporate social responsibilities and pursue sustainable development with cooperating companies and clients.
Research and develop environmentally-friendly and energy-saving products, realize environmental protection actions and reduce environmental impact.