Corporate Social Responsibility Report · 2019-01-21 · 2017 Corporate Social Responsibility...
Transcript of Corporate Social Responsibility Report · 2019-01-21 · 2017 Corporate Social Responsibility...
2017 Corporate Social Responsibility Report
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TXC Corporate Social Responsibility Report Introduction
TXC started to issue the CSR report dated back in 2009. To ensure our CSR report covered
corporate social welfare, business governance, and environment health & safety issues, the report
was written based upon GRI and AA1000 guidelines. Moreover, Stipulated following the latest
version of GRI Standards in 2017, we continue to carry out and improve our corporate social
responsibilities with the most advanced standards.
■ Scope
The Corporate Social Responsibility Report information disclosure is based on the period from
January 1, 2017 to December 31, 2017. Because of the business area is Ping Cheng Factory in
Taiwan. Therefore, the scope of certification this time also includes social welfare, corporate
governance and environment safety health.
■ Principles of writing contents of reports
The structure of contents and the aspect boundaries of the Corporate Social Responsibility Report
is on the basis of the Global reporting initiative (GRI) G4.0 Sustainability Guidelines and
AA1000 Assurance Standard. The report was prepared based on the principles of materiality,
stakeholder inclusiveness, sustainable development fields and comprehensiveness. No significant
difference regarding the scope, limitations and measuring method between this report and the
2016 report. Relevant financial figures of the report are calculated in New Taiwan dollars and
have been certified by the accountant. Aside from regular internal audit of the environmental,
safety and sanitary management system, every year we also accept external audit of ISO14001
and OHSAS18001. Greenhouse gas emission data was used the coefficient of the “greenhouse
gas emission coefficient control chart (version 6.0.3) provided by the Environmental Protection
Agency. Moreover, the carbon dioxide emission data of product carbon footprint has been
calculated from the coefficient provided by ITRI DoITPro: Y2013 databank.
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■ Issue time
The Corporate Social Responsibility Report is continuously issued to public on the TXC’s
website: http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=10&sid=13
annually.
Last issue version: May 2017 (in Chinese and English)
This issue version: May 2018 (in Chinese and English)
Next issue version: May 2019 (in Chinese and English)
■ Contact Us
You are welcome to contact us if you have any question or suggestion on the report by the way as
follows:
TXC Corporation
Address: No.4, Kung Yeh 6th
road, Ping Cheng District 324, Tao Yuan City, Taiwan
Tel: +886-3-469-8121
Fax: +886-3-469-6954
Contact window: Supervisor of administration center
E-mail: [email protected]
Website: http://www.txccorp.com
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Contents
Contents ............................................................................................................................................ 3
1. Strategy and Vision .................................................................................................................. 6
1.1. Statement from Executive ........................................................................................ 6
1.2. The commitment of TXC Corporation ..................................................................... 8
1.2.1 Corporate social Welfare .................................................................................. 9
1.2.2 Corporate operation governance ...................................................................... 9
1.2.3 Environment safety and health ....................................................................... 10
1.2.4 Relevant definitions of Conflict Minerals ...................................................... 10
1.3. Organization structure of Corporate Social Responsibility of TXC ...................... 12
2. Company Overview ................................................................................................................ 13
2.1. Company Profile .................................................................................................... 13
2.1.1. Business Logic ............................................................................................... 13
2.1.2. 14
2.1.3. Market overview ............................................................................................ 14
2.1.4. Operation performance ................................................................................... 17
2.1.5. Public association ........................................................................................... 18
2.2. Awards in 2017 ....................................................................................................... 18
3. Corporate Operation Governance ........................................................................................... 19
3.1. Corporate operation governance structure ............................................................. 19
3.2. Board of directors ................................................................................................... 24
3.2.1. Responsibilities of board of directors ............................................................. 26
3.2.2. Company law and regulations compliance ..................................................... 27
3.2.3. Duties of the Remuneration and Compensation Committee .......................... 29
3.2.4. Obligations of the Auditing Committee ......................................................... 30
3.2.5. Internal auditing Introduction ......................................................................... 31
3.3. Code of conduct ..................................................................................................... 32
3.3.1. Anti-corruption ............................................................................................... 33
3.3.2. Political donation ............................................................................................ 33
3.3.3. Competition in the industry ............................................................................ 35
3.4. Risk management ................................................................................................... 35
3.4.1. Risk management policy ................................................................................ 35
3.4.2. Organization structure of risk management ................................................... 36
3.4.3. Contingency plan ............................................................................................ 37
4. TXC Corporation and Related Interest Parties ....................................................................... 38
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4.1. Identification of related interest parties and communication ................................. 38
4.2. Employees .............................................................................................................. 50
4.2.1. Recruiting ....................................................................................................... 50
4.2.2. Appointment ................................................................................................... 52
4.2.3. Training and development .............................................................................. 53
4.2.4. Salaries and benefits ....................................................................................... 54
4.2.5. Lohas TXC ..................................................................................................... 57
4.3. Customers ............................................................................................................... 62
4.3.1. Customer relationship management ............................................................... 62
4.3.2. Customer privacy ........................................................................................... 64
4.4. Supplier .................................................................................................................. 65
4.4.1. Selection of suppliers ..................................................................................... 65
4.4.2. Negotiation on content of contract ................................................................. 68
4.4.3. Supplier information ...................................................................................... 68
4.4.4. The supplier communication channel ............................................................ 68
4.4.5. Order continuity ............................................................................................. 68
4.5. Government and regulatory agencies ..................................................................... 69
4.5.1. Degree of regulatory compliance ................................................................... 69
4.5.2. Environment protection .................................................................................. 69
4.5.3. Fulfillment of tax obligation .......................................................................... 69
4.5.4. Degree of policy co-ordination ...................................................................... 69
4.6. Competition in the industry .................................................................................... 69
4.6.1. Strategy plan ................................................................................................... 69
4.6.2. New Product and technology/royalty ............................................................. 70
5. Environment Safety and Health ............................................................................................. 71
5.1. Environment protection plan and management ...................................................... 71
5.1.1. Environment protection plan .......................................................................... 71
5.1.2. Environmental Management Practices ........................................................... 75
5.1.3. Environmental Information Disclosure Status ............................................... 76
5.1.4. Resource-Saving and Reducing Carbon Measure .......................................... 79
5.2. Environmental protection implementation ............................................................. 80
5.2.1. Specific measures and efficacy in waste reduction and resource recycling and reuse .......... 80
5.2.2. Specific Measures and Efficacy of Green Products and Services .................. 83
5.2.3. Specific Measures and Efficacy in Pollution Control .................................... 84
5.3. Implementation of Environmental Protection Concepts ........................................ 85
5.3.1. Internal Implementation of Environmental Protection and Specific Measures ........ 85
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5.3.2. Green Purchase ............................................................................................... 87
5.4. Safety and Health Planning and Management ....................................................... 88
5.4.1. Establishment of our Safety and Health Management System ...................... 88
5.4.2. Workforce Participation Empowerment in Safety and Health ....................... 88
5.4.3. Specific Measures in health and safety management ..................................... 89
5.4.4. Risk Management Planning ........................................................................... 91
5.4.5. Accident Investigation Management .............................................................. 91
5.4.6. Business disaster recovery plan ...................................................................... 92
5.5. Supply Chain Security Planning and Management ................................................ 93
5.5.1. Construction of the Supply Chain Security Management System ................. 93
6. Social Welfare ........................................................................................................................ 94
6.1. TXC Foundation ..................................................................................................... 94
6.1.1 Cultivating the Next Generation and Rooting for Education ......................... 94
6.1.2 Encourages Innovation and Strengthens Research ......................................... 95
6.1.3 Public Welfare, Emergency Rescue and Caring for Underprivileged People 95
6.2. Charity and charity ................................................................................................. 96
6.2.1 Social Welfare Institution ............................................................................... 97
6.2.2 Caring for Seniors .......................................................................................... 97
6.2.3 Community Caring ......................................................................................... 97
6.2.4 Charity Events ................................................................................................ 97
6.2.5 Management Idea Observation Event ............................................................ 98
7. Plans and Prospects ................................................................................................................ 99
7.1. Green operation aspect ........................................................................................... 99
7.2. Occupational safety and health aspect ................................................................... 99
7.3. Public welfare activity aspect ................................................................................. 99
7.4. Environment protection aspect ............................................................................. 100
7.5. Employee participation aspect ............................................................................. 100
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1. Strategy and Vision
1.1. Statement from Executive
Corporate social responsibility includes all corporate functions. The TXC Corporation
dedicates itself to the practice of corporate social responsibilities from the 3 aspects of corporate
governance, environmental safety and social welfare. Internally, we focus on abiding legal
regulations and taking care of shareholder rights and privileges, while externally we consolidate
all upstream and downstream manufacturers. We expect to put in our effort in order to give back
to all stakeholders, thus contributing our simple efforts to the promotion of a peaceful society and
friendly environment.
The corporate governance of the TXC Corporation has been carried out for years. The
operating mechanism of the TXC Corporation is fully disclosed in transparent and open
measures to ensure the rights and privileges of all stakeholders. We have received the honor of
being listed as one of the best 5% companies on the list of “Enterprise Governance Assessment”
for several consecutive years and have been well recognized in our efforts on information
transparency. From now on, the TXC Corporation will continue to promote and optimize
corporate governance standards, strengthen management mechanisms and construct our corporate
governance culture to constantly march towards the goal of sustainable management.
Regarding the aspect of environmental issues, the TXC Corporation consistently promotes
various environmental protection campaigns, carries out various management system demands,
and establishes a safe working environment according to the latest international and domestic
laws and standards as the basis for self enhancement to fulfill our responsibility as a global
citizen and contribute our efforts towards mitigating climate change.
With “Cultivating the next generation and rooting for education” as the main agenda of its
corporate social responsibility, the TXC Corporation has maintained its first heart and practiced it
for decades. After several years of preparation, the “TXC Foundation” was founded in 2017.
With the founding of this foundation, we expect to gather more strength to fulfill more
educational goals. Due to the importance of primary education, the TXC Corporation has selected
the Jeso Elementary School and Xiayun Elementary School from Fuxing District, Taoyuan City
and Ruifang Junior High School from New Taipei City and provides them with long-term
sponsorship on specific projects. This enabled remote schools in utilizing more sufficient
resources to discover and educate potential outstanding students, encourage them to work harder
on receiving an education, and expect that those who have been awarded can demonstrate what
they have learned to give back to society. In addition, combining the volunteer resources of the
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TXC Corporation, we have enlarged our service efficiency to carry out the targets of social caring
and fulfilling social corporate responsibility to enhance social harmony and stability.
For the TXC Corporation, we will continue to uphold the heart of giving back and providing
feedback to the society, thus maintaining the good heart of a corporation forever. As long as a
corporation exists, it must possess a good heart. Only corporations with a good heart can win the
consistent support of employees, shareholders and customers. Without a doubt, how a
corporation can survive and develop in a global competitive environment, thus receiving extra
profits from customers and implementing obligatory social responsibilities and fulfilling its
obligations as a global citizen, will be issues that all corporate executives have to aggressively
ponder on in the future.
The overall business environment is constantly changing! With changes in the exchange rate
market, competition from contemporaries, and the rise of Chinese supply chain, it is harder for us
to maintain development and profiting simultaneously. However, this further gives us the
opportunity to examine whether or not our management structure is sound enough or not. In the
future, the TXC Corporation has to uphold the concept of being attentive at all times, move
forward to improve with a fearless spirit and give back to all stakeholders with outstanding
business progress.
Chairman:
TXC Corporation
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1.2. The commitment of TXC Corporation
Since the founding of TXC, we have long expected to feedback to society as a good
corporate citizen while in pursuit of corporate growth and sustainable development. On honoring
commitment, we have consistently adhered to our operation principle toward upstream and
downstream companies, support social benefit and environmental preservation. In recent years,
following attention to topics of environmental protection and based on our conviction and
mission for the society and environmental protection, internally the company has actively
promoted green product design and publicity work of various environmental protection events so
as to serve our corporate responsibility for protection of the environment.
Based on the guideline of “what is taken from society is used in the interests of society,”
within the scope our capability, TXC will continue to serve society and the public and feedback
results to employees, customers and the disadvantaged social groups, particularly giving priority
to basic education, and make contributions to society in fulfilling our corporate social
responsibility. Based on the above description, the Company's commitment to corporate social
responsibility from the “Corporate Social Responsibility”, “Company operations management”
and “Environmental Safety and Health” to proceed with three dimensions, it is summarized as
follows:
Corporate Social Responsibility
Connunity charity work
Environment safety and health
Arts and culture
Education and research
Corporate Governance
Protect stockholder's rights and interests and to function
Treated fairly to stockholder
Implement the duty of the board of directors
Information Disclosure and transparency
Implement Corporate Social Responsibility
Environmental Safety and Health
Policy
Environme proteection plan and management
Implamentation of environment protection The concept of environmental protection and its education and promotion Safety and health plan and management
The environment safe hygiene check table
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1.2.1 Corporate social Welfare
The “promoting education for the young” is the most important CSR activity of this
Company, given that education is a long-term goal and people the foundation for future
development, and no one will become a talent and no progress will be made in the absence of
sound and well-planned education. According to Guanzi, it takes ten years to grow a tree but a
hundred years to education people. While primary education and teachers giving primary
education concern us most, we have been sponsoring art, culture, physical education, and music
activities relating to the morality, intelligence, physical, socialization, and aesthetics education of
elementary schools ever since started promoting CSR in 2004. Despite of limited resources and
capacity, we have spared no effort to focus on education for the young over the past 13 years or
so based on the belief in “devoting faith to what should be done and devoting energy to what can
be done,” in order to benefit schools near our locations in Beitou, Taipei, and Pingzhen, Taoyuan.
Although the results are not outstanding but have contented our humble wish. Please refer to the
website for the social welfare as
http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=10&sid=11&id=29
1.2.2 Corporate operation governance
The company has made a strong commitment to corporate governance for a number of years
and received an A+ and A++ Information Disclosure and Transparency Ranking grade from 2007
to 2015. We paid much attention to the information transparency which is highly positive
recognition. To ensure all employees who have keep a sense of integrity, inclusion, so as to
maintain the corporate image. We have printed the second version of code of conduct in Chinese
and English, which will be also released on the company’s website. In addition to this, the second
version of CIS specification in Chinese and English issued to unify the use of external corporate
logo. We expect that all employees keep in mind of the company’s request after careful review
and signing back the “responsibility declaration” on the issue of code of conduct so as to take
responsibilities to colleagues, shareholders and related interest parties.
To adequately present the company’s results of the corporate operation governance to
increase confidence of investors, the company will continue to participate in the evaluation of the
corporate operation governance by Taiwan Corporate Governance Association (TCGA). ·In 2015,
TXC Corporation was ranked among the top 20% by the Taiwan Stock Exchange Corporation in
Corporate Governance Evaluation. In 2016 and 2017, we rose among the top 5% in the corporate
management evaluation, which demonstrated the effort of the company for this cause.
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1.2.3 Environment safety and health
In order to maintain labor safety, besides continuing to introduce OHSAS 18001
occupational safety and health management system and passing CNS 15506 Taiwan occupational
safety and health management system certification under the guidance of Labor Safety and
Health Committee and Labor-Management Meeting. We held many sessions of health-promoting
events, such as monthly blind massage stress relieving, free breast ultrasonic examination,
4-cancer screening, subsidized influenza vaccine injection, regular health examination, iHealth
physical examination, consultation and anomaly tracking, Let’s Exercise fitness event and
various other events. Health speeches were held to help colleagues to strengthen their health
awareness in order to consistently establish a healthy, energetic and safe working environment.
Instant assistance and caring will be provided to colleagues who were injured due to accidents
and a safe working environment will be consistently maintained to provide colleagues with the
greatest safe insurance.
In 2017, the company has been accredited with the ISO 9001 in quality management system,
IATF16949 in quality management system for the automobile industry, ISO 14001 in
environmental management system, CNS15506 occupational safety and health management at
workplace in Taiwan, ISO/IEC27001 information security management system, , IECQ
QC080000:2012 hazardous substances process management system, OHASAS 18001:2007
occupational safety and health management system, and recognition of occupational safety and
health performance. With the inclusion of the accreditation of ISO 14064-1:2006 greenhouse gas
inspection.In the future, the company will ensure the effective functioning of all these systems to
satisfy and even surpass the demand of the customers. For the company’s environmental safety
and health, please refer to
http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=11&sid=14
1.2.4 Relevant definitions of Conflict Minerals
TXC Policy and Commitment
As a member of the electronic industry supply chain, TXC will perform its
corporate social responsibility. Aside from abiding by the code of conduct as set forth
by Electronic Industry Citizenship Coalition (EICC, In 2017, EICC change name to
Responsible Business Alliance ,RBA) and Global e-Sustainability Initiative( GeSI) and
related requirements, TXC has carried out supply chain survey and formulated its
policy and commitment for not using any conflict minerals from the Republic of Congo
and its neighboring nations. Our No Conflict Minerals Policy is as follows:
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Conflict minerals refer to gold, tantalite, wolframite and cassiterite mined and sold
by the armed groups in the mining areas of the Republic of Congo and its neighboring
nations. Since mining or control of aforementioned minerals involved serious issues of
human rights, races and illegal benefits, TXC thereby makes the following commitment
as a member of the global village:
Not to purchase conflict minerals produced in the conflicts areas.
Strive to require the upstream and various raw materials suppliers to refuse to use
conflict minerals from the conflict areas and require to produce a letter of
commitment.
To ensure the supply chain manufacturers also comply with this policy, TXC has
required all material suppliers to fill out the Commitment on Prohibiting Use of
Conflict Minerals for products containing any of the following items of conflict
minerals, and concomitantly provide a namelist of the minerals processing
manufacturers as approved by RBA and GeSI to ensure that their products do not use
any conflict minerals from aforementioned areas.
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1.3. Organization structure of Corporate Social Responsibility of TXC
The corporate social responsibility administration committee is totally in charge of by the
chief administration center. Under the committee, they are eight units as corporate governance
group conducted by finance unit, green product design group conducted by research and
development, supplier management group by purchasing and supply chain management center,
the labor-employer committee conducted by the human resources unit, the risk management
group conducted by the finance and QA units, the energy saving group by manufacturing unit,
labor safety and wealth committee conducted by election of employees, and social welfare
promotion group formed by supervisors of the various centers. In accordance with the annual
plan and budget, the issues of related stakeholders will be incorporated into routine jobs and
annual plan to promote furthermore corporate responsibility related activities and certificate.
Economic management representative and environmental and social management
representative, risk assessments of the economic, environmental and social operating
performance and significant economic, environmental and social issues are reported to the board
of directors during the last board meeting of the year. Approval of the handling measures for
related issues is sought from the board of directors to effectively address the demands of
stakeholders on the Company and also ensure that the business direction and countermeasures
effectively conform to market and industry trends and induce the management team to make the
necessary adjustment.
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2. Company Overview
TXC Corporation was founded in 1983 (hereinafter referred to as TXC). With a history over
30 years, TXC has upheld the self-expectation of “good and even better” and requirement of
“excellence.” Thanks to hardworking and endeavors of employees, currently TXC now ranks
No.1 in Taiwan and No.4 in the world by scales of the professional frequency control component
manufacturing services. We also provided customers with abundant manufacturing capacity,
complete diversity of process technologies and modular design on the professional frequency
control component manufacturing services.
2.1. Company Profile
Founded: December, 1983
Amount of Capital: NT$ 3,097 million
Numbers of employees: 1,041 persons (December 31, 2017)
Main business: Professional frequency control component manufacturing services
Major products: Major in six series of products of high precision and high quality Crystals,
Oscillators, Real time clock modules, Automotive, Sensor.
Headquarter: 4F, No.16, Sec.2,Chung Yang S. Rd., Peitou, Taipei, Taiwan
Ping Cheng Factory: No 4, Kung Yeh 6th
road, Ping Cheng District, Tao Yuan City
Ningbo Factory: No.189 Huangshan West Rd. Beilun District, Ningbo, Zhejiang, China
(Non-disclosure)
Chungking Factory: No.22 Fung Sheng Rd., Jiulongpo District, Chungking, China
(Non-disclosure)
2.1.1. Business Logic
The core value of an enterprise lies with its publicized business logic and its attendant vision
and mission and the continuous development of an enterprise is often built on a long-term
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architecture, as well as its core value. In view of the imperativeness and importance of the
enterprise’s core value for long-term development following gradual development of the
company, TXC Corporation hereby declare the company’s vision statement, mission statement
and corporate culture as follows:
2.1.2.
2.1.3. Market overview
Sales area of major products
Products will become smaller and lighter and the proportion of product shipment using
SMD quartz crystal will become ever higher. Looking to the future, Asia will continue
to be OEM pivot of the global electronics industry with more shipments coming from
Asia. TXC will continue to strive to develop the American and European design-in
market.
Sales distribution of major products in recent two years:
Unit: Thousand New Taiwan dollars
Year 2016 (consolidated) 2017 (consolidated)
Amount % Amount %
America 267,915 2.78 201,842 2.30
Europe 39,638 0.41 122,395 1.39
Asia 7,527,750 78.11 7,193,441 81.92
Domestic 1,801,798 18.70 1,263,873 14.39
Total 9,637,101 100.00 8,781,552 100.00
Area
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Market share
In order to maintain reasonable profit standards and a sound business structure while
facing harsh price competition in the market, the TXC Corporation has carried out
hemostasis price strategy targeting partial markets, thus resulting in a mild 9% decrease
on the TXC Corporation global market occupancy in 2017 (according to the
information provided by external market analysts). But the TXC Corporation is still
Taiwan’s largest professional frequency control component, it has dropped to fourth
place, globally.
Total Xtal & Oscillator Market Shares (Millions of Dollars)
Data Courtesy of CS & A 2018
2017 Rank Company Name 2017 Revenue Market Share(%)
1 Seiko Epson $382.10 11.7%
2 NDK $353.72 10.8%
3 KCD $344.39 10.5%
4 TXC $293.96 9.0%
5 KDS $205.36 6.3%
6 Microsemi(Vectron Acquired) $168.09 5.1%
7 SIWARD $104.30 3.2%
8 MegaChips(SiTime Acquired) $103.00 3.1%
9 Hosonic $97.76 3.0%
10 Harmony $97.75 3.0%
Other Companies $1,120.11 34.2%
Total Revenue $3,270.54 100.0%
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Product application
Quantity and value of output of last two years
Unit: K units, K dollars
Year 2016 (consolidated) 2017 (consolidated)
Domestic Sales Exports Sales Domestic Sales Exports Sales
Main Product Quantity Value Quantity Value Quantity Value Quantity Value
Dip Quartz 210,000 188,862 258,802 180,000 153,370 192,091 210,000 188,862
SMD Quartz 2,900,000 2,578,069 5,292,220 3,300,000 2,984,170 5,157,447 2,900,000 2,578,069
Others 0 2,402,077 2,380,855 0 1,828,268 1,357,164 0 2,402,077
Total 3,110,000 5,169,008 7,931,877 3,480,000 4,965,808 6,706,702 3,110,000 5,169,008
Worldwide locations:
TXC has three manufacturing bases: Ping Cheng Factory in Taiwan, Ningbo Factory in
China “TXC (Ningbo) Corp.” and Chongqing Factory in China “TXC (Chongqing) Corp.”
We also have two overseas subsidiaries in the U.S. and in Japan, as well as business supports
from other invested affiliated companies. We have branches and offices in Los Angeles,
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China, Japan and Europe. Application engineers have been built to quickly meet needs of
client design and engineering section. We also feedback to customers or compile message
quickly when customer complaints; In addition, we have creased distribution channels to
extend marketing to all over the world. Refer to following website for various subsidiaries
and offices of TXC http://www.txccorp.com/index_en.php?action=a_about_1-1&cid=2.
2.1.4. Operation performance
To meet market demand, we have continually upgraded and increased high-end market
applications for our wireless communications and personal digital products. Furthermore,
we’ve focused on low power, small size and precision niche markets. Thanks to expansion of
production capacity on both shores of the Taiwan Straits, consolidated sales revenues ran to NT$
8,781,552,000 in 2017, net profit after tax was NT$951,017,000 earning per share after tax was
NT$3.11. The entities included in the preparation of the Company’s 2017 Consolidated Financial
Statements are TXC Corporation, Taiwan Crystal Technology International Limited, TXC
(Ningbo) Corporation and Taiwan Crystal Technology (HK) Limited, Growing Profits Trading
Ltd, TXC Technology Inc, TXC Japan Corporation, TXC(Chongqing)Corporation, TXCO
Corporation. See the company website for the 2017 financial statements.
http://www.txccorp.com/download/report/season/2017/2017.pdf
Unit: NT$ Thousand
Item 2017 2016
Increases(Decrease)
Amount changes ratio
Net operating income 8,781,552 9,637,101 (855,549) (8.87)
Gross profit 2,186,077 2,554,069 (367,992) (14.41)
Net income (loss) 962,655 1,016,164 (53,509) (5.27%)
Consolidated Financial Status and Profitability:
Year 2017 2016
Financial structure
(%)
Debt Ratio 31.62% 32.83%
Long-term fund to fixed assets ratio 254.61% 273.17%
Solvency (%) Current Ratio 350.63% 279.40%
Quick Ratio 277.70% 227.49%
Profitability (%)
Return on assets 6.86% 6.82%
Return on Equity 10.04% 9.79%
Basic earnings per share(NT dollar) 3.11 3.28
Year
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2.1.5. Public association
TXC actively involved in the industry association activities and became a member of them,
such as Quartz crystal industry association, Electric parts association, Taiwan electrical and
electronic manufacturers association, Taipei Enterprise manager association, Taiwan quality
association, Supply management institute, Taiwan and Taiwan corporate governance association.
The company’s chairman acted as directors of Quartz crystal industry association and Electric
parts association.
2.2. Awards in 2017
Corporate Governance Award
BSI Corporate Sustainability Awards
Corporate volunteer Awards
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3. Corporate Operation Governance
Having considered investors’ dependence on the company’s various information disclosures
and on the strength of our continuing practice of transparent access to various information to
safeguard the shareholders’ rights, we have been assessed as excellent and won much recognition
in the Information Disclosure Evaluation in many previous & present years. According to the
“3rd Enterprise Governance Assessment” co-hosted by the Taiwan Stock Exchange and Taipei
Exchange, TXC Corporation has been ranked as the best 5% of all 1,496 listed enterprises like in
the 2nd Enterprise Governance Assessment. In the future, TXC Corporation will continue to
uphold the governance spirit of maintaining stockholder rights, treating stockholders equally, and
continuing to work hard on strengthening the operations of the board of directors in order to
provide transparent and open information on the corporation’s development and business
progress for all shareholders and fulfill its corporate social responsibility. Results of the appraisal
are as follows:
Year Corporations Evaluated Ranking
2017(Third) 1,496 Top 5%
2016(Second) 1,447 Top 5%
2015(First) 1,393 Top 6%~20%
3.1. Corporate operation governance structure
There is no major change in the organization’s size, structure, ownership, share capital
structure, the location of suppliers, the structure of the supply chain and in relationships with
suppliers in 2017. There is no major change to shareholding by directors and supervisors while
ownership by institutions followed self-adjustment along with the ups and downs of the market.
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Various departments’ content of work as follows:
Department Contents of work
Office of the
chairman
Setting up major strategic planning for the company
Help solve major problems concerning quality and engineering
Technical ability is enhanced and to promote the supervision of product development
Risks and opportunities assessment for the feasibility of new technology and investment
Overall financial planning and Investment Management Development
Managing
Director’s Office
In charge of the company's overall business policies, objectives, budget planning and setting, as well
as the implementation of overall business of supervision, coordination and management
Decision, revision and implementation into major business proposal
Supervision of the operations of overseas subsidiaries
Audit Office
Audit plan developed to track the results all the way to the final project, in order to use it for the
overall management of the internal control audit
The production of annual and monthly audit plan
production of audit summary report, report to the general manager, chairman, supervisors, board of
directors
Internal control and audit services supervision
The implementation of performance evaluation and guidance for improvement for each management
unit
Amendments to the internal control system and the implementation details
Corporate Key Operating Risk Management System (KBR) and KPI management for various units.
Marketing Center
Product sales, order processing and customer development and service
Competitors, sales analysis, product marketing strategy and industry market analysis
Management of cost and sample development
Emerging market development, new product development and marketing services
Customer service and problem solving for product applications
Drafted product marketing strategy
Established business (sales, cost and quality) targets, strategy and planning for automotive products.
RD Center
R & D of new products and mass production
New products / transfer of material technology and mass production
R & D plan of the project, implementation and import
New product evaluation and development of marketing
Miniaturization, high precision, high reliability, new product development, planning, promotion and
production of technology transfer
Development and improvement of new equipment, modules, instruments and tools
Planning, promotion, technology transfer and production of new process technology development
project
Research and implementation of the R & D plan
New product samples for testing and evaluation to assist the product engineering units
Quality
Assurance Center
Review and setting of company-wide annual quality / environmental safety and health goals
Establish, audit and coordinate company-wide quality, environment and green products system to
ensure its effective operation
Work plans and implementation of various annual quality-related activities
Promote quality improvement work
Annual work planning and implementation of DCC center
Planning and importing materials, control and inspection of the quality when undertaking
manufacturing, product assembling and shipment of home-made chip
Quality management of products and materials
Inspection and control of materials importing, processing and quality of finished product
Improvement of IQC testing method, the increase of test performance to reach testing optimization
Customer complaint management process
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Department Contents of work
Manufacturing
Center
Co-ordinate and apply the resources (manpower, equipment, production capacity, investment
budget, etc.)of the entire manufacturing center (PCF & NGB & CKG)
Managing the KPI (key performance indicators) of each factory under the manufacturing center
Implementing and achieving the manufacturing capacity expansion plan as required by the company
goal
To understand the manufacturing strategy and trends of the whole quartz crystal industry
Production and manufacture of products
Improvement, planning and implementation of the production process
Process Improvement and Process Development
Management and maintenance of production equipment
Calibration of instruments and management
Production capacity, material requirements planning, production and marketing controls and
arrangements, inventory and warehouse management delivery
Supervision and implementation of industrial safety and health as well as the environmental
management system
Inspection and maintenance of public system equipment
MEM/BLK
Manufacturing
Center
Utilizes the resources of the overall chip manufacturing site of the group as a whole (facilities,
production capacity and etc.) to achieve the greatest business performance and goals of the
company.
Understands the chip manufacturing strategy and trend of the whole quartz crystal industry and
separate manufacturing regions of the industry (Japan, Taiwan and China) to construct the core
competitiveness of the company. Fully supports the demands of our business to reach business
goals. Carries out corporate strategies to expand its market occupancy.
Coordinates the facilities, human resources, technologies and various management affairs in the
Microelectromechanical Chip Center.
Promotes various business management policies of the company and stipulates the goals of
Microelectromechanical Chip Center. Organizes plans to implement company business goals.
Administration
Center
Planning and setting of the company organization systems and departmental duties
The establishment and implementation of the company management system
To promote the effectiveness of the review of the annual budget
Production and analysis of the accounting process of the company as well as cost and financial
accounting information
Financial management, capital allocation and handling services of the underlying shares of listed
companies
Personnel compensation and benefits, recruitment, selection, promotion, appraisal, training and
development and other human resources management jobs
Staff Relations and to conduct various conference activities
General Services Administration and General Services jobs
Delivery and management of the company business information, the establishment of operating
systems, and its development and maintenance
Network communications planning, implementation, and maintenance
e-form operational planning and implementation of electronic forms
Security and management of information and network communication
Labor safety and
health
management
office
Oversee safety and health review / risk assessment and other environmental safety management.
Responsible for safety and health management system planning and establishment of related
procedures.
Oversee safety and health management items.
Draft, plan and introduction of safety and health management items. Supervise organization and
identification of safety and health related laws by related departments.
Handle internal / external inquiries and communication regarding safety and health issues
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Department Contents of work
Supply chain
management
Center
Purchase and management of equipment, raw materials, semi-finished & finished products and
general goods
Quotation, price negotiation, purchasing, transaction term negotiation, payment requisition, tracking
etc.
Promotion of supplier management system and development of supplier management.
Formulating the production-marketing balance plan, production schedule, execution and
management.
Carry out tasks such as import, export, transport, customs declaration, customs clearance and
insurance as well as the review and payment requisition of relevant expenses.
Management and analysis of the cost of imported materials.
Statistics, review and improvement of On Time Delivery
Purchasing work system review and improvement and work procedures streamlining to raise
efficiency
New materials, substitute materials, common materials for different plants, development of new
manufacturers or equipment.
Supply market information (supply/demand, price, technology, policy etc.) compilation and trend
analysis.
Remuneration
committee
Regularly review the organization rules and submit recommendations for revision. Regularly review
director, supervisor and executive officer performance evaluations and remuneration policy, system,
standards and structure following establishment. Regularly evaluate company director, supervisor
and executive officer remuneration.
Obligation of the
Auditing
Committee
Set up and revise internal control system and internal control system effectiveness evaluation
Set up and revise guidelines for significant financial and business conduct including acquisition or
disposal of assets, derivative product transactions, lending of capital, endorsement and guarantees to
others
Evaluate the conflicts of interests involving directors
Evaluate significant assets, derivative product translations, lending of capital and endorsements and
guarantees.
Evaluate fund raising, issuance or private placement of equity securities.
Evaluation CPA appointment, dismissal and compensation and appointment and dismissal of
financial, accounting and internal audit supervisors.
Review annual financial reports and semi-annual financial reports.
Economic
Committee
Convene scheduled and unscheduled committee meetings to discuss economic topics to be
submitted for review and serve as a basis for continuous improvement.
Report to stakeholders and highest governing body the negotiation procedure for economic issues.
When negotiation is authorized, the management representative will report to the board of directors.
Encourage full understanding of relevant laws and responsibilities that need to be borne by the
company.
Oversee establishment, implementation and maintenance of management systems by each unit
supervisor to achieve individual objectives.
Environmental &
Social
Committee
Convene scheduled and unscheduled committee meetings to discuss environmental and social issues
to be submitted for review and serve as a basis for continual improvement.
Report to stakeholders and highest governing body to negotiation procedure for environmental and
social issues. When negotiation is authorized, the management representative will report to the
board of directors.
Encourage full understanding of relevant laws and responsibilities that need to be borne by the
company.
Oversee establishment, implementation and maintenance of management systems by each unit
supervisor to achieve individual objectives.
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3.2. Board of directors
The highest governing body of the company is Board of directors. For this reason, the
nomination, selection, dismissal of directors and supervisors has a clear article to follow, and it is
in accordance with professional requirements. Furthermore, the seats of the directors, supervisors
and independent directors are also in line with the conventional industry. The company also
provides independent directors and supervisors to fully exercise the powers of the related
resources.
The directors of TXC are elected by shareholders’ votes. There are a total of eleven
members on the board of directors with four independent directors. In line with the diversity
policy for members of Board of Directors, we have two female independent directors. The
chairman, who is voted by the members of the directors, has a term of three years. At the present,
the director of the company is Mr. Lin Jinbao, who also works as the chief executive; whereas,
the deputy chairman of the company acts as the deputy executive. As for the managing director,
he must be a qualified manager as appointed by the board of directors. Managing director is
directly responsible to the board of directors (at the present the position of managing director is
held by Mr. Lin Wanxing), all the rights and interests of relevant people inside and outside the
company can communicate with the company spokesman or the acting spokesman through the
mail and telephone contact as shown in the company website, in order to fully reflect the
company's operational needs which might need to be adjusted or amended. Furthermore, external
customers can also communicate with the “customer representative” which is set up by the
company’s business and marketing unit. As for corporate bodies, the company also carries out
explanations through the relationship of investors, and uploaded the latest information onto the
company website, for the purpose of free viewing. As for our internal staffs, they can express
their views or offer suggestions through emails or through employee satisfaction surveys, to
achieve full communication purposes. As of December 2017 the company has not received any
complaint calls. As for internal colleagues, the proposed requirements were met in their routine
operations, and there is no risk of breaking any law, for this reason, these incidents were not
recorded.
Regarding the election and appointment of company directors, unless stipulated otherwise in
laws, regulations or articles, the provisions of the Director Election Procedure, which outlines the
operational judgment, accounting and financial analysis ability, business management ability,
crisis handling ability, industry knowledge, international market views, leadership ability and
decision-making ability required by directors, shall be followed. Wherein, Chairman Mr. Lin
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Jinbao has nearly three decades of experience in the quartz industry, and leads the technology
officer Dr. W.T. Hsu to jointly responsible for the task of product planning and R&D. As for
marketing and sales, plant operations and related logistics support, these are the job of the
managing director, who has more than twenty years of experience in the quartz industry. These
two men worked together to achieve the aim of professional complementation. In addition, the
independent director of the company, Professor Yu Shangwu, held a Ph.D. in financial studies
from the University of Birmingham, U.K. Furthermore, he currently holds the position of
Professor at Ming Chi University of Technology. For this reason, he is an expert in both the field
of finance and information management. One of our female independent directors, a former chief
investment officer for Pegatron Corporation, ASUSTeK Computer Inc., former managing director
for UBS Group AG, current director for Kinsus Interconnect Technology Corp., DaShenSi
Venture Capital Corporation, eslite Foundation for Culture and Arts, Spotfilms Co., Ltd. (legal
representative), Ms. Sharon Su is a specialist in corporate finance & investment and industry
research & analysis. Our other female independent director, previously working in Simpson
Thacher & Bartlett LLP and Yongyun Attorneys-at-Law, Ms. Jennifer Wang is currently a partner
in Chen & Lin Attorneys-at-Law in charge of capital and merging projects, specializing in
securities trading act, company act, corporate merging act, fair trade act, e-commerce and
cross-strait investment & technological collaboration regulations, covering cross-nation or
domestic corporate merging, corporate re-shuffling, domestic & overseas initial public offering &
financing, foreign nationals investing in Taiwan and setting up R&D and straining centers,
application for governmental subsidies, setting up joint ventures, fair trade act compliance and
relevant applications, as well as assisting customers conducting various business trading and
contract design, drafting and negotiation and general company legality consultancy, her work
experience covering professional legal services for domestic and cross-country corporations of
various sectors. As for the remaining directors of Mr. Ge Tianzong, Mr. Chen Que Shangxing,
and Mr. Guo Xiuxum, each has the expertise in the field of consumer electronics marketing and
business development, respectively. As for the legal director Hong Ding Venture, it is the capital
reinvestment company of UMC Group. For this reason, it has the practice experience in the field
of market dynamism as well as professional industry investment. In any case, by appointing
people with practical experience in the industry or people with scholarly background into the
board of directors, the company is able to sufficiently identify the changes in the politics,
economy, society, science and technology, in order to adjust the company's internal rules, such as
employee manuals, codes of conduct, emergency response plans, in addition to fully grasp the
future through the possession of the international standard certification requirements, and acting
in advance. The directors and supervisors of the company would also continually participate in
the professional training courses in the area of finance and business practice. In 2017, the
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company set the topics of “Analysis of the International and Cross-Strait Anti-tax Avoidance
System and Enterprise Response Strategy” and “The company’s main information reveals the
director’s responsibility?” as the gravity of training. You may inquire at the open information
observation station (http://mops.twse.com.tw/mops/web/t93sc03_1) regarding studies by
directors and supervisors. As for the rest of senior managers, each has their own duties and
qualifications as required to suit his post. Furthermore, their ability will also be assessed each
year through key performance indicators, which is the standard unit for assessing their
performance. The board members and managers of TXC strictly follow the code of conduct.
There is no complaint for sexual discrimination and no report from employees about sexual
harassment or inequality from sex gender.
3.2.1. Responsibilities of board of directors
The continued and sustainable management of a company mainly comes from a steady
managing direction as well as the implementation of system and control. As for the direction of
development of prospective business, it depends on the understanding towards the market by the
Board of Directors and the Management sector. Board responsibilities include supervision,
determining management direction and work in accordance with the market demand.
Furthermore, it is also necessary to appoint capable and competent managing level executive to
carry out the management strategies of the board of directors, to ensure good business results.
To ensure good management results, the Company established an Economic and Environmental
& Social Committee in 2013 to effectively make decisions and determine responsibility for the
above issues. After the Management Representative appointment is passed by the board of
directors and authorized by the President Representative, the board appoints the Chief Financial
Officer to serve as the Economic Management Representative and currently serving
Environmental Safety and Health System Manager to fill the position of Environmental and
Social Management Representative. In addition, risk assessments of the economic, environmental
and social operating performance and significant economic, environmental and social issues are
reported to the board of directors during the last board meeting of the year. Approval of the
handling measures for related issues is sought from the board of directors to effectively address
the demands of stakeholders on the Company and also ensure that the business direction and
countermeasures effectively conform to market and industry trends and induce the management
team to make the necessary adjustment.
In 2017, company operations were normal, performance conformed to the board’s
expectations and no significant disputes occurred. In the event of a significant dispute or major
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event, the announcement method for significant news is posting on the Market Observation Post
System and the company website and notification of each board member by e-mail as soon as
possible. The company posted a total of 35 items of significant news and promptly notified each
board member by e-mail in 2017.
In addition, the 2017 Sustainability Report, written based on the comprehensive option in the
Global Reporting Initiative (GRI) G4.0 Guidelines, was approved at the December 18, 2017
board meeting.
3.2.2. Company law and regulations compliance
The mode of operation of the Board of Directors of the company is in compliance with local
laws and regulations, in order to maintain the proper and normal operation. The management
result will be fully disclosed on the company’s website as well as on annual reports. As for
suggestions and recommendations by the parties of interest, the company also has a designated
spokesman to respond to these queries. This can effectively avoid damage to the company by
unidentified risks. Furthermore, the company website has set up hassle-free email communication
channels (http://www.txccorp.com/index_en.php?action=e_company_1-1&cid=6) so that all
stakeholders can communicate and complain to company supervisors, independent directors,
chairman and general manager, and ensure the communication and complaint channels with
stakeholders are open.
As for rules of procedure for the board of directors, the Company shall convene a meeting in
accordance with law, at least once quarterly to review business performance and discuss
important strategic issues, the meeting issues include the economy ("International Financial
Reporting Standards" (IFRS), expansion in investment), environmental (RoHS, GP) and
corporate social responsibility. As for matters brought up in the executive board meeting, it is
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important that it has to be specific. In case of conflicting interests where avoidance to the issues
is needed, we will attempt to adopt self-censorship to the issue. There are clear specifications
regarding article 28 of corporate governance practical principles, the principle of integrity in
operation, the code of conduct, article 15 of the rule of procedure of the board of directors and the
code of conduct for employees. If the director, supervisor or manager violates ethical conduct, the
company will issue disciplinary measures in accordance with the standards of ethical conduct of
the company, and will also disclose the name, job title, and time of violation, reason for violation,
story of violation, rules for violation and procedures for violation to the MOPS. TXC has always
upheld the highest principles of relevant laws and regulations. There were no fines in 2017 for
corruption related offenses.
A list of directors and supervisors attendance to meetings of board of directors
Title Name (or
Representative) Gender
Attendance
times(B)
Times of
attendance
by proxy
Actual
attendance
%(B/A)
Chairman Lin Jinbao Male 6 0 100
Vice
chairman Xu Derun Male 6 0 100
Director Hong Ding venture
capital co., ltd Male 6 0 100
Director Lin Wanxing Male 6 0 100
Director Zhou Mingzhi Male 6 0 80
Director Chen Que
Shangxing Male 5 0 83.33
Director Ge Tianzong Male 6 0 100
Independent
director Yu Shang Wu Male 6 0 100
Independent
director Edward Tsai Male 5 0 83.33
Independent
director Su Yan Syue Female 5 0 83.33
Independent
director Wang Chuan-Fen Female 5 0 83.33
Note: The background information, educational background, concurrent jobs at other companies and attendance rate
by members of the TXC board of directors have already been published in the company annual report. You
may also inquire at the open information observation station (http://mops.twse.com.tw/mops/web/index)
Board of directors
Age 40-50 50-60 60-70
Female 2 0 0
Male 0 3 6
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3.2.3. Duties of the Remuneration and Compensation Committee
To continue to improve corporate governance and narrow the gap with international
standards, the Company Board of Directors adopted a resolution on December 28, 2011 on
setting up the Remuneration and Compensation Committee. The Committee operates
independently and submits its recommendations to the board for reference. The third
Remuneration Committee passed the Board of Directors Meeting on July 18, 2016. Yu Shangwu
was recruited as independent director, Cai Songqi, Su Yansyue and Wang Chuanfen, as members
of the Remuneration Committee. Relevant details have been examined to ensure the remuneration
of managers meet expectations of the stakeholders.
In accordance with the Organizational Regulations of the Remuneration and Compensation
Committee formulated by the company, the committee shall convene meetings twice a year with
following obligations:
Regularly review the organizational regulations and propose commendations for
revision.
Formulate and regularly review the policy, system, standard and structure of the
performance evaluation and remuneration and compensation for company directors,
supervisors and managers.
Regularly evaluate the remuneration and compensation for company directors,
supervisors and managers.
The performance evaluation and remuneration of our company directors and managers are
processed in line with the Remuneration Committee Charter and will undergo periodic evaluation
by the Remuneration Committee, so as to keep a check on whether the company’s overall
remuneration policies, systems, standards and structure are consistent with market
competitiveness. Key factors included in the performance evaluation of our company directors
and managers are overall company operation performance, management risks that the company is
exposed to in terms of economic, environment and social dimensions and action in response to
developmental trends, as well as scopes of contribution to the company performance. In addition,
the salary payment of managers is in step with the following factors: salary standards of the same
position in the industry, the position holder’s responsibilities and management scope within the
company, and the overall contribution to the company’s operational objectives. Should a manager
be assessed as irrevocably unfit for the position, he/she can be lawfully discharged from the
position based on the resolution of Board of Directors.
Decisions about short-term performance bonus percentages and variable-pay remuneration
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payment times are made in consideration to industry characteristics and company business
attributes. The above remuneration includes cash remuneration, stock options, profit-sharing
plans, retirement benefits and severance payments, allowances and other incentive measures.
After following the earnings distribution principle set down in the Company’s Articles of
Incorporation and allocation or reversal of special reserve in accordance with relevant laws and
regulations, no more than 2% of the remaining earnings shall be allocated for remuneration to
directors and supervisors and no less than 3% shall be allocated for employee bonuses. The
remainder are combined with accumulated undistributed earnings from previous years and
distributed as shareholder dividends as resolved by the shareholders’ meeting after an appropriate
amount is reserved based on operating conditions. By taking consideration to the above, a
reasonable salary will be given. The overall condition of the company should be taken into
account when deciding the salary of the director and managers. In order to strike a balance in
sustainable operation and risk control, the amount of their remuneration is dependent on future
operating performances and risks. Furthermore, their remuneration will be subjected to review
depending on the actual management condition as well as relevant laws of the local government.
An obstruction-free communication channel has been established inside the company
website. Regarding remuneration policy and recommendation vote results, stakeholders may
contact the Company’s Remuneration Committee and submit complaints. For further details,
refer to the company website
http://www.txccorp.com/index_en.php?action=e_company_1-1&cid=3&sid=8&id=10 .
With regard to pension benefits, the Company has established employee retirement plan in
accordance with the Labor Standards Act and retirement reserve funds are regularly deposited
into the Bank of Taiwan in accordance with the law. The Labor Retirement Reserve Fund
Supervisory Committee is responsible for the management and utilization of the retirement
reserve fund. The Legislative Yuan passed the Labor Pension Act on June 11, 2004. Starting from
July 1, 2005, the Company has been depositing pension funds each month into individual labor
pension account set up by the Council on Labor Affairs in compliance with the new system. In
January 2007, a manager of the employee pension fund was appointed to guarantee that the
pension plan is professionally managed.
3.2.4. Obligations of the Auditing Committee
On June 19, 2013, a resolution was passed by the Shareholders’ Meeting to voluntarily
establish the first annual Review Committee and appoint the independent directors Yu Shang-wu,
Peng Yun-hong, Edward Tsai as the members of the first Review Committee with a term from
June 19, 2013 to June 18, 2016. Commissioners for the 2nd Audit Committee were
2017 Corporate Social Responsibility Report
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commissioned in the shareholders meeting on June 7, 2016 and consist of the entire members of
independent board directors, Mr. Yu ShangWu, Mr. Cai Songqi, Ms. Sharon Su and Ms. Jennifer
Wang. Their term of office begins on June 7, 2016 and terminates on June 6 2019. The four
independent directors perform effective oversight over each aspect of company operations and
governance and enterprise operation development in order to practice corporate governance,
strengthen supervision function and enhance the management system.
3.2.5. Internal auditing Introduction
The Internal Control System of Publicly-listed Companies” promulgated by the Securities
and Futures Bureau of Financial Supervisory Commission of the Executive Yuan, the auditing
room has been set up under the board of directors.
The auditing room formulates its annual auditing plan in accordance with foregoing
handling guidelines and carries out following auditing operations in a cyclical manner
for the year to ensure that the company internal control system is proper, reasonable
and effective in implementation by various departments:
· Sales and receipts cycle
· Procurement and payment cycle
· Production cycle
· Wage and work cycle
· Financial cycle
· Fixed assets cycle
· R&D cycle
· Computer cycle
Abiding with the rules of the Securities and Futures Bureau, the TXC Corporation
audits annual audit programs approved by the board of directors monthly. Audit
reports were approved by the general manager and CEO and being reviewed by
independent directors, the audit committee, and the board of directors. The
corporation’s internal control self-investigation will be completed annually before
March before having the internal control declaration approved by the board of
directors and published on the yearly newsletter.
The auditing room shall complete following required online reportage operation
within the deadline of the Securities and Futures Bureau of the Financial Supervisory
Commission of the Executive Yuan.
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· Submit report on the Annual Auditing Plan for the following year before end
December.
· Submit report on information on auditing supervisor and auditor for the current
year before end January.
· Submit report on Implementation of the Annual Auditing Plan for the previous
year before end February.
· Submit report on Internal Control System Statement of the previous year before
end April.
· Submit report on Shortcomings of the Internal Control System and Improvement
of Abnormalities of the previous year before end May.
3.3. Code of conduct
For a long time TXC had strived to create a working environment which abide cooperate
code of ethics as well as respecting diversity and talent. Based on the above concept, the
company drafted the “code of conduct” which is subjected to alteration through environmental
and legal changes. In recent years, more and more attention had been paid to “corporate social
responsibility” by upstream and downstream partners. An equal emphasis will be placed on
"environmental, safety, health" as much as "Corporate Social Responsibility" and "company
operations management". In 2010 the second edition of "Code of Conduct" was published, with
its content including eight dimensions such as company operations management, employees,
customers, community groups, suppliers, government and regulatory agencies, shareholders,
competitors. Both the TXC colleagues and directors possess this code of ethics manual, and this
manual is to be used as the principle for everyone in the TXC to follow. Every time when a new
staff enters the company, they will be given this training in order to remind them that these
guidelines are to be enforced. Furthermore, the risk of corruption will be told over and over again.
All the colleagues should also sign and return a comprehensive peer "Responsibility
Declaration," to demonstrate that they have received, read, understand and would implement the
relevant requirements of the Code of Conduct. All colleagues shall adhere to this principle while
in execution of business. In the event of corruption and embezzlement by employee, latter will be
punished in accordance with the employee punishment and award regulations and meted out
penalties according to the seriousness of the circumstances.
Employees would be required to read and click to confirm the Code of Conduct been truly
implemented. Thanks to proper publicity on the Code of Conduct, no single case of corruption or
embezzlement happened in 2017.
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I hereby make the company "Code of Conduct" concerning anti-corruption, political
contributions and business activities of competitors in the industry's as follows.
3.3.1. Anti-corruption
Acceptance of gifts
The employees of this company shall absolutely not accept any gifts that could possibly
impair or influence your fair decision making judgment. We also must not request gifts or
special treatment with people we do business with. Can accept new small and inexpensive
items, promotional items costing very little or gift as a sign of hospitality when:
○ The gift is in accordance with the requirement of the giver and receiver’s company
○ This situation occurs only occasionally.
○ The Gift of the bequest should be made at the request of the other party.
○ The fact that the public disclosure of the gift would not make our company or the
individuals feel uncomfortable.
○ The real value of the gift is less than US $ 100.
Acceptance of reception
Acceptable fortuitous sports events, recreational activities or dining invitations are as
follows:
○ Such reception conforms to the company regulations of the person who extends the
invitation.
○ Such reception is not in response to request of the opposite party
○ Such recreational activities are fortuitous occurrences, appropriate and not costly
expense.
○ Open disclosure of the reception will not cause any discomfort for the company or
relevant individuals.
○ Acceptance of the reception has obtained permission of your senior supervisor.
Note: the $ 100 rule shall not apply to entertainment activities. Self-awareness and a
restrained mannerism should be the key in deciding whether to accept the hospitality.
3.3.2. Political donation
Political donation should only be endorsed when it is in compliance to the law of the country
in which this donation takes place as well as the regulations of the company. So-called "political
donation" means to hand out any direct or indirect payments, rationing, donations, loans,
advances, deposits, gifts, services or anything of value to government officials, civil servants,
political candidate in campaigning, or election-related candidate, or groups either endorse or
2017 Corporate Social Responsibility Report
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oppose a referendum or other election-related issues. Note the following important issues and
limitations:
○ In some countries, companies are forbidden to engage in political donations.
○ All the political donations to the company must go through the approval of
managing director or people of
○ Generally, political donations to TXC are handled by the company's political action
committee (to be established).
○ TXC will not directly or indirectly subsidize any political donations made by
colleagues.
○ Company strictly prohibits cash donations.
Therefore, the TXC has always been politically neutral, but still encourages employees to
fulfill their due responsibilities of citizens. Our staff should be actively involved in politics, and
cast their votes to elect the wise and the able, to support the most ideal candidates for public
office. Meanwhile, the top executives of TXC also offer suggestions as well as concerns towards
the economy, public affairs as well as issues affecting the industry, via visiting to various industry
associations and government officials. Due to our support for democratic development in the
Republic of China, the expresses interest in politics, but we do not favor any political parties, and
had not carry out any political donations, and would continue to remain politically neutral, and
would follow the requirements of the Code of Conduct in participating in relevant political
activities.
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3.3.3. Competition in the industry
TXC strives to compete in a fair, open and just manner. We strongly forbid carry out the
following with our competitors in the industry, such as joint price fixing, market segmentation,
customer arrangement, bidding, agreement content, monopoly and perform boycott to the
supplier or customer. Colleagues attending business association meetings or trade association
meetings must also avoid inappropriate conversation related to our competitors. Thanks to the
company’s strict adherence to relevant laws and regulations, competition in the industry had been
carried out in a fair and open environment, and no incidence happened in 2017 which was related
to violation of anti-trust regulations.
3.4. Risk management
For each identified risk, the company would set risk management method and will be
delivered to the board for approval. Furthermore, regular drills will take place to ensure relevance
and effectiveness of the management approach.
In terms of risk management of the company, in addition to financial performance, the
company also takes consideration of the effect of production on the climate. For this reason, the
company is the first quartz industry in Taiwan is to carry out greenhouse gases and carbon
footprint inventories. In addition, carrying out carbon reduction in order to reach the goal of
energy conservation, and the impact of climate change on the industry, is also a regular topic in
the environmental safety and health meetings which take place every quarterly. In addition, we
also promoted and built the "energy management system" in 2011 in a bid to effectively reduce
the volume of carbon dioxide. At the same time, we also have continually carried out checking of
greenhouse gas emission, product carbon footprint and PAS 2060 to meet customer requirements
and make preparations for laws and regulations in the future. Relevant details and results will be
disclosed in the company’s annual reports and on the company web pages, and are also included
reports of the Board of Directors from time to time. As for consideration in regarding to human
rights and labor conditions, the company also carries out quarterly risk assessments, since the
fourth quarter of 2010. Social aspect of risk analysis assessment will also be carried out on
anything related to the EICC and Social Accountability 8000 International standard (SA8000),
such as working overtime, using child labor, poor working conditions, etc.
3.4.1. Risk management policy
The risk management policy of the company is to establish risk management mechanism
that can identify; measure; monitor and control the risk. The overall structure of the risk
management system is to promote appropriate risk management-oriented business model to
2017 Corporate Social Responsibility Report
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achieve operational goals, and to enhance shareholder value.
Major risk issues that the Company faced such as business marketing, production operations,
human resources planning, new product development, and financial accounting controls, can be
solved using the original specifications of the system, as well as using a more advanced and more
sensitive monitoring, evaluation, risk control procedures and criteria in order to balance safety
and efficiency, and to create a more cost-effective mode of operation of the business, such as the
establishment of enhanced information systems, and strengthen early warning surveillance
capabilities.
Moreover, to ensure internal information security, avoid improper disclosure of information
and allow uninterrupted operation of informatization of various businesses, maintain the
effectiveness of the internal management system and enhance the confidence and satisfaction of
customers, manufacturers and interested parties, TXC built the Information Security Management
System in January 2011 in accordance with the standard regulations of ISO 27001. In October
2011, we passed certification of the Information Security Management System (ISO 27001).
Aside from further enhancing effective protection of our internal IPR, we also enhanced customer
trust for transaction with our company. The company passed ISO 27001 audit with an outstanding
record of no deficiencies in 2012 and plans to follow up with the updated ISO 27001:2013
version to ensure the company's information safety and control measures are able to maintain
rights of stakeholders.
3.4.2. Organization structure of risk management
The Company has a risk response unit, which is operated and promoted by the co-ordination
of the management plan of the convener, who happens to be the general manager. Underneath
this unit, there are smaller centralized responsibility units, responsible for promoting the business
risk management.
Administration Center: Human resource allocation and response, financial risk
assessment, the implementation of various insurance operations, to maintain the
operation of the system, establishment and maintenance of environmental safety and
health, the audit and establishment of laws and regulations, as well as public relations
and media outreach matters.
R & D center: Contingency measures of R & D work environment, risk assessment of
new product development, control of research and development progress.
Marketing Center: Collection and the establishment of market information,
co-ordination of emergency matters for production and marketing, customer
2017 Corporate Social Responsibility Report
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relationship building and processing, as well as tracking and collection of receivables.
Manufacturing center: contingency operations of production, plans and specifications
for production contingency, human resources support configuration program, and
on-site environmental security contingency plans.
Procurement Center: the establishment of contingency plans for suppliers, raw material
procurement contingency matters, water supply schemes, as well as replacement plan
for the purchase of equipment.
Supply Chain management Center: Set-up and substitute plans of a supplier response
plan, response for procurement of outsourced products, import/export transportation,
custom clearance, and insurance and other operations.
Quality Assurance Center: file data storage plan, damage to the product due to natural
disasters and quality control, as well as the contingency measures of product testing
operations.
LED business unit: Safety maintenance measures for long crystal equipment, crystal
production response plan regulations, manpower support arrangement plan, and
environmental safety response plan for crystal growth.
Audit Office: Regular checks on whether risk control by the various central units had
been conducted or not, basing on company internal control and audit plan, and produce
audit reports according to the actual audit results.
3.4.3. Contingency plan
Due to changes in the industry environment and customer requirements, in 2009 we
re-examined the existing "emergency plan" which we seen as inadequate. For this reason we did
some re-editing and published the third edition of "emergency response plan", which includes
sections on the scope of contingency plans, organization responsibilities and structure, flowchart
for inception, hazard identification and risk assessment, medical emergency program, escape
plans, safety data sheets (SDS), audit approach on emergency response, etc. Through the above
processes and related approaches for the units to follow, the damage will be immediately reduced,
whether it is man-made, natural disasters and other major contingencies, and the company would
quickly returned to normal operation.
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4. TXC Corporation and Related Interest Parties
4.1. Identification of related interest parties and communication
In recent years, under demand of the international society, enterprises shall no longer aim
solely for maximum profits for the company. As a responsible enterprise, the company shall take
care of its social responsibility in business operation as well as to consider the welfare of the
related interest parties. TXC identifies related interest parties according to correlation on jobs of
various departments, and then the company includes the issues concerned into the work in charge
and annual plan.
TXC set up a dedicated unit for corporate social responsibility in charge of promoting
relevant activities of corporate responsibilities and certification. The dedicated unit cooperates
with members of other departments at the same time, including investor relations, department of
Human Resources, department of finance, Quality Assurance center and the Environmental and
Healthy Safety team and other units. The interested parties shall be evaluated respectively by
these departments according to the correlation of works, and the topics and issues concerned by
them shall be listed into their routine works and annual plans. If there is any issue to be
considered by a special unit and team members, it shall be handled by the preceding units and to
be completed in cooperation with other units.
TXC’s related interest parties includes employees, customers, community parties, suppliers,
institutions, shareholders, competitive industry parties, the aforementioned stakeholders were
assessed and produced from internal/external groups or individuals. In order to further understand
the demands and anticipations on internal and external stakeholders and maintain good
interaction with all stakeholders, the TXC Corporation has collected issues they care about
through questionnaires. Contents of the questionnaires are mainly based on “GRI Standards” and
“United Nations Sustainable Development Goals.” Assessments were made targeting the three
main perspectives of economy, society and environment, in which 9 concerning issues were
assessed. These issues were reported to the Corporate Social Responsibility Systematic
Management Evaluation Conference. The concerning issues defined by TXC Corporation and the
communication methods and channels with all stakeholders are as the following:
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Issues concerned by interested stakeholders:
Item Issues
Stakeholders
Staff Customer Community
group Suppliers
Government and
regulatory
bodies
Shareholders Competition
in the industry
1 New products
and technologies ◎ ◎
◎
◎ ◎
2 Degrees of
regulation
consistency
◎ ◎ ◎
◎ ◎
3 Corporate
operation
governance
◎ ◎
◎ ◎ ◎ ◎
4 Product quality ◎ ◎
◎
◎ ◎
5 Continuous order ◎ ◎
◎
◎ ◎
6 Occupational
Safety, hygiene
and Health
◎ ◎ ◎ ◎ ◎ ◎
7 Risk
Management ◎ ◎ ◎ ◎ ◎ ◎
8 Implementation
of environmental
safety
◎ ◎ ◎ ◎ ◎ ◎
9 and health
management ◎
◎ ◎
10 Staff
development ◎
◎
◎ ◎
11 Product
characteristics ◎ ◎
◎
◎ ◎
12 Product prices ◎ ◎ ◎ ◎ ◎ ◎
13 Environment
Protection ◎
◎
◎ ◎
14 Supplier
Assessment ◎ ◎ ◎ ◎
◎ ◎
15 Company’s
financial
performance
◎
◎ ◎ ◎ ◎
16 Patent ◎ ◎ ◎ ◎ ◎ ◎
17 Fulfill social
responsibility ◎
◎ ◎ ◎
18 Salaries and
benefits ◎
◎
◎
19 Community care ◎ ◎
◎ ◎ ◎
20 Customer
Relationship
Management
◎
◎ ◎ ◎
21 Perform tax duty ◎
◎ ◎ ◎ ◎
22 Policy
collaborations ◎ ◎ ◎ ◎ ◎ ◎ ◎
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The concerned level by the interested parties & the impact level to company:
Item Issues
The concerned level by the
interested parties The impact level to company
Total
1 2 3 4 5 Subtotal 1 2 3 4 5 Subtotal
1 New products
and
technologies
◎
4
◎ 5 20
2 Degrees of
regulation
consistency
◎ 5
◎ 5 25
3 Corporate
operation
governance
◎
4
◎
4 16
4 Product quality
◎ 5
◎
4 20
5 Continuous
order ◎
1
◎ 5 5
6 Occupational
Safety, hygiene
and Health
◎
3
◎
4 12
7 Risk
Management
◎
2
◎
4 8
8
Implementation
of
environmental
safety
and health
management
◎
3
◎
4 12
9 Staff
development
◎
4
◎
3 12
10 Product
characteristics
◎
3
◎
3 9
11 Product prices
◎
3
◎
3 9
12 Environment
Protection
◎
4
◎
2 8
13 Supplier
Assessment
◎
4
◎
2 8
14 Company’s
financial
performance
◎
4
◎
2 8
15 Patent
◎
2
◎
3 6
16 Fulfill social
responsibility
◎
3
◎
2 6
17 Salaries and
benefits
◎ 5
◎
2 10
18 Community
care
◎ 5 ◎
1 5
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Item Issues
The concerned level by the
interested parties The impact level to company Total
1 2 3 4 5 Subtotal 1 2 3 4 5 Subtotal
19 Customer
Relationship
Management
◎
1
◎
2 2
20 Perform tax
duty
◎
2 ◎
1 2
21 Policy
collaborations ◎
1 ◎
1 1
22 Scale of
operation ◎
1 ◎
1 1
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Figure I: The matrix of issues concerned by stakeholders
Medium
Th
e imp
act lev
el to co
mp
an
y
The concerned level by the interested parties
High
LowHigh
5
6
7 8
9
10
11
12
1314
15
1617
18
19
2021
22
Medium
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Significant Issues, Aspect Boundaries Inside and Outside the Organization, Management
Practices and Corresponding Indexes:
Significant
Issues Aspect Boundary Management Practices
Corresponding
Index
New product
technology
Inside
organization V
Inside the organization, boost
the Company’s internal
cohesiveness and effectively draw
together internal capabilities to
clarify R&D direction, improve
knowledge of competitors in order
to effectively provide market
competitive products. The
Company conducts an annual
review of its R&D roadmap and
product planning & direction and
establishes indexes to quickly
introduce products which meet
market requirements.
· Economic
Performance
G4-EC1
Outside
organization V
Outside the organization, next
generation product development
is undertaken in order to build
confidence toward company
future development from
stakeholders, maintain ability to
attract talent and acquire new
capital investment through
outstanding business performance.
Therefore, the Company fully
discloses the results of its new
product R&D in their website and
annual report so that stakeholders
can fully and quickly understand
these developments.
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Significant
Issues Aspect Boundary Management Practices
Corresponding
Index
Legal
compliance
Inside
organization V
When there is a change in
government or international laws,
the laws are then examined. The
examination results are then used
to revise the employee manual,
related operating procedures,
management procedures and
training material to ensure full
compliance with the law and
provide a safe and comfortable
work environment and workplace.
• Law and
regulations
compliance
G4-EN29,
G4-SO8,
G4-PR9
• The grievance
mechanisms
about
environmental
impacts
G4-EN34
•The grievance
mechanisms
about labor
G4-LA16
•The grievance
mechanisms
about human
rights
G4-HR12
•The grievance
mechanisms
about society
G4-SO11
Outside
organization V
Fully disclose the Company’s
compliance with domestic and
international laws and disclose the
status in the Company website,
social responsibility reports and
annual reports (for example:
conflict metals) and announce
good governance and best practice
principles, take into account
corporate social responsibility
requirements to maintain
stakeholders confidence in the
sustainable operation of the
Company.
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Significant
Issues Aspect Boundary Management Practices
Corresponding
Index
Company
operation
governance
Inside
organization V
Inside the organization, board of
directors operations considers the
voices of various stakeholders,
ensures greater fulfillment of
corporate social responsibility and
takes into account the welfare of
all stakeholders. The Company has
established a remuneration and
review committee and ensures
clean and fair transactions and the
reasonableness and legality of
internal operations through the
function of the independent
directors. In addition, the Taiwan
Corporate Governance
Association’s CG6008 Advanced
Corporate Governance System
Assessment certification to ensure
that company operation details all
conform government and
stakeholder expectations. The
above results are fully disclosed
on the company website, market
observation post system and the
annual report.
•Economic
Performance
G4-EC1~
G4-EC4
•Market Share
G4-EC5~
G4-EC6
•Water
G4-EN8~
G4-EN10
•Emissions
G4-EN15~
G4-EN21
•Anti-corruption
G4-SO3~
G4-SO35
·Anti-competitive
behavior
G4-SO7
•Law and
regulations
compliance
G4-EN29,
G4-SO8,
G4-PR9
Outside
organization V
Complete disclosure of
information outside the
organization allows stakeholders
to fully understand the Company’s
intentions and operating results
and make suitable investment
decisions. The results of the above
operation governance is disclosed
through annual reports, webpages,
corporate social responsibility
reports and the market observation
post systems. Continue
self-examination and improve
steadily through AA1000, GRI4.0
international standards and Taiwan
Corporate Governance
Association ratings.
2017 Corporate Social Responsibility Report
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Significant
Issues Aspect Boundary Management Practices
Corresponding
Index
Product
quality
Inside
organization V
Continuous improvement,
continual strengthening to reach
world-class quality. Comply
with various audit system
requirements such as
IATF16949TS16949, VDA 6.3
and customer rigorous
specifications to raise quality. In
addition, the Company holds
Design for Six Sigma (DFSS)
training and project promotion to
strength product quality. In order
to ensure the quality of the
above product, employee
confidence in the company
inside the organization can be
concentrated together to
effectively reduce the prevention
cost and appraisal cost in the
defect quality cost which can
raise overall company
profitability.
•Customer and
health
G4-PR1,
G4-PR2
•Product and
service
information
and labeling
G4-PR3~
G4-PR5
Outside
organization V
Outside the organization, trust in
the company for stakeholders
and customer assurance is
increased which can increase the
frequency and number of
transactions between both
parties, expand the Company’s
overall global market share and
also thereby reduce the internal
and external failure cost in the
defective product cost.
Note: Inside organization refers to the Pingzhen Plant in Taiwan but does not include Ningbo and
Chongqing 2 Plants.
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Table II: ways and channels of communication for all stakeholders
Interested
stakeholders
Issues concerned by
interested stakeholders
Communication method and
channel Frequency
Staff
Remuneration and benefits
Staff Development
Occupational Safety,
hygiene and Health
company sustainability
The annual employee
satisfaction survey Annual
Salary survey Irregular
Executives’ mailbox and
telephone line Irregular
Seminar for employees Irregular
Employee suggestion box Irregular
Improvement suggestion box Irregular
Employee benefits meeting Irregular
Mid-year review Half year
Year-end review Half year
Departmental meetings Irregular
Labor Conference Quarterly
E.S.H committee meeting Quarterly
Customer
Product Quality
Product Price
Social responsibility
Customer Relationship
Management
Customer Satisfaction Survey Annual
Various types of customer-based
questionnaires
Irregular
Supplier Self-Assessment
Questionnaire
Irregular
Customer and 3rd
party audit Irregular
Customer Representative
(Project Manager)
Irregular
Phone communication Irregular
Meetings with Customers Irregular
Community
groups
Community care
Implementation of
Environmental safety and
Health management
Social responsibility
corporate sustainability
New Year visit the neighborhood
representative near the company
Annual
Visit the Park Management
Committee
Irregular
Participate in various activities at
industrial areas
Irregular
Sponsor disadvantaged groups in Irregular
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Interested
stakeholders
Issues concerned by
interested stakeholders
Communication method and
channel Frequency
the community
Sponsor environmental
protection at community primary
school and supply various types
of equipment
Irregular
Company website provides
detailed information on
greenhouse gases as well as
environmental safety and health
policy to be used as a reference
for interested parties
Irregular
Supplier
Supplier Assessment
Features
Continuous Order
Financial performance
Regular training, survey and
website promotion will be
provided for suppliers for topics
such as "greenhouse gas
inventory," “product carbon
footprint inventory","corporate
social responsibility", "Industrial
Bank Regulation undertaking",
"procurement and contractors
health and safety norms," and
"environmental, occupational,
safety, health survey"
Irregular
Government
and regulatory
bodies
Regulations conformity
Environmental Protection
Performing tax duty
Degree of policy
co-ordination
Maintain good interaction with
authorities at various department
Irregular
Formal documents from/to
government
Irregular
Business activities and
management practices to fully
expose the website and annual
reports
Irregular
Attend training and conduct
searching for rules and
regulations
Irregular
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Interested
stakeholders
Issues concerned by
interested stakeholders
Communication method and
channel Frequency
Search for rules and regulations
in order to maintain the
compliance
Quarterly
Shareholders
Financial performance
Operating governance of
the company
Risk Management
corporate sustainability
Shareholders Annual
Investor Irregular
Website Irregular
Quarterly Bulletin Quarterly
Annual Report Annual
Spokesman mechanism Irregular
Independent directors mailbox Irregular
Attend the evaluation of
corporate operation governance
Irregular
Attend the evaluation of
information disclosure
Annual
Competition
in the industry
Strategic planning
New Products / New
Technology
Patent
Scale of operation
Participate in the relevant
Association
Irregular
In accordance with the
provisions of the Code of
Conduct to undertake interaction
Irregular
Patent database Irregular
Market research Irregular
Phone communication Irregular
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4.2. Employees
The key of TXC success is from mutual trust and mutual respect among employees. We
fully respect the dignity of every colleague. We listen to concerns and recommendations and
accept difference with an open mind. Employee care and employee welfare are two principles for
welfare system to provide employees with better qualified welfare.
A Worker Rights and Ethics Policy has been drafted by the company to uphold worker rights.
The established policies are reviewed each quarter by the Labor / Management Committee to
determine if any revisions or adjustments are needed in order to uphold corporate ethics and
fulfill corporate social responsibility. The policies are posted to inform all.
4.2.1. Recruiting
We fully understand the physical and psychological effects of child labor, which would
cause in negative corporate social image as well. Therefore, the company expresses policy of not
employing child labor in code of conduct and in employee handbook. It is fully implemented in
the course of interview.
Consistent with TXC Corporation’s philosophy in equal rights for everyone, during the
process of recruitment, hiring, remuneration, benefits, disciplinary actions, work allocation,
training opportunity, promotion, demotion, dismissal or retirement we never engage in or support
discrimination based on race, ethnicity, skin color, height, weight, eyesight, place of birth,
military status, nationality, social background, social hierarchy, pedigree, religion, gender, sexual
orientation, family responsibility, marital status, union membership, any identity protected by the
national law, political preference, age, pregnancy (childbirth), disability, medical condition,
2017 Corporate Social Responsibility Report
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health examination outcome, illness or other forms of discriminations deemed inappropriate by
public order and moral. To protect the rights and benefits of all employees the Company has
signed a standard format employment contract with employees.
A total of 150 new employees were recruited in Taiwan in 2017 of which three was senior
supervisor.
Proportion of gender , age and region of new employees in 2017
Categories Groups Male Proportion (%) Female Proportion (%)
Age
< 30 22 15 47 31
30~40 37 25 29 19
41~50 4 3 5 3
Over 51 5 3 1 1
Total 68 46 82 54
Total employees are 1,041 persons as of the end of 2017. (relevant information as following
list) The aforementioned staff are all full-time employees, of which 10 are physically challenged,
3 are male and 7 are female. Of all 122 supervisors, 15% are female and the ratio of employing
local senior supervisors is 90.32%, accounting for 31 people.
2017 Employee headcounts
Gender Age Taiwan China Japan America Europe Total
Female
<30 177 0 0 1 0 178
30-40 281 1 2 2 0 286
41-50 103 2 1 2 0 108
>51 51 0 0 0 0 51
Male
<30 62 0 0 0 0 62
30-40 181 11 0 9 3 204
41-50 84 16 5 4 0 109
>51 33 7 3 0 0 43
Total 972 37 11 18 3 1041
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2017 Employee headcounts
Categories Group Male Female Total
Contract Fixed-term Contract 2 193 195
Not Fixed-term Contract 416 430 846
Subtotal 418 623 1041
Location
Direct employee 82 429 511
Indirect employee 232 176 408
Basic supervisor 26 8 34
Intermediate supervisor 51 6 57
Senior supervisor 27 4 31
Subtotal 418 623 1041
4.2.2. Appointment
In order to effective recruiting, retention and training, TXC continues to strengthen
following retention measures, from related aspects of management system, new staff interview, a
complete system of multiple training and development, salary and reward management system,
good working environment to improve the retention effects and furthermore to increase
employees’ knowledge in breadth and depth. The median employee departure rate in 2017 was
14.6%. Relevant information on departure rates are disclosed as follows:
The headcounts of resignation in 2017
Categories Groups Headcounts Monthly turnover
rate
Male
<30 25 2.4%
30~40 29 2.8%
41~50 8 0.8%
>50 4 0.4%
Female
<30 40 3.8%
30~40 41 3.9%
41~50 3 0.3%
>50 2 0.2%
Total 152 14.6%
Note: the company monthly turnover rate is calculated as follows: Monthly numbers of leaving / yearly ending
headcounts of employees)
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4.2.3. Training and development
TXC plan to prepare training courses by job grade / job level system and the practical needs
to strengthen employees’ professional knowledge, skill and expertise to enhance working
efficiency of employees and career planning. Training courses includes training for new
employees, professional training, executive skill training, general training, self-inspired growth,
project training and on line learning platform. As long as employees are willing to do, harvest and
growth would be expected. There is a diverse array of courses available; in addition to course
lectures, events are also designed based on the attributes of the course, and case studies and team
discussions are conducted to make learning more fun, interesting and effective. TXC provides
employees with an open and diverse learning environment, education and training details are
described as below:
Categories Description
Training for
new employees
· Through the new staff workshop courses and internal professional guide training, they
could understand the company quickly and join into the organization culture. At the
same time they could shorten their adaptation period to allow them to contribute to the
company from learning.
· To let employees understand their own interests are treated fairly and respectfully, the
Company also provided training of Code of Conduct and International Standard Social
Responsibility (SA8000), Regulations of Prevention, Correction, Complaint and
Punishment of Sexual Harassment, Association for Enterprise Opportunity (AEO), Supply
Chain Security Management System (ISO 28000), Information Security Management
System (ISO 27001) and the Personal Information Protection Act to simultaneously
provide relevant training courses on human rights, environmental safety, information
security and supply chain security.
Professional
Training
· Professional trainings are provided according to necessary expertise of different units and
customer requirement such as research and development, manufacturing, marketing,
quality assurance, finance, human resources, purchasing and general affairs to meet
professional needs.
Executive skill
Training
· To provide operation executive and administration executive with diversified theory and
practice courses to strengthen their capacity of operation and administration for future
development.
General
Training
· To provide employees with laws and regulations, company-wide or general common
courses, for example: such as quality awareness, occupational safety and welfare,
hazardous substances / green product management system (HSPM/GPMS), etc.
Self- inspired
growth
· From time to time to organize health, spiritual lectures so that colleagues have a full range
of satisfaction and growth.
Project training · Training employees in special skills, such as green belt and black belt six sigma training,
project management courses.
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In order to provide the above tangible courses, TXC built up eHRD training platform to
provide colleagues with learning resources without limitation on time and place.
In 2017, we organized up to 117 sessions of training courses, totaling 731 hours, covering
17.31 hours of human rights policies, with a total participation of 4,697 people. The total hours in
training is 13,809 people/hours with a total training expenditure of NT$356,230.
Average training hours by functions (including people who have left) for 2017
Item Supervisor Direct employee Indirect employee Total
Gender Female Male Female Male Female Male
Headcounts (A) 23 80 238 83 160 200 784
Participant people times 210 864 694 127 1,279 1,523 4,697
Total training hours (B) 240 1,840 3,080 1,042 1,993 5,614 13,809
The average training hours per
employee (C=B/A) 10 23 13 13 12 28 99
4.2.4. Salaries and benefits
TXC Corporation offers a diverse and competitive remuneration system that is not affected
by age, gender, marital status, political preference or ethnicity. Our average salary is above that of
our competitors, because we uphold the philosophy of sharing profit with our employees to
attract outstanding talents as well as to inspire and retain our current employees.
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Refer to ratio of employee compensations as below. The highest individual annual earnings
is 636% of the annual median earnings of all employees at the Company. The highest individual
annual percentage increase in compensation was 298.86% compared to the annual percentage
median increase in compensation for all employees.
Employee category Proportion of average salary
Female Male
Senior supervisor 1.00 1.07
Intermediate supervisor 1.00 1.05
Basic supervisor 1.00 0.96
Indirect employee 1.00 1.22
Direct employee 1.00 1.10
In order to ease work of employees, besides insurance benefits and pension provision
required by law, also provide group insurance, travel safe insurance, health check, and various
health promotion activities to ensure that employees’ safety for work and life. See below sheet for
relevant welfare measures.
According to the overall business operation of the company and individual performance for the
bases of the salary adjustment.
Assist staff in long-term investments of financial and retirement planning, to set aside a fixed incentive to encourage employees to long-term holders of company stock.
To set aside a certain percentage of profit earnings as the basis of employee bonus share earnings results with colleagues.
A total of two times of annual performance evaluation was made and to affirm, reward, and motivate their outstanding performance of male and female employees with multiple incentive programs. Festival bonuses, production performance bonus, patent bonus, project bonus, sponsored bonus, outstanding contribution prize, team collaboration bonus, outstanding staff bonus and senior staff bonus.
Salary
Bonus
Profit Sharing
Treasury stock
system
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In addition, the company provides various work leave in accordance with the Labor
Standards Act. If a long period of leave is needed due to childbirth, military service or serious
illness, employees may apply for unpaid leave and then apply to be reinstated after leave is
completed. As decreed by the Act of Gender Equality in Employment, a total of 145 employees in
2017 (61 males; 84 females) were entitled to unpaid parental leave, for which 6 females applied.
The repatriation rate (i.e., returning to post upon termination of unpaid parental leave) is 42.86%
and the retention rate is 83.33%.
Female Male Total
Number of employees that took parental leaves in 2017 5 1 6
Number of employees that should return to work in 2017 (A) 7 0 7
Number of employees that returned to work in 2017 (B) 3 0 3
Return to Work Rate (B/A) 42.86% 0.00% 42.86%
Number of employees that returned to work in 2016 (C) 5 1 6
Number of employees that returned to work in 2016 and still
employed at least 12 months (D) 4 1 5
Retention Rate (D/C) 80.00% 100.00% 83.33%
Activities
•Domestic and foreign travel
•Ball contests
•Specific discount shop
•Year-end raffle
Facilities
• Employee cafeterias/dormitories
• Convenience store
• Nursing room and medical service room
•Basketball/badminton/table tennis court
• Fitness room
• Free car and motorcycle parking lots
Insurance and pensions
• Labor, health, group insurance
• Regular health examination
• Labor Pension reserve
• Labor Pension
Profit sharing
• Profit sharing
• Stock options
• Convertible corporate bonds
• Treasury stock systems
• Shareholding Trust
Cash gifts
• Cash gifts for three major holidays
• Birthday
• Weddings/Births
• Hospitalization and white card consolation gifts
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4.2.5. Lohas TXC
The talent of employees is always the most important key to enterprise success and
sustainable development. The company always provides colleagues with good work conditions
and work environment, as a target, to expect employees to do their best to develop themselves
under the balance of work and life quality, and to become important partners in long-term
development of the company.
Open communication / complaint channel
TXC Corporation respect employees the freedom and rights of assembly and
association, and is committed to provide smooth channels of communications to expect
to integrate all resources. The direction of the company and views of employees can be
fully exchanged, which will be a basis of improving and providing better working
environment and conditions.
In the preparation of “Employee Manual”, “Code of Conduct”, “Labor Rights and
Ethical Policy” and in creating diverse communication channels, we abide by the
articles and spirit of EICC and SA8000 in a reciprocal manner in order to protect our
employees’ rights. Therefore, all our colleagues receive complete human rights audits;
as of 2017, no incident of hiring child labor, gender discrimination, forced labor,
prevention or impediment of the employees’ freedom of association, and no human
rights complaints were received during the same year.
To ensure the legal rights of the employees, in the event of specific incidents
which require change of current employee relation such as adjustment of basic wages,
change of work time, change of payroll structure, access control measures, adjustment
of parking space legal procedures at home and abroad shall be adhered to (domestically
follow the Basic Labor Law and its implementation details). Coordination and handling
will be conducted through the Welfare Committee. We will take initiative to brief and
report to relevant employees and notify in advance employees at a certain period so as
to achieve the purpose of full and seamless communication.
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Welfare Committee Activities
TXC Corporation has established the Employees' Welfare Committee to plan and
promote various employee benefits and activities. In order to create a sound workplace
environment, Employees' Welfare Committee has launched the “Corporate Culture
Acknowledgement Card” points-collection event to encourage our colleagues and their
families to partake in a variety of activities such as family day, sports meets, social
clubs, traveling, art and culture, so that they may relieve stress and enhance work
efficiency.
207 Family Day
* Community activities
The company also supports various recreational clubs formed independently by
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the employees, and we provide them with subsidies and resources. At present the
establishments of associations as table tennis club, badminton club, bicycle club,
basketball club, photo club, softball club, walking and volunteer club.
* Leisure and convenience facilities
The company provides colleagues with diversified leisure facilities and services,
we set up a gym, a library letting system, audio- visual classrooms, basketball court,
table tennis / pool facilities, so that the employees could exercise after work for fitness
and relaxation, and other proving a medical room, comfortable cafeteria, dormitories
and various convenient services such as convenience store and medical room.
Nursing room Observation room Residing doctor Employee medical
Convenient store Gym Visually impaired massage activity
Basketball machine
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* Healthy living and management
We apply the philosophy of “We are family” to create a sound workplace
environment, where resident doctors and professional nurses in the infirmary provide
professional health management services for our employees. Besides regularly
organizing health inspections, we also hold various health promotion events from time
to time in order to materialize a healthy new lifestyle for our colleagues via the
all-encompassing health concept, thereby creating a healthy and happy workplace.
The company provides regular health inspections to look after the health of our
employees, including general health checkup and health checkup for executives.In
addition, we have also arranged to conduct special operation health checkups for
colleagues with high incident rate of occupational diseases or working in high-risk
operations. Follow-up management is carried out for colleagues with abnormal test
results and they are given necessary individual health care and guidance in order to
help them understand their own health conditions. Consequently, no occupational
diseases have been reported in the 2017 health checkup.
•The company provides regular health inspections to look after the health of our
employees, including general health checkup and health checkup for executives. In
addition, we have also arranged to conduct special operation health checkups for
colleagues with high incident rate of occupational diseases or working in high-risk
operations. Follow-up management is carried out for colleagues with abnormal test
results and they are given necessary individual health care and guidance in order to
help them understand their own health conditions. Consequently, no occupational
diseases have been reported in the 2017 health checkup.
Regular Health Inspections
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•We held many sessions of health-promoting events, such as i Health free re-
examination/ health care education, app blood pressure monitoring activities cervical
smear tests,voluntary-quit-smoking-at-workplace events,blood pressure monitoring
events, HPV virus seminars, CPR & Heimlich maneuver advocacy and so on,
•The company also actively supports activities organized by the government
agencies,including the Women’s Day health walk fair held by the Health Promotion
Administration and Taoyuan County Government as well as Teacher Chang
•Foundation spiritual feast. The aim is to encourage the employees and families to participate in more mental and physical health activities in order to relax their body and mind and embrace a life of health and happiness.For other events, please refer to the company website(http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=11&sid=18&id=26)
Health Promotion Events
•Eliciting resources from the Taoyuan City Government, we invited Mr. Tsai Guo-
chiang, professional counselor from the Teacher Chang Foundation to lecture on the
health course of “Workplace Stress in Its Coping Strategies”. Mr. Tsai gave an in-
depth analysis on the impact of stress on human bodies, illustrated with humorous
video clips to encourage audience participation and discussion. He also advised to our
colleague with precious tips on how to relieve stress. In addition, we also encourage
colleagues and their family members to attend the Teacher Chang Foundation event,
“Live with love, Advance with gratitude”, hoping for a heart-soothing evening for all
attendees through such a beautiful melodic Spiritual Feast Concert.
Psychological Counseling Service
•The company has collaborated with three visually impaired masseuses to establish the
“Visually Impaired Massage Station”, providing regular massage service every month
in order to relieve the physical and mental pressure of our employees. At the same
time, we strive to promote employment opportunities for the disabled community to
fulfill our CSR.
Visually Impaired Massage Station
•By way of organizing voluntary fitness regimes, we encourage colleagues to acquire
adequate habits of exercise training, so as to promote a healthy exercise climate in the
workplace and enable colleagues to improve personal health.
Healthy Diet Ambassador
• In order to effectively help successful smoking quitters stay away from tobacco
hazards, the effort to create a healthy, smoke-free workplace for our colleagues was
led by Chairman Paul Lin and President Peter Lin. The no-smoking policy at all
Company facilities has come into effect in March 2015 to provide a smoke-free
healthy environment for the employees at workplace. We continuously provide
smoking colleagues relevant information on cigarette abstinence and free CO
screening and set up monitor posts to effectively help colleagues quit smoking.
Stop Smoking Support Class
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4.3. Customers
We always aim to enhance customer value, providing our customers with a variety of
frequency control components and modular design in, in order to meet the comprehensive
demand of our customers. The common goal of all the colleagues has always been to exceed
customer expectations. TXC continues to win recognition from domestic and international
corporations. In 2017, TXC received the following awards: Core Partner of Huawei and
Outstanding Supplier from FLEX. In recognition of the outstanding achievement as well as
competitiveness of the company in its price offered; its quality, delivery, service, the company
received the honor of the highest quality by our world-class customer. TXC customer relationship
management features are as follows:
4.3.1. Customer relationship management
In order to meet customer value and needs, enhance customer satisfaction with the company
as a whole and to strengthen customer loyalty to the company, TXC has conducted the “customer
satisfaction survey” at the end of each year. Its content includes 5 items which are, “product
supply and delivery (delivery period) ”, “product quality ”, “products and customer service ”,
“technical support and “(no harmful substances / green products) HSF / GP”. The overall mark
for customer satisfaction in 2017 is 86.99 points. The result exceeded expectations, compared
with 2016 sliding of 2.2%. Based on the trend of satisfaction survey and customer
recommendations on a yearly basis, the company would instruct relevant units to make
improvement plans and adjustments in order to meet customer expectation, and continue to
cultivate deeply for long-term relation with customers and achieve the win-win goal.
Complete supply of product line:
From low-end products to high-end products, TXC is committed to provide the
most competitive products via our large and standardized operation, in order to meet
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customer demand for comprehensive products. Quality certifications are
simultaneously carried out in Taipei, Ningbo and in Chungking three factories, enabling
customers to buy peace of mind, with satisfaction.
Product Quality services
All branches and offices of TXC are equipped with product application
engineering manpower, which work along with local business to quickly meet
customer needs, as well as providing professional technical support and related
training courses. At the same time establish an effective and fast market feedback
mechanism in order to improve product quality and to provide important information
on continuous improvement and innovation, in order to achieve the goal of customer
satisfaction.
To ensure product quality meets customer requirements, TXC has started
promoting the 6-sigma activities in 2005 and has executed a total of 81 programs as of
now. For each program the black belt and green belt employees would lead the
program employees to carry out product and flow improvement with the purpose of
cost conservation, yield improvement and flow reengineering. The past executed
programs are listed below:
Year Item Project Name
2016
1 4BF machine high frequency (48m ~ 54m) grinding broadband improvement
2 8Q24 temperature test TC-RR improved
3 9Q374 standard line frequency stability improved
4 8Q electrode surface bubble abnormal reduction
5 AV624 series of non-performing rate improved
6 SMT-2538L10.4AA (102-25B0101) NG Rate improvement & cost reduction
7 7M & 7V26MHz series of material round edge stand-alone output efficiency
increased by 50%
8 7M & 7V low-frequency overall non-performing rate reduction
9 7V25MHz FQC retreat rate is reduced
10 7M product total inspection NF bad reduction
2015
1 4 inch PSS A Yield Improvement
2 5032 S-3 TCXO Crystal 4526001001 RTY Improvement
3 8W Yield Improvement
4 Proximity Sensor (PA22401001) Yield Improvement
5 1612 Series Cost Down Project
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Year Item Project Name
2014
1 6Y 192 Yield Improvement
2 8H 16 rounded edges efficiency increase of 100%
3 BR 61400002 Yield Improvement
4 Inverted MESA 5MA2200009 Yield Improvement
5 L8C2004001 Yield Improvement
6 A flat piece of regulation Yield Improvement
In addition to continuing work on Improvement for Six Sigma project, Design for
Six Sigma (DFSS) course and project planning were also initiated. A total of six
major projects were completed for DFSS including TSX, proximity sensor, inverted
MESA, 1612XO/TCXO and 1210 Crystal development projects. The Company will
continue to introduce Six Sigma Green Belt & Black Belt and DFSS to further
strengthen and raise the Company’s R&D standards.
TXC product quality meets stringent requirements of international customers. We
have close relationship with major international players and can meet their demands
at any time and make adjustment to product specifications.
Price
Customer is the cornerstone of sustainable survival and development, the
company has always been to respond to market price fluctuation with caution. TXC
Corporation will continue to work in conjunction with major and strategic customers in
the exploration of new markets, the application of new specification application.
Through the innovation of new products and technologies, the company will make
innovation in line with the technological development of the customers. Further to
keeping abreast with the customers in development for their recognition, the company
also seeks to maintain shareholders’ equity to the desired level.
4.3.2. Customer privacy
As for customer information, it is considered to be confidential information by TXC and this
confidential information must not be granted use for non-TXC staff, with the exception that the
person has a legitimate and lawful business relationship with our business and there is a demand
for the information. All staffs must abide by the Code of Conduct. As of 2017 there is no instance
in which customer privacy is violated nor is there any case of customer’s data being lost and
damaged. Appropriate guidance was given to all employees and supervisors on the provisions of
the Personal Information Protection Act so the Act can be enforced correctly.
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4.4. Supplier
TXC supply and management philosophy is to achieve close cooperation with suppliers in
order to reach the ultimate goal of customer satisfaction.
To fulfill of corporate social responsibility commitment as a member of the global supply
chain, the Company has worked to spread corporate social responsibility concepts to our supplier
community. The key aspects are as follows:
1. Approval of clean procurement
2. Quality and product safety assurance
3. Environmental considerations (green purchasing)
4. Follow laws and social norms
5. Information security assurance
6. Human right and labor safety & health considerations
7. Corporate social responsibility fulfillment status
4.4.1. Selection of suppliers
To ensure upstream and downstream manufacturers capable of performing corporate social
accountability, TXC has based on following principles in selecting suppliers and auditing of four
major categories: quality, delivery, price and service quarterly. In addition, newly introduced
suppliers must submit a signed Supplier Company Basic Information Survey, Quality and
Environmental System Self-Evaluation Sheet, Industry Code of Conduct Commitment, SA8000
Commitment, Environmental and Occupational Safety & Health Status Survey Sheet and
Conflict Minerals Declaration for use during evaluation and review.
* Leadership in product technology
* Excellence in service and support
* Quality.
* Performance in delivery and lead time.
* Performance in overall cost control.
Manufacturers with comparatively better evaluation are given priority for cooperation with
TXC. If the evaluation results do not completely conform to the system requirements of the
Company or the supplier previously had a bad record, a more careful evaluation is conducted to
determine if the supplier should remain on certified supplier list.
Moreover, in view of rising importance for various issues related to employee rights and
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benefits related to human right, environmental, safety and sanitation, TXC will give priority to
suppliers with following systems. The chart below shows the percentile of various certification
systems of our most important suppliers:
Certification systems No. of suppliers in
conformance
Conforming
suppliers
Conforming
proportion (%)
*Electronic Industry Citizenship Coalition 105 105 100%
ISO 9001 Quality management system 105 75 71%
ISO 14001 Environmental management
system 105 50 48%
SA8000 Social Accountability
Management System 105 30 29%
ISO28000 Safety Supply Chain
Management System 105 12 11%
OHSAS 18001 Management System 105 12 11%
IECQ/QC080000 Hazardous material
flow management system 105 3 3%
Certification systems 105 2 2%
ISO14064 Greenhouse gas inventory 105 0 0%
PAS2050 Product carbon footprint
inventory 105 105 100%
* comply with the system
When the company responded to the downstream suppliers or contractors, the Code of
Conduct is used as the basis for cooperation. Both companies also need to sign and return the
agreement document of EICC. Once this is done, they shall become official partners of the
company. If for some reason if the aforementioned vendors cannot or refuse to sign and return the
documents, necessary buffer time will be given. If they still failed to sign, the cooperation will be
ended and we will try to find other partners. Supplier qualification is immediately revoked in the
event of any violations to respect freedom of assembly, collective bargaining, forced labor and no
use of child labor. In 2017 a total of 105 were sent, with 105 of them completed and signed, a
response rate of 100%.
Starting from Oct. 17, 2017, the Electronic Industry Citizenship Coalition (EICC) has been
formally renamed into the Responsible Business Alliance (RBA). From then on, TXC
Corporation has practiced promotions based on RBA code of conducts and aggressively
encourages suppliers to recognize and adhere to RBA code of conducts in order to ensure their
employees’ rights and privileges, maintain a healthy and safe environment, fulfill their corporate
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social responsibility, and pursue sustainable development.
To ensure meeting requirements and guidelines of corporate social responsibility being
implemented to our suppliers. The suppliers need to sign back “Promise to follow the standards
of SA8000” , “Green Products & Environmental Statement” , “Integrity Commitment”,
“Environment, Health and Safety survey form” and “Promise not to use conflict minerals” every
year for compliance by suppliers. At the annual suppliers meeting, the company would brief on
the relevant actions and requirements on corporate social responsibility and appeal to suppliers
for compliance. The 2017 supplier survey results were verified to conform to the system
requirements of the Company. There were no significant or potential negative impacts on the
environment, labor conditions, human rights or social aspects. If there are any actual or
predictable significant negative impacts on the environment, labor conditions, human rights or
social aspects that occur with current company suppliers, the company shall immediately
downgrade or remove the supplier from the supplier list in accordance with supplier management
guidelines. If there is no equivalent substitute for the supplied material, the Company shall
provide assistance and guidance to eliminate the above significant negative impact that has
occurred and is predicted to occur to keep the supply chain operating efficiently. During the
guidance period, the number and frequency of audits is increased and strengthened.
The company supplier chain:
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4.4.2. Negotiation on content of contract
Throughout the process of negotiation with supplier or potential supplier on content of
contract, our attitude should be fair and just. We shall abide by relevant laws and regulations and
support conventions of a fair enterprise.
4.4.3. Supplier information
We shall never reveal confidential information of our suppliers for joint use by non-TXC
external persons, unless said supplier has written permission for consent.
4.4.4. The supplier communication channel
When dealing with suppliers for our company, in addition to the communication routine, the
company also obtains a view on the common market through the annual Supplier Events, and in
the same time review on the product features, specifications, and degrees of stability in the past,
as well as using the Six Sigma model to solve problems, to help to looking for any opportunity
for improvement. For this reason, it greatly enhances the supplier product quality, as well as
efficiency and speed.
4.4.5. Order continuity
According to the direction of the company, some of the earlier models will be produced by
the downstream supplier, while the company would maintain the production of high-precision,
high value-added products. In view of market fluctuation, in order to maintain normal production
for the suppliers, the company also maintains a certain ratio of production by an external supplier,
through negotiations, in order to achieve the purpose of coexistence and common prosperity. In
order to achieve the continuity of orders, the company will simultaneously consider the
production cost and the number of suppliers in the factory, to maintain profit margins, and to
create long term willingness for cooperation. In 2017, the company carried out a survey for five
items including the quality system, the next tier supplier management, process control, social
responsibility, environmental management and auditing for a total of 88 raw materials suppliers.
The value of the total procurement is 9% of the company’s value of a year. Currently, the major
world-class quartz suppliers are from Japan, as the country has the technical threshold of more
than several decades. For this reason about 71% of the industry comes from Japanese suppliers,
26% from Taiwan suppliers and 2% from other countries. Short-term development of local
suppliers does have its difficulty; however, the localization of the procurement of goods is a
thorough procurement policy of TXC. If Taiwanese suppliers intend to invest in the upstream
development of quartz industry in the future, TXC is optimistic about this and will take the
initiative to provide opportunities for cooperation and assistance.
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4.5. Government and regulatory agencies
4.5.1. Degree of regulatory compliance
The company complies with the laws of both domestic and foreign countries at overseas
location. This obligation is written in the company’s code of conduct, as well as in the
employee’s handbook. Meanwhile, the corresponding regulations are check on the quarterly basis
to ensure that the company complies with the latest laws and regulations. This inspection includes
laws and regulations regarding personnel, environmental, safety and health matters, supply chain
security as well as the special needs of customers. Regarding general laws and regulations, the
company has provided linking to relevant laws and regulations in the company website as
reference for employees. Please go to:
http://www.txccorp.com/index_tw.php?action=h_human_1&cid=11&sid=12
4.5.2. Environment protection
As regarding to environmental protection as specified in law, the company also complied
with the relevant requirements for companies. This environmental protection regulation is
vigorously enforced in our company, through self-management. We aim to do our best efforts in
protecting the environment and ecology.
4.5.3. Fulfillment of tax obligation
The company pays taxes honestly in order to promote the development of national economy.
4.5.4. Degree of policy co-ordination
The company cooperates fully with the policies promoted by our government, regardless
whether they are financial disclosure, environmental regulations or foreign labor policies.
4.6. Competition in the industry
4.6.1. Strategy plan
The strategic planning of our company and other leading companies in the industry can have
major impact on each other. For this reason, we maintain a high degree of concern for the
strategic intention of others in the industry. We therefore draft our strategic planning based on
market interviews and analysis on openly disclosed information of other companies. Due to this
fact, we know very well on the topics of product miniaturization, frequency changes, as well as
on the selection of markets, in order to be as close to the market demand as possible and to seize
the initiative.
Thanks to foregoing planning, TXC has a 3-year product roadmap for necessary adjustment
according to market changes, actions of competitors and internal resources. For details please
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refer to the chart below. According to report of industry analysts, TXC currently ranks third in
the quartz industry. For detail information, refer to chapters and sections on market share.
4.6.2. New Product and technology/royalty
We have also carried out analysis on new products of our competitors, their technologies and
patents, in order to understand the progress of the industry, as well as our status in the industry.
We are cautious about the patent map of the industry. Therefore, we gradually deploy our patents
to avoid unnecessary disputes.
2013 - 2016 Patent Applications and Licenses
Type No. of Patent Applications No. of Patent Applications
2014 2015 2016 2017 2014 2015 2016 2017
Invention 0 4 4 2 4 1 1 1
Utility Model 0 0 1 1 0 0 0 0
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5. Environment Safety and Health
The environmental issue has changed its original feature and grown into a global destruction
problem from a regional one. Global warming, attack by heat waves, exhaustion of the ozone
layer and acid rain and so on. Any problem of the environmental issue could have extensive
implications on the natural and ecological environment.
We have only one earth is not a slogan but a call for actual action for cherishing our living
space. We also are accountable for protection of the environment, resolving environmental issues,
caring for nature and cherishing nature. Our most pressing job is protection of the earth
environment in the future.
Under important topics such as climate change and health and safety issues, TXC had
actively committed to the promotion of related activities, in 2012, and had passes the
“greenhouse gas verification” (ISO14064-1), “product carbon footprint verification” (PAS2050),
PAS2060, “material flow cost accounting” (ISO 14051) and “Occupational safety and health
management System”(OHSAS 18001) and CNS 15506) certification, respectively. Policies of the
company are approved and announced by the General Manager; in order to strengthen the
promotion of environmental safety and health policy, these announcements are posted and
published in various conference rooms and on the company website, along with the company
vision statement, mission statement and quality policy, hazardous substances free policy, labor
rights and ethical policy, environment, health & safety policy, greenhouse gas policy, energy
management policy, information security policy and supply chain security policy. Posted and
posted on various conference rooms and company websites.
5.1. Environment protection plan and management
5.1.1. Environment protection plan
The company established our ISO14001 system in 2002, and through the system standards,
we strengthen our management capacities for continuous improvement of environmental
performance, effectiveness, and properly maintaining overall operations. All corporate activities
comply with governmental regulations and other applicable international requirements for
pollution prevention control, while we have obtained the legally required "stationary pollution
source operating permits," "water pollution control permit," "industrial waste disposal plan"
approval and "toxic chemical substances operational permit," etc., ensuring implementation of
permit provisions through periodic point inspection, maintenance, reporting and testing. The total
amounts of various fixed pollutants discharge of the company are lower than the control standard.
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(Total ammonia emission quantity 0.057 tonne/year; total phosphoric acid emission quantity
0.097004 tonne/year; total sulphuric acid emission quantity 0.096 tonne/year; total hydrofluoric
acid emission quantity 0.222 tonne/year; Total cyanide emission quantity 0.0004 tonne/year; total
volatile organic compounds emission quantity standard 2.812 tonne/year.) The testing results are
posted on the company website:
http://txccorp.iware.com.tw/index_tw.php?action=a_about_1-1&cid=11&sid=20
In 2017, the volatile organic compound (VOC) emission amounts reported air pollution are
shown in the Table below
(unit: metric ton)
2017 Pingzhen
Q1 5.3207
Q2 5.7893
Q3 8.3908
Q4 3.2856
Total 22.7864
Source: Air pollution prevention fee system
5.1.1.1. Establishment of Environmental Management System
Our Pingchen plant began implementing the ISO 14001 management system since 2002,
deploying planning / implementation / audit / review (PDCA planning doing compliance
assessment) management system principles, regularly reviewing and systematically assessing the
organization's activities / products / services processes, ensuring effective management of raw
materials, processes , energy resources, waste, resource recycling and other activities, to identify
their derivative environmental impacts, and elucidate opportunities for improvements thereby
fulfilling our stewardship duties for social responsibility and achieving our goals for sustainable
development.
5.1.1.2. Energy Management System
In 2011, ISO 50001 energy management system was established by TXC based on
plan-do-check-act (PDCA) management system principles in a bid to search for an effective
program for reducing energy use and subsequently achieve the purpose of energy conservation
and carbon reduction. At the same time, for synchronous cooperation between the upstream and
downstream industry chain, TXC also gradually required affiliated suppliers to comply with RBA
standard and conform to relevant regulations. For green supplier system introduction, TXC also
has committed to require all suppliers to carry out inventory of product carbon footprint and
greenhouse gas emission. This is aimed to first understand the situation and then seeking to
reduce generation of carbon dioxide in the operation process.
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◎ Energy Management Policy
To fulfill our global citizenship & social responsibility, TXC commits to abide by the
laws to minimize the emission of carbon dioxide, develop green products, and to increase
the performance level of energy saving. We hope that TXC can achieve the energy
consumption target goal, and our solid actions are:
Review our energy saving target constantly.
Reduce energy consumption by 1.6% every year using 2011 as the baseline (a power
consumption of 0.1034 degree per unit of SMD product.)
Increase the efficiency of our facilities.
Regular maintenance to find out improvement measures and opportunities for energy
conservation.
Purchase energy saving products.
According to energy procurement regulations, priority will be given to products with
energy conservation marking, water conservation marking, energy star and energy
conservation facilities.
Promote the awareness and sense of energy saving of our employees.
Every year regularly communicate with all employees on consciousness for energy
conservation, and personnel using major energy use equipment should receive major
energy conservation training every 3 years in accordance with the educational
training method.
◎ Greenhouse gas emissions intensity in 2017 is 0.039 Ton CO2e / 1,000 pcs
◎ Completed energy consumption in 2017:
NO. Name of management
plan Goal/Objective
Saving degree
Per year
Greenhouse
gases Emissions
EHS-17-01
Lighting fixtures
use low-energy
lighting fixtures
(LED)
Replacement of
Building B 1F, 2F
clean room lighting 133,616,280
70683.01 Ton
CO2e
◎ Inventory Results:
An energy use comparison was done for five years with 2013 designated as the base year.
Energy conservation rate was15.18% compared to the 2011 base year.
Item/Year 2013 2014 2015 2016 2017
Electricity (MWh) 33,443 34,227 32,282 34,147 35,745
Production (thousand) 473,446 525,871 400,817 520,265 487,986
Product energy
consumption 0.0706 0.0674 0.0805 0.0656 0.0733
Energy consumption rate 18.21% 21.95% 6.74% 24.00% 15.18%
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5.1.1.3. Pollution Prevention Planning
◎ Pollution prevention measures Management
All plant pollution prevention and treatment equipment have dedicated teams
responsible for maintenance and operations, with a complete written set of management,
operational and maintenance procedures to guide implementation ensuring the pollution
control equipment can achieve optimal effectiveness. Among the various control measures
deployed are included:
Air pollution control measures:
Currently there are three sets of factory Venturi scrubber, five activated carbon
adsorption systems, as shown in the flowchart, and for our air pollution testing standards and
results, please refer to our website's
http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=11&sid=20
Water pollution control measures:
After pre-treatment process, wastewater generated by the procedure is then discharged
via sewer to the wastewater treatment station in Ping Cheng to undergo unified treatment.
After processing, then relesing to the Tai Hang lack Creek of Taoyuan County. Sludge are
removed, transported and processed by qualified business owners.Quarterly water quality
testing for wastewater discharge, ensuring test results meet applicable regulatory agency
emission standards, with testing standards and results posted on our website
http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=11&sid=20
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◎ Solid Waste Management
All factory waste control operations are conducted in accordance with our "TXC Solid
Waste Management Guidelines" , with all waste sites complying with the appropriate
regulations for segregated collection and storage, with accredited contractors providing
regulatory agency authorized cleaning or re-utilization.
5.1.2. Environmental Management Practices
5.1.2.1. Management plan and objectives
Our environmental safety and health management system relies on a pre-review approach to
management:
Consideration of environmental aspects:
Identification of environmental aspects is undertaken on a regular basis every three
years, and whenever there is any development or introduction of new processes, such as the
introduction of new chemicals, machinery and equipment, then periodic considerations are
applied, to assess and take appropriate precautionary measures or ensure execution of
necessary controls.
Regulatory Compliance:
Quarterly initiatives are undertaken to collect applicable environmental laws and
regulations, with compliance assessment audits every six months, deploying
recommendations for affects or areas needing improvement, expanded assessments of
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environmental impacts, seeking to minimize impacts while ensuring the company complies
with all legal and regulatory requirements, and providing transparency through
simultaneously posting assessment results on the company website.
Establishing goals, targets and management programs:
To implement the corporate Environmental, health and safety policies, we rely on
determinations consonant with environmental concerns and regulatory processes, to elicit
the major concerns or regulatory areas which do not conform with our stakeholders
expectations, thereby setting environmental objectives for continuous improvement and
enhancement across our corporate environmental performance.
5.1.2.2. International Environmental Norms and Operational Management System
TXC engages in monthly tracking of international environmental law and regulatory
changes (such as WEEE, RoHS, REACH, etc.) to ensure that the materials, processes and
products TXC uses provide full compliance with international environmental requirements.
Whenever new environmental requirements arise, TXC teams immediately work with the
necessary inventory action plans, ensuring the latest requirements are included in the company's "
HSM011 (EMS011)_ environmental and material management guidelines", requiring compliance
from all our plant personnel and other collaborating partners.
5.1.2.3. Industrial Environmental Accounting System
In light of the growing international emphasis on environmental protection issues, since
March 31, 2010 we have endeavored forward on comprehensive ESH environmental health,
energy-saving, carbon reduction, and green activities expense accounting with the Project Code:
PE151, yielding objective data of the company's extensive efforts at environmental protection,
with expenditures in 2017 amounting to 13,910,000 (NT$)dollars, primarily reflecting
environmental clean-up, operational environmental testing, pollution control equipment
operations and maintenance costs.
5.1.3. Environmental Information Disclosure Status
5.1.3.1. Greenhouse Gas Inventory (ISO14064-1)
Given the global trends for carbon emissions reduction, March 4, 2010 Taiwan EPA
proposed additional targets for reducing CO2 emissions by 210 million tons within a decade. In
response to these global environmental trends , the global environment protection and sustainable
development trend after the “Paris Agreement” of COP21 held on the end of 2015 and the formal
practice of “Greenhouse Gas Reduction and Management Act” stipulated by the Environmental
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Protection Administration on July 2015, the TXC Corporation is dedicated to reaching the
sustainable developmental goal of reducing energy usage and carbon emission in accordance with
the country’s overall greenhouse gas reduction strategy.Since 2010 we are cooperating with
public policies to deploy comprehensive corporate greenhouse gas inventories every year, to
better understand our emissions status, and deploy appropriate measures to help reach CO2
emission reduction targets.
In 2018 TXC adopted standard ISO14064-1 procedures to conduct an inventory of our 2017
Taoyuan County facility, Beitou head office and Farglory free trade zone operations-generated
greenhouse gas emissions, completing BSI Greenhouse Gas Inventory verification procedures,
achieving ISO14064-1 certification, and establishing annual routine inventories hereafter, with
biannual recertification efforts. These inventorying efforts were aimed at determining a
comprehensive scope of corporate greenhouse gas emissions, and estimating overall emission, to
provide a basis for reduction improvements. So we will continue our best efforts at inculcating
the highest standard environmental protection systems, with widespread promotion throughout
our upstream and downstream supply chains, in the hope of allowing all phases of our operations
to provide for carbon reducing efforts, contributing to broad environmental stewardship and
compliance with international environmental regulations.
◎ Emissions boundaries
We have consulted the ISO 14064-1 standards and the World Council for Sustainable
Development / World Resources Institute (WBCSD/WRI) Greenhouse Gas Protocol in
establishing our geographic boundary limits, employing operational control to assign
responsibilities within our organizational emission boundaries, providing direct and energy
indirect emission assessments for the Pingchen facility(#4, Sixth Industrial Street, Pingchen
Industrial District, Taoyuan County ),and Farglory free trade zone ( 7th
Floor, No.7,
Hangsiang Road Dayuan Taoyuan, Taiwan)
◎ Inventory Results
TXC’s total greenhouse gas emission in 2017 were an equivalent of 19,243.640 metric
tons of carbon dioxide. Inventory covers Pingzhen plant, Beitou plant and Yuanxiong
warehouse. Source of discharge is primarily outsourced power (scope 2). This effort
heralded completion of TXC's premier implementation of an integrated organizational
greenhouse has inventory, with "good" accuracy ratings for all our obtained data in 2013.
For the future, we will not only continue to promote greenhouse gas emission control to
reduce costs, but also look forward to reaching a balance between resource efficiency,
energy conservation, and environmental protection, for sustainable energy development,
working together with the industry to advance an economy and society-wide low carbon
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presence, while also striving to adhere to the following two focal points:
Promoting energy conservation and reducing electricity consumption
Improving equipment efficiency, ensuring good equipment maintenance, and reducing
freon and refrigerant escape.
For greenhouse gas inventory report in previous years, see company webpage at
http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=11&sid=15&id=16,
The gradually rising trend in greenhouse gas emissions was the result of production
capacity expansion, an increase in equipment used and a larger amount of building floor
space. In spite of this, TXC is still committed to improving production efficiency and using
energy saving facilities to continue to conserve energy, reduce carbon and fulfill our
responsibility as a global citizen.
2017 (IPCC 2007) – Power factor (2016)
Total Scope 1 Scope 2 CO2 CH4 N2O HFCs PFCs SF6 NF3
Greenhouse gas emissions
(ton CO2e/per year) 19,264.635 278.688 18,985.947 19,009.877 131.275 0.222 123.261 0.000 0.000 0.000
The percentage of total emissions (%) 100.00% 1.45% 98.55% 98.68% 0.68% 0.00% 0.64% 0.00% 0.00% 0.00%
Note:
1. Scope1: Direct Greenhouse gas emissions, Scope2: Energy indirect Greenhouse gas emissions
Scope3:Other indirect emissions including contracted waste and wastewater treatment, contracted
product component transportation, employee arrival and departure and business travel, cafeteria LPG,
OK convenience store refrigerator and vending machines. Since the source of these emissions is held or
controlled by other companies, TXC is unable to control these activities and greenhouse gas emissions.
The only work that can be done is to identify these emission sources. Quantification may not be done.
2. The fuel costs of domestic business travel by business units in 2017 converted into gasoline amount was
60,344.14 liters or 2,019.4GJ.
◎ 2017 direct and indirect energy use are as follows:
◎ An ozone-depleting substance emissions for 2017 are as follows:
ozone-depleting
substance
Emission
volume(Kg) GWP KgCO2e
R12 0.00967 10200 98.634
R21 0.015 148 2.22
R22 8.33424 1760 14,668.2624
Total 14,769.1164
The type of
energy Source of emission Amount per year
Amount per
year (GJ)
Direct Diesel 0.050 Kiloliter 1.791
Direct Oil 2.854 Kiloliter 95.523
Indirect Externally-purchased
electricity 35,890,258 kkwh 129.205
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5.1.3.2. Product Carbon Footprint Inventory
TXC started to engage in product carbon footprint inventory in 2010. In 2017 TXC
conducted 7Z series Automotive Electronics carbon footprint inventory based on the PAS2050
standards, which involve product life cycle emission inventorying across the scope of raw
material extraction activities, manufacturing, quartz crystal production, packaging and customer
delivery phases. Inventory items include direct (category 1), indirect (category 2) and other
greenhouse gas emissions (category 3).
TXC regularly carries out “product carbon footprint investigation” (PAS2050) every year.
Aside from understanding discharge of CO2 generated in the product life cycle, we also carry out
the policy for CO2 reduction. We also decided to carry out “product carbon neutralization
investigation” (PAS2060) in 2012 so that we can buy back from industry for the equivalent of
carbon dioxide that failed reduction. All previous year in product carbon footprint inventory
report please refer website:
http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=11&sid=15&id=16
5.1.4. Resource-Saving and Reducing Carbon Measure
In recent years, we have continued to undertake carbon reduction programs, resource
recovery and pollution control efforts.
5.1.4.1. Electricity-saving programs and benefits
In line with government policy for encouraging recycled energy in 2011, application for
building power generation equipment using recycled energy was filed with the Ministry of
Economic Affairs. The Energy Bureau of the Ministry of Economic Affairs endorsed the rooftop
solar energy generation system for installing 230 single tiles to a total of 264 tiles with a total
installation capacity of 60.72kw and an estimated annual power generation of 63,164 degrees.
Taiwan Power Corporation signed a resale contract for the building project and the project
completed construction and joint power generation by 2011/12/26. Total power generation was
399,380 kilowatt–hours from 2012 to 2017. The facilities continue to be in effective operation.
Year 2012 2013 2014 2015 2016 2017
kilowatt–
hours 66,056 67,592 70,828 71,168 64,712 59,024
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5.1.4.2. Water-Saving Programs and Benefits
TXC's facilities water supplied are all sourced from the Taiwan Water Corp., and given the
limited water resources in the Taiwan region, our water use statistics are provided below, so we
have invested in water recapture and reutilization systems since 2008, and since November 2008
nearly 35% of our production process water supplies have undergone RO wastewater treatment
for reuse in toilet flushing and airconditioning replenishment. A total of 66,547M3
RO wastewater
was recycled in 2017 representing recycling rate of 33.12%. The trend over the latest eight years
is shown in the following graph.
5.2. Environmental protection implementation
5.2.1. Specific measures and efficacy in waste reduction and resource recycling and reuse
5.2.1.1. Waste classification and reduction programs and efficacy
◎ Waste treatment amounts have increased steadily along with increased production.
Classification and weighing was done for resource recycling starting from June 2011. The
statistics for the six categories of resource recycling (scrap iron, paper, glass, aluminum,
PET bottles and plastics) from 2013 to 2017 are provided below:
Unit: Kg
The categories of resource recycling 2013 2014 2015 2016 2017
Paper 11,514 7,648 11,648 9,582 9,990
Plastics 2,064 2,782 8,780 11,390 10,330
Glass 0 0 0 1,645 1,210
Scrap iron 576 646 183 250 565
PET bottles 236 281 476 821 1,370
Aluminum 143 121 848 1,006 1,423
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◎ Since December 2008, the employee cafeteria has been using stainless steel tableware
reducing the need for wasteful disposable bowls and chopsticks, while promoting employees
to responsibly use napkins, to ensure practical environmental protection efforts, while also
reminding all to take only what they can actually eat to reduce food waste.
◎ From May 2008 our vending machines discontinued provision of plastic bottles
(beverages).
◎ Since May 2008 to reduce restroom waste, we have switched to fully soluble toilet paper,
which proceeds directly to septic tanks, where duly authorized contractors periodically
undertake final processing.
◎ As of May 2008, we have deployed paper recycling and reuse programs, encouraging
dual sided printing, with promotional notices located adjacent to all copiers and printers,
while imposing controls all copier paper supplies, using only lighter bond weight papers, to
reduce unnecessary deforestation.
◎ Since April 2008, our conference rooms have discontinued use of paper cups.
◎ Beginning from July 2007, we have promoted waste classification (four categories),
helping to implement recycling concepts, with recycling bins throughout our facilities,
allowing for recapturing and recycling all manner of daily use items, recyclables, and food
waste capture.
◎ Kitchen waste recycling
In 2010 we began collecting data for organic and food waste recovery, ensuring longer
life for landfills, and also enhancing our incinerator efficiency, while we have posted
notices in our cafeterias to "treasure resources, reduce food waste, please limit servings to
only what you can consume", as a friendly reminders for our colleagues not to waste food.
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5.2.1.2. Waste recycling, reutilization, and waste exchange operations
◎ Waste solvent reuse
Since 2007 solvents used throughout our manufacturing processes (methanol and
isopropanol), which used to be treated by incineration are now returned to the chemical
suppliers, who use redistillation and purification processes, allowing recapture and reuse of
the methanol and isopropanol.
◎ Resource Recovery, Recycling and Reutilization
Since 2006 Environmental safety and health management system is managed through a
pre-review approach.
28,182 31,443
28,084 24,092 21,581 19,467 18,502 16,419
0
20,000
40,000
60,000
2010 2011 2012 2013 2014 2015 2016 2017
Kitchen waste recycling chart
Recovery (kg)
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5.2.2. Specific Measures and Efficacy of Green Products and Services
5.2.2.1. Green Products
TXC complies with RoHS (Restriction of Hazardous Substances in Electrical and
Electronic Equipment) 2011/65/EU, WEEE (Waste Electrical and Electronic Equipment)
2012/19/EU, (EU) 2015/863, PFOS 2006/122/EC, REACH (Registration, Evaluation,
Authorization and Restriction of Chemicals) (EC) No 1907/2006 requirements. Starting from
July 1, 2006, TXC has been in compliance with international standards banning the use of
substances containing Pb, Cd, Hg, Cr6+
, PBB, PBDE and PFOS. In addition to receiving ISO
14001: 2004 environmental management system and IECQ/QC 080000: 2005 hazardous material
management system certifications, the company through the efforts of our employees passed
Sony Green Partner, Samsung ECO-Partner and Huawei Green Partner certification. Voluntary
Certification on the Pollution Control of Electronic Information Products was obtained from
China RoHS in accordance with electronic and information product pollution control
management regulations. Building upon the foundation of mutual understanding and joint
introduction of environment improvements, green purchasing activities serve as a basis for the
continuous provision of green products. In order to ensure that product quality conforms to the
related green and environmental protection regulations, the company strictly prohibits the use of
banned substances in its production processes and instructs our suppliers not to use banned
substances in either products or production so that the requirements of non-use, non-containment
and non-contamination are complied with at each stage from product design and manufacturing
to delivery and also to reduce the environmental impact of our products and services. The ICP
test data for various company products are posted on the company's Green Product Process
webpage. (http://www.txccorp.com/index_en.php?action=d_quality_1&cid=3) Company product
information and labelling are listed in the product specification sheets or related labelling is done
according to customer shipping requirements to ensure 100% compliance with customer
requirements.
5.2.2.2. Goal of using no hazardous materials
By hazardous substances we refer to materials banned under RoHS, WEEE, REACH other
regulations or pursuant to client guidelines, all of which are compiled in our corporate
"Environmental Management Materials Management Guidelines", undertaking all required
administrative measures, to ensure full threshold compliance with international standards,
allowing optimal accession to accredited provider lists.
TXC is continuing to maintain an accident-free record in regard to any hazardous
substances.
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1. Sales return due to nonconforming GP is 0.
2. Nonconformity due to hazardous materials in plant is 0.
3. Nonconforming finished products detected from hazardous substances test in
nonconforming GP is 0.
5.2.3. Specific Measures and Efficacy in Pollution Control
5.2.3.1. Investment in pollution control facilities and operational and maintenance conditions
Among our pollution conrol measures, we have currently deployed three sets of Venturi
scrubbers, four sets of activated carbon adsorption equipment, and two sets of waste water
treatment facilities and other pollution control facilities. These operations conform to our
"stationary pollution source operating permit "," Water Pollution Control Permits "and ISO14001
system requirements, with period inspections and maintenance, to ensure high in-service rates,
allowing the firm to stay below the applicable overall pollution emission control standards.
Periodic testing results for "Stationary sources" and "effluents" are posted on our website.
◎ Waste Disposal
2017 Material used by weight
Type Weight (kg)
Crystal Bar 2,639
Methyl alcohol & Isopropyl alcohol 54,277
◎ 2017 the main product materials packaging materials
Types Weight (kg)
Plastic reel 0.025
Embossed carrier tape 0.04
Heat activated ahesive cover tape 0.01
Bubble anti-static bag 0.05
Carton 0.35
Label Coated paper 0.006
Scotch 0.0067
Shielding Bag 0.012
Drier 0.0035
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◎ 2017 the category, weight and final disposal of waste described in the following
table:
Waste Code Waste Description Weight
(Tons)
Final
Disposal
D-1801 Garbage 57.21 Incineration
C-0301
Waste liquids with flash point lower than 60℃
(not including waste alcohol with ethanol
volume concentrations lower than 24%)
60.12 Physical
treatment
C-0301
Waste liquids with flash point lower than 60℃
(not including waste alcohol with ethanol
volume concentrations lower than 24%)
0.915 Incineration
D-0902 Inorganic sludge 22.66 Physical
treatment
D-0903 Inorganic sludge 35.09 Physical
treatment
D-1503 Non-hazardous waste acids 0.3392 Chemical
treatment
A-9001 Electroplating waste cyanide plating solution 0.04824 Chemical
treatment
E-0217 Waste cyanide electroplating solution 1.44362 Physical
treatment
B-0214 Potassium cyanide 2.3632 Physical
treatment
B-0399 Other chemical mixtures or waste containers 4.28 Incineration
Source: Environment Protection Administration Exective Yuan, ROC( http://prtr.epa.gov.tw/)
For the actual reported quantity, please refer to the Industrial Waste Report and Management System
(IWR&MS) of the Environmental Protection Administration, Executive Yuan.
5.3. Implementation of Environmental Protection Concepts
5.3.1. Internal Implementation of Environmental Protection and Specific Measures
◎ As part of our global corporate citizenship, besides our responsiveness to public
policy demands requiring energy-saving carbon-reduction efforts, we also encourage
our staff at work and in their homes to promote everny-saving and carbon-reduction
through the following twelve measures:
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No Content
1
No outside leakage of air conditioning: Reduce use of air conditioning,
open windows more, do not wear suit and ties in non-designated area, set
air conditioning at 25-26°C and prevent outside leakage.
2
Always turn off lights and unplug when not in use: Turn off lights and
unplug when not in use. Review lighting requirements. Improve lighting
effectiveness. Reduce number of superfluous bulbs.
3
Energy saving lamps save money: Replace the conventional tungsten
filament bulbs with energy saving bulbs. Provides same amount of
lighting at a lower cost. Long lifespan also saves money.
4
Energy saving, water saving logos: Purchase products that have
environmental protection, water saving and energy saving logo and high
EER ratings to save energy, reduce carbon and protect the environment.
5
Cycling and walking for health: Take stairs more and take elevator less.
Ride frequently to work and exercise, walk more, spend more time for
exercise and fitness.
6 Don’t drive once a week: Take public transportation, reduce the number
of times you drive and ride alone, don’t drive at least once per week.
7
Select carbon reduction vehicles: Use gas/LPG, hybrid or electric cars or
motorized transportation, get in the habit of turning off engine when
parked.
9
Bring your own cups, chopsticks, handkerchiefs and bags: Prepare your
own cups, environmentally friendly chopsticks, handkerchiefs and
shopping bags; drink less bottled water, use less disposable products.
10
Value resources, care for the Earth: Use both sides of paper, use recycled
paper, water saving faucets and toilets, don’t use overly packaged
products, recycle resources.
11
Choose low-emission: Purchase low emission / low fuel consumption
vehicle models for personal transportation to reduce energy consumption.
It is even better to join carpools.
12
Do not use stand-by mode on appliances: Turn off the power of
appliances that are not in use to save electricity and do you part to protect
the environment.
◎ From January 2010 our employee cafeterias have deployed a once weekly Eat
Vegan to Save the Planet campaign, dedicating every Wednesday to a meatless
menu, helping on the small scale to limit one's materialistic desires and appetite
urges, while changing dietary habits, improving health with antioxidants, and on the
larger scale ensuring a contribution to preventing deforestation impacts, greenhouse
gases, other macroenvironmental improvements, for ourselves and our posterity to
enjoy a clean and sustainable planet.
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◎ We continue to expand our e-ification efforts, establishing e-operating systems,
such as: e-forms workflow systems, e-payroll, e-bulletin boards, online learning
platforms and email to reduce paper waste.
◎ Publicize PC energy conservation setting and unplug the computers before leaving
the office in order to comply with the energy conservation policy and implement
energy conservation and carbon reduction.
5.3.2. Green Purchase
5.3.2.1.
In order to fulfill our responsibility as a global citizen, TXC has actively cooperated in green
purchasing practices. Besides directing purchasing at products that have received government
environmental protection symbol certification, the company has also purchases equipment and
launched related improvement projects to include power savings, operation efficiency, water
conservation and service life factors into purchasing considerations. Therefore, TXC defines
green purchasing as the purchase of products, technology, services to conserve energy, reduce
carbon, reduce waste and reduce environmental impact. The green purchasing principles
recognized by TXC are:
(1) Government certified green products such as products with either environmental protection
symbol or energy conservation or water saving attributes.
(2) Products that conform to the relevant laws of other counties (such as EU RoHS, WEEE laws)
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or products that have been approved to use environment protection symbols.
(3) Suppliers are asked to consider power, water and material conservation when designing
production equipment. After completing installation, equipment contractors are instructed to
check whether the energy performance of related equipment conforms or exceeds the
specifications in the purchase contract.
5.3.2.2.
In compliance with company environmental protection policy and simultaneously carrying
out supply chain green procurement publicity and integrating green supply chain service
customers.
Ways to implement green procurement
5.4. Safety and Health Planning and Management
5.4.1. Establishment of our Safety and Health Management System
Our occupational Safety and Health Management systems conforms to the spirit of
OHSAS18001 and PDCA structures, including risk assessment, operating environment controls,
hazardous materials and waste management, subcontractor management, training, safety
investigations, emergency response and audits. We applied second time occupational Safety and
Health Management systems efficacy in 2015.
5.4.2. Workforce Participation Empowerment in Safety and Health
We have established an Environmental and Occupational Safety and Health Committee,
which meets quarterly to review our work progress, and study environmental protection, safety
Green Mark inquiries through the Internet and understand green products information.
In compliance with company environmental protection policy and simultaneously carrying out supply chain green procurement publicity and integrating green supply chain service customers.
Purchasing at products that have received
government environmental peotection symbol
certificate.
Information
Collection
Advocacy
to promote
Purchase
Products
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and health issues. A total of 14 persons regularly participate in the Labor Safety and Health
Committee. Of these, 6 are labor representatives making up 43% of the committee members. A
senior executive is assigned to represent management, and ensure appropriate implementation
and management directives for the firm's environmental and safety and health related issues. The
committee exercises jurisdiction over matters including: industrial safety, industrial hygiene,
environmental protection, training, promotion and related activities. All of our corporate
employees responsible for occupational safety and health related efforts have obtained their
required licensures, and attend agency sponsored seminars or academic conferences and events.
5.4.2.1. Occupational Safety
TXC maintains a labor safety and hygiene management committee to make sure the
company meets required labor safety and hygiene standards. This measure also assures that all
operational flows are safe and are designed to prevent industrial hazards.To ensure employee
occupational safety protection and safe operations of machinery and equipment, each employee is
required to observe all pertinent occupational safety regulations and guidelines, adhering to safety
requirements and work efficiency, as abiding core objectives in all our activities.
5.4.3. Specific Measures in health and safety management
Our Safety and health management system applies a pre-review approach:
(1) Risk assessment: safety and health risk assessments are conducted on a periodic triennial
basis, and whenever any new processes are in development or introduced, such as with the
introduction of new chemicals, machinery and equipment, with deployment of all
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appropriate precautionary measures or other necessary controls to reduce risks to within an
acceptable range.
(2)Regulatory compliance: all updated safety and health regulations are reviewed quarterly,
with compliance audits every six months, to ascertain impacts or areas in need of
improvement, and undertake health and safety risk assessment, to minimize possible impacts,
ensuring corporate compliance with all laws and regulatory requirement, with all such
periodic assessments published on our corporate portal website.
(3)Establishing objectives, target areas and management plans: to ensure implementation of
our environmental and safety and health policies, we rely on risk assessment and regulatory
compliance audits, to establish priority areas for risk improvement efforts, and where the
regulatory environment does not conform to stakeholder expectations, we establish
additional safety and health guidelines to continually improve our workplace environmental
safety and health risks, while enhancing our corporate safety and health performance.
5.4.3.1. Product liability insurance
We endeavor to ensure all our products comply with international guidelines, and
concomitantly provide adequate protection for our consumer's rights. So since 2005, we have
sought reputable international insurance firms to provide us with full comprehensive product
liability insurance coverage. Since most of our production involve active and passive frequency
components, product or functional losses (poor frequency vibrations or in capacitance), are
unlikely to mean for our distribution channels and ultimate consumers any physical injuries. Thus,
we have obtained product liability insurance, to meet the highest ethical requirements, thereby
rightly improving our corporate image in line with our international competitors, while sharing
any risks and responsibilities from our distribution channels. No violation of relevant laws and
regulations pertinent to product in 2017.
5.4.3.2. Contractors Safety and health management
To ensure the safety of factory workers on the construction and to maintain the surrounding
environment, the Company has established relevant management system and E- management
system for contractors. Prior to the co-operation, the contractors would sign the “contractors’
safety, health and hygiene agreement” and complete the safety and health training to ensure that
prior, during, and after the operations are in accordance to the regulations. We also require that,
before the construction, the applicant is required to fill the “Contractor work permit and
construction environment risk form”, and asking the safety and health unit to provide us with a
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security guard office to be used as a basis for inspection. Construction personnel entering the
plant must swipe card and have ID checked before being accompanied into the plant by the
applying section supervisor. Those persons who have not undergone or passed safety and health
education and training must complete the related education and training and receive certification
before applying for a temporary construction pass and entry together into the plant area with the
applying section supervisor.
5.4.4. Risk Management Planning
All of our corporate risk management adheres to OHSAS18001 standards, with provision of
a complete set of workplace hazard identification and risk assessment criteria, allowing us to
comprehensively appreciate all our site risks, and provide adequate controls at high risk facilities,
reducing risks to pre-empt operations related safety incidents, and provide all our employees with
a safe workplace.
5.4.5. Accident Investigation Management
We have set up a complete system of workplace accident investigation for studying the
direct reasons, indirect reasons and basic reasons for the occurrence of accidents and carried out
further improvement so as to avoid recurrence of similar accidents.
To exhibit our resolve in maintaining zero workplace accident, the company has registered
relevant hours and continued tracking at the website specified by the Labor Committee on a
monthly basis.
5.4.5.1. Occupational accident statistics
Key statistics is according to the statistics indicators of important occupational accidence
announced by the council of labor affairs in selections of disable injury frequency rate (average
disable injury cases per million work hours at workplace) and of disable injury severe rate
(average lost work days per million work hours at work place). TXC has all along adhered to the
goal of zero accident and implemented notification and completed survey and improvement
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mechanism for handling accidents and traffic accidents so as to prevent recurrence of similar
hazards. Irregularly we would produce publicity information on safety and hygiene to be
disseminated via the internal website, emails and bulletin board among all employees so as to
enhance their consciousness for safety and hygiene.
FR and SR in 2017 are provided below:
FR SR No. of Accidents by
Gender Days Lost by Gender
Disabling
Injury
Frequency Rate
Disabling Injury
Severity Rate Male Female Male Female
5.45 45.9 7 5 23 78
There were twelve occupation injury incidents, 10 traffic accidents and 2 accidents, was
wrapped, stampede, cut, the object flying down.
No mortality related to work in 2017. The work injury rate, proportion of loss of work days
and attendance rate are described below:
The work injury rate, proportion of loss of work days and attendance rate
Gender Number
Total working hours Work injury rate Handling accident Traffic accident
Male 2 5 2,200,332 0.64
Female 0 5 2,200,332 0.45
Note:Work injury rate = Work injury number/ Total working hours * 200,000
Gender
Workday loss
Total working hours Proportion of loss
of work days Handling
accidents Traffic accidents
Male 10 13 2,200,332 2.09
Female 0 78 2,200,332 7.09
Note:Proportion of loss of work days = Workday loss / Total working hours * 200,000
Gender Total Absence days Total working days Absence rate
Male 575.828 255,045 500
Female 2,158.171 255,045 1,860
Note:Absence rate = Total Absence days/Total working days * 200,000
5.4.6. Business disaster recovery plan
We build up emergency prevention classification of emergent handling, emergent handling
level classification and emergent care reaction plan for emergent cases caused by natural disaster
or accident injury, such as fire, explosion, power shut down, flood, typhoon, toxic chemical
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substances, we also hold file drills and emergent response drills at least twice a year from every
unit representatives. Professional instructors from the fire from time to time conduct courses
including firefighters, ambulance personnel training, communication liaison training, security
personnel training and evacuation guide personnel training, they carry on exercise with local fire
authorities to maintain the company’s overall security to stop and prevent risk or accidence
occurrence. In 2017, we held emergency response/contingency plan and fire service exercises,
such as“Factory Exit & Evacuation Drill”,“Fire-Extinguishing Training”,“Self-defense
Fire Service Group Exercise” and so on. To minimize the impact on employee health and safety
and company property. So that employees’ health and safety and company’s property could be
down to minimum impact. The company’s emergency reaction plan please refers to the part of the
company’s website.
(http://www.txccorp.com/index_tw.php?action=a_about_1-1&cid=11&sid=18&id=28)
5.5. Supply Chain Security Planning and Management
5.5.1. Construction of the Supply Chain Security Management System
Through government integrated system counseling in 2011, we commenced construction of
the Authorized Economic Operator (AEO) and the Supply Chain Security Management System
(ISO28000) in a bid to build a supply chain security system for favorable customs clearance and
for improving service quality and effectiveness so as to satisfy customers for the industrial value
chain security requirements. Operation of this system mainly comprises of educational training,
and formulation of risk appraisal, goal, objectives and programs, quality enterprise certification
self-evaluation chart, business partner auditing, internal auditing and management review, etc.
Thanks to third party auditing by SGS in October 2011, TXC was successfully certified for ISO
28000 and obtained excellent enterprise security certificate presented by the General Taxation
Administration of the Ministry of Finance in March 2012.
Ever since the accreditation as an Authorized Economic Operator (AEO) in 2012, the
company never cease to conduct self-inspection for the safety requirements of the supply chain,
and referred the supporting materials on security control, business partner evaluation, and internal
audit findings for verification every year. The Company will apply for a new round of
accreditation this year with the customs inspectors conducting an on-site inspection on January
30. After an internal evaluation, the company has been accredited the AEO once again. On March
19, Mr. Liao Chao-yang, the Director-General of Customs Affairs at Keelung Port, presented the
AEO certificate at the company in person.
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6. Social Welfare
Since its inception, TXC has all along feedback to society to meet the expectation of a fair
corporate citizen. Feedback is responsibility and good deed is conscience, it is so for the
individual and should there be exception for the enterprise? The Gospel of Matthew says:
“Therefore when you five alms, do not sound a trumpet before you as the hypocrites do in the
synagogues and in the streets, so that they may be glorified by men.” Over the years, TXC has
silently engaged in charitable deeds with the intention of feedback to society without any
intention of disclosure and be known by other people. Hence, it is a matter “do not let your left
hand know what your right hand is doing.
6.1. TXC Foundation
Given that the CEO, general manager and board of directors have received abundant help
along TXC Corporation’s development and upholding the good heart of giving back to the
society, an educational foundation was founded and co-funded by members of the board of
directors. The “TXC Foundation” was founded on September 2017, providing various
supporting and caring resources to units and individuals in need. Such actions further
promote the improvement of civil living standards, harmonious society and the peaceful
atmosphere of the nation. The management directions of the foundation are as the following:
6.1.1 Cultivating the Next Generation and Rooting for Education
Targeting potential outstanding students from different regions and schools, the foundation
provides a certain amount of scholarship and project sponsorship annually to encourage
them work harder on their study and set a good foundation for their future. It expects
awarded students to demonstrate what they have learned and give back to the society.
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6.1.2 Encourages Innovation and Strengthens Research
Upholding the spirit of “Knowing the truth and solving problems,” the foundation seeks
external contributions from people with an engineering background annually and hold paper
presentation sessions at the TXC Corporation. We expect to start off from the customers’
demands and applications, discover innovative and effective resolutions with theoretical
analysis, and implement them on technology and product development.
6.1.3 Public Welfare, Emergency Rescue and Caring for Underprivileged People
Starting from 2017, the foundation has integrated with the resources of TXC Corporation’s
“Volunteer Society” to increase its service efficacy in order to carry out our concept of
caring for the society and fulfilling corporate social responsibility to enhance social harmony
and stability.
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6.2. Charity and charity
The TXC Corporation has dedicated itself to various social welfare campaigns for many
years. Targeting elementary schools of Taoyuan City, social welfare institutions and
underprivileged families neighboring the corporation, we pay a visit to them besides
providing them with resources. We hope that such benevolence and good heart can bring
about a more heart-warming atmosphere to the society. On 2015, the Volunteer Society of
the Corporation was officially founded to reflect on our new relationship between our social
status and social responsibilities. Regarding the contents of our corporate social welfare
actions, we not only donate materials, but also play the role of accompanying volunteers to
understand the true demands of institutional or village residents with empathy in order to
effectively stipulate the direction, goal and quality of our charity events. We also create
better charity actions through past experiences. In the future, we will continue to take actions
in the 4 main agendas of “social welfare institutions,” “caring for seniors,” “community
caring” and “charity events,” aggressively promote various social welfare events, contribute
our effort to helping those in need, promote social harmony and fulfill our duties as a
corporate citizen.
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6.2.1 Social Welfare Institution
In order to carry out the idea of transforming heart-touching sentiments into actions, the
Volunteer Society of the TXC Corporation has promoted the volunteer service of
colleagues by enabling to demonstrate their benevolence by taking part in volunteer
activities. At the same time, the TXC Corporation also called up collaborators such as
Chienruei Industry and Nice Style in visiting social welfare institutions near the corporation,
such as Longtan, Shengai, Lohas and Honghua Nursery. Through a series of interactive
caring, birthday celebrations, and volunteer hair cutting activities, we hope that those who
live in nursing homes can feel warm-hearted and be encouraged.
6.2.2 Caring for Seniors
With the arrival of the aging society, the TXC Corporation has created a community caring
stop at Yongan Village, the place the corporation is located. Before the 3 major festivals,
besides visits and donations by volunteer colleagues, in the future, TXC Corporation also
plans to collaborate with medical staff from the Min-Sheng Healthcare to provide seniors
with more versatile health promotion activities, enabling them to feel the joy of festivals
and have a great later life.
6.2.3 Community Caring
The TXC Corporation has devoted itself to neighborhood relationship building for a long
time. Every year before the Dragon Boat Festival, Ghost Festival and Chinese New Year,
the TXC Corporation will visit underprivileged families at Yongan Village, Yongguang
Village and Yongfeng Village, where the corporation is located, with village heads to
express our caring heart and provide them with material assistance. We expect that through
such caring actions, both sides can feel the kindness of mankind and warmth from the
society. We further expect that such benevolence and good heart can become the stable
power that pushes the society to improve.
6.2.4 Charity Events
Upholding the spirit of “Give back what we have taken from the society,” the TXC
Corporation will continue to invest itself in serving the society within its capacity by
taking part in various charity events, such as blood donation, beach cleaning, charity fun
fair and old clothes and shoes collection. With caring and hoping hearts, we call on all
colleagues to take part in these activities and contribute their efforts to fulfill our
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corporate social responsibility, thus conveying the benevolent passion of TXC
Corporation to every corner of Taiwan.
6.2.5 Management Idea Observation Event
the TXC Corporation had received students from NTU Institute of Applied Mechanics and
members from Seiwajyuku of Taiwan and Shenzhen to visit our corporation. We explained
the business ideas, corporate social responsibility, market status, the manufacturing process
of the quartz industry and other related issues to them. After a briefing, visiting
manufacturing lines and Q&A sessions, the visit concluded with taking group photos.
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7. Plans and Prospects
In 2018, TXC will continue to make progress towards the three avenues of corporate social
responsibility: public welfare, corporate governance and environment / safety / health. By
working to achieve the objectives of awakening, fostering, educating, we believe that putting our
hearts and efforts towards a common purpose will focus our strength so that we can accomplish
our desired objectives. As for the future, we will make progress even though we may not know
for sure what changes will come as long as we continue to work towards a certain direction.
7.1. Green operation aspect
Our company has issued a green product guidebook and environmental safety and health
guidebook in response to green product requirements. We had planned to release a new version of
the environment safety and health guidebook which includes the latest requirements and
corresponding company practices. This new version was created to address internal training
requirements and serve as guidelines for our suppliers so downstream and upstream can work in
tandem to conform to the latest domestic and international standard requirements
7.2. Occupational safety and health aspect
In the future, TXC will strive to achieve plant safety knowledge, education & training and
zero accident targets. Statistics will be collected for all regular accidents that occur at the plant
which will then be used as a basis for internal tracking and improvement. In addition to reducing
potential work accidents, employees will have a greater sense of safety and security when
performing their jobs.
7.3. Public welfare activity aspect
Volunteer leave, an item included in the revised 2013 employee manual, is meant to
encourage employees to participate in public service together with the company provided it does
not affect one's personal routine and job duties. Family members are also welcome to join in
activities such as beach cleaning, no smoking hike to spread the influence of these activities to
family and friends and make them even more effective. To show concern for disadvantaged
groups, assistance is provided through borough chiefs for low-income residents in neighborhoods
nearby the Pingzhen Plant. Basic necessities bringing warmth and comfort were provided to show
our care and concern as a company.
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7.4. Environment protection aspect
A variety of activities have been jointly planned with the Environmental Quality Protection
Foundation for 2013. Employees enthusiastically participated in the Taiwan green belt and Kenya
tree planting activity by opening up their wallets to ensure that the activity was a success. TXC
will continue to hold weekly meat-free day activity at the company. Quarterly targets will be set
for various plant activities. The company has also applied an EPA certification badge for low
carbon activities that promote energy conservation and carbon reduction.
7.5. Employee participation aspect
TXC also will continue to encourage employees to join various clubs and activities such as
basketball club, cycling club, yoga club, badminton club, photography club, golf club, table
tennis club, walking club and provide financial support to foster a sense of belonging among
employees. For the members at each department responsible for promoting the various projects,
instant rewards and commendations are provided at the department level to encourage employees
to challenge themselves and increase added value to achieve overall benefit and raise company
competitiveness.
4F, No. 16, Sec. 2, Chung Yang S. Rd., Peitou 112, Taipei, Taiwan, R.O.C.
Tel : +886 2 2894 1202 Fax : +886 2 2894 1206
http://www.txccorp.com/
Ver 2017
Abby Lin
Amanda Tien
Coco Chang
Irene Liu
Jeny Chiang
Jerry Lin
Margaret Kuo
Mickey Shih
Monica Chin
Morris Chiang
Ride Huang
Sabrina Lee
Swallow Lin