HTC 2011 Annual Report Download - page 37

Item Implementation Status
Reasons for discrepancy
with the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM-
Listed Companies
(5) The status of the company's participation in
commercial activities, property endowments,
volunteering of service or other free professional
services, and participation in charitable events or
events relating to community development.
Please refer to p. 80-93 of the annual report regarding CSR
matters.
None
4. Enhancing information disclosure
(1) The company's method of disclosure of relevant
and reliable information relating to CSR.
HTC collects and compiles information on its CSR activities
through a general affairs unit. An outside professional institution,
the AFNOR Group, provides assistance to ensure the accuracy
and reliability of the information disclosed.
None
(2) The status of the company's production of
corporate social responsibility reports disclosing
the implementation of CSR matters.
As of 2011, HTC has not yet prepared a separate CSR report. It
currently discloses information on CSR-related operations and
performance through its annual report.
HTC does not produce a
corporate social responsibility
report.
5. If the company has formulated a set of its own
corporate social responsibility best practice principles
in accordance with the Corporate Social Responsibility
Best Practice Principles for TWSE/GTSM-Listed
Companies, please describe any discrepancies between
their operation and the principles as adopted:
HTC has not yet adopted its own corporate social responsibility
best practice principles; please refer to p. 80-93 of this year's
annual report for a description of HTC's CSR-related operations.
6. Any other important information helpful to
understanding the company's CSR-related
operations (such as the status of its systems,
measures, or performance in CSR activities relating
to the environment, participation in the community,
contributions to society, social service, the public
interest, consumer rights and interests, human rights,
health and safety, and other CSR-related activities:
Please refer to p. 80-93 of this year's annual report for a
description of HTC's CSR-related operations.
7. If the company's products or its corporate social
responsibility report have met the standards of a
relevant certification institution, please indicate:
HTC has obtained ISO 14001 environmental management
systems certification, OHSAS 18001 occupational health and
safety management systems certification, and ISO 50001 energy
management systems certification.
(Concluded)
(6) The status of the Company's exercise of good faith in management and adoption of related measures:
HTC has always upheld the five major ideals of honesty, humble, simplicity, energy, and innovation as its highest criteria for
operations. Everyone within the company, from the highest levels to the lowest, is asked to strictly uphold the spirit of these five
ideals, as well as abiding by all laws, regulations, and rules. HTC has also formulated internal rules to ensure the exercise of good
faith in management and the observance of laws and regulations.
(7) For information on HTC's Guidelines for Corporate Governance and other codes of practice, please
refer to the HTC website at www.htc.com.
(8) Other important information helpful to understanding HTC's corporate governance:
Due to a number of factors, including the shift in HTC's principal business operations in recent years to own-brand manufacturing, the
growing scale of its operations, and the continued expansion of overseas subsidiaries, HTC has continued to examine and revise or
adopt new rules and procedures which will enhance the efficiency of its operations and strengthen risk management and corporate
governance. Over the recent years, in line with the formulation or amendment of relevant securities laws and regulations, and in
consideration of operational needs, HTC has adopted or revised its "Procedures for Board of Directors Meetings", "Procedures for
the Acquisition or Disposal of Assets", "Procedures for the Handling of Derivatives Trading", "Guidelines for Corporate Governance",
"Procedures for Shareholders' Meetings", "Bylaws for the Election of Directors and Supervisors", and "Compensation Committee
Charter". In addition, it has also adopted the "Detailed Guidelines for the Handling of Derivatives Transactions", " Credit Policy and
Operation Procedures", and "Rules for Assignment of Directors and Supervisors at Investee Companies", and revise implementation
rules that guide its internal operations, such as the " Specific Companies, Enterprise Groups and Related Parties", "Budget Management
Procedures", "Corporate Bylaws for Subsidiaries" and "Operational Procedures for Handling Material Inside Information, and Prevention
of Insider Trading". Latest drafts and amendments of the "Operating Procedures for the Handling of Material Inside Information and
Prevention of Insider Trading" are sent to all HTC employees via e-mail posted on the internal website. The most updated version is
posted on both the corporate website and internal website. New employees are also trained on the prevention of insider trading.
(5) HTC's exercise of corporate social responsibility:
Item Implementation Status
Reasons for discrepancy
with the Corporate Social
Responsibility Best Practice
Principles for TWSE/GTSM-
Listed Companies
1. Exercising corporate governance
(1) The company's adoption of corporate social
responsibility policies and systems, and its
examination of the effectiveness of their
implementation.
HTC puts environmental protection, health and safety, and energy
conservation into practice in all aspects of our operations. We
spare no effort to provide and maintain a safe and healthy work
environment for our employees.
We do so in order to create a better quality of life for our
employees, customers, suppliers, and contractors, so that we
may fulfill our corporate social responsibilities and achieve the
goal of sustainable corporate development. HTC has now made
basic commitments with respect to corporate social responsibility
(CSR), and our general affairs department regularly reports to
one of the directors on the HTC board regarding the results of
their implementation. For a description of our CSR policies and a
discussion of the effectiveness of their implementation, please see
p. 80-93 of this year's annual report.
HTC has not yet adopted a
CSR policy or system through
passage by the Board of
Directors.
(2) The operational status of the unit established by the
company with exclusive or concurrent responsibility for
CSR matters.
HTC has appointed a general affairs unit to be responsible for
carrying out CSR-related operations, and has also engaged an
outside professional inst itution, the AFNOR Group, to provide
professional assisting in implementing CSR matters to further
the effectiveness of HTC's CSR operations.
Through its general affairs
department, HTC provides
regular reports to a member of
the Board of Directors regarding
CSR-related operations and the
status of their implementation,
but does not regularly report to
the full board of directors.
(3) The holding of business ethics training sessions
and provision of guidance on related matters
on a regular basis for directors, supervisors and
employees, and the incorporation of business
ethics into its employee performance appraisal
system to establish a clear and effective reward
and discipline system.
In June of 2010, HTC engaged the Securities and Futures Institute
to provide training courses in corporate social responsibility (the
principal component of CSR) to its directors and supervisors. HTC
has also adopted an employee code of conduct to provide rules
and guidelines for employees during their execution of company
operations. All employees at HTC and its branches and subsidiaries,
regardless of their position, rank, or location, are required to abide
by this set of ethical standards.
HTC has not yet integrated
business ethics and employee
performance evaluations.
2. Developing a sustainable environment
(1) The status of the company's efforts to improve its
efficiency in the utilization of all resources and the
use of recycled materials with low environmental
impact.
Please refer to p. 80-93 of the annual report regarding CSR
matters.
None
(2) The status of the company's establishment of
environmental management systems appropriate
to the nature of its industry.
Please refer to p. 80-93 of the annual report regarding CSR
matters.
None
(3) The status of the company's establishment of
dedicated environmental management units or
personnel to maintain the environment.
HTC has established an environment and safety unit to be
responsible for matters relating to environmental management
and maintenance. It also obtains certification annually from
a third-party certification institution with respect to its
environmental protection and energy use.
None
(4) The status of the company's attention to the
effects of climate change on its operations and its
establishment of a company strategy for energy
conservation and carbon and greenhouse gas
reduction.
Please refer to p. 80-93 of the annual report regarding CSR
matters.
None
3. Protecting the public interest
(1) The status of the company's observance of the
relevant labor laws and regulations, protection
its employees' legal rights and interests, and
establishment of appropriate management
methods and procedures.
Please refer to p. 80-93 of the annual report regarding CSR
matters.
None
(2) The status of the company's provision of a safe and
healthy work environment for its employees and
its provision of health and safety education to its
employees on a regular basis.
Please refer to p. 80-93 of the annual report regarding CSR
matters.
None
(3) The status of the company's formulation and
public release of its policies on consumer rights
and interests, and its provision of transparent and
effective procedures for consumer complaints
regarding its products and services.
HTC safeguards consumer rights and interests with various
kinds of services and information. It provides channels of
communication that allow consumers to contact HTC by many
means, including the limited warranty sheet included in the
HTC phone package, customer service contact numbers in all
countries, a Taiwan customer service center contact info card,
placing the telephone numbers and methods of connecting to
its dedicated customer service lines on its official website, live
customer chat service, customer service e-mail, home pickup
and delivery service, and a customer service center address.
None
(4) The status of the company's cooperation with
suppliers to jointly enhance corporate social
responsibility.
Please refer to p. 80-93 of the annual report regarding CSR
matters.
None
(Continued)
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