Vtech 2014 Annual Report Download - page 27

New Territories Walk of Community Chest 2014
The majority of employees in our China manufacturing facilities
are from different provinces of the country. We recognise that
to make them feel at home and have a sense of belonging
while they are living in our dormitories are very important. In
FY2014, as part of our continuous improvement programme
for the living environment, we upgraded our dormitory
facilities and renovated the canteens to provide a relaxing
eating environment for our employees. To provide better
recreational experiences for our people, we also have installed
and upgraded a number of recreational facilities. These include
libraries, Internet rooms, sports facilities and a communal
vegetable garden. The latest employee survey results also
indicate an increase in overall satisfaction of our workers on the
living environment compared with the previous year.
Sustainable Operating Practices
VTech’s significant suppliers in the supply
chain include the manufacturers of PCBs
and other electronic components, of which
89% are located in China. Logistics providers
form the bulk of the latter part of the supply chain. We notice
that extreme events can delay the supply of materials and
given the nature of some of the major activities, may also pose
social and environmental risks. In order to mitigate the risks to
VTech and its customers, we have a supply chain management
system in place to monitor the supplier quality as well as their
environmental and ethical performance.
During FY2014, we continued to actively manage our supplier
base to mitigate our corporate risks, ensure continuity of
production, maintain quality supply and align the suppliers
with VTech’s core requirements. These include the examination
of their labour practices, health and safety systems,
environmental management and business ethical standards.
Each supplier is also given a risk category rating.
In FY2014, VTech audited 300 suppliers, a small number of
these were removed as approved suppliers due to their failures
to meet VTech’s required standards. We plan to carry on with
our audit schedule, and to extend the topics covered in order
to further improve the energy efficiency of our supplier base. By
using the knowledge gained internally, we believe that we can
further reduce the carbon footprint of the components in our
products, and help our suppliers reduce their environmental
impact while remaining cost competitive.
Community Investment
As a responsible corporate citizen, VTech uses
its resources to support the communities in
which it operates in a variety of ways, focusing
on innovation, helping people in need and
the general corporate philanthropy.
We also encourage our employees to participate in volunteering
events, which could provide an opportunity to connect them
outside the workplace, and inspire team-building experiences whilst
contributing to our local communities. In FY2014, VTech volunteers
continued to extend their care for our society, and we were awarded
as a “Caring Company” by The Hong Kong Council of Social Service
for the sixth consecutive year in recognition of our continuous
contributions to the Hong Kong community. Our Hong Kong and
China staff also joined the New Territories Walk of Community Chest
2014, and won the “Top Fund-raiser Award” with Third Runner-up
among the top five outstanding participating teams.
During FY2014, VTech Group made charitable and other
donations of over US$182,000 and contributed over 2,700
hours in volunteering community activities.
Living environment and recreational facilities
25VTech Holdings Limited Annual Report 2014