Since the establishment of the Company, TXC Corporation is committed to the pursuit of corporate growth and sustainable operation, and demands itself to become an excellent corporate citizen. In addition, the Company upholds the business principle of “Integrity” for all upstream and downstream vendors, such that the enhancement of corporate social welfare and environmental protection activities have always been valued significantly. In recent years, in view of the faith and mission considered necessary for the society and environmental protection, the internal of the Company has actively implemented green product design and various environmental protection activity promotional works, in order to properly achieve the sustainable development for environmental protection.
Based on the philosophy of “Taken from the Community Giving Back to Society”, within the capacity of the Company, TXC Corporation will continue to contribute efforts in servicing the general public and to return the outcome to employees and customers. In addition, the Company also provide assistance and care to disadvantaged groups in the society, and among which, fundamental education is considered to be priority assistance and care for the society. Through the participation in various corporate social welfare activities, the Company looks forward to contribute its effort in the corporate social responsibility. In view of the above, the corporate sustainable development commitment of the Company is implemented based on the three aspects of "Corporate Social Welfare", "Corporate Operation Governance" and "Environmental Safety and Health" as described in the following:
TXC Sustainable Development Management Complaint Contact Window: (complaint and contact content including but not limited to the recommendations and comments on the management operations related to TXC labor rights and interests, environment, health and safety, business ethics, harmful substance, conflict mineral, social welfare, corporate operation governance, etc.)
Contact Window: csrcontact@txc.com.tw
Labor Rights and Ethics Policy
To protect labor rights and to abide by the corporate ethics standards, TXC commits to carry its corporate social responsibilities by the underpinned principles:
Comply with standards of Responsible Business Alliance(RBA)
Abide by the laws, regulations and requests from our customers
Providing transparent business operation information to our labors
Conducting labor and management meeting at regular intervals to enhance bilateral communication.
TXC commits to improve our corporate social responsibility systems by using the highest domestic or international standards
In order to strengthen confidence and satisfaction of our shareholders, TXC Corporation intends to protect security of internal information usage, avoid inappropriate disclosure, ensure continuity of information business process, and sustain internal management system effectiveness. These targeted objectives will be achieved as follows:
Information security is central to obey the laws, including intellectual property laws, personal information protection act, criminal law, and agreements/contracts which are signed with external organizations.
Establishing management committee of information security to plan, implement, audit, and communicate information security management related issues. Furthermore, to perform educational training and guidance of information security to ensure that employees are familiar with their security responsibilities.
Information properties for employees are in common, which are classified according to needs. They are effectively managed by risk assessment of information property. Information business is managed continuously and implemented effectively according to practical needs of each activity in order to ensure security and usage convenience.
Implementing access control, physical environment protect and continuity monitoring to maintain security of security area such as office and main control room.
Information devices and systems use strengthened technology for protection management. The authority is controlled by employee’s position and minimum needs. Task monitor and review will be strengthened to prevent system from inappropriate accessing, changes, damages or cyber attacks.
Authorized systems and applications will be used to avoid computer virus and malware.
TXC commits to improve our information security systems by using the highest domestic or international standards.
Focus on R&D, Plan the IP Management, Enhance the Business Secret Protection, Commit the Sustainable Development
Through the participation of all colleagues, we will promote the design, application, delivery, manufacturing and service activities continually, and establish the product and technology roadmap, and catch the R&D and industrial development progress, and combine the company's overall development and IP strategy to ensure the quality, protection and plan execution of IP, and establish stronger competitiveness for business operations.
Since its founding, TXC has always been committed to being a good corporate citizen in giving back to the community in the spirit of "taking it from society and making use of it for the community." For disadvantaged families in schools, social welfare organizations and neighborhoods in the company, Take care of stakeholders and self-ability, actively participate in various corporate social welfare activities, jointly bet on each corner of society and make every effort to take care of the needs of those who contribute to the community, so as to promote social harmony and harmony, Citizens' social responsibility contributes a lot of effort. Social welfare details please refer tohttp://www.txccorp.com/index.php?action=f_social_1&cid=4&sid=12
The Company has been awarded an A+ rating from Information Disclosure and Transparency Ranking System for three consecutive years which is recognition of the Company’s efforts towards information transparency. In order to maintain the integrity of all personnel working for the company and promote tolerance and benevolence to build an excellent corporate image, the Company not only publishes Chinese and English versions of its code of conduct and posts it on the Company’s web pages (corporate governance) but also issues CIS standard explanations in order to provide a uniform corporate logo for external use. Through the issue of the code of conduct, all personnel must read carefully and sign a responsibility declaration so that they can remember company requirements and fulfill their responsibilities to their coworkers, shareholders and stakeholders.
To fully display the results of our corporate governance efforts to raise investor confidence, the Company participates in the corporate governance evaluation held by the Taiwan Corporate Governance Association and has received CG 6005 certification as well as certification from the TCGA. Below is our corporate government implementation status:
I、Shareholder guarantees
The Company convenes Shareholder Meetings in accordance with the law to engage in two-way communication with shareholders. The convening of the Shareholders Meeting is announced 72 days before the meeting and notices are mailed out 30 days in advance. Within 15 days before the meeting, the meeting handbook is prepared and posted. The annual report is available at the Company and Yuanta Securities’ Stock Affairs Representative Offices. Within 20 days after the meeting, the meeting minutes are issued and Shareholder Meeting relevant information is placed on company web pages for disclosure purposes. An audio recording is made of shareholder inquiries. A shareholder question – answer mailbox has also been establishing to strengthen corporate governance. Company directors and supervisors each sign a confidentiality agreement and the attendance rate for Shareholder Meetings has been 60% or more in recent years.
The Company also cares about the corporate governance conditions at affiliated companies. Early on in February 2006, the Company established guidelines for affiliated persons, designated companies and group companies. Procedures have also been set up for financial business between affiliated companies, risk control and subsidiary supervision and oversight.
II、Strengthening Information Transparency
The Company has participated in the evaluation for seven straight years since the first year the evaluation was held. For three consecutive years, the Company has earned an A+ rating and top 10 honors in recognition of outstanding performance. For six consecutive years, the Company was recognized for the transparency of our voluntarily disclosed information. We are also actively participating in this year’s corporate governance evaluation in the hope that our corporate governance can reach even higher standards and be more comprehensive.
III、Reinforcing the Role of the Board
TXC runs the Board with strict compliance to the Operating Procedures. A board meeting is called at least once each quarter a minimum of six times a year, with administrative staff notifying the directors at least seven days in advance. As a result, an average attendance rate of 2/3 is achieved. Board meetings are recorded and the audio file properly preserved as required. TXC respects the opinions of all directors and makes the best effort to disclose the full content of their comments in the meeting minutes.
TXC’s Articles of Incorporation stipulate that a minimum of three seats on the board must be reserved for independent directors. Independent directors are appointed by nomination and their eligibility (professional qualifications, share- holdings, other positions) are reviewed in accordance with the regulations set down by the competent authority. TXC currently has three independent directors and has benefited from their financial expertise.
TXC directors participate in a program that includes at least three hours of advanced education each year. Remuneration for directors is clearly laid out in the TXC Articles of Incorporation and payments are made after board approval. All directors are covered by liability insurance.
To reinforce the Company’s corporate governance functions, the Board established a Remuneration Committee at the end of 2011 and an Audit Committee on June 19th 2013 to fulfill the duties of supervision.
IV、Management Integrity and Communication
Procedures set up to clearly define payment authority and responsibility assignments. Employee code of conduct and emergency response procedures also established for use and reference by personnel. Clearly procedures have been defined for performance evaluations and welfare procedures. Personnel opinion reporting mailboxes have been set up. Company targets are steadily updated and forward-looking directions are adopted. A complete employee continuing education procedure has been established and on-the-job instruction / training is held to meet various needs.
The internal control system and audits are conducted in accordance with laws and regulations.
V、Respecting Stakeholder Rights and Fulfillment of Social Responsibility
To display our commitment to social responsibility and deep concern on green energy and environmental protection, our Company has always made a goal to set a good example as a corporate citizen and give back to society. On September 17, the Company was awarded the 2009 Outstanding Green Adoption Company from the Taoyuan-Hsinchu Industrial Park Team. The Company also received a Golden Torch Award in the top ten company potential category.
In order to conform to international trends, the Company has worked to receive green product certifications. We have received Green Partner (GP) certification from Sony and QC080000 certification in 2008. To save energy and reduce carbon emissions, the Company no longer used paper cups and vending machines do not sell beverages in plastic containers. The containers used for beverages sold by the canteen are all made of environmentally friendly, biodegradable materials so personnel can adopt environmentally sound practives in their daily life. To strengthen our safety and health organization, TXC continues to perform internal announcements / instruction / training and strives to reach zero accident / injury targets. In 2009, the Company passed occupational safety and health management performance standards in order to make work safer and provide extra assurance to personnel. Greenhouse Gas Verification (ISO14064-1), Carbon Footprint Verification (PAS2050) and Occupational Health and Safety Management System (OHSAS) certification was received in 2010. Moreover, Corporate Social Responsibility Report certification is scheduled for the end of the year to fully disclose company information and do our part to contribute back society, our country and the Earth. For information on environmental safety and health at the Company, see: http://txccorp.iware.com.tw/index.php?action=g_ESH_1&cid=1
Legislation of the term Conflict Minerals was first presented by the US Kansas republican senator Sam Brownback in April 2009 as Congo Conflict.
As proposed in the Minerals Act of 2009 but it was not passed by the House of Representatives. Later, the Democratic Party congressman James McDermott of the Washington State and 56 other congressmen jointly signed the Act and again proposed the draft of the Conflict Minerals Trade Act in November 2009. But it was again shelved by the House of Representatives.
In December 2009, Congressman Barney Frank of the Democratic Party and senator Chris Dodd thereby proposed the draft of the Dodd–Frank Wall Street Reform and Consumer Protection Act in view of relevant shortcomings of the financial system as exposed in the financial crisis (hereinafter referred to as the D.F. Act). The Act was reviewed by the House of Representatives and upon passing of the official report, US President Barack Obama signed on July 21, 2010 and became law. The section on Conflict Minerals was added to section 1502 in Chapter 15 on Miscellaneous Provisions set forth unequivocal regulations and requirements on so-called Conflict Minerals.
In Democratic Republic of the Congo or its adjoining countries, violent conflicts have caused long-term instability and human rights are trampled seriously in the mineral areas controlled by non-governmental armed groups or illegal armed factions (groups) , due to the mining and trading of minerals such as Tantalum, Tin, Tungsten, Gold and their derivatives, arousing widespread concern in the international community. So in the year of 2010, the United States adopted the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is derived from the Democratic Republic of the Congo (DRC) or adjacent countries' “conflict minerals”, to promote the establishment of a conflict-free procurement plan and guide suppliers to establish a conflict-free minerals policy, due diligence framework and management system.
Conflict minerals and conflict metals:The minerals originated from Democratic Republic of the Congo or its adjacent countries (conflict-affected and high-risk areas) that directly or indirectly finance or benefit the armed groups that abuse human rights, including Tantalum, Tin, Tungsten, Gold, Cobalt and their derivatives (except for customer specific requirements).
Neighboring Countries:Internationally recognized as other countries bordering Democratic Republic of the Congo contain Rwanda, Uganda, Burundi, Tanzania, South Sudan, Republic of the Congo, Zambia, Angola, Central African Republic, Kenya (the United Nations Security Council has identified these countries as minerals of the Congolese lode) .
RMI means Responsible Minerals Initiative.
RMAP means Responsible Minerals Assurance Process.
OECD means Organization for Economic Co-operation and Development.
GeSI means Global e-Sustainability Initiative.
RBA means Responsible Business Alliance.
CMRT means Conflict Minerals Reporting Template.
TXC supports Responsible Minerals Initiative(RMI)of Responsible Business Alliance(RBA), and requires suppliers to be responsible for the procurement of non-conflicting raw materials. Through the system requirements of the Conflict Minerals Management Regulation, TXC fully controls the products using mineral materials from conflict areas in Africa, and uses RBA’s proposed management tools for control. Simultaneously TXC will establish the due diligence framework fitting in with the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas issued by the OECD to implement TXC supply chain conflict mineral risk management.
Key points of the conflict mineral management process:
Strategy of Conflict mineral risk management:
After confirming the existence of conflict mineral risks, implement the following mitigation strategies,
First, continue to trade in the implementation of measurable and controllable risk mitigation operations;
Second, suspend or delay trade when seeking continuous, measurable risk mitigation operations;
Third, when risk mitigation and transfer are not feasible or acceptable, end the relationship with the supplier.
In order to comply with the requirements on conflict minerals management of the Global e-Sustainability Initiative (GeSI), Responsible Business Alliance (RBA) and other domestic and foreign regulations and industry regulations, our company has formulated the following policy and promised to use the policy as the highest guiding principle for conflict mineral management, and take effective measures for internal and external communication to ensure that TXC purchases minerals responsibly and fulfills corporate social responsibility.
Commit to source only from smelters that have been validated by independent audit program or customer-designated vendors.
Commit to establish an effective conflict-free mineral management system, identify and assess risks of the origin and chain of custody of minerals, conduct a due diligence investigation and implement risk mitigation plans of OECD Guidance.
Commit to communicate said policy to all subcontractors and suppliers.
Commit not to source 3TG directly or indirectly benefit armed groups that are perpetrators of serious human right abuses in DRC or an adjoining country.
Commit not ban all minerals from DRC or an adjoining country.
TXC’s Appeal Contact Window of Conflict Minerals:
Contact window: csrcontact@txc.com.tw