TXC Commitment

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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 explanation mentioned above, TXC Corporation fulfills its social responsibilities in three aspects as illustrated below:

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:

Proactively and continuously enhancing rights and interests of our labors

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.

A donation activity with a special theme is held each year at a school near where the company is located (Taipei and Pingchen). In 2008, use of environmental-friendly eating utensils was chosen as the activity theme to promote environment protection and green living concepts to people starting at a young age. In 2009, the Company held a basketball donation activity in conjunction with sporting events including the Olympics and World Games to promote sports and build strong, healthy bodies. In 2010, the Company donated T-ball sporting equipment and funds to elementary schools in Pingchen and Beitou in response to the government’s call to revive baseball to keep the baseball fire burning in the hearts of our youth For more information on our community charity work, see http://txccorp.iware.com.tw/index.php?action=f_social_1&cid=4&sid=10

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 the D.F. Act, the US Administration has expressed solemn concern on violence and persecution of human rights in Congo Democratic Republic and its neighboring countries related to the mining and trading of Conflict Minerals. Therefore, it required relevant personnel to expose and audit the Conflict Minerals coming from Congo and its neighboring nations.
To clarify the relevant terms related to Conflict Minerals, section 1502 has set forth five definitions of which four are explained below:

Neighboring nations:The Republic of Congo in Africa and its neighboring nations.

Armed groups:Refer to the US Foreign Aid Act defining groups which seriously infringed upon human rights using force. The Republic of Congo and its neighboring nations having such conduct are referred to this category.

Conflict Minerals:They refer to minerals as follows: Tantalite, cassiterite, gold, wolframite or others as defined by the US Administration.

Areas controlled by armed groups:Refer to mineral areas actually controlled by the armed groups in the Republic of Congo and its neighboring nations, or those areas under taxation or extortion by operators of mining, transportation and sale of conflict minerals, as well as the selling channels and production facilities for control of conflict minerals.

As explained above, aforementioned minerals mined and sold for military purpose by people under armed forces within the territory of Congo or its neighboring areas belonging to the scope of conflict minerals (refer to the D.F. Act for relevant information).

The two civic groups EICC (Electronic Industry Citizenship Coalition) and GeSI (Global e-Sustainability Initiative) are extremely concerned about the conflict minerals and the related issues. Consequently, starting from 2009, the related companies of the industrial chain have reminded manufacturers on performing corporate social responsibility through group discussions and press release to avoid using aforementioned conflict minerals (refer to the EICC and GeSI websites for relevant information). In February 2011, EICC and GeSI again jointly provided the Conflict Minerals Due Diligence Tool for self-inspection of parts used by manufacturers to avoid using Conflict Minerals as defined by the D.F. Act.

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 EICC and 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: 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 EICC and GeSI to ensure that their products do not use any conflict minerals from aforementioned areas. TXC suppliers whose parts containing tantalite, cassiterite, gold and wolframite have all signed the Commitment on Prohibiting Use of Conflict Minerals as follows.

Statistical Chart of TXC Materials Containing Conflict Minerals (04/01/2015)
  Vendor Code Source Commitment Countersign Rate
Gold 594 Japan V 100%
1119 Japan V
5484 Japan V
2179 Japan V
964 America V
1383 Taiwan V
3201 America V
4697 Japan V
1871 Japan V
5404 America V
Tantalite 0 0 0 N/A
Wolframite 594 Japan V 100%
1119 Japan V
7141 Taiwan V
1797 Japan V
3366 Japan V
4697 Japan V
1871 Japan V
5404 America V
Cassiterite 5484 Japan V 100%
2179 Japan V
5366 Japan V
5511 Taiwan V
5363 Japan V
6640 Japan V
4697 Japan V
1871 Japan V