IAC Corporate Social Responsibility Report

Transcription

2008
We Care, We Share; Anytime, Anywhere!
Introduction
Boundary of the Report
This report was published in June 2009, and covers IAC’s Corporate Social
Responsibility performance in both Taiwan and mainland China.
This is the first CSR report that IAC has made. In addition to responding to the
international situation and meeting the demands of clients and investors, it provides information not appearing in the Annual Report. This CSR report covers IAC
activities in 2008 in the areas of corporate governance , corporate commitment,
social involvement and environmental protection.
Reporting Principle
This Report is written from the stakeholder point of view and provides full
explanations for issues of possible concern to different stakeholders. The selection
of the issues and their priority order were identified on the basis of discussions
held by the IAC CSR Committee, and more detailed comment is provided in the
various sections with regard to the main themes that were selected.
Reporting Guidelines
The 2008 IAC CSR Report was written in accordance with, and conforms to,
the GRI G3 (Sustainability Reporting Guidelines Version 3.0 of the Global Reporting Initiative)and presents IAC’s main sustainability theme, associated strategy,
objectives and steps taken.
Contact Information
If you have any questions or suggestions regarding this Report, we will be
happy to hear from you. You may contact us at:
Inventec Appliances Corp.
Corporate Social Responsibility Committee
Justin Hsu
No.37, Wugong 5 Rd., Wugu Industrial Park, Wugu Hsiang, Taipei, Taiwan 248
Tel.: +886-2-2299-9329
Fax: +886-2-2299-4800
Email: [email protected]
Website: www.iac.com.tw
2008 IAC CORPORATE SOCIAL
RESPONSIBILITY REPORT
01
Contents
IAC Corporate Social Responsibility Report — Introduction
From the Chairman
From the General Manager
GRI/G3 Index Table
Self-Declaration of GRI G3 Application Level
01
03
04
64
65
Company Profile
About IAC
Business Model
Applications
Operation Strategy
The IAC Record
Corporate Social Responsibility
06
07
08
09
10
12
For Investors
Corporate Governance
Organizational Structure
Internal Audit
Risk Management
Disclosure of Information
Financial Performance
16
16
18
18
19
20
For Partners
Innovative R&D
Customer Relations
Green Products
The Manufacturing System
Supplier Management
The Private OKWAP Brand
22
25
28
32
37
40
For Employees
Employee Relations
Employees Profile
Employee Development
Rights and Duties
Work Safety
Activities and Outreach
Future Prospects for Employee Relations
44
44
45
47
48
49
50
For Society
Going Green at IAC
Management of Greenhouse Gases
Energy Management
Water Resource Management
Waste Management
Independent Environmental Activities
Social Involvement
52
53
55
56
57
58
59
From the Chairman
Only by fulfilling its corporate social responsibility can the corporation live and prosper
in harmony with the environment and society.
In the 200 years since the Industrial Revolution,
long more to the internal management of the corpora-
“technology” and “management” have interacted and
tion and the dividing line between their respective scope
complemented each other to become two great pillars
and action can be drawn rather easily. Environmental
that are constantly raising the level of human society’s
protection and social involvement, however, are more
power of production. Technology has often been seen
oriented toward interaction with the outside world and
as the driving force behind the progress of mankind’s
their scope and action are, by contrast, more dynamic.
material culture. For a long time the prediction that
In its running of the business, the corporation must give
technology would always develop in a straight line has
priority to perfecting its internal management, while at
found broad favor among the population.
the same, faced with pressing environmental demands
For more than ten years now the global greenhouse
and an unstable social situation, it works together with
effect caused by excessive CO2 emissions, the gradual
outside agencies. Only by fulfilling its corporate social
depletion of energy resources caused by excessive use of
responsibilities can the corporation live and prosper in
oil, the increase in environmental waste brought about
harmony with the environment and society.
by excessive industrialization, natural disasters brought
There is a rather solid consensus in society today with
on by unusual weather conditions, etc., all explain why
regard to the orientation and objectives of corporate
the development of “technology” must have some re-
social responsibility, yet the implementation of many
strictions to safeguard the environment so that it might
details remains to be completed. For this reason, in
be sustained. Thus “environmental protection” that
promoting “corporate governance,” “corporate commit-
gives top priority to energy-saving and carbon reduction
ment,” “social involvement” and “environmental protec-
activities like developing green products, cutting down
tionism,” IAC, in addition to beginning at home, wants
on energy consumption, waste volume reduction and
to extend outward and interact with our stakeholders.
minimization and forestation, becomes one of the
corporation’s social responsibilities.
We want to engage in positive interaction and open
communication with stakeholders, to understand their
Furthermore, while the spread of globalization as
opinions, then use this feedback at the company level
well as the development of the Internet and telecom-
to conduct self-reviews and make adjustments; to the
munications technology have led to the circulation of
extent of our ability, with the objective of meeting the
information without borders, it has also become the
expectations of all segments of society, we seek the
focus for the utilization of material, human and intellec-
optimal balance and use this to establish a good basis
tual power on a global scale. Because the middle class
for the mutual sustainability of the corporation and the
is shrinking, developed countries have generally fallen
social environment.
into the predicament of the “M-shaped society.” The
stability of the social structure may face serious challenges at any time and economic predictions and the
traditional business cycle do not work. For this reason
the corporation is duty bound to become involved in
issues and activities related to the society upon which it
depends for its existence and make up for government
department shortcomings in many areas. Thus “social
involvement” also becomes one of the corporation’s
social responsibilities.
Corporate social responsibility includes “corporate
governance,” “corporate commitment,” “environmental
protection,” and “social involvement.” Among these,
corporate governance and corporate commitment be-
Chairman
03
From the General Manager
Our mission: create performance, benefit people.
Since the beginning of the 20th century, science and
climbing two tall mountains. The first mountain is that
technology have been constantly changing and develop-
of corporate performance, the second is that of social
ing with increasing speed. Not only has this made the
responsibility.” This point of view is in perfect harmony
world smaller, it has brought abundance, variety and
with IAC’s corporate mission.
convenience to the material life of mankind.
Corresponding with the corporate mission are the
Throughout this process some of earth’s precious
“shared values” that embody the expectations and
resources have been discarded in ignorance, while some
demands put upon each individual member. Of course,
valuable resources have been consumed and have led
living in a society where information is universally
to the accumulation of waste that has upset the earth’s
available, it is inevitable that individual values will differ
entire ecological balance. For the past hundred years
among members and that society might show a trend
man has misused the store of resources available to him,
toward a diversified esthetic sense. Nevertheless, the
and now Mother Earth has started to fight back without
success or failure of the corporation is postulated on
pity, forcing people to begin thinking in earnest about
efficiency. Thus the “shared values” in broadest outline
the historically critical point they face — the “sustainable
held by the many individual members living in a diversi-
development” of mankind and the earth itself.
fied environment are a necessary common denominator
Business, which promotes technological development
for the individual values in the corporation.
and may even be the first to have started over-using the
The shared values among IAC colleagues are “shared
earth’s resources, is even more duty bound to devote
integrity, pro-active innovation, single-minded devotion
its own resources and influence to “giving back” with
and customer service.” The starting point is introspec-
gratitude even as it “takes” from the earth. Business
tion about “shared integrity,” moving through “pro-
people should try hard to play the role of global citizens
active innovation” and "single-minded devotion" to
and perfect the practice of corporate responsibility to
arrive at the final goal: “customer service.” This includes
lead the entire society to value and carry out mankind’s
also the approach to repaying the “shared integrity and
natural duty to achieve “sustainable development” for
customer service” produced by corporation performance
the earth and mankind itself.
and its “pro-active innovation and single-minded devo-
2008 was a year of economic turmoil for the global
economy. Each and every enterprise was faced with
tion” as the corporation constantly improves its core
competence to achieve business continuity.
the serious challenge of dramatic changes in the overall
environment and business continuity became the No. 1
task. IAC’s mission was: “create performance, benefit
people.” The “mission” represents the highest level of
business philosophy and so succinctly makes a direct
connection between the corporation’s basic achievement — “creating performance” — and its ultimate
objective — “benefiting people.” The fundamental
requirement is to first demonstrate performance, thus
the achievement of performance targets is the necessary
condition for the existence of the corporation. The
corporation’s stated objective with regard to returns on
performance goes beyond the narrow definition of just
a few people to a broad swath of “stakeholders” that
includes: shareholders, clients, suppliers, consumers,
employees and community. A well-known management expert once said: “Running a corporation is like
04
General Manager
Company Profile
About IAC
Sustainable Operation and Service, Innovative Hardware and Software Design, OEM,
Own Private Brand.
Inventec Appliances Corporation (IAC) began as
an original equipment manufacturer (OEM) producing
Inventec Appliances Corporation, Inc.
Founded:
personal digital assistants (PDA) and graphing calcula-
May 12, 2000
tors. On May 12, 2000, the company received official
Headquarters:
approval for its founding and gradually integrated smart
2008 Annual Revenue:
Taipei, Taiwan
NT$69.395 billion
handhelds with network appliances to form its core
product line. On October 25, 2005, the company was
Chairman:
listed on the Taiwan stock exchange. Every year since its
General Manager:
Jackson Chang (Chang Ching-Sung)
Daniel Lee (Lee Chia-En)
founding the company has had excellent turnover and
Employees:
performance.
15,854
The IAC marketing and service network reaches
everywhere. It has operations in the greater China area
— Taipei, Shanghai, Nanjing, Xi’an, Nanchang, Beijing,
direct stores have been developed in the mainland China
Guangzhou, Shenzhen, and in the U.S. — Dallas, Silicon
area. In 2008 OKWAP had more than 35% of the PHS
Valley, as well as in New Delhi, Tokyo and Munich, while
market, firmly on the throne as PHS cellphone market
Shanghai and Nanjing are the primary production bases.
champ.
Worldwide staff numbers more than 15,000 with over
By quickly moving its own brand into the mainland
2,000 professional engineers making up 14% of the
China market, IAC was able to create a base for sus-
total workforce.
tained business operations and, additionally, was able
Not only does OKWAP have four direct store and
to help its OEM clients, thus successfully introducing
more than 3,000 retail stores in Taiwan, more than 9,000
its products into the mainland China area market and
retail stores, 700 franchise service centers and 200
moving toward a win-win situation.
IAC Locations Worldwide
06
Business Model
Flexible and efficient organization management, creating customer value.
IAC Business Model
Global Clients
IPDS (integrated product design service)
efficient technology layout
Technology
Platform
– multi-media
– wireless
– broadband
– broadcast
– computer network
Products
– Smart Handhelds
– Network Applications
IODM (integrated original design manufacturing)
economy-of-scale manufacturing
COBM (community own brand marketing)
branding impact and value
Greater China Area
Product + Service
07
Applications
Thorough development of handheld and network applications, consolidating a leading
market position.
IAC Product Range and Technology Platforms
Network Environment
Computer Network Products
Communications Network Products
Network Applications
Smart Handhelds
Continue Accumulating Experience on
Technology Platforms.
Maximize Leverage for Product Development and Supply Chain Management.
Broadcast Network Products
08
Operation Strategy
Use the CSP and TIE cycle strategies, constantly seek to perfect the corporate vision.
IAC Corporate Vision
IODM:
Become the world’s best partner for smart
handheld and network application products.
COBM:
Make OKWAP the No. 1 brand in the Chinese
market.
IAC Corporate Operation Strategy
Corporate and society sustainability, harmonious coexistence of man and nature.
Mission
Vision
Create performance and benefit people.
IODM: Become the world’s best partner for smart handheld and network application products.
COBM: Make OKWAP the No. 1 brand in the Chinese market.
Competency
Strategy
Performance
–Create corporate core
competency.
–Carry on the excellent heritage
of fulfilling corporate social
responsibility.
–Three business models of IPDS, IODM
and COBM.
–Customer-centered, process-based
organization.
–Performance management based on a
balance scorecard.
–Fulfill corporate social responsibility.
–Performance review of strategy
implementation.
–Disclosure and communication
with regard to performance
results.
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http://mops.tse.com.tw
http://www.iac.com.tw
09
The IAC Record
In the few short years since its founding, IAC has garnered high praise and has seen
its turnover show tremendous growth. The history of the company bears witness to its
record of growth.
10
Year
Item
2000
The company was originally a factory primarily engaged in the production of personal digital assistants
(PDA) and graphing calculators for Inventec Corp. When it received official approval for incorporation on
May 12, 2000, it was capitalized at NT$1.1 billion. In June 2000, it invested in the founding of Inventec
Appliances (Cayman) Holding Corp. At the same time via this subsidiary it invested in setting up Inventec
Appliances (BVI) Corp. and in the USA, Inventec Appliances (USA) Distribution Corp. and Inventec
Appliances (USA) Packing Corp.
2001
1.Received ISO 9001:2000 certification from the British international inspection, verification, testing and
certification company, SGS.
2.SGS ISO 14001 certificate changeover (Inventec, Taipei Factory No. 2 certificate changed over to IAC
certificate).
3.The OKWAP i108 cell phone received the Wireless Technology Prize for Application and Product from
R.O.C. Telecommunication Month.
4.Won the International Trade Award given by the Executive Yuan for ranking No. 7 in business export
growth rate for the year.
2002
1.On April 29, 2002 the regular shareholders’ meeting decided to increase capital by earnings
recapitalization, using the year’s surplus of NT$187 million, and by cash through the issuing of 101.3
million shares at a NT$25 premium. After the capital increase, the capitalization was NT$2.3 billion
with an evaluation reference date of June 13, 2002. In addition, the company merged with Inventec
Online Corp. with a merger reference date of November 22, 2002. After the merger, this company
was the “remained” company. The merger stock ratio was 3.96 shares of Inventec Online Corp. to
1 of this company, resulting in an increased issuing of five million new shares with an individual face
value of NT$10, adding up to NT$50 million in total, thus resulting in an after-merger capital stock
value of NT$2.35 billion.
2.In November received funding from the Ministry of Economic Affairs (MOEA) Technology Research and
Development Program to be lead company and pull together relevant entrepreneurs to develop a plan
for a mobile terminal application platform (MAP).
3.The OKWAP iP88, 166 smart phone won the 10th Taiwan Excellence Award.
2003
1.Acquired 100% of equities of Inventec Appliances (Shanghai) Electronics Corp. from Inventec (Hong
Kong) Corp. through the offshore holding company Inventec Appliances (Cayman) Holding Corp.
2.The OKWAP 166 smart phone won the 11th Taiwan Excellence Award.
2004
1.Through Inventec Appliances (Cayman) Holding Corp., invested in Inventec Technology Corporation
(Shanghai) and Inventec Technology Corporation (Nanjing).
2.Acquired 100% of equities of Inventec Appliances (Nanjing) Electronics Corp. from Inventec (Hong
Kong) Corp. through the offshore holding company, Inventec Appliances (Cayman) Holding Corp.
3.Received National Invention & Creation Award, Contribution Prize, Bronze Medal in Corporation
Division.
4.The OKWAP 163 smart phone received the 12th Taiwan Excellence Award.
5.Launched Taiwan’s first optical-zoom megapixel smart phone, the OKWAP i516.
6.Launched Taiwan’s first touch control, dual screen, flip-style smart phone, the OKWAP S762.
7.Received the “12th MOEA Industrial Technology Development Award” — Excellence Prize in
Optoelectronic and Communication Division.
8.Ranked 23rd in the Business Weekly list of Taiwan’s 100 top manufacturers.
9.Ranked 4th in the Commonwealth Magazine Annual Survey of Taiwan Benchmark Company
Reputations — Communications.
10.Received the National Invention & Creation Award — Gold and Bronze Medals.
11.Received the National Invention & Creation Award for smart phone Chinese character input method.
Year
Item
2005
1.On January 24 the MOEA Intellectual Property Office announced the 2004 rankings for corporate
patent applications and approvals. The company was ranked 10th in the number of patent applications
with 293. It was ranked 11th in the number of patent approvals with 218.
2.The IAC smart phone A267 received the Taiwan Excellent Product Certificate.
3.Launched Taiwan’s first sliding cellular smart phone with handwriting recognition, the OKWAP A236.
4.On October 25 company goes public and is listed on the open market.
5.Acquired 100% of equities of Inventec Appliances (Shanghai) Digital Electronics Sales Corp. through
the offshore holding company Inventec Appliances (Cayman) Holding Corp.
6.Company capitalization increased to NT$3.33 billion.
2006
1.Inventec OKWAP launched first 3G cell phone under its own brand.
2.Acquired 100% of equities of Inventec Technology Corporation (Nanjing) through the offshore
holding company Inventec Appliances (Cayman) Holding Corp.
3.The MOEA Intellectual Property Office announced the 2006 rankings for corporate patent applications
and approvals. The company was ranked 10th in the number of patent applications with 277. It was
ranked 11th in the number of patent approvals with 187.
4.The OKWAP smart phones S858, A375, and A236 received the Taiwan Gold Awards for Product
Excellence.
2007
1.Acquired 100% of equities of Inventec Communications Technology Corporation (Xi’an) through the
offshore holding company Inventec Appliances (Cayman) Holding Corp.
2.Through sub-subsidiaries Inventec (Nanjing) Technology Corporation and OKWAP (Nanjing)
Technology Corporation, set up Inventec (India) Technology Corporation with shareholding of 98%
and 2% respectively.
3. Invested in 100% of equities of InStars Multimedia Corporation.
4.The MOEA Intellectual Property Office announced the 2007 rankings for corporate patent applications
and approvals. The company was ranked 10th in the number of patent applications with 268. It was
ranked 9th in the number of patent approvals with 205.
5.Received the Indian 2007 Golden Peacock Innovative Product/Service Award for the first GSM+CDMA
cellphone made under contract for an Indian market ODM client.
6.The OKWAP smart phone I885 received the Taiwan Gold Award for Product Excellence.
2008
1.Ranked No. 35 in Commonwealth Magazine ’s top 1,000 major manufacturers and was No. 2 in the
communications and network industry.
2.Ranked 163 in Business Weekly ’s “Top 1,000 OTC Listed Companies in China, Taiwan and Hong
Kong.”
3.Ranked No. 50 in Digital Times ’ 100 top Taiwan companies.
4.Ranked No. 50 in Digital Times ’ and Business Week ’s Info Tech 100.
5.Received Chinese International Trade Association’s award as one of the “Top 100 Taiwan Consumer
Brand Names.”
6.OKWAP’s four models of cellphone won the “Taiwan Excellence Award.”
11
Corporate Social Responsibility
Demonstrating a determination to practice Corporate Social Responsibility, committed
to a belief in loving the planet and assuming the responsibility for protecting it as our
own.
As a corporate citizen, corporate public giving, par-
is shared by the President
ticipation in community development, valuing environ-
and the General Manager.
mental protection, etc., are all expressions of gratitude
In addition, within the
to, and a way of paying back, society. IAC spares no
CSR Committee, a Core
effort in its participation in activities of local business-
Implementation Group has
related associations, societies and organizations. By the
been set up composed of
end of 2008 IAC had taken part in the activities of more
full-time professionals devoted to integrating IAC CSR
than 30 associations and societies.
staged target planning with the inter-working groups.
IAC’s Pledge to Love the Planet
To further integrate the promotion and implementation of social responsibility, in April 2008 IAC established
Identification and Communication with Stakeholders
the IAC CSR Committee, committing to a belief in “loving
It is absolutely impossible for modern corporate
the planet” and “protecting the planet” as its own
operations to be divorced from a relationship with social
responsibility and announcing IAC’s determination to
groups because the activities of the corporation are all
carry out its policy of corporate social responsibility.
related to social order and economic development. If the
The CSR Committee put together four task forces:
corporation is able to respect the rights and interests
Corporate Governance, Company Commitment, Social
of stakeholders, maintains excellent ties with them and
Involvement and Environmental Protection. Each task
both sides develop a close friendly relationship, then
force was further broken down into several working
there will be more trust and support.
groups based on specific duties. Each working group
In the process of implementing CSR, the key basis for
must, in accordance with the work for which it is
IAC’s CSR planning are the needs and thoughts of the
responsible, then carry out horizontal integration
stakeholders. For this reason we first identify the primary
between various factories on planning and results with
stakeholders based on the corporation’s activities. These
regard to work projects. Each working group is headed
would include shareholders, clients, suppliers, consum-
by the most senior manager of the respective work
ers, employees and communities.
unit in order to implement the work and achieve the
IAC has already set up many open communication
integration of mainland China and Taiwan factories and
channels tailored to different stakeholders. We continue
work units. The Chairmanship of the CSR Committee
to utilize these channels to know what our stakeholders
IAC CSR Committee Structure
CSR Committee
Core Implementation
Group
12
Company Commitment
– Internal Controls
– Investor Relations
– Customer Relations
– Employee Relations
– Supplier Management
– Innovation, R & D
Social Involvement
– Public Service
– Social Involvement
Environmental
Protection
– Green Products
– Work Environment
– Living Environment
Associations and Societies With Which IAC Has Been Involved
Association / Society
Primary Service or Activity
Taiwan Wireless and Information
Technology Club
3G/4G R&D Forum.
Chinese Association for Industrial
Technology Advancement
Promotion of unified communications, techniques and technology.
Taiwan Electrical and Electronic
Manufacturers' Association
SCDMA Wireless Broadband Forum
UPA China
Promotion of industrial exchanges, holding exhibitions.
Broadening of the SCDMA market and the vigorous development of the industry.
Spreading the concept of DDF.UPA usability and techniques in mainland China.
Telecommunication Terminal Testing &
Approval Forum
Technological discussions on the testing of Chinese telecommunication technology and
the issuing of TD-SCDMA IMEI numbers.
The Taiwan Corporate Governance
Association
Pulling together elites from the world of business and practical affairs, creating opinion
leaders and benchmarks to share knowledge through the exchange of experience.
IAC CSR Work Group Responsibilities
Work Group
Primary Responsibilities
The Core
Implementation
Group
planning the integration of IAC CSR phased targets and the inter-work groups.
Internal Controls
strengthening of the governance structure of the Board, implementation of internal audits, risk
management, and compliance with legal requirements.
Investor
Relations
timely disclosure of financial information, increase of transparency, ensuring investor rights and
interests.
Customer
Relations
providing excellent service, satisfying client demands, establishment of a longterm partner
relationship.
Employee
Relations
developing employee training plans, safeguarding employee rights and interests, conducting
employee-oriented activities and employee outreach, providing an excellent and safe work
environment.
Supplier
Management
Innovation and
R&D
selection of suppliers who answer to their social responsibility, environmental materials
management, an E-ordering management system.
environmental and eco-friendly products, use of environmentally acceptable substitute materials,
switching to use of environmentally responsible development tools and equipment.
Public Service
development of volunteer organizations, active participation in community outreach and
educational promotion activities.
Social
Involvement
involvement and promotion of discussion of topics relating to social development trends.
Green Products
reduced use of hazardous substances in products, product design for ease of disjointing and
recycling, increase in product energy efficiency.
Work
Environment
material waste reduction and recycling on the assembly line, development of eco-friendly
manufacturing process techniques, lean production and reduction of wastage.
Living
Environment
“green” factories and office environment, plan for independent environmental protections
activities, compliance with local environmental laws and regulations for factories.
13
care about. In addition, we make complete records of
this information and, based on topics of possible concern to different stakeholders, the IAC CSR Committee
IAC Stakeholders
then discusses the results, after which it sifts out and
sorts the topics with relevance to the stakeholders.
In addition to the routine discussions on inter-
Shareholders
working group activity and implementation follow-up,
Customers
at its regularly scheduled monthly meetings, following a
discussion of topics of concern to stakeholders, the IAC
Committee lays out plans to meet the expectations of
the stakeholders.
Community
Suppliers
In the future we will continue to disclose our efforts
and the results to IAC’s CSR to our stakeholders. And
in this process we will involve stakeholders in longterm
planning for CSR strategy and work and meet the needs
Employees
Consumers
of our stakeholders with no gap.
Topics of Concern to Stakeholders
Stake Holder
Communication Channel or Method
–Company Profit
–Operational Guidelines
–Operation Risk Management
Normal shareholder: shareholders meeting, annual report, company
website, market observation post system, investor interviews.
Institutional shareholder: company website, market observation post
system, investment seminars, non-deal road shows and online conferences.
Customers
–Product Quality
–Cost Control
–Compliance with Environmental
Laws and Regulations
–Product Time to Market, Time to
Volume
–Corporate Social Responsibility
–Supply Chain Management
Every quarter the Quarterly Business Review (QBR) issues a score, and
discussions and improvements are carried out in accordance with client
suggestions; in addition, a satisfaction survey of clients is conducted
voluntarily once each year.
Supplier
–Compliance with Environmental
Laws and Regulations
–Compliance with Domestic
and International Laws and
Regulations
–Corporate Social Responsibility
In addition to a quarterly audit of suppliers, an IAC Portal website, a RoHS
website and a supplier portal have been set up as a platform for interaction
and communication.
Consumer
–Product Quality
–After-sales Service
–Green Product Design
Via retail sales, call center and website, collect client opinions and reply in
a work log and weekly report for the reference of relevant departments for
improvement.
Employees
–Employee Welfare
–On-the-job Training
–Career Development
–Work Safety
Via the Chairman's mailbox, regular monthly company meetings, regular
labor committee meetings, employee interviews, the employee welfare
committee and vitality office, etc., to communicate with employees on an
equal and open basis.
Community
–Compliance with Domestic
and International Laws and
Regulations
–Environmental Protection
–Giving Back to Society
Regular participation in community activities and work in community
outreach.
Shareholder
14
Topic of Concern
For Investors
A sound operational system, effective operations and information open to the public.
16
IAC Board of Directors
Title
Name
Education
Experience
Jackson Chang
(Chang Ching-Sung) M.E.E., Taiwan National University
Daniel Lee
BBA (International Trade), Chinese Culture Univer(Lee Chia-En)
sity
Chairman
Director
Director
Inventec Company
Representative,
Inventec Corp.
Director
Inventec Company
Representative,
Inventec Corp.
Executive Vice President, Inventec Corp.
General Manager, Shanghai Electronic
Technology Company, Inventec Group.
Lai Ming-Chang
M.E.E., Taiwan National University
Vice President, Inventec Corp.
Hsu Shin-Chun
BBA, Taiwan National University
Deputy General Manager, Inventec Corp.
Independent Director
Su Shun-Shien
Wu Hung-Chi
Lee Lin-Shan
10th High-level Executive Program, Department
of Business Administration, National Chengchi
University
BBA, National Taiwan University
Ph. D. (Finance and Banking), Boston University
MBA, Arthur D. Little School of Management
Chairman of the Board at MutoSilicon
Ph.D. (Electrical Engineering), Stanford University
Managing Director of the Small and
Medium Business Credit Guarantee Fund.
Chairman, Taiwan National University
Commission on Research and Development
IAC Organization Chart
Board of Directors
Auditing Center
General Manager
Performance Management &
Development Division
Finance Management
Information System & Technology
Division
Manufacturing System Division
Production Engineering Division
Quality Management Division
Supply Chain Management
Division
Operation Division
Innovation Development Center 3
IODM Business Group 3
OKWAP Brand Greater China
Management
Patent Management Center
Legal Affairs Management Center
Technology Alliance Management
Division
Design Service Management
Division
Investment Alliance Management
Division
Risk Assessment & Business
Monitoring Center
Secretariat
IAC Organization Model
Integrative Committees
Corporate
Development &
Governance
– Corporate Social Responsibility Committee
– 6-Sigma Committee
– Business, Technology & Management Committee
– Secretariat
Business OKWAP Brand
Development Greater China
Management
Strategic Working Groups
– Risk Assessment & Business Monitoring
– Investment Alliance Management
– Design Service Management
– Technology Alliance Management
– Legal Affairs Management
– Patent Management
IODM Business IODM Business IODM Business
Group 1
Group 2
Group 3
Innovation
Development
Center 1
Innovation
Development
Center 2
Innovation
Development
Center 3
Operation
Functional
Resource
Quality Management
Production Engineering
Manufacturing System
Information System & Technology
Infrastructure
Finance Management
Performance Management & Development
17
Analyze cases and issues.
Risk Assessment & Business Monitoring Center Procedures
18
Call together personnel
from relevant units, review current operational
procedures, formulate
proposals for improvement.
Confirm procedural
improvement plan.
Promote and train in new
procedures.
Continue to monitor
new procedures, ensure
disciplined execution.
Start up operational risk
assessment mechanism.
Ascertain cause of risk,
level of impact and frequency. In cases of major
impact risk, provide
timely warning.
Participate in relevant
meetings, provide professional consultation on
risk control with a view
to effectively controlling
risk as soon as possible.
Record incident and
report countermeasures
for reference in treating similar issues in the
future.
Legal Affairs Management Center Procedures
Legal risk-avoidance mechanism.
Units are assisted in dealing
with issue to minimize legal risk.
Post-incident review of oversights with units to avoid reoccurrence of risk.
(New risk elements are incorporated into
risk-avoidance mechanism.)
Legal Issues.
If legal risk has broad implications, Legal Center meets with
various units for discussion.
Proposals by competent unit.
Legal Affairs
Center examines and
judges legal risk, makes
preliminary decision
on handling.
In simple cases, Legal Center
decision is final.
19
IAC Financial Performance
Revenue (NT$ million)
Return on Equity
Cash Dividend
5.60
(NT$/share)
5.50
Stock Dividend
5.10
(NT$/share)
120,330
105,202
79,026
31.0%
92,650
3.00
3.35
3.00
69,395
32.1%
26.4%
18.3%
16.4%
1.00
1.00
0.50
0.50
2004
20
2005
2006
2007
2008
2004
2005
2006
2007
2008
For Partners
Innovative R&D
Leader in integrating new technology with user-friendly products.
IAC has given itself the responsibility to “integrate new
technology and create the best user-friendly products”
Invention Gold Medal Award, are cases of innovation that
have been enthusiastically welcomed by the market.
and has embraced a spirit of active investment and devel-
Functional innovation comes from technology upgrad-
opment as its environmental concept of innovative R&D.
ing. Since 2000, IAC has gradually moved from low-tech
Whether it is encouraging the building of an in-house
language-learning products to high-tech wireless com-
system for innovation, training for and implementation
munication products. For example, 2G (PHS, GPRS), 3G
of innovative R&D and obtaining high-tech patents or
(WCDMA, CDMA2000, TD-SCDMA) wireless communi-
whether it is the environmental concept and R&D in user-
cation, smart phones, GPS, etc., currently stand out as su-
friendly products, we have received high marks. Based on
perb achievements. IAC’s unique “dual SIM dual standby”
the unique technology associated with dual module and
technology has not only greatly increased convenience
dual stand-by, language learning and teaching assistance,
to the consumer, IAC’s independently developed “multi-
IAC R&D has yielded a whole series of products that have
function antenna” has been successfully applied to multi-
found great favor with consumers and that have set up
band and multi-standard wireless terminal products, for
important mileposts for conserving the earth’s resources,
example OKWAP C152, C10, C12 PHS pull together 3G
creating user-friendly products and popularizing green
and GSM, PHS and GSM multi-standard networks into
environmentalism.
one cellphone.
Functional Innovation
Innovation in Technique and Process
Functional innovation is a product’s selling point. For
In its pursuit of innovation in technique and process,
this reason, IAC emphasizes the replacement of single-
IAC has actively introduced methods to promote creative
functionality by multi-functionality, the replacement of
invention and process improvement. It has adopted Six
high energy consumption by low energy consumption
Sigma, Design for Six Sigma (DFSS) and the Theory of In-
and the progressive development of the best user-friendly
ventive Problem Solving (TRIZ).
The most important guiding principles of
human-computer interfaces. An excellent example of this
is our language-learning products.
tion.” 2006 saw the full introduction of Six Sigma at IAC
ers, IAC has also adopted a model of broad cooperation
and the use of the DMAIC improvement process (Define,
with the most prestigious language-learning institu-
Measure, Analyze, Improve, Control). By the end of 2008
tions, such as dictionary publishing giants Longman and
the company had trained more than 700 employees in
Cambridge, in conjunction with whom it has developed
the system and a financial benefit of over NT$600 million
language-learning cellphones, like the OKWAP i885. It
was realized.
has also embeded a dictionary function in its cellphone
Via DFSS, IAC is able to
products, such as the OKWAP S858, A363 and S868,
achieve “better quality R&D, lower R&D costs and timely
achieving the three-part goal of being “paperless, elec-
R&D products” in the initial product development phase
tronic and portable.”
to raise the competitiveness of these products. By end of
A model for providing user-friendly interface design,
2008 IAC had trained nearly 100 DFSS personnel.
IAC does a “consumer usage habits variance analysis” for
In making use of TRIZ, IAC has intensified its
different areas and then, with the help of professional
training of internal R&D personnel as they learn how to
user interface design companies, it designs interfaces in
solve the many problems encountered in the process
keeping with consumer usage habits of the respective ar-
of innovation and to go on from there to obtain an in-
eas. IAC’s patented “baijiaxing” technology and the “IAC
creased number of innovation patents.
smart dictionary entry method,” winner of the Taiwan
22
Six Sigma are “quality as the core” and “client satisfac-
In addition to formal involvement with content provid-
In 2008 IAC obtained a total of 162 patents. On the
Number of Patents Granted by Area
Area
Taiwan
PRC
US
Great
Britain
Hong
Kong
France
South
Korea
Germany
EPO
India
Japan
Total
Patents
1,083
775
107
21
14
12
10
8
3
7
2
2,042
Number of Patents Granted by Type
Type
Utility
Utility Model
Design
Total
Total
880
601
561
2,042
list of patent awardees in Taiwan, IAC ranked No. 8,
components and the development of special, new materi-
showing that with its lean R&D budget IAC had actually
als all make it easy to see how conscientious we are in
achieved remarkable results. (Source: MOEA Intellectual Property Office)
this area.
Broken down by geographic area, in the last several
In the structural development
years IAC obtained a total of 1,083 patents in Taiwan, a
phase 85% of materials used are degradable. Exterior
total of 775 in mainland China, and a total of 107 in the
decorative painting is less than 50%, and when planning
U.S., with a total global figure of 2,042. In terms of pat-
for the exterior surface, the painted parts ratio is limited
ent types, IAC had more applications for Utility patents,
to under 50%. First, this reduces the painting process and
with a total of 880. Utility Model patents representing
the environmental impact of the paint and, secondly, it is
improvement in structure, accounted for a total of 601.
beneficial to the recycling of the construction material. In
Design patents for exterior design totaled 561.
the structural design material selection phase it is stipulated that 85% of the material used be degradable in con-
Innovation in the Use of Materials
sideration of future recycling and the re-use of resources.
At the same time, in order to reduce pollution to the
Innovation in the use of materials primarily relates to
maximum, in some industrial products, the original plastic
not using restricted substances, and being easily recy-
shell of the product is used and not painted, thus avoid-
clable and material-saving. IAC’s structural designs, multi-
ing polluting the environment with the benzene, dimeth-
function antenna design, the use of integrated-function
yl-benzene and tetramethyl-benzene released during the
painting process. Priority is given to environmental vacuum plating to replace the galvanic plating, and transparent material and colored transparent paint is introduced
for use with the product in the painting process.
Multi-function antenna design uses changes in antenna structure and im-
Transparent paint. Working with paint and plastic factories a colored transparent finish was developed. The LCD is inside the device shell and when it lights
up, the display is visible through the shell itself.
pedance matching, with CDMA as the primary antenna,
to develop GPS and CDMA joint antenna functionality. In
addition, an innovative construction process is used for
the antenna that effectively reduces the amount of material used. By the end of 2008 the materials consumption
was cut by nearly 0.45 metric ton of metal and 0.3 metric
ton of plastic, and there was a reduction of 0.4 metric ton
WCDMA/GPS two-in-one antenna
of metal scrap and 0.2 metric ton of plastic waste.
23
Optics Simulation
Temperature Change
Simulation
Tolerance Analysis
Simulation
CNC Equipment
Drop Test Simulation
Air Pressure IPX7 Testing Equipment
The use
assures that products will come to market in a timely fash-
of multi-functional integrated chips reduces the used
ion and vie for market share. The simulation technique is
area of printed circuit boards (PCB) and at the same time
used in the structural development phase, which saves
reduces component pollution and production costs. Each
on development time and reduces the number of un-
terminal product uses at least two fewer chips, and each
necessary test prototypes. With the further introduction
PCB uses less material by saving 152mm2 of used area. In
of CNC equipment, an entirely new simulation technique
addition, the use of a triple board design can reduce de-
and process are used, reducing the chances of waste and
sign costs for outlays on metal boards, lower production
failure, avoiding the repair of dies and sample making and
line costs for Surface Mounting Technology (SMT) and
saving on the use of plastic or samples.
When destructive testing is used to
speed up development and production.
determine a product’s ability to withstand the impact of
a drop or hit, if a simulation can first be done and then
be followed by an actual test, the waste and pollution
caused by the actual test can be greatly reduced, the
quality of the product remaining a prerequisite.
We have also designed our own research, pressuredriven testing equipment for testing watertightness that
The use of multi-functional integrated chips reduces the used area of printed
circuit boards (PCB) and at the same time reduces component pollution and
production costs.
replaces the traditional IPX7 immersion method. This requires only one minute, greatly reducing inspection time.
Because of the equipment’s own high degree of water-
In addi-
tightness, the data can be directly read and a decision
tion to detailed attention to environmental protection
made. There is no necessity to disassemble the equipment
and conserving materials, IAC has also actively developed
to make a reading, thus greatly saving time and manpow-
special new materials. For example, in highly complex
er. The process also cannot cause damage to the product
components ceramic has replaced plastic. Not only can
under inspection, thus situations where a product has to
this greatly lower costs, because ceramic is abrasion-,
be scrapped due to damage resulting from inspection can
heat- and corrosion-resistant, this also increases product
be avoided.
reliability.
Innovation in Tools and Equipment
The Future of Innovation
With the arrival of the 3G and broadband age IAC
For different products, IAC has created laboratories
will continue to forge ahead with wireless communica-
with various testing standards in order to conduct R&D
tion, network applications and technology integration
and establish solidly based hardware requirements. Using
in its products. In response to the multi-functional trend
simulation tools and equipment, waste and pollution have
in smart, handheld devices and wireless multi-media
been reduced. In addition, a great deal of money has
network applications, IAC will continue to develop high
been invested in training qualified personnel in this area,
value-added products in keeping with market trends and
which has led to concrete results in both the hardware
client demand. We will also keep our R&D experience in
design and testing phases.
an “IAC Knowledge management System” in a standardSimulation experiments
facilitate the selection of hardware solutions; soft- and
hardware development move forward in tandem, which
24
ized and organized form for reference and improvement
in an follow-on products.
Customer Relations
Customer Service, Win-Win, Increasing Customer’s Satisfaction.
IAC Quality Policy
To be a strategy-focused organization.
To strengthen our core competence in the market.
To continuously enhance quality by innovative
processes.
To meet customers’ satisfaction and give back to the
community.
Quality Management Organization Chart
Quality Management
Division
Quality Activity Center
(International Standardization Certificates/Six Sigma/Green Products)
Hardware
Verification &
Qualification
Software
Verification &
Qualification
Component
Evaluation &
Qualification
Incoming
Quality
Control
Process Quality
Control
Outgoing
Quality
Control
Agency and
Regulatory
Equipment
Calibration &
Maintenance
IAC Certifications
ISO 9001
ISO 14001
OHSAS
18001
QC 080000
TS 16949
ISO 17025
(EMC/RF)
Quality
Management
System
Environmental
Management
System
Occupational
Safety & Hygiene
Management
System
Hazardous
Substance
Process
Management
System
Automotive
Quality
Management
System
Testing
laboratory
Management
System
25
Project Development Organization of PDPM
Process Control Document
Customer Input
–Request for Quotation
(RFQ)
–Market Demand
–Specifications
Company Policy
Project Plans
Resources
Teams
Product Design Process
Logistics and Service Process
Customer Value Development / Operation / Quality Management/ Production Engineering / Information System & Technology / Performance
Management & Development Process
Process
Product Manufacturing Process
Process Generated Document
26
Direct Shipment Process
End Customer
Orders
IAC ODM/OEM
Customers
IAC Shipment
Direct Shipment
Third-party
Logistics
Delivery to
Consumers
IAC PLM System
IAC factory in Pudong, Shanghai
IAC factory in Nanjing
27
Green Products
A Branding and ODM Company with Top-flight “Green” Competence.
The emergence of environmental awareness shows
the EU in February, 2003. It primarily sets standards for
that people realize the responsibility they owe to the
materials and technology used in electrical and electronic
planet. In talking about environmentalism, things have
equipment. Information and communication equipment
gradually moved from discussion topics to national laws
are also objects of this directive. Currently all products
and regulations, which in turn has given rise to the de-
entering the EU must conform to this environmental di-
velopment of an international certification system. The
rective. No product may contain more than permitted
demand that corporations conform to laws and that they
amounts of cadmium, lead, mercury, hexavalent chro-
be certified, aside from the fact that this benefits the
mium, polybrominated biphenyls and polybrominated
worldwide unobstructed production and marketing of
diphenyl ether.
products, is because corporations understand “protecting
Even before the EU RoHS was implemented, IAC was
the environment” is a social responsibility of the corpora-
aware of the international environmentalism trend and
tion.
had taken concrete action. Beginning in 2003 it worked
IAC has always prided itself on the fact that it is a
with the Industrial Technology Research Institute to in-
branding and ODM company with a top-flight green
troduce a lead-free soldering process. At the same time
competence and has embedded the environmental con-
it carried out a survey of lead-free components among
cept in the design and manufacture of all its products.
suppliers and launched a switch-over program. In 2004 it
In its environmental policy IAC clearly states that we will
completed and shipped the first batch of lead-free graph-
promote the design and manufacture of green products
ing calculators.
in the spirit of pollution prevention and continuous im-
At the end of 2004 IAC went further and set up an
provement to conform to international law and regula-
inter-departmental green product organization and at
tions and the trend toward environmentalism. For this
each factory location installed a full-time green product
reason IAC product design and manufacture are guided
engineer to introduce and promote green products to
by three major strategies: “reduction of hazardous sub-
every IAC business group.
stances,” “design for ease of dismantling and recycling,”
To implement the green
and “raising energy efficiency.”
product idea at every link
in the production chain, in
Reduction of Hazardous Substances
December 2004 IAC drew
up a Banned Substances
The Directive on the Restriction of Hazardous Sub-
Declaration (BSD) to ex-
stances (RoHS) is an environmental directive adopted by
pand control of the use of
IAC lead-free station
IAC Green Product Milestones
First Batch of Lead-Free
Products Shipped
Development of LeadFree Manufacturing
2003
28
Creation of RohHS
Supplier Management
System
Establishment
Of Banned Substances Standard
2004
Conformance With
EU RoHS Directive
Creation of
XRF Incoming Inspection
Mechanism
2005
Conformance With
Chinese RoHS Labeling
Requirement
Creation of the
WEEE 3R Evaluation
Mechanism
2006
Introduction of Greenhouse
Gas Inventory and Carbon
Footprint Survey
Certified IECQ QC
080000
2007
2008
banned substances in manu-
standard is to provide corporations a basis they can draw
factured products. After the
on for their management in order to conform to the RoHS
first quarter of 2006, follow-
hazardous substances process. It is also an internationally
ing a comprehensive push for
approved system standard. In 2007, having passed certi-
materials in IAC manufacturing
fication and obtained the certificate, IAC possessed the
facilities and the supply chain
ability to manage in a systematized way the control pro-
to conform to IAC banned
cess, documentation and record-keeping for hazardous
substances standards, we suc-
substances.
cessfully met the requirements
IAC QC080000 Certificate
Organization for Managing Banned Substances
of the EU RoHS Directive for
The primary IAC R&D and manufacturing bases are
export products.
In addition to the EU RoHS Directive, there is also the
Taipei, Shanghai and Nanjing. At each site there are dedi-
California RoHS and the China RoHS, laws and regulations
cated personnel specifically responsible for green produc-
of other areas as well as standards on reducing hazardous
tion as well as responsible divisions related to the organi-
substances in response to different clients. Besides work-
zation for managing banned substances; these divisions
ing hard to meet legal and client requirements, we inter-
include the Customer Value Development, Engineering
nalize these outside requirements as design standards for
Division, Supply Chain Management Division, Manufac-
our own products and continue to raise the green power
turing System Division, and Quality Management Division.
of IAC products.
For the various stages of the manufacturing process, such
IECQ QC 080000 HSPM is a management system for
as product planning, design development, purchasing, in-
hazardous substances. It is a system standard for hazard-
coming material and manufacturing, there is correspond-
ous substance process management (HSPM) published in
ing documentation on system and process to ensure that
October 2005 as part of the IEC quality assessment sys-
the management of banned hazardous substances pro-
tem for electronic components (IECQ) under the Interna-
ceeds without a hitch.
tional Electrotechnical Commission (IEC). The goal of this
Control Points
Process
IAC Control Process for Banned Substances
Client Requirements
Establishment of
Green Product
Standards
Client Service
Green Product Satisfaction Survey
Contract Review
Design
Development
Review of Laws and
Regulations and
Client Standards
Selection and Use of
Components Conforming to Green
Standards
Shipment
Management
Manufacturing &
Repair of Products
Conforming Products Shipped
–Lead-free Soldering
and Servicing
–Control of Banned
Substances in Subsidiary Materials
Approval of
Components
Materials Purchase
Examination of
Components’
Banned Substance
Content
–Signing by Suppliers
of Banned Substances
Declaration
–Evaluation of Suppliers’ Environmental
Capabilities
Warehouse Materials
Management
Separation of Nonconforming Products
Management of
Incoming Materials
Incoming Inspection
for Banned Substances
29
IAC Management Organization for Banned Substances
QMS/EMS Management
Representative
Full-time Green Product
Engineers
Customer Value
Development Division
Engineering Division
Supply Chain
Management Division
Division
Quality Management
Division
Design for Ease of Dismantling and
Recycling
4.Reduce the number of designs calling for a change in
The Directive on Waste Electrical and Electronic Equip-
5.Minimize the use of screws, use latches, clips and
the direction of dismantling, make dismantling easy to
do with human power.
ment (WEEE) is an environmental directive adopted by the
EU in February, 2003, that sets up goals for the collection,
recycling and reuse of all waste electrical and electronic
other fasteners as much as possible to join parts.
6.Indicate dismantling points next to connections to aid
in rapid dismantling.
equipment. It requires each manufacturer that sells these
products throughout the EU to give due consideration to
environmental pollution problems caused by the discarding of these products and to use designs favoring easy
recycling and the environment, and also to be responsible
for recycling the material themselves.
In 2006 IAC worked with the Electronics Testing
Center, Taiwan (ETC) to introduce the Recyclability As-
In promoting recycling, IAC has moved toward the following principles:
1.Reduce the number of types of materials used (for example, use non-mixed plastic material).
2.Avoid the use of composite material (for example,
plastic with glass fiber or mixed plastic).
3.Avoid the use of metallic plating and baked painting.
sessment Tool. It also combined the design development
process with the Product Lifecycle Management (PLM)
Raising Energy Efficiency
system and, relying on standard work processes and system operations, effectively mastered 3R (Reuse, Recycle,
Recovery) product design.
In promoting easy dismantling, IAC has moved toward
the following principles:
30
After the EU implementation of the RoHS and WEEE
Directives set off a green tide, the EU launched the Directive on Eco-Design Requirements for Energy-using Products (EuP). This directive requires product manufacturers
1.Avoid use of adhesives with plastic materials.
to use Life Cycle thinking and incorporate eco-design re-
2.Avoid embedding of metal in plastic materials.
quirements into the development of product designs and
3.Build with plenty of room for dismantling so that dis-
thereby raise product efficiency, increase the safety of
mantling tools can be easily used, and avoid designs
supplying energy and meet high environmental demands.
calling for the use of special dismantling tools.
Because the energy consumption of electronic products
during the utilization phase constitutes the biggest envi-
create higher standards for the reduction of hazardous
ronmental impact of the product life cycle, IAC continu-
substances, and in the future IAC’s green products will be
ously raises the energy efficiency of its products. Besides
more competitive than ever.
conforming to EU, California, New Zealand and Australian
Areas throughout the world currently have locally ap-
energy efficiency laws and regulations, as well as those of
propriate environmental laws and regulations, such as the
individual clients, IAC actively participates in the voluntary
law on the Registration, Evaluation, Authorization, and
Energy Star program of the U.S. Environmental Protection
Restriction of Chemicals (REACH). This is a law calling for
Agency (USEPA). The goal of this program is to lower en-
the compulsory registration, evaluation, authorization
ergy consumption and indirectly reduce greenhouse gas
and implementation of a safety monitoring system for all
emissions. IAC has already stipulated the Energy Star en-
chemicals entering the EU market. This law has raised the
ergy efficiency standards for external power supplies (EPS)
quality requirements and the threshold for entry for prod-
as the specifications for its own product design develop-
ucts coming into the EU market.
ment.
Improvement in the reduction of hazardous substances, designs for easy dismantling and recycling and energy
IAC’s Green Future
efficiency constitute IAC’s core strategy for its product design and manufacture. At a time when the EU has not yet
Given the competitive trend in the globalized market-
prescribed its eco-design requirements, IAC green design
place, the life cycle of electronic consumer products has
criteria for the design development process have already
gradually shortened. With the very prevalent practice of
incorporated these ideas into design considerations, to
“out with the old, in with the new,” a great deal of elec-
include nine broad categories: materials using efficiency,
tronic waste (e-waste) has been created. If this waste can-
consumables, energy efficiency, dismantling process,
not efficiently be recycled and reused, it will be regarded
extension of product life, documentation, product end-
as trash and will be disposed as such. If it is not properly
of-life, rechargeable batteries, and packaging materials.
disposed, the poisonous substances it contains will cause
We will continue to use these nine indexes in our product
serious damage to the earth’s environment.
designs.
In view of the fact that e-waste and plastic products
In the future, aside from continuing to follow up and
contain halogen compounds and that when incinerated
make certain that IAC manufactured products are able to
they readily produce dioxin (the “poison of the century”)
conform to the laws governing access to the EU region,
compounds, bioaccumulation of these will be a health
IAC will also advocate worldwide the concept of environ-
hazard. Beginning in 2008, IAC actively coordinated with
mental protectionism as our products spread throughout
its clients to promote a halogen-free requirement and
the globe.
31
The Manufacturing System
A Complete Manufacturing System and the Promotion of a Lean Production Capability
Form the Powerful Backstop to Our Global Deployment.
Manufacturing System Organization Chart
IAC Manufacturing System
Facilities
Production Customer Service
Warehouse Management
Production Control
Manufacturing Production
IC Programming
SMT Production
SMT Equipment
SMT Engineering
Factory Information System
Industrial Engineering
Surface Mount Technology
(SMT)
Manufacturing Technology
Customer Service
Lean Management Center
Automation Engineering
RF Engineering
Electrical Engineering
Mechanical Engineering
32
Manufacturing System Division
Production Engineering Division
Tooling-Controlled Circuit Board
RF Automated Testing Tooling
PCB Functional Testing Tooling
Visual Detector for Printing
Post-Soldering Tooling
Double-Position Automated Slip-Way
Cold Press
Functional Test Bed
Automated Screwing
Machine
Automated Keyer
Single-Position Automated
Cold Press
Functional Test System Interface
33
IAC Lean Production Logo
IAC Lean Production Organization
Top Manager of Manufacturing
System Division
Consultant Team
Inspection and Certification
Group
Lean Improvement
Committee
Lean Management
Center
Project Manager
Lean Executive Office
Project Members
34
Through the program of improvements
generated by group discussion it will be
possible to increase grass-roots employees’ understanding of the improvement
idea.
The 5S program will provide a work environment that is safer, cleaner and more
pleasant.
IAC Lean Production Plan
Phase
2008
Planning
2009-1010
Introduction
Guideline
Building
Infrastructure
Contents
1. Formulate action strategy and blueprint for Lean Production Improvement
2. Select responsible management staff for lean production training.
3. Carry out pilot selection and evaluation, confirm pilot projects.
4. Beginning with ten infrastructural cases like 5S, IE and quick production line to
raise the level of the staff’s understanding of lean production, enhance their
concept of improvement and go further to improve the product value stream.
1. After results of the pilot projects, quickly duplicate the model for the
production lines of the 1st, 2nd and 3rd business groups’ Media Player, wireless
communication equipment, smart handhelds, and graphing calculators. Invite
more staff to participate.
Enhance Capacity
2. Introduce lean improvement cases like Total Productive Maintenance, TPM, and
error proofing that enhance machine performance to achieve the goal of zero
failure for major equipment, and zero accident for employees.
1. Deepen the “lean” concept, continue to push the lean production project, make
IAC into an improvement organization with a “lean” culture.
2011 and after
Mature Expansion
Full Practice
2. With IAC as a model, extend its lean production experience among cooperating
contract factories.
35
IAC in-house Lean Website
36
Supplier Management
Strict selection of green materials, leading suppliers to build a green supply chain.
In an age of instantaneous change the market changes
green materials, IAC set up a green supply chain system
quickly and the demands of the consumer multiply. The
that met environmental standards which is also the prima-
life cycle for new products gets increasingly shorter and
ry vision and goal of IAC’s “supply chain management.”
industry faces unexpected challenges from the environment. Despite all these variables, the topic of environ-
Selection and Evaluation of Suppliers
mental protection is not be neglected. While performing
the duties of the corporation, the corporation also carries
IAC has always insisted the principle of “shared integ-
out its mission of corporate social responsibility. For this
rity” vis-à-vis its cooperative partners. The criteria used
reason the question of how to set up an effective “supply
in selecting partners are likewise of the highest order.
chain management” system has become the winning key
Evaluation and screening elements include: quality, cost,
for running a business.
service, green products, workplace safety and labor man-
IAC’s supplier management system includes three ele-
agement.
ments: “selection and evaluation of suppliers,” “green
material management,” and “purchase order management.” To effectively raise work efficiency and quality,
as well as improve the commercial transparency of the
supply chain system and material management, IAC be-
Evaluation Criteria for Qualified Suppliers
gan actively inducting the e-commerce system, using the
Quality
Internet as a business communication link in the supply
chain system since 2005.
Assisting suppliers to switch over to using green ma-
Labor
Management
terials is also an important part of supply chain manage-
Cost
Qualified
Supplier
ment. Referring to the regulations and standards of the
EU’s RoHS Directive, IAC used the correlative nature of
the supply chain system to lead its suppliers to set up
Workplace
Safety
their own, independent green product management sys-
Service
tems and made certain that the electronic and mechanical
Green
Products
components they provided conformed to environmental
specifications. In order to increase our competitiveness in
Supplier Evaluation Management Process
Supplier EP
Registration
Confirmation by Heads
of Business and Quality
Assurance Units
Evaluation
(Documentation/Onsite)
of New Supplier
Qualify
Qualified Supplier
Management
Fail to Qualify
Fail to Qualify
Re-evaluation of Supplier
Qualify
37
Standards of Behavior for
IAC Qualified Suppliers
Favoritism or immorality forbidden.
Create confidence and trust.
Do not settle for compromises.
Maintain confidentiality.
Obey laws and regulations.
Respect human rights.
Maintain character and integrity.
Comply with demands of environmental safety.
Create an open communication environment.
Business kickb2acks, inappropriate solicitation of gifts or
special treatment limitations.
IAC Web Portal
“Supplier evaluation management process” of IAC
addition, in a spirit of fairness and openness, IAC has be-
consists of an extensive auditing team composed of the
gun to plan to make evaluation scores available for suppli-
quality management, supply chain management, R&D,
ers to look at. We expect to induct this system during the
and production engineering division. New suppliers are
first half of 2009.
To expand our corporate social
evaluated by the criteria above for qualified suppliers.
International certifications are also the reference stan-
responsibility commitment, we created the IAC Portal in
dards of IAC evaluations. Currently IAC has about 750
2008. Using this platform, we engage in two-way com-
qualified suppliers worldwide, and these supplies must be
munication with suppliers to promote CSR and conduct
submitted to IAC regularly re-evaluation. This guarantees
questionnaire surveys, replacing the manual system of the
that suppliers continue to meet our requirements and
past and integrating our activity into one system.
maintain an excellent, longterm working relationship. In
IAC Qualified Supplier Certifications
Note: there were 750 qualified suppliers as of November, 2008.
91%
72%
37%
29%
25%
26%
17%
16%
ISO
90
01
TL
90
00
TS
169
49
QC
08
00
Quality Management System
Environmental Management System
O ccupational Health and Safety Management System Social Responsibility Management System
Risk Management System
38
00
ISO
14 0
01
- ISO 9001
- TL 9000
- TS 16949
- QC 080000
- ISO 14001
- ISO 14064
- OHSAS 18001
- TOSHMS
- SA 8000
- EICC
- BS 25999
ISO
14 0
64
O
A
HS
80
S1
01
TO
SH
MS
15%
SA
80
00
21%
14%
BS
25
99
9
EIC
Quality Management System
Telecommunication Quality Management System
Automotive Quality Management System
Hazardous Substance Process Management System
Environmental Management System
Greenhouse Gas Emissions Inventory and Verification
Occupational Health and Safety Management System
TOSHMS, Taiwan Occupational Health and Safety Management System
Social Accountability Management System
EICC, Electronic Industry Code of Conduct
Business Continuity Management System
C
Green Materials Management
Following the upsurge in environmental consciousness,
“green materials” have become a prominent new subject
in supply chain management. To effectively implement
the EU’s RoHS standards, we require suppliers to sign a
RoHS Website
Supplier Portal
“Non use of Banned Substances Declaration” in which
they promise that all the materials they supply will be able
In 2005 IAC introduced the “Supplier
to conform IAC’s prohibition on the use of hazardous
Portal” system, which includes business activities such as
chemical substances.
In 2005 IAC began to implement “Part Number
material price inquiries, purchase orders, as well as ship-
Management” where we required qualified suppliers to
ment liaison information. This replaces the traditional
exercise independent control and to provide test reports
system of price quotes and orders. Not only does the new
from a qualified laboratory by part number, which should
system make it possible to greatly reduce paper waste,
be provided to IAC’s full-time green product engineers
suppliers receive announcements via the system, which
for review. In 2008 as a result of IAC requirements for
has increased transparency when IAC is doing business
“halogen-free” materials and manufacturing processes,
with its suppliers.
qualified suppliers will move in step with us and guarantee that the materials used in IAC products will all meet
relevant standards and client demands.
New Perspectives for the Green Supply
Chain
To complement green product materials management, IAC introduced the RoHS system
Looking to the future, green environmentalism will still
in 2004 to supplant the enormously complex, manual
be the main focus of supply chain management. In the
management system of the time. The new system in-
fourth quarter of 2006 IAC began to introduce renewable
cludes data on the control of chemical substances, testing
material for packaging and set up a specially designated
reports of raw materials, etc. With the creation of this
person to exercise control. Renewable packaging mate-
database, IAC will be able to ascertain whether the mate-
rial design includes partitions, bubble-packing, lining, gift
rials used by suppliers conform to RoHS standards and, in
boxes, cardboard boxes, instructions, paper corner pro-
addition, to make relevant queries.
tectors, etc. To effectively follow up on the usage of renewable materials IAC has set up a follow-up monitoring
Purchase Order Management
mechanism as part of the internal management process
To integrate the complex manual system, IAC has de-
als. In addition, lowering energy usage and pollution cre-
veloped its own e-commerce system. Through the use of
ated in the transport and delivery process will also be an
this system commercial transparency is achieved. Exter-
important area of effort in the future.
and has gradually reduced the use of packaging materi-
nally, this is able to provide cooperating manufacturers
IAC also wants to promote the concept of environmen-
a faster environment for e-commerce; internally, an au-
talism. Through IAC knowledge management system, IAC
tomatic division of labor and responsibilities takes place.
will first share its CSR experience with its own staff and
Also, the huge database systematically supports statistical
with its suppliers and then through the power of interper-
management and we are able to achieve optimal perfor-
sonal communication, it will popularize the concept and,
mance for the entire operation. The entire operational
hand in hand, will create a green supply chain and will
process is almost paperless.
face a win-win future for business and environmentalism.
39
The Private OKWAP Brand
Meeting the Communication Needs of Consumers in the Greater Chinese Market, Becoming the No. 1 Brand in the Global Chinese Market.
Products, market, sales and service are the four pil-
ronmental concept also effectively reduces the number of
lars on which IAC’s private OKWAP brand is built. In the
trees that are cut down. In 2007 IAC launched the “dual
market, OKWAP has always been famous for its innova-
standby cellphone.” With its break-through “design for
tive and esthetic products. Through a strategy of “soft-
feeling,” this solved the problem of consumers having to
ware drives hardware, hardware includes software,” the
cart around a number of phones with them and was even
company has pulled together a “user-friendly interface,”
more enthusiastically embraced by the market.
“excellent industrial design,” and “patented, easy-to-use
software” to offer consumers the best service and meet
OKWAP Service
their immediate demands.
IAC continues to improve its R & D and manufacturing
IAC has implemented an operations management
capabilities and create value innovation for deployment
model for OKWAP products that combines “research,
over the long term. Not only has OKWAP won a number
production and sales” into one, offering customers the
of international awards for its exquisite product designs,
most flexible approach. OKWAP is a privately branded
products are rapidly expanding every year. An integrated
national product and it was the first company to set up
dual module and dual stand-by product series (including
direct retail stores for product sampling. Each month the
communication standards such as GSM, CDMA, PHS,
direct sales stores in Taiwan and mainland China have an
WCDMA, TD-SCDMA) has been developed to meet every
average of more than 65,000 product sampling experi-
consumer telecommunication need in the greater Chinese
ences. The toll-free 0800 service hotline had an average
market.
of more than 18,000 incoming calls with an answer rate
of over 80%. In addition, IAC also created an enormous
Unique with OKWAP
database to facilitate the provision at any time of information to consumers concerning special offers, cellphone
Beginning with the first GSM cellphone, OKWAP cell-
checkups, and other free, value-added services. Since
phones had a built-in electronic dictionary that made it
more convenient for everyone to learn English and that
found great favor among consumers. Following this was
the “i885” cellphone. In addition to retaining the English
dictionary function, well-known English teacher Hsu Wei
and Jeff’s “practical English,” as well as other Englishlearning content, was added. Not only does the electronic
dictionary function facilitate reading, this paperless envi-
OKWAP Functional DNA
Message
Security
OKWAP User-friendly
40
Electronic
Dictionary
Person Lookup
Calling
Security
Data
Confidentiality
Dual Module and
Dual Stand-by
Summary of OKWAP Service
Service
Service Instances
0800 Customer Service Hotline
1,200,000
24-hour Customer Service Mailbox
70,000
Direct Retail Shops
900,000
EDM & SMS
34,000,000
Satisfaction Survey
3,000
Returning Old Customers
12,000
Cellphone After-sales Service
4,000,000
Product Sampling Activity
6,000
Cellphone Questionnaire
2,000
Cellphone Checkup
1,000
A total of over 40 millions person / instances and an overall customer satisfaction rating of 3.7 (on a 5-point scale)
2004 the company has regularly conducted a “customer
“out with the old, in with the new” a great many old,
service satisfaction survey” that is a token of the solici-
out-of-date or damaged products with their metal com-
tude and importance OKWAP attaches to consumers.
ponents and plastic casings are gradually destroying the
Since its beginning, OKWAP has received letters from
earth’s environment in which we live.
government and from non-governmental consumer orga-
In view of this, as early as 2003 OKWAP stepped up
nization sraising concern regarding controversies involving
to the plate and pushed the idea of “replacing old cell-
products or services, but in the end a satisfactory solution
phones with new ones,” encouraging consumers to bring
was always found. As a result, the company has never
their old cellphones into a retail outlet store for recycling.
been fined for breaching any regulations. The praise and
IAC then took these cellphones to a qualified resource re-
support of broad numbers of consumers, government
cycling company that sorted the waste and turned it into
agencies and non-governmental consumer protection as-
useful, reusable material. Not only did this prevent these
sociations has led OKWAP to become a domestic brand
waste materials from becoming a source of pollution, it
that enjoys a high degree of consumer loyalty.
made them into reusable resources and reduced the consumption burden on the earth’s environment.
OKWAP Environmental Activities
In 2008 IAC expanded the scope of this program so
there was no brand restriction on the cellphones being
As a manufacturer of 3C consumer products, IAC sat-
returned. At the same time the number of retail shop re-
isfies consumer demand for new and different products
cycling points was increased in the Taiwan and mainland
through constant innovation and technological break-
China area to a total of 180, responding to the deep con-
throughs. But it is undeniable that in an atmosphere of
cern for the earth’s environment.
OKWAP Service Record
-Encourages recycling of old
-Rewards top
cellphones and used batteries, customer service
begins OKWAP consumer
personnel praised
satisfaction survey.
by customers.
-Begins recycling
of cellphones
with no brand
restrictions.
-Cellphone
checkups
held each
quarter.
-Regularly holds
“Tell me!”event
to commend top
service personnel.
-OKWAP subsumes customer
service and processing procedures
in the “phone customer service
management program.”
CHINA
-Carries out
regular cellphone
questionnaire
surveys.
-Creates the OKWAP
customer service mailbox;
OKWAP creates customer
service units.
-Creates the
800 toll-free
customer service
hotline.
-Regularly sends
out OKWAP EDM
and activity
news.
-Holds activities for
returning OKWAP
customers and
cellphone checkups.
-Begins
OKWAP
product test
use program.
-Regularly conducts
OKWAP cellphone
questionnaire
surveys.
-Begins to
conduct OKWAP
consumer satisfaction survey.
-OKWAP begins to promote
the cellphone replacement
program, encouraging the
recycling of old cellphones.
TAIWAN
-Customer service and processing
procedures are formally
subsumed in the “ISO9001
Quality Management System.”
-Creates the
OKWAP service
center for
central Taiwan.
-Creates the
OKWAP service
center for southern Taiwan.
-Sets up the OKWAP 24hour customer service
mailbox; sets up the OKWAP
customer service unit.
-Sets up the OKWAP
0800 toll-free
customer service
hotline.
41
OKWAP Award Record
In the communications and Internet industry, IAC ranked
With many “firsts” to its credit, OKWAP has a brilliant
second, and in a comparative survey by the Common-
record in obtaining awards. In 2008 IAC was recognized
wealth Magazine team IAC was one of the most out-
as one of the “Taiwan Top 100 Consumer Brands.” In
standing companies in the Top 1,000 for three years run-
Commonwealth Magazine’s issue due out in May, the
ning. Not only in Taiwan, OKWAP performance overseas
company was listed in the “Top 1,000 Manufacturers.”
is also quite remarkable.
OKWAP Brand Record
Year
2008
Record
OKWAP PHS captures more than 35% of the mainland Chinese market.
OKWAP General Manager of the Greater China Marketing Group, Joyce Chang, is a torch bearer at the Beijing Olympics.
OKWAP PHS is No. 1 in market share in mainland China and has the honor to become the Chair of the Industry Alliance.
C150T is the first warrantied Dual Module and Dual Stand-by cellphone with handwriting recognition in the Taiwan/China market.
2007
C112 is the first domestically produced CDMA/GSM dual standby cellphone.
C150KT is the first worldwide Hello Kitty dual standby cellphone.
C110 is the first domestically produced double standby cellphone with interchangeable memory card and double-dial keying capability.
OKWAP receives honor of being named one of the top ten influential Chinese industrial brands. The Chinese set-card separation PHS
won the award for the top influential brand.
i885 “English Hegemon” is the world’s first cellphone to completely integrate a cellphone and an electronic translation function.
2006
A323 is the world’s first cellphone to combine a cellphone with the traditional art of the puppet show. It is equipped with an extremely powerful English-learning function.
S858 has the prestigious built-in Oxford abridged dictionary that supports human voice.
2005
A375 is the first Taiwan-wide camera-cellphone equipped with background music settings and music selection on demand. It wins
the Taiwan Gold Award for Product Excellence.
OKWAP wins mainland China area GSM and first TD-SCDMA cellphone licenses. In addition, OKWAP website is revised, releasing the
PHS value-added service brand “PHS Paradise.”
A236 is the world’s first slide cellphone with handwriting recognition and the tiniest slide cellphone in Taiwan with voice and handwriting recognition.
A236KT is the world’s first Hello Kitty slide cellphone with handwriting recognition.
OKWAP receives mainland China area national invention and creation award for smart phone English-Chinese dictionary with Chinese character look-up.
A267 has 64-note stereo chord ringtones and dazzling picture display, becoming a bestseller in Taiwan.
2004
S762 is the Teresa Teng cellphone, the world’s first cellphone in memory of Teresa Teng.
i516 is the first 1 million pixel camera phone developed independently by Taiwanese and has a 180 degree rotating screen.
S762 is the Mazu phone, the first cellphone with a connection to religion, the result of cooperation with the Dajia Jhen-lan Temple.
S762 is the first PDA cellphone with handwriting recognition and 260,000 colors developed independently by Taiwanese. It is praised
as an “ageless cellphone,” and “the Wang Fei of cellphones.”
2003
2002
A263 is the first domestically produced camera cellphone. It is Taiwan’s tiniest camera cellphone at the time.
A163 is Taiwan’s tiniest dual display, seven-color laser-light color cellphone.
166 is Taiwan's first cellphone with a Japanese-type outer screen, 16-chord ringtones, and 4,096 colors.
166KT is the world’s first cellphone produced in cooperation with Hello Kitty.
i66 is Taiwan’s first cellphone to use aluminum magnesium alloy and stereo chord ringtones.
2001
ip88 is Taiwan’s first all-Chinese PDA cellphone.
i108 is a global GSM cellphone that supports color and stereo chord ringtones.
i18 is the first global GSM cellphone that supports action stickers and can send black & white pictures.
2000
42
i3698 is a cellphone that integrates PDA, mobile Internet, electronic dictionary, games, and mobile phone functions and is Taiwan’s
first cellphone with a screen using 128 x 160 pixels.
For Employees
Employee Relations
Achieving Employee Value, Establishing a Positive Work Environment.
Employees are a company’s biggest asset. Harmonious
Labor Quality
employee relations are an important link in the building
We have a high-quality labor force. School records
of a corporate culture and constitute a fundamental ele-
show that for the whole company, 95% of direct hires
ment in a company’s march toward success. Harmonious
have an education at the high school level or higher,
employee relations are the lubricant in the interaction
while more than 77% of indirect hires have a university or
between supervisors and subordinates, between employ-
higher education.
ees themselves as well as between different departments.
Harmonious employee relations can motivate employees,
Age and Gender
alleviate the pressures of work and strengthen team
Some 89% of employees worldwide are younger than
consciousness among employees. To build a positive work
30 years old, while 10.8% are 30 years and older. As for
environment, we have created a comprehensive employee
gender distribution, most employees are women, at 71%.
relations system and have brought about a real harmony
We do not treat employees any differently because of age
in the relations between employees and the company
or gender and everyone enjoys an equal opportunity for
and between employees themselves to achieve a spirit of
professional development.
“human-based management.” The IAC employee relations system is composed of four major core strategies:
“employee development,” “rights and duties,” “work
Recruitment
In recruitment and employment we are in favor of
providing employment opportunities for local labor and
safety,” and “activities and outreach.”
for the disabled. For example, in IAC’s mainland factories
Employees Profile
99% of the employees are mainland Chinese, who also
make up more than 68% of supervisors. In addition,
In 20 0 0 when I AC was created, it had 2,0 61
following local labor laws and regulations, IAC signs labor
employees. Following along with the development of
contracts with these employees and carries out employ-
the company, by 2008 the entire staff reached a total of
ment registration procedures and also hires the physically
15,854 people.
and mentally disabled.
Employee Education Level, Gender and Age
Distribution
Total number of employees
69%
(individuals)
University
5% Other
25000
20314
15000
16499
School
8%
95%
18092
20000
MA and
Above
High School
and Above
15854
23% High
Direct Hire
Indirect Hire
89%
10000
< 30 years old
29%
5000
71%
Male
10.8% 30~50
years old
Female
0
2005
44
2006
2007
2008
0.2% > 50
Gender Distribution
Age Distribution
years old
‧公司理念
‧核心職能
‧新人訓練
‧研發、生產
‧銷售、品質
‧專利、英語
Employee
‧對人
‧對事
Development
IAC Education and Training System
Talent is a company’s asset. To increase the value of
this labor asset, education and training are necessary. For
Senior
Managers
Development
Program
this reason, the nurturing of talent and its development is
a top-priority task we take very seriously.
Education and Training System
ers
anag
evel M m
Mid-l ing Progra
Train
For management-level employees we have set up a
leadership training course and have planned a whole
New
Train Managers
ing P
rogra
m
series of competency guides, study materials and
competency assessment tools to assist management to
develop the capabilities they need, to expand the macro
view among mid- and senior management, to work with
New
agers
l Man m
-leve
Entry ing Progra
Train
New
Emplo
yees
specialized theory as well as practical experience at the
Train
ing P
rogra
m
gers
Mana
es
ploye
d Em
Value
m
rogra
ing P
Train
m
rogra
ing P
Train
same time and to nurture those who will occupy key
positions in the future.
y→
tenc
ompe
C
For newly arriving employees, there is a new employee
ons
uncti
Job F
training program once they are on seat. Through regular
and online courses the company’s corporate culture is
explained to these employees, including the concept and
policies related to corporate social responsibility.
30~
In addition, without regard to seniority or level, each
employee must, at the 20,314
same time he/she sets up performance targets, also set up an individual development plan
and discuss development directions and a development
IAC Education and Training Items
18,092
plan with his/her direct supervisor career. The supervisor
19,472
Corporate Culture
-Company Philosophy
-Core Competency
-New Employee
Training
can give personal guidance, arrange training courses and
16,499
assign relevant cases in line with the employee’s wishes
or else implement a job rotation or make adjustments in
duties. Not only does this increase an employee’s practical
experience, it assists in long-range career development.
IAC has also introduced core courses on job functions
Education
and
Training
and related courses on specialized knowledge. Through
regular classes and digital university teaching, in 2008
2005年
2006年
there was an average of 3.2 hours of training per indirect
hire employee. Direct hire employees involved in production also have comprehensive training plans. By raising
their work skills these employees met quality demands,
and in 2008 there was an average of 3.5 hours of training
2007年
2008年
Professional
Competency
Management
Competency
- R & D
- Quality
- Production - Patents
- Marketing - English
- Personnel Matters
- Job
per direct hire employee.
45
Training Method
Training Awards
The training method provides course information on a
To commend exceptional employees or those who
monthly basis, provides multiple learning materials for all
have made outstanding contributions, we present
levels of employee, invites in-house and outside profes-
citations at our regular monthly meetings or at the year-
sional lecturers to speak, and offers courses that teach
end social gathering. Senior management personally
technical skills, general knowledge and management. At
gives out the awards at these events as a sign of further
the same time it provides information on outside training
encouragement. IAC training awards include a Patent
programs and gives financial assistance to employees to
Award, Quality Improvement Team Award (QIT), 5S
encourage their further and continuing study.
Award, Six Sigma Award and a Good Character Award.
IAC’s global digital university permits learning without
Patent Awards
A project award created to encour-
borders. All employees can take part in training programs
age colleagues to develop patents. Awards are divided
on the digital university network platform. Enrollment
into those that can be used in products (Gold, Silver, and
has already reached some 20,000 with over one hundred
Bronze), patents in general (Utility, Utility Model, Design),
courses being offered. Examples include such online
performance and special contributions.
courses as: Promoting Team Success, Task Management,
QIT Award
A project award created to encourage
Taking the Initiative, Problem Analysis and Solution, and
colleagues to enthusiastically submit proposals for
Establishing Mutual Trust. In-house teaching material
improvement and to advance overall quality management
consists of over 200 items. Performance has been excep-
in order to achieve the company’s quality goals.
tional. So far the completion rate for core competency
5S Award
A project award to encourage colleagues
training is over 92%, for professional competency training
to create a work environment that is clean, comfortable
it is more than 95%, and for new employee training it is
and orderly and to nurture excellent living and working
over 70%.
habits.
Six Sigma
A project award to encourage colleagues
to improve work performance with the Six Sigma method.
This includes Hard Saving, Soft Saving and Potential Saving produced by this method.
IAC Digital University
Multiple Training Courses
46
Patent Awards
QIT Awards
5S Awards
Six Sigma
Good Character Award
This is to encourage col-
dependents. IAC firmly believes that only physically and
leagues to demonstrate excellent personal character at
mentally healthy employees are able to have an active
work and in life.
and positive frame of mind toward their work that will
Good Character Award
enable them to work to their full capacity. In addition to
Rights and Duties
requiring new employees to undergo a physical exam before they start work, IAC regularly arranges for in-house
physical exams for the average employee, outside physical
Employee Welfare
exams for the supervisory-level staff and screening exams
Under the premise of advancing corporate competi-
for female employees.
tiveness and productivity, IAC makes every effort to meet
In addition, the company conducts various health
employee demands and thereby raise employee work
seminars so that employees learn how to eat healthy
efficiency and quality of life; IAC also equally emphasizes
and stay slim, how to lessen shoulder and neck aches,
the spiritual as well as the physical to advance the devel-
and how to practice good maternity healthcare. These
opment of sustainable management for the company and
seminars increase the idea and recognition of healthcare
completely fulfill its social responsibility with regard to
among employees, thus achieving the goal of effective
caring for its employees. IAC’s employee fringe benefits
chronic illness prevention and health promotion. The
include salary bonuses, employee insurance and an
company also provides recreational equipment at the
employee welfare committee.
workplace, encouraging employees to exercise before and
An employee’s salary is based on
after work to keep themselves in peak physical condition.
education, professional experience and individual perfor-
In the company’s personnel regulations, IAC unequivo-
mance. In addition, quarterly performance bonuses and
cally announces the rejection of child or forced labor. Any
year-end bonuses are given on the basis of the company’s
activity that could involve the hiring of children or use of
performance and the individual’s own personal perfor-
forced labor is forbidden.
Salary Bonus
mance for the year.
To fulfill obligations related to implementation and
In Taiwan, besides insuring
checking, when recruiting employees we verify the
employees according to the law, IAC in addition offers the
authenticity of person’s status and when the person
guarantee of employee group insurance. In the mainland
reports for work we demand the employee hand over
China area, IAC takes care of pension insurance, medical
the relevant certifying files to verify the name and age,
insurance, unemployment insurance and maternity insur-
and we also keep this personal data in a completely
ance as prescribed by the local laws and regulations so
confidential employee database.
Employee Insurance
that employees have a better life and safeguards.
Furthermore, we do not discriminate against any
With the goal
employee on the basis of gender, race, geography, age,
of guaranteeing and looking after the welfare of the
disability, sexual orientation, nationality, political orienta-
employees, IAC created an employee welfare committee.
tion or association. As a result, there has never been a
Services include regular acceptance of applications for,
discrimination case with regard to a person’s status.
Employee Welfare Committee
and dispersal of, marriage, funeral, maternity, and club
subsidies, birthday presents and presents for all major
holidays (Spring Festival, May Day and Mid-Autumn
Festival).
Standards of Behavior Training
Standards of behavior are a behavioral guide for
company employees and clearly explain the behavior
employees should manifest, they also constitute the
Medical and Healthcare
basic expectation the company has for the behavior of its
Providing a healthy and safe working environment is a
employees. So that employees value and identify with the
responsibility that IAC has toward its employees and their
standards of behavior, new employees study and receive
47
IAC Employee Standards of Behavior
Employee Communication Mechanisms
Do not misappropriate company property.
Do not take kickbacks.
Do not accept presents or dinners from companies you
do business with.
Do not engage in inappropriate relations with the
opposite sex.
Practice strict confidentiality regarding trade secrets
and individual salary information.
Regular Company Monthly Meeting.
Establishment of the “vitality office,” which interacts
and communicates with employees in a friendly way.
Employee Welfare Committee.
Regular Labor Committee Meetings.
The Chairman’s Mailbox.
Employee Interviews.
online guidance and training in behavioral standards as
Work Safety
soon as they report for work, while at the same time all
employees are required to comply with the company’s
relevant standards of behavior.
IAC is committed to providing employees a safe
and worry-free work environment. Currently all major
manufacturing facilities have received
Communication Mechanisms
OHSAS 18001 certification and continue
IAC has always valued employee opinion in the hope
to improve their work environment in a
of giving all employees space to fully develop their
systematic way using the “PDCA Cycle”
potential. For this reason any employee may at any time
(Plan-Do-Check-Action) to meet the legal
express his or her individual opinion on employee rights
and policy demands of each region and
and interests, company employee benefits, management
improve safety and health performance.
and the work environment. Currently we have created
numerous communication channels, including a Chairman’s Mailbox and an employee complaint channel.
OHSAS 18001
Certificate
Each IAC factory also regularly conducts emergency
response exercises with local fire fighters.
Joint employee-disaster unit exercises include major
In January, 2008, the Labor Committee was set up,
safety topics like escaping fires and dealing with chemical
whose members are employees from different sections
leaks. Immediately following the exercises an internal
and different levels within the company. Focusing on
review is made of the evacuation routes and timing in a
employee/company questions relating to the rights and
spirit of “a minute more of preparation means a minute
interests of labor and management, the Labor Committee
less of damage,” and continued improvement is discussed
holds a quarterly labor/management meeting and con-
with an open mind.
ducts two-way communication and coordination. With
IAC has drawn up emergency response procedures
regard to new and incumbent employees, the human
that cover windstorms, floods, fires, earthquakes, water
resources department regularly conducts outreach meet-
cut-offs, electricity cut-offs, poisoning and riots. Each
ings for new employees and interviews with incumbent
responsible unit conducts emergency response exercises
employees, thus gathering together employee opinions
according to an annual plan.
and immediately responding to them. In 2008 there
Each IAC factory has set up an clinic staffed by
were 33 new employee outreach meetings held and 462
professional healthcare personnel to facilitate employee
incumbent employee interviews.
checkups or temporary rest and recuperation. They also
provide services to dress wounds, dispense medicine and
New Employees Outreach Meeting
48
Quarterly Labor-Management Meeting
Factory clinic and health care personnel
Exercise room
handle emergencies, creating a work environment that
IAC Occupational Health and Safety Policy
puts employee’s minds at rest. For specific personnel,
such as those who work with chemicals and with solder,
IAC is Committed to Strive for Caring about
Employees’ Safety, Highly Respecting Their Lives
to Achieve the Objective of Zero Damage and No
Accident.
a regular yearly physical exam is provided to guarantee
they have no health worries.
Activities and Outreach
Employee Clubs
Encouraging employees to independently organize
their own clubs not only benefits their physical and mental health, it allows them to develop different interests
during their off time and increases interaction with other
employees. Fifteen clubs were set up in 2008 that actively
promoted every kind of activity.
Chemical leak exercise
Fire safety exercise
Regular check of fire fighting system
Post-exercise preparations review
Employee Activities and Info Seminars
IAC holds major events at the end of the year, such
as an evening social gathering, Lantern Festival riddle
guessing and Chinese chess competition. On ordinary
Employee Clubs
Badminton
Baseball
Handicrafts
Basketball
Soccer
IAC Welfare
Committee
Mountain
Climbing
Latin Aerobics
Yoga
Table Tennis
Taiji Quan
Board
Games
Photography
Yoga
Basketball
Latin Dance
Modern
Dance
Latin
Aerobics
Outdoor
Activities
Latin Dance
Photography
Modern Dance
49
Employee Activities 2008
Activity
–Year-end social gathering.
Jan. –Work commencement ceremony.
–Agricultural donations for the Guizhou Miao Autonomous Region.
–Night class: win tasting and taste buds.
–OFF charity day.
–New Year’s Eve party.
Feb. –Lantern Festival riddle guessing.
–Milk orders.
–Assisting employees to return home after the spring snow disaster.
–Lantern Festival riddle party.
days the company also holds various other activities that
–Love mini-bus.
–Milk orders.
–Green bag competition.
Mar. –Volunteer recruitment.
–March 12 tree planting.
–International Women’s Day health exam.
–Donations for Kuo Chen-liang.
mini-bus” that serves as a bridge for sweethearts to meet
–Night class: enjoying work through creativity.
–Milk orders.
–Winter clothes donations.
tickets to botanical garden.
Apr. –Group
–Green bag design competition.
–Green bag graphic design competition.
–Family day.
–80-point card championship.
–Milk orders.
–Long skip rope contest.
–Sunshine Home for the disabled.
May –Money and clothing donations for Sichuan.
–Red Cross volunteer activities.
–Info Seminar on female health care.
–Release of environmental handbook and signing.
–Night class: new horizons through travel.
–Film park.
skip rope contest.
June –Long
–Healthy mothers-to-be seminar.
–Oriental Oasis tour for parents and children.
–Chinese chess competition.
–Biotherm seminar on men’s grooming.
–Sunshine Home cross-stitch teaching.
sight day photo contest.
July –World
–Ping Pong invitational match.
–Visit to ocean aquarium.
–Karaoke competion.
–Night class: beauty through photography.
–Family Day
–Birthday party.
employees outreach meeting.
Aug. –New
–Suzhou day trip.
–Waste into treasure competition.
–Three indoor new Iron Man challenges competition.
–Health care seminar.
–Love mini-bus
–Birthday party.
–Karaoke competition.
Sep. –Kindred spirits.
–Mid-Autumn party.
–Badminton match.
–Night class: experiencing life through fine food.
–Basketball championship.
–Birthday party.
–Soccer match.
Oct. –Halloween prize drawing.
–Basketball match.
–Family Day park visit.
–Golden environmental ideas.
–Birthday party.
–Semi-annual environmental achievements exhibition.
Nov. –Stair-climbing day.
–Basketball match.
–Soccer league match.
–Night class: increasing sensitivity through esthetics.
Dec. –Film park.
–Birthday party.
50
Condoling injured employees
enrich the employee’s life after work. In addition, there
are still other activities like “massages” that get rid of
the aches and pains of hard work and there is the “love
each other. The seminars, the “non-active” activities, are
chiefly concerned with female healthcare, health, grooming, fine dining, photography, creativity, travel and winetasting. An example are the “Night Classes” at the Taipei
factory. They invite playwrights to talk about creativity,
photographers to talk about esthetics and naturalists to
talk about travel.
Concern for Employees
Concern for employees is also an important subject in
employee relations. IAC pays special attention to troubled
employees. When an employee is faced with a difficult
problem or illness (or injury) and ends up in the hospital,
the company always is there from the very first, lending a
helping hand, passing on the warmth of the “big family.”
It keeps on top of the situation and makes regular followup visits.
Future Prospects for Employee
Relations
On the basis of what has gone before, we will improve
the mechanisms for communication, coordination and
employee participation. Also, we will incorporate innovative elements and while building a sense of cohesion
among employees, we will continually push company
performance ahead. We believe only with harmonious
employee relations can a good basis for company development be laid. In addition, as the company’s knowledge
management has expanded, the education and training
system has continuously improved, and we can hope to
achieve the goal of nurturing talent and retaining talent
over the long haul and together to create a future that
belongs to the IAC family.
For Society
Going Green at IAC
Diligent Waste Reduction and Zero Public Harm—a Benchmark Recycling, Green
Company.
As the EICC (Electronic Industry Code of Conduct)
effect for a while, it is coordinated with a management
proclaims with regard to the environment, “environmental
review meeting, results are followed up, and the “PDCA
responsibility” is an important part of the production
cycle” ensures that environmental management is carried
process. “Environmental responsibility” means to have as
out. As a result, as of 2008, the company had never been
little impact and influence as possible on the environment
fined for breaching any environmental regulations.
and natural resources while at the same time safeguarding the public's health and safety.
With environmental laws and regulations as a basis,
after making an assessment of possible environmental
IAC has always supported environmental activities,
impacts caused by the manufacturing process, we will
fulfilling its environmental responsibilities in a concrete
continue making improvements focusing on the core
way and has worked hard to improve its environmental
areas of “greenhouse gas emissions management,”
performance. The clearest example of this is that it has
introduced and obtained ISO 14001 EMS certification and
IAC EMS Certifications
has set up at every one of its factories an “Environmental
Management System Organization.”
At the beginning of the year each department draws
up annual targets and a management project in line with
company environmental policy. After this has been in
Year
Type
Agency
Factory
1998
ISO 14001
SGS
Taipei
2001
ISO 14001
SGS
Shanghai, Guijing
2006
ISO 14001
CQC
Shanghai, Pudong
2008
ISO 14001
SGS
Nanjing
IAC Environmental Policy
Ensure Zero Hazard, Reduce Industrial Waste.
Enforce Safe Production , Remove Hidden Dangers.
Develop Green Products, Comply with Environmental
Regulations.
Achieve Pollution Prevention and Continuous
Improvement.
Preserve Gorgeous Environment.
Taipei, Shanghai, Guijing and Nanjing ISO 14001 Certifications
IAC EMS Organization
General Manager
Management Representatives
Business Groups
(business/ R & D)
Finance Management
52
Quality Management
Performance Management
Finance Development
Task Implementation Group
Production Engineering
Information System &
Technology
“energy management,” “water resource management,”
corporate environmental responsibility.
“waste management,” and “independent environmental
activities.”
In addition, IAC issues an annual “IAC Greenhouse
Gas Report” that explains the scope, method of measuring, inventory data and internal verification results.
Greenhouse Gases Emissions
Greenhouse Gases Inventory Organization
According to the Kyoto Protocol, greenhouse gases
In carrying out its greenhouse gas Inventory, IAC
include carbon dioxide (CO2), methane (CH 4), nitrous
combined the ISO 14064 with the ISO 14001 EMS. Thus
oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons
the implementing organization was composed of relevant
(PFCs) and sulfur hexafluoride (SF6).
ISO 14001 departments in accordance with their own
IAC facilities are downstream factories producing
individual job descriptions.
electronic end products. Compared with those other
high energy-consuming industries, its greenhouse gas
Greenhouse Gas Emissions Inventory Data
emissions are small. But dealing with climate change is a
In 2008 IAC conducted its first GHG Inventory. Using
task that must be shared by everyone living on the planet.
2007 data as the baseline, it inventoried the greenhouse
For this reason beginning in 2008 we started a GHG
gas emissions produced by every major manufacturing
inventory and finished internal verification in accordance
plant that year. The results showed that the total for
with ISO 14064-1 (specification with guidance at the
2007 was 71,754.53 metric tons of CO2e. The investiga-
organization level for quantification and reporting of
tion for 2008 emissions was completed during the first
greenhouse gas emissions and removals) greenhouse gas
quarter of 2009 with a result of 71196.23 metric tons of
emissions standards and conducted inquiries on our own.
CO2e. Compared with the baseline, this represented a
The boundary of IAC’s GHG inventory included manu-
decrease of 0.78%. Of that amount, CO2 emissions rep-
facturing plants in Taiwan and mainland China. Based
resented 99.38% of the total, CH4 stood at 0.56% while
on the inventory data, we carried out activities to reduce
N2O, HFCs and PFCs made up the very small remaining
greenhouse gas emissions by focusing on equipment
percentage of all greenhouse gas emissions. Greenhouse
that had a potential for reducing GHG, thus fulfilling our
gas emissions can be divided into direct emission and
IAC Greenhouse Gas Inventory Organization
General Manager
ISO 14001 Management
Representative
–Management review of training for
personnel of relevant departments.
Quality System Dept.
–Greenhouse gas inventory system: documentation.
–Greenhouse gas inventory: reduction.
–Greenhouse gas inventory: verification.
Administration Dept.
–Identification and measurement of emissions source from facilities
at workplace and living area.
–Collection and maintenance of activity data and emission factors.
–Emissions calculation, emissions list and writing up of Report.
Facilities Dept.
–Identification and measurement of the source of emissions from
equipment in the production process.
Equipment Calibration &
Maintenance Dept.
–Identification and measurement of the source of emissions from
lab equipment.
Finances Dept.
–Conservation of activity data receipts.
53
indirect emission.
equipment, refrigerants, etc.), all together amounting to
The greenhouse
6275.13 metric tons of CO2e, making up 8.81% of the
gas emissions from sources belonging to or controlled
total.
by the organization are from fixed combustion sources,
Greenhouse
mobile combustion sources, fugitive emission sources
gas emissions from the organization’s electrical power
and production process emission sources. IAC’s sources
consumption, heat and steam use or generated by the
of greenhouse gas emissions are from combustion at
organization’s activities total 64921.10 metric tons of
fixed installations, the burning of fuel for transportation
CO2e, making up 91.19% of the total. The primary source
and fugitive-type emissions (for example, fire control
is outsourced electricity and natural gas.
2008 Greenhouse Gas Emissions ( CO2e metric ton/year)
Factory
CO2
CH4
Taipei
2,105.94
68.26
0.39
3.79
Shanghai, Guijing
8,664.37
1.05
3.98
Shanghai, Pudong
40,956.51
3.33
Nanjing
19,027.40
Total
70,754.22
Percentage of Total
Emissions
99.38%
N 2O
SF6
Total
0.00
0.00
2,178.38
0.00
0.00
0.00
8,669.40
6.54
20.83
1.38
0.00
40,988.59
327.50
4.15
0.81
0.00
0.00
19,359.86
400.14
15.06
25.43
1.38
0.00
71,196.23
0.00%
0.00%
0.56%
0.02%
Aggregate Total
Direct Emissions
100.00%
2008 Greenhouse Gas Emissions by Scope
Indirect
Emissions
Taipei
94.16
2084.23
Shanghai, Guijing
155.94
8513.46
Shanghai, Pudong
5,533.72
35,454.87
Nanjing
491.32
18,868.54
Total
6275.13
64,921.10
Percentage of Total
Emissions
54
0.04%
PFCs
71196.23
2008 Greenhouse Gas Sources
Factory
HFCs
8.81%
91.19%
Scope 2
64,921.10
Metric Tons
91.19 %
Scope 1
6,275.13
Metric Tons
8.81 %
Energy Management
and improving the HVAC system. Each year we formulate
targets for saving energy and effectively lower energy
Through the inventory of greenhouse gases, IAC can
consumption through a series of related measures. When
increase the efficacy of energy management and control.
we build a new factory we also implement the energy-
Our primary energy sources are: electricity, natural gas,
saving environmental philosophy wherever possible.
steam, diesel and gasoline. Of these, we use electricity
The “Green Illumination Project” is an example. IAC’s
the most, which is for HVAC, lighting and equipment
production process focuses on assembly. Illumination
within the company. Natural gas is chiefly used in the
requirements are greater than for the average industry
main HVAC facility. Steam is used for temperature control
and the illumination system bears a considerable load. For
in the factory, while diesel and gasoline are used for
this reason we tried replacing the normal T8 fluorescent
office cars and company transportation.
lights with T5 energy-saving lighting tubes. The results
showed a large drop in electricity usage of 30%. At this
Energy Management Plan
rate, some 1.88 million kilowatts of electricity can be
IAC works hard toward promoting an energy-saving
saved every year.
project. The expansion and implementation of the
project is basically divided into a management and a
technological aspect and includes: projects for green
illumination and frequency conversion for large-scale
2008 Energy Usage
Electricity Natural Gas
(/10,000 kw)
(cubic meters)
(metric tons)
(kiloliters)
Diesel
Gasoline
6993
258
9190.7
29.7
94.8
electric machines, increasing air compressor efficiency
Steam
(kiloliters)
2008 Energy Use by Factory
Before
Electricity Savings
Ratio—22%
Increased Bulb
Life—30%
Shanghai, Putong
100%
28.8%
100%
Shanghai, Guijing
100%
Nanjing
70.9%
Taipei
44.0%
80%
After
54.2%
60%
Standard T8 Fluorescent Light
46.8%
40%
28.3%
20%
12.5%
T5 Energy-saving Light
0
4.5%
Electricity
Natural Gas
Steam
Diesel
5.4%
3.8%
Gasoline
2008 Energy Saving Projects
Project
Content
Energy Saved
Green Illumination
Changing to energy-efficient lighting tubes, adjusting illumination and using
zone control in factories and offices.
1.88 million
kWw
Large-scale Electrical
Machinery Frequency
Conversion
Installing in-factory frequency converters for HVAC chilled water pumps and
fans.
770,000
kWh
Increasing Aircompressor Efficiency
Improving air-compressor maintenance, preventing leaks, appropriate allocation of drying equipment as well as quantitative management.
1.17 million
kWh
Improvement of HVAC
System
Raising HVAC chiller unit temperature, controlling room heat levels and replacing the air outlet grill dial.
1.07 million
kWh
55
Water Resource Management
wastewater must first pass through for treatment before
it goes to the sewage pipe. As for the waste water
According UN studies, by 2025 almost one third of the
from the factories, we regularly authorize a specialized
world’s population will be living in areas with a serious
environmental organization to carry out water quality
lack water resources. Although IAC by no means uses
inspections, which include detection of the Hydrogen
a great amount of water in its manufacturing process,
ion concentration index (PH value), suspended solids (SS),
the majority of waste water coming from the daily office
petroleum oil, animal and vegetable oils, chemical oxygen
work and simple living of its employees, nevertheless
demand (COD), five-day biochemical oxygen demand
we attach great importance to the efficiency with which
(BOD5), and ammonia nitrogen (AN). So far, inspection
water is used in the factory life of it employees, and we
results have met the Integrated Wastewater Discharge
ensure that sanitary wastewater emissions conform to the
Standard (GB8978-1996)
requirements of all laws and regulations.
Improvement of Water Usage Efficiency
Conforming to Wastewater Laws and Regulations
By adjusting water pressure, increasing the number of
Despite the very small amount of industrial waste-
water-saving devises on faucets and adjusting the timing
water, each IAC factory handles this in accordance with
of the automatic flushing valves in the washrooms, we
the law. For example, for wastewater produced by air
estimate an annual savings of water resources of 34,000
compressors we have installed oil/water separators that
cubic meters.
2008 Water Usage
Water Usage (/10,000 tons)
497,000 cubic meters
2008 Conformance to Wastewater Laws and
Regulations
2008 Water Usage by Factory
Taipei
3.6%
Shanghai,
Pudong
53.0%
Shanghai,
Pudong
Nanjing
Emission
Limit
7.68
7.92
6~9
18
85
350
Petroleum Oil
0.895
0.5
20
Animal and
Vegetable Oils
0.605
4.2
30
COD
98.5
293
300
BOD5
36.6
NA
150
AN
12.7
15.8
25
Inspection Item
Shanghai,
Guijing
12.4%
Nanjing
30.9%
PH
Suspended Solids
Except for PH, all are measured in mg/L.
56
Waste Management
Domestic waste also
contains some recyclable and reusable resources, and IAC
Waste materials produced at IAC in the manufacturing
as a matter course sorts its trash. It first puts domestic
process can be divided into three major categories: recy-
waste that has value for reuse into the recyclable treat-
clable waste, domestic waste and hazardous waste. Of
ment process. The remainder is put into the temporary
these categories, recyclable waste represents the highest
storage area for domestic waste and a firm is commis-
percentage at 70%. Next is domestic waste at 29% and
sioned to regularly remove it.
Although factories
finally hazardous waste at 1%.
certainly do not produce a great deal of hazardous waste,
Waste Treatment
such material is poisonous and dangerous. Without
Recyclable waste is
proper treatment, it is a lurking danger for personnel and
valuable because it can be reused. Thus we have set up
for the environment. We handle this by setting up within
temporary resource recovery storage areas in our factories
the factories a dedicated hazardous materials depot
where qualified firms regularly come to remove material
as a temporary storage area for hazardous waste then
and treat it.
commission a qualified firm to remove and treat it on a
regular basis.
2008 Waste Output
2008 Waste Output by Factory
Recyclable Waste
Domestic Waste
Hazardous Waste
2355.8
958.16
35.73
(metric tons)
(metric tons)
(metric tons)
Recyclable
Waste
70%
Domestic
Waste
29%
Hazardous
Waste
1%
Waste Treatment Process
IAC
Industrial
Waste
Recyclable Waste
Resource Temporary
Storage Area
General Waste
Domestic Waste
Temporary Storage
Area
Hazardous Waste
Hazardous Waste
Depot
Sorted Materials
Outsourced For
Treatment
Record Keeping
57
Independent Environmental Activities
Planting Trees at Factory Locations
With a goal of creating a green environment, IAC uses
IAC’s promotion of energy conservation is not limited
the opportunity of arbor day to call upon all its employees
to the production process, it has spread out to activities
to take part in tree-planting activities. Even though this is
in the office and in daily life. IAC employees make use of
an exhausting activity, when the employees take to their
their creative thinking on environmentalism, are always
spades and watering pails and begin planting seedlings
practicing environmental protectionism and this not only
with their own hands, that feeling coming from within
creates a comfortable and simple work environment, it
not only gives rise to a sense of independent environmen-
jibes with the company’s goal of promoting the creation
tal activity, the concept of a “green IAC” is also deeply
of the environmentally green office.
planted in their hearts.
The Green Factory
IAC has dedicated itself to the construction of green
buildings, reducing building energy consumption. For
example, it uses insulated glass for the glass curtain walls
of tall buildings, enabling the use of its thermal insulating
property to reduce the refrigerating output of the HVAC
system and achieving the goal of energy conservation.
Environmental Education and Promotion
Program
Theme
The Green Office
Creating the green, environmental office.
Sorting Waste
Reducing waste and recovering resources at the office.
Saving Energy at the Office
Reducing resource consumption and lowering the environmental burden at the
office.
Promoting Environmental Protectionism Training in environmental energy saving.
Sorting Waste
Promoting the Sorting of Trash
Studying Environmentalism
Q & A Prize on Environmentalism
Tree Planting
Greening and protecting the environment.
Green Bag Design Competition
Environmentalism is everywhere.
“Waste into Treasure” Environmental
Creativity Competition
Show your environmental creativity.
Environmentalism Signature Campaign
Promoting the idea of environmentalism.
Eating With Your Own Tableware
Protecting the environment, cherishing the planet, reducing pollution, everyone
taking on responsibility.
Technology for the Green Factory
Category
58
Main Technology
Insulated Glass Curtain
Walls
With excellent thermal insulation, reduce HVAC energy consumption.
Thermal Insulation
Materials
Using high-performance nitrile rubber and PVC as the primary material, pair up with topquality secondary materials, create a soft, high-end, energy-saving material using a unique
foam technique and reduce heat loss in pipes.
Social Involvement
Giving Back to Society, Benefiting People, Promoting Public Service.
“Get from society, give to society” is one of the key
Corporate Social Responsibility Committee,” public service
concepts behind IAC’s fulfillment of its corporate social
task forces were also set up in each production and R & D
responsibility. Thus, “social involvement” for us is not just
center. The company furnished all the necessary resources
a slogan, it is a real activity of concern and public service.
so that each task force would plan and carry out public
Examples are the IAC OKWAP scholarships that have
service activities for local communities. We believe social
been awarded five consecutive years, and the continued
involvement must bring together the power of employees
concern for underprivileged groups represented by
so we can all work together, thus each public service
organizations such as Children Are Us, the Eden Social
task force has a volunteer team set up entirely by the
Welfare Foundation, and the Friends of Liu Hsia Society
employees themselves, which has become the primary
as well as emergency relief for the Sichuan disaster and
force behind all outreach activities.
the promotion of energy saving and carbon reduction
through cellphone recycling.
IAC’s social involvement has two basic elements: “investment in community outreach” and “charitable public
With the rapid growth of business in recent years, our
service.” The target of this involvement is the community
concern for the public welfare has broadened to include
as a whole, families with economic hardships, the socially
mainland China. In 2008 when we established the “IAC
disadvantaged and those in need of emergency relief.
IAC Social Involvement
Goal
combine the power of the company, employees and resources
to actively give back to society.
Policy Direction
education promotion, emergency relief, community outreach.
Principles: externally, pro-actively establish channels
for information feedback, effectively allocate resources;
internally, help promote good employee relations, strengthen
identification with the company.
Resources
factory public service task forces, company fixed-funding
levels, employee donation subscriptions, project mobilization.
Promoting Education
There is a close link between IAC and education
promotion, and the company is ever active in English
teaching and multi-media education. For example, the
OKWAP scholarships have been running for five years,
benefiting some 1,200 college and university students.
In the future we will cooperate with civic groups who
share the same philosophy and continue in a planned and
organized way to this longterm undertaking.
Education Promotion Activities
Year
Theme
Activity
IAC OKWAP Scholarships
Since 2004 IAC has offered scholarships to Taiwan college and university students who
excel in both scholarship and personal character. Beginning in 2007 IAC focused in on
students from impoverished families and by 2008 a total of NT$19 million in scholarships
was awarded to help some 1,170 students.
Concern for Adolescents
Teenage Love, Coming to
Terms with Sex
IAC has donated NT$1 million to the Love Thy Neighbor Association to make student sex
education films, provide 1,000 copies for OKWAP customer service shops and make them
available to the public and to organizations.
2004
2005
National Taiwan University Working hand-in-hand with Taiwan National University’s Department and Graduate
Institute of Business Administration, IAC provided research scholarships amounting to
Elite Project: finding
NT$1.2 million to set up the OKWAP NTU Elite Project.
creative elites
2006
Promoting Campus
English Study: celebrities
and College English
Championship
Well-known English teacher Hsu Wei and English writer Jeffrey Locker and an ICRT DJ
were invited to come to campus and share their experience in English teaching and
learning. This got students more interested in learning English and, with the College
English Championship competition, it was a lot of fun.
2008
Donation of English
Language Magazine
Provided free more than 50,000 copies costing NT$12 million of BeautyEnglish to Taiwan
high schools and institutions of higher learning sending them to teachers and students in
124 schools to prime the pump for campus English learning.
59
Emergency Relief
Activities
Emergency relief is providing relief
Making Your Own Christmas
when it is most needed to those
who need it most. On May 12, 2008
Every child dreams of having a merry Christmas. The
an earthquake struck Wenzhou.
children at the Yikuang Orphanage, are no exception.
IAC factories had been operating in
On December 22, 2008, the IAC OKWAP public service
mainland China for over ten years.
task force paid a special visit to the orphanage. Aside
Now, when all other communication
networks were completely down
and only the PHS base station was
Shanghai Red Cross
Silver Medal Award for
Outstanding Contributions
from celebrating an early Christmas with the children,
they also taught them how to do some recycling and
made a Christmas wreath. The children all fought to
able to resume communication within a short time, IAC
have their pictures taken with Santa Claus in a warm and
at the very first opportunity donated RMB$2 million and
friendly atmosphere. Sometime before the visit, OKWP
provided gratis 2,000 PHS cellphones to be sent to the
had launched a “Christmas Wishing Tree” campaign in
disaster zone for the use of the residents and relief work-
every one of its Taiwan shops. During the period of the
ers.
campaign, each time an OKWAP shop sold a cellphone
To extend the opportunity for showing concern, we
it would donate NT$100 in the buyer’s name to the
also launched a cross-strait voluntary donation drive rais-
Yikuang Orphanage. On the day of the orphanage visit,
ing a total of some RMB$1.09 million and NT$1.06 mil-
the “Ambassador of Charity” handed the Wishing Tree
lion, close to 3,000 pieces of clothing and quilts; we also
donations directly over to the orphanage as a contribution
provided outreach to company employees from Sichuan
to the underprivileged.
and coordinated with the Shanghai municipal government
to give priority in hiring victims of the Sichuan disaster.
Community Outreach
Underprivileged groups have always been a concern of
IAC. Through the public service task forces set up in the
R & D bases on either side of the Strait, whether it’s the
Eden Social Welfare Foundation, the Children Are Us Welfare Foundation or large-scale environmental education
activities in Taiwan or the outreach activities in Shanghai,
Nanjing and Xi’an at and homes for the aged and young,
1
it is not difficult to catch sight of our volunteers enthusiastically doing their part and getting actively involved.
2
IAC Volunteers
60
3
1. OKWAP public service task force celebrates Christmas with children from the
Yikuang Orphanage.
2.Volunteers make Christmas wreaths with the children.
3.A child’s happy photo memory.
Phones Love the Earth
In 2008 IAC turned eight years old! What can a eightyear-old company equal to a second-grader do to pay
back society? The answer is to save energy, reduce carbon
and protect the environment. On September 6 IAC called
on 1,600 people to take part in a “Phones Love the
Earth” campaign. A campaign closely tied in with the environmental idea not only meant all the announcements
and posters used environmentally appropriate materials,
work colleagues used their creativity and designed a lot
of “non-plug-in games” as well as interesting Q & As on
1
environmentalism. With the joint efforts of colleagues
and the public, some 1,088 cellphones were recovered
for recycling and 800 seedlings were given away.
How can we look after both technology and environmentalism? IAC has provided the best example of how to
do it.
2
3
1. IAC Chairman Jackson Chang is interviewed and explains IAC employees’
determination to protect the planet.
2.IAC employees all make a pledge.
3.Cellphone recycling campaign in full swing.
Home is Where the Heart Is, Concern for the
Aborigines
On December 13, 2008 IAC General Manager Daniel
Lee and his wife, together with CSR task force members,
went to Fuhsing Township, Taoyuan County to visit the
Kesiyono Atayal aborgines on a study and pleasure trip.
On the day they arrived, World Vision was holding children’s foot races and a culinary contest for home-raised
fruits and vegetables. General Manager Lee and his wife
served as judges for the culinary contest. Afterward, the
group observed the aborigines’ organic farming and understood how the residents worked hard to keep unique,
1
local characteristics going. They also got an appreciation
of the local people’s determination to create a sustainable
environment. General Manager Lee promised that in the
future he would continue to participate in these kinds of
activities in a concrete way so that Atayal children would
be aware of and experience the concern of the corporation and of society.
2
3
1. IAC General Manager Daniel Lee awards a bicycle to the winner of the race.
2.Organic farming.
3.IAC CSR task force members with local residents.
IAC concern knows no frontiers.
61
Shuanglong Elementary School, Lantian
“Wouldn’t it be wonderful if everyone had a uniform to wear?” Inspired
by this heartfelt desire of the children, IAC public service volunteers began a
project to make this dream come true for the 101 students at Xi’an’s Shuanglong
Elementary School. They took measurements and made new uniforms so the
students could all wear the same thing when they took part in the Lantian “Group
Everyone in uniform — making the dream come true.
Dancing Contest,” where they did very well. In addition, IAC also collected 1,474
books from five local communities in Xi’an for Lantian Elementary schools and
built a Zhuguang Library in the school they could use for reading. To deal with
the dilapidated classroom situation, IAC helped repair the old school buildings
and set up four bookcases, creating an excellent learning environment for the
teachers and students.
Group dancing.
Setting up the Zhuguang
Library.
“Gathering Pearls Program”
Many children, like small pearls, fall through the cracks because of economic
hardship. Conscious of this, IAC began longterm support of the Xinhua
Compassion Education Foundation program, “Gathering Pearls.” With the idea
of equal education as a starting point, it provides educational opportunities for
Xinhua Compassion High School
high school students with “exceptional marks from destitute families.” For IAC,
gathering pearls is really gathering talent. In reality, IAC’s philanthropic concerns
in mainland China have never stopped, whether it’s the Sichuan earthquake disaster or offering consolation to those living in homes for the elderly or Sunshine
Homes, or even working with pupils in far-flung areas, IAC volunteers can be
spotted serving enthusiastically everywhere.
General Manager Daniel Lee listens to a report by
the school administration.
Students Visit the Factory
“How do you make a cellphone?” To answer this question some 3rd grade
students from the Nanjing West Youfu St. Elementary School were taken to the
IAC Nanjing factory on December 14 by their class supervisor, Mr. Li Saiying.
Their first stop was the OKWAP product display room, and it was the first time
they had ever seen so many colorful cellphones. They were excited and curious.
Students visit IAC’s Nanjing plant.
When they saw the photo of the general manager of the Greater China Marketing Group, Joyce Chang, handing over the Olympic torch, they couldn’t help
getting their own group photo made. Afterward, the students visited the R & D
office and the cellphone production line. To make the learning interesting, it had
been arranged for Verne Zhang, the general manager of the IAC 3rd Business
Group, to accompany the group throughout their visit and explain things to
them. Finally, back at school, their teacher asked them to take their pen and
pencils and draw a picture of their idea of a cellphone. Because of their visit, they
did a perfect job — end of discussion.”
62
Students draw their idea of a cellphone.
Community Outreach Activities
Date
Theme
Legal Music
2004.08 Supporting
Downloads
Mid-Autumn Festival
2004.09 Celebrating
with Children Are Us Mooncakes
Echoing the “1919 March of
Love”project, plan for setting up
an after-school care service for
2004.12 disadvantaged pupils.
Christmas Pets~Jazz
Performance
“woodpecker movement”
2005.02 The
and creating barrier-free space.
Taipei Municipal Film
2005.06 2005
Festival
2005.12
From Taichung with Love
2006
Hug an Animal: Rhapsody
Charity handmade egg roll
sale for the Friends of Liu Hsia
2008.04 Society
Financial Aid for Shuanglong
Elementary School, Lantian
Assistance for disabled at the
Sunshine Home, Pujiang.
2008.05 Assistance for Sunshine Home
Nanjing Social Welfare
Institution Activity
Financial aid for English study
2008.06 at Lantian’s Shuanglong
Elementary School
2008.07
Pujiang Elderly Home
Cross-stitch
Donating Rice to Pujiang Town
2008.08
Financial School Aid For Pujiang
Town
Phones Love the Earth
Collecting Books for the Lantian
2008.09 Shuanglong Elementary School
Library
Mid-Autumn Event at the Pukou
Social Welfare Institution
Financial Aid for Primary School
in Zhuanqiao Area
in Art and Literary
2008.10 Participation
Activities
2008.11
“Middle and Primary School
Academic Help for Aborigines”
“Gathering Pearls”
Home is Where the Heart Is,
Concern for Aborigines
Donation of English Language
Magazine
2008.12
Winter Aid, 2008 Charity Sale
Student Factory Visit
Making Your Own Christmas
Activity
Announced support for the legal downloading of music jointly with the MOEA Intellectual
Property Office, the International Federation of the Phonographic Industry (IFPI) and the
Music Copyright Society of Chinese Taipei (MUST).
Charity sale and promotion of Children are Us mooncakes, benefiting Children are Us.
In cooperation with the Chinese Christian Evangelistic Association, and echoing their “1919
March of Love”project, IAC donated care packages for the establishment of an after-school
care service to benefit disadvantaged pupils throughout Taiwan (to include children from
impoverished families, single-parent families and families with foreign brides).
Working with the Help-Save-A-Pet Fund, combined online and offline activities to raise
donations for abandoned pets.
Responding to the Eden Social Welfare Foundation, worked together to extend barrier-free
space activities.
Gave film fans a better understanding of new trends in world cinema and pushing forward
the city’s cultural development.
Together with the Jingming 1st St. Plaza Council, held Christmas party, conducted charity
auction and donated ten “Head Start Centers.”
Was the sole sponsor patronizing the Chia-yi municipal government’s “SMART Animal
Rhapsody Illustration Exhibition,”continuing to give impetus to the artistic life of the Chia-yi
area.
Entire the factory ordered handmade egg rolls from the Friends of Liu Hsia Society to
celebrate Mother’s Day and help the disadvantaged.
Ordered uniforms for the 101 students at the Shuanglong Elementary School in Lantian.
Red packets and presents distributed to more than thirty disabled at the Sunshine Home.
Company volunteers prepared a wonderful artistic program, celebrated birthdays for those
born in May and held a Q & A contest with awards.
For International Day of Persons with Disabilities, the public service task force went to the
Sunshine Home and held a small-scale athletic meet for the disabled.
Provided leisure activities and individual care for the elderly and disabled at the Nanjing
Social Welfare Institution.
Provided English prac tice books, writing implements, English letter char t, English
pronunciation chart and regular medical supplies; also conducted English class separately for
3rd, 4th and 5th year students.
Provided the elderly haircuts, grooming and massages, celebrated birthdays, did art and
made dumpling.
Taughtthe mentally disabled at the Sunshine Home in Shanghai, Xuhui District, to do crossstitch and develop a skill and the ability to support themselves.
Cooperating with the Pujiang Town civil administration, distributed rice to 40 poor residents
and the Xuhui District Home for the Elderly.
Cooperating with the Pujiang Town civil administration, gave scholarships and books to 20
impoverished high school and university students who excel in both personal character and
scholarship.
With the assistance of the Taipei Department of Economic Development conducted a largescale “Phones Love the Earth”event at the Taipei Zoo. In addition to recycling some 1,088
discarded cellphones and giving away 800 seedlings, effectively taught more than 1,600
participating employees and public about environmental protectionism through elaborately
designed environmental games.
Collected books from local communities in Xi’an and received 1,474 volumes in donation.
On the eve of the Mid-Autumn Festival, visited the orphans of the Pukou Social Welfare
Institution and organized a lot of fun activities for the children.
In conjunction with the Minhang District Education Bureau, gave assistance to economically
disadvantaged and seriously ill students in the locally run Huaxing and Tangwan schools in
Minhang.
In October and November sponsored the play“Shanghai/Taipei—A Romance of Two
Cities”staged by the Taipei Philharmonic Foundation of Culture and Education
Cooperated with the Renewal Foundation to sponsor a “Middle and Primary School
Academic Help for Aborigines”project, each year supporting some 600 disadvantaged
aborigine students.
Cooperated with the Xinhua Compassion Education Foundation to sponsor the “Gathering
Pearls” program, each year supporting 150 “excellent but poor” students in three classes.
General Manager Daniel Lee and his wife together with CSR task force members visited
Fuxing Township, Taoyuan County and the Kesiyono Atayal aborigines, participating in
aboriginal foot races and a cuisine contest.
Sponsored the charity vocal concert “Glad You Are Here” put on by the National Union of
Taiwan Women’s Associations with 20,000 copies of BeautyEnglish for one year.
Employees were encouraged to donate clothes and household items and auction them off at
the company, donating the proceeds to charitable organizations.
Students from Nanjing West Youfu St. Primary School were invited to the IAC Nanjing factory
for a thematic class program and were also shown the production line.
OKWAP and the Yikuang Orphanage children celebrated an early Christmas. The children
were taught how to make Christmas wreaths, had their pictures taken with Santa Claus and
spent a wonderful holiday.
63
GRI/G3 Index Table
GRI
Categories
64
Description
1.1
Statement from the most senior decision-maker of
IAC.
1.2
Primary brands, products, and services.
2.1
Name of organization.
2.2
Primary brands, products and/or service.
Page
3, 4
EC1
Direct economic value production and distribution.
20
6
Organization’s benefit plan coverage.
49
7, 8
EC7
Proportion of senior management hired locally.
44
17
EC8
Development and impact of public service activities.
59
2.4
Location of headquarters.
6
2.5
Countries in which organization operates.
6
2.6
Nature of ownership and legal form.
2.8
Scale of organization.
2.9
Significant changes during reporting period.
2.10
Awards received in reporting period.
3.1
Reporting period.
Page
EC3
Operational structure.
Markets served.
Description
Economic Performance
18
2.3
2.7
GRI
Categories
Environmental Performance
EN3
Direct energy consumption.
55
6
EN4
Indirect energy consumption.
55
6, 7
EN5
Annual energy saved.
55
6
EN8
Annual water usage.
56
10, 11
EN16
Direct and indirect greenhouse gas emissions.
54
11
EN17
Other relevant indirect greenhouse gas emissions.
54
1
EN22
Weight of waste by type and disposal method.
57
Initiatives mitigating environmental impact.
58
Value of monetary and non-monetary sanctions for noncompliance with environmental laws and regulations.
52
3.2
Date of most recent previous report.
1
EN26
3.3
Reporting cycle.
1
EN28
3.4
Contact point for questions regarding report or contents.
1
3.5
Process for defining report content.
1
LA1
Workforce by employee type and region.
44
3.6
Boundary of the report.
1
LA2
Total number and rate of employee turnover.
44
LA4
Percentage of employees covered by collective bargaining
agreements.
48
LA8
Education, training, counseling, prevention for serious
diseases.
LA10
Average hours of training per year per employee.
45
LA13
Employee diversity.
44
47
38
Social Performance
3.7
Specific limitations of report.
1
3.8
Basis for reporting on other entities.
6
3.9
Data measurement techniques.
3.10
Explanation of restatements of content.
N/A
3.11
Significant changes from previous reporting.
N/A
3.12
GRI content index.
64
HR1
Percentage and total number of agreements with human
rights clauses or that have undergone human rights
screening.
3.13
External assurance.
N/A
HR2
4.1
Governance structure of the organization.
17
Percentage of suppliers who have undergone screening on
human rights.
Indicate whether the highest governance body is also an
executive officer.
HR4
Total number of incidents of discrimination and actions taken.
47
4.2
16
HR5
Freedom of association and collective bargaining rights.
48
4.3
Number of members of highest governance body that are
independent/non-independent.
16
HR6
Non-use of child labor.
40
4.4
Mechanisms for shareholders and employees to provide
recommendations or direction to highest governance
body.
14
HR7
Measures contributing to elimination of forced labor.
47
SO1
Impact of organization’s operations on local communities.
59
4.5
Linkage between compensation for senior managers and the
organization’s performance.
18
SO2
Percentage and total number of business units analyzed for
risks related to corruption.
18
4.6
Processes to ensure conflicts of interest are avoided.
18
Process for determining the qualifications of senior
management.
SO3
16
Percentage of employees trained in organization’s anticorruption policies and procedures.
47
4.7
PR1
4.8
Organization’s vision, policies and goals.
Life cycle stages in which health and safety impacts of
products have been assessed.
Procedures for oversight and management of economic,
social and environmental performance.
PR3
Product information.
4.9
12
PR9
4.10
Process for evaluating management body’s performance.
12
Monetary value of significant fines for non-compliance with
laws and regulations concerning products and services.
4.11
Organization’s precautionary approach or principle.
18
4.12
Externally developed economic, environmental, and social
charters or principles.
4.13
Memberships in associations or advocacy organizations.
13
53~57
9
48, 52
4.14
List of stakeholders.
14
4.15
Basis for identification and selection of stakeholders.
12
4.16
Approaches to stakeholder engagement.
14
4.17
Topics and concerns of stakeholders and the organization’s
response.
14
48, 50
28, 29
7
40
Self-Declaration of GRI G3 Application Level
This report is the first CSR report issued by IAC, Inc. In addition to including all issues of
concern to stakeholders, it discloses economic, environmental and social performance according to the 3rd Generation Global Reporting Initiative’s Sustainability Reporting Guidelines (GRI
G3) published in 2006.
According to the GRI G3 Application Level Grid, IAC’s 2008 CSR report statement conforms
to a GRI G3 “B”level.
GRI G3 Application Level Grid

IAC Corporate Social Responsibility Report

Transcription

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