2013 HTC CSR REPORTPower To Give
Hi, we’re HTC.

HTC Corporation
http://www.htc.com

HTC 2013
Corporate Social Responsibility Report

2013
HTC CSR Highlight1

1 The only international smartphone brand from Taiwan

2

R&D expenses accounted for3

HTC One – The best smartphone worldwide

4

Packing materials are5

TPE1 building received USA

64,969 hours of English learning resources

7

92.54% of our suppliers replied Conflict Mineral Reporting Template

8Power To Give – A smartphone CSR initiative

9

Established10

68,309 person-time participated in Character Education

11768 schools and related institutions participated in Rock Education Program

6.2% of our revenues

100% biodegradable
LEED Gold Certification

4 English Character-Building School around Taiwan

Editorial Principle
Thank you for reading the second Corporate Social Responsibility (CSR) Report issued by the HTC Corporation(HTC). HTC has an open and honest approach to the review and disclosure of our executive performance related to all

CSR matters and offers our stakeholders a clear picture of all the related issues. Our aim is to use our brand’s influence

to integrate our CSR strategies into the organization, and we start off with a comprehensive response to all theseissues.

As a global mobile device brand, we are ready to confront all the challenges that might present themselves. For

each major CSR issue that relates to our future development, we make it clear at the beginning of each section whichchallenge we are facing, our current achievements, and our goals for future development. By understanding andcommitment to these issues, HTC will define and confirm our direction toward sustainable development, and also let
our stakeholders know everything about our performance and the results with respect to CSR in 2013.

Time Coverage of Disclosure
We plan to issue the HTC Corporate Social Responsibility Report annually. This report generally covers the year

2013, from January to December. However, in order to provide a full picture of all our CSR achievements in various

aspects to date, the content and information about some issues refers to work carried out in 2012 and 2014, as well as
the HTC CSR management policies, key issues, and performance, responses, and activities for previous years.

Report BasisThis report has been prepared in accordance with the Global Reporting Initiative (GRI) G4 Core Option andAA1000 (2008) standards and has been confirmed by SGS-Taiwan to be in compliance with AA1000 Type1 top-level

This report has been prepared in Chinese and English. Both versions are posted on our official website and areavailable for download (www.csr. htc.com).

assurance and GRI G4 Core option.

Forwards-Looking Statements & Statistical Calculations

HTC CSR Website

In this report, HTC makes some forward-looking statements about future CSR challenges and developments.

However, because some of these issues are uncertain and subject to variable factors (such as policies, laws, andThis website is updated annually to inform all stakeholders and the public
about HTC CSR activities. Please use the following link to access the HTC
website: www.csr.htc.com

international regulations), it should be noted that they have been made after discussions on current HTC status and aremade as forecasts, the purpose being to give our stakeholders a picture of the HTC understanding and realization of
CSR issues. The forecasts are not promises by HTC of guaranteed financial, operational, and business performance.

The HTC 2013 CSR Report (HTC CSR Report 2013) is downloadable in PDF format.)

The figures shown in this report are in the metric system and are statistical and calculated results generated

according to the related international standards and bases of calculation. In the event that any special calculation
methods are implemented for particular indicators, notes are provided below the corresponding tables or graphics.

Feedback
Should you have any questions about this HTC Corporate Social Responsibility Report 2013, please let us know tohelp us make continuous progress.

The HTC 2013 CSR Report

Contact us
CSR, HTC Corporation

Report Scope and Boundary

Contact: Huang Ya-Hui +886 (0)3 375 3252 Ext 31529

This report primarily covers HTC operations in Taiwan and China,

including the Taoyuan Headquarters and factories of Taipei Building One,
Taipei Building Two, Hsinchu office and Tainan office, all representing HTC

E- mail: corporate_responsibility@htc.com
Shanghai
Factory

operations in Taiwan, and HTC’s factory in Shanghai, China. In the future,

TaoyuanHsinchu
Software
R&D Center

we will expand the coverage of our CSR report to make more complete andeffective disclosures.

TPE 2
TPE 1

Address: No 23, Xinghua Rd, Taoyuan City, Taoyuan County, Taiwan
CSR URL: www.csr.htc.com

Geographic Coverage of the HTC CSR Report 2013
Boundary

002

AddressTel

HQ & Factory

No 23, Xinghua Rd, Taoyuan City, Taoyuan
County, Taiwan+886-3-3753252

Taipei Office 1

No 88, Sec 3, Zhongxing Rd, Xindian Dist, New
Taipei City, Taiwan+886-2-89124138

Taipei Office 2

1F, No 6-3, Baoqiang Rd, Xindian Dist, New Taipei
City, Taiwan+886-2-89124138

Hsinchu Software
R&D Center

8F, No 1, Taiyuan 1st St, Zhubei City, Hsinchu
County, Taiwan

Tainan Software R&D
Center4F, No 701, Sec 1, Ximen Rd, West Central Dist,Tainan City, Taiwan+886-3-3753252

Shanghai Factory

25F, Technology Jincheng West Building, No. 668,
Beijing East Road, Huangpu District, Shanghai+86-10-65171108

Editorial Principle

TainanSoftware
R&D Center+886-3-3753252

HTC 2013 CSR Report003

Report Scope and Boundary 1

Assurance Statement 130

Editorial Principle 2G4 material issues and boundary 132

Message from the Chairperson 6

Content
Contents

About HTC
Product 10
Organization Structure 12
Awards Earned 13
Global Operational Locations 14
Re-investment& Affiliated Companies 15

Innovative
Research &Development

Partnership
General Consumers 45

Environmental
Sustainability
AgendaActively
conducting innovative R&D 23

Student Workers Partners 46

Sustainable Environment

Foreign Employees 48

Sustainable Design

Contractor Partners 50

Sustainable
Manufacturing Process

Engaging Diversified R&D Talent 25

Corporate Customers

44

Supply Chain Partners 51

Overview of Financial Performance 15

Brand
Introduction

Responsible
Management

HTC People

Brand’s Core Principle 18

Corporate Governance 26

Chronicle of
HTC Product Developmentin 2013 20

Risk Management 32

A Sound Wages
and Welfare System 60

Management ofCorporate Social Responsibility 35

Attracting and Retaining Talent 57

Valuing Human Rights
and a High Standardof Professional Ethics 64
Valuing Employee Health 68
Listening to Voiceof the Employee 78
Complete Education
and Training Plan 80

Sustainable Product

102

106
116

118

SocialInvestment andContribution
HTC Foundation

120

Other Social Engagement
Activities 126

Message from the Chairperson

Thank you for reading the second HTC Corporate Social Responsibility Report. In preparing this report, we have

We have the ability to contribute. Our Power To

followed the latest GRI G4 and AA 1000 standards for information disclosure. Professional external verification ensures

Give™ app combines the core occupational functions

the public and all stakeholders.

resources and make really great contributions to medical

accurate communication of HTC’s social responsibility, commitment and achievement of sustainable management to

HTC has gone through a period of change in 2013, and although performance was not as expected, we areconvinced that this process has paved the way for future success. In the face of strong competition and severe market
challenges, HTC’s 2013 financial performance failed to meet expectations. To counter this, we immediately launchedcomprehensive reforms and re-adjusted our pace, striving to boost operations.

To grasp the opportunities and challenges brought about by changes in industry trends, in addition to focusing

on research and development, technological innovation and marketing deployment, we are enhancing company

competence based on the concept of “cooperation, creation, and value sharing” to work with other leading companies
in our industry through strategic alliances and interaction to stimulate innovative energy.

We have the ability to change. In addition to refining and improving the business process and organization,

we are actively encouraging our suppliers to understand and incorporate social responsibility activities for brand,
governance, employees, partners and the supply chain, as well as integrating social participation into daily operations
and management to create a positive CSR cycle.

We have the ability to innovate. HTC has been committed to creation and innovation for years. HTC is committed

to the creation of an excellent smartphone. HTC launched our most successful product in 2013 – the HTC One® –which is clear evidence of our leading role in the mobile phone industry. The HTC One, with its excellent craftsmanship,

design and breakthrough innovative functions, is second to none and took first prize in many international mobile
phone competitions.

of the industry to link to more people through network
research.

I believe that the success of HTC comes fromexperience and continual feedback from customers andusers; the concerns and suggestions from stakeholders

a ls o p r o v id e HT C wit h t h e e n e r g y n e e d e d f o r asustainable operation. We have the ability, gained fromintrospection, change and action, to create more added

value for shareholders, customers, employees, and thecommunity.

Smartphones have become a part of life. The

preference and recognition of consumers profoundly
affects the way HTC thinks and acts. We will continue tobuild refreshing new products and invest in branding,marketing, and sales management. I believe this will help
us remain an innovative, sustainable and responsible

company. Your continued support, encouragement, andsuggestions are expected and appreciated.

We have the ability to communicate. We took bolder and more active moves to communicate with consumers in

2013. Not only did we sponsor the UEFA Champions and UEFA Europa Leagues, but also collaborated with Robert

Downey, Jr. in the launch of a brand new communication program “Here’s To Change™,” and the global popularity of
HTC has continued to rise. We are confident that we will continue to create value for the HTC brand, customers, andshareholders in 2014 with a more robust and better built future.

006

Message from the Chairperson

HTC Corporation
Chairperson

HTC 2013 CSR Report007About HTC
Name: HTC Corporation (TWSE stock symbol 2498)
Address: No 23, Xinghua Rd, Taoyuan City, Taoyuan County, Taiwan
Established: May 15, 1997
Sector: Manufacturer of computers and consumer electronics (handheld smart computers and wireless communication products)
Main business: Smartphone/HTC phones and accessories

The global leader in innovative mobile phone design - HTC
The HTC Corporation (HTC) was established in 1997. As a global leader of innovation and designin the smartphone industry, we believe in the power of being quietly brilliant, and maintain a modest

HTC has broken through many boundaries, working with Microsoft to launch Windows® CE, Windows

Mobile, and the Windows Phone® system in each generation. HTC has also collaborated with Google todevelop the world’s first Android™ smartphone and launched 3G, 4G WiMAX, and LTE™ smartphones wellahead of the industry. HTC is committed to introducing more innovative and competitive Android and Windows

and amiable attitude while creating good things for the world. It is our belief that a consumer’s good

Mobile OS smartphones and to the developing the market and building brand value and popularity.

when acting as a company, an innovator, and a partner.

future success. In 2013, HTC launched our most successful and exciting product - the HTC One - based

experience can say more than a thousand promotional words. This is also the core principle HTC follows
Since its incorporation HTC has embraced a passion for innovation and for the vision of changing

people’s lives with smart handheld devices. We started by providing global customers and consumers

HTC went through a period of change in 2013 which was a necessary process for paving the way toon a customer-oriented design concept. The excellent craftsmanship and design of the HTC One was a

breakthrough in innovative function and is second to none in the world. The HTC One took the first prize in anwith the best experience by developing a series of world-class customized and innovative wirelessinternational mobile phone competition.

brand was established in 2007 based on talent and rich experience accumulated over the years.

that our superior consumer-oriented and innovative technologies and beautiful designs will sustain our

telecommunications products for industry and distributors in Europe, America, and Asia. The HTC

Precise judgment of market trends allowed rapid expansion and acquisition of market share and HTC
become one of the world’s top five smartphone makers. HTC was ranked 98th on the Interbrand Top-100

Valuable Brands in 2011. This was the first such award received by a Taiwanese industrial company anddemonstrated the strength of the HTC brand.

HTC has high hopes for the development and future prospects of telecommunications. We are confident

position as an industry leader. Smartphone technology evolution has opened up enormous and very attractive
business opportunities. HTC will exert new effort to create fresh products and continue investment in branding,marketing, and sales management. We will also be more active in communicating with the consumer. Thankyou for your support. Please stay with us and help us to move forward.

Product
HTC currently focuses on smartphones using the Android and Windows Phone operating systems. In view of theincreasing popularity of smart devices, we are devoting much effort to innovation and have launched a wider range of
products to meet the various needs of diverse user groups.

We believe that audio and video content are important requisites for modern lifestyles, so we continue to develop

innovative products to match the lifestyles of the different consumer groups. In this way more people can experience
the enhanced performance and multimedia functions of our smart mobile devices.

Mobile communications technology has now entered the high-speed 4G era, and HTC has taken the lead inlaunching the first GSM/WiMAX 4G smartphone and 4G LTE Windows Phones. This provides evidence of HTC’s
leading position in smartphone technical development.

Since its establishment, HTC has had very strong R&D capability which has been clearly demonstrated by astream of first-class products into the international market. HTC has persisted in a consumer-oriented approach tocontinuously provide real cutting-edge smartphone and demonstrate its commitment to both users and shareholders
through its growing global marketing and service network.

HTC Main Product: Smartphone
Year

Capacity (thousand)Output (thousand)Output Value (NT$ Million)

2011

49,47046,571

263,261

2012

59,51732,863

168,434

2013

38,55020,345

129,184

Note: The term “Capacity” refers to the maximum number of a given product the company can produce with normal operation of the existing manufacturing facilities after
consideration of necessary shutdown and off days.

Product Sales: Smartphone & Others (Accessories)
Domestic Sales

Year

Export Sales

Volume (Thousands)

Value (Million)

Volume (Thousands)

Value (Million)

2011

12,63020,056

146,899443,823

2012

7,545

20,338139,070

262,577

2013

3,024

19,653

97,233

180,555

Note: The figures for the main products do not include income from maintenance and product development.

Award-Winning Products

HTC Dot View™ protective coveriF Gold Product Design Award

The HTC Dot View™ protective cover madeexclusively for the HTC One (M8) received a Gold
Medal at the 7th “COMPUTEX d&i awards” heldby Taiwan External Trade Development Council(TAITRA) and iF (Germany) in May 2014. This isfurther evidence of the superiority of HTC R&D
innovation and product design.

The HTC One received the “iF Gold Product DesignAward” in 2014. This phone is not only excellent
inside and out and in line with ultimate aesthetics,
but also focuses on the promotion of awareness ofenvironmental protection. The concept of energy
saving and carbon reduction and environmental
protection is actually realized in the product, which
has also been recognized and appreciated in many
international award competitions.

2013 Awards Earned
Global System for Mobile Communications Association, GSMAHTC One received the “Best New Mobile Handset, Device or Tablet” award.

Tech RadarHTC One received the “Best Phone at MWC” and “Best in Show” awards.

Mobile Geeks

HTC One was awarded “Best Smartphone.”

T3 Gadget Awards

HTC One was awarded “Phone of the Year in 2013.”

European Imaging and Sound Association

HTC One received the “Best European Advanced Smartphone 2013-2014” award.

Tbreak Awards

HTC One was awarded “Best Phone of the Year.”010

About HTCHTC 2013 CSR Report011

Organization Structure
Shareholders’ Meetings
Board of Directors
Internal Audit DivisionInspection and review of theeffectiveness of internal control systems,
the measurement of the effectivenessand efficiency of operations, thereliability of financial statements, andcompliance with all the related laws andregulations.

Chairwoman
CEO & General Manager
R&D Center

Conducting the research and development of HTC products, and setting up the research
culture and values for all R&D departments.

Operation Center

Inspection and review of the effectiveness of internal control systems, the measurementof the effectiveness and efficiency of operations, the reliability of financial statements, andcompliance with all the related laws and regulations.

Marketing Division

Responsible for the global corporate image, public relations, global branding, and marketingstrategy planning and implementation.

Global Business Division

Leads the global business team and is in charge of product sales, customer development,
order negotiation, maintenance of customer relationship, customer service and related
problem solving, communi- cations, and coordination.

Innovation R&D Center

Study and design, innovative technology, the creation of products, application and potential,
also dedicated to development and innovative research to ensure HTC’s leading positionin the market, and continue to provide consumers with enjoyable experience through the
management of new product launches and portfolio.

Finance & Accounting
Division

Implementing corporate governance, investor relationship management, global tax planning,financial flexibility, capital management, investment planning, risk management, and stock
management and analysis of the costs of company operations.

Human Resources Division

Conducting HR development and management; promoting corporate culture and employee
services; and performing organization planning as well as human resources configurationaccording to the development strategies of the company.

Legal Affairs Division

Performing the examination, planning, processing, and execution of all the company
contracts, trademarks, patents, intellectual property, and other legal affairs and litigation.

General Manager for R&D
and Operations
Conducting product R&D work andcontrolling and planning HTC global
capacity.

012

Chairperson

CEO & President

Director

Cher Wang

Peter Chou

HT ChoAbout HTCHTC 2013 CSR Report013

Global Operational Locations
Copenhagen, Denmark
Milton Keynes, UK

Re-investment & Affiliated Companies
HTC’s reinvestment policy focuses on the core business of the organization and the businesses that are

Moscow, Russia

Eurpoebeneficial to long-term development. Strategic investment is made through equity investment or acquisition with

Warsaw, Poland
Utrecht, Netherlands
Paris, FranceFrankfurt, Germany

adequate financial assessment and analysis of the industry trends, market competition, team experience, the businessSlough,UK

model, and risk evaluation. Specific targets are selected that will improve products and service quality continuously,

ASIA PacificRome, Italy
Madrid, Spain
Seoul, Korea

China Shanghai
MEA
Dubai

SuzhouNew Delhi, India

Mumbai, India

Hong Kong
HO Chi Minh, Vietnam

Chennai, india Bangkok, Thailand
Singapore
SeattleUSA

Japan , Tokyo

Headquarter

Taipei, Taiwan
Taoyuan, Taiwan
Tainan, Taiwan

strengthen the development of key technologies, and control future market demand to enhance core competence ofthe company.

HTC has been focusing on the adjustment and disposal of our existing investment portfolio, and, therefore, nostrategic investments were made in 2013. Future investment will be focused on the Greater China region. HTC intends
to invest in firmware service that combines hardware and software, cloud technology, and mobile Internet services.
(Please refer to the “Organization Chart” on page 229~231 of the HTC 2013 Annual Report).

Manila, Philippines

Kuala Lumpur, Malaysia

Overview of Financial Performance

Jakarta, Indonesia

Houston

Sydney, Australia

The consolidated operating revenue of HTC amounted to NT$203.4 billion in 2013, consolidated gross profit

amounted to NT$42.27 billion, consolidated gross profit ratio was 21%, the net operating loss ratio was -2%, operating

loss amounted to NT$3.97 billion, the net loss was NT$1.32 billion, and the after-tax earnings per share (EPS) was aloss of NT$1.6/share. HTC will continue to dedicate attention to the core business and actively reduce costs to restore
profitability in 2014.

The relevant financial data are disclosed below:

Latin America
Sau Paulo

HTC is headquartered in Taiwan. Driven by effective branding, HTC now has

operations, sales, and services covering most areas in the world, including Europe,

the Americas, and Asia. With the coordination and integration of the operational HQ,
HTC provides customers with a network of professional services.

HTC stands in the immediate presence of its customers and provides instantservice. Offices have been established in all the major markets of the world, including

the USA, Canada, the UK, Germany, France, Italy, the Netherlands, Belgium, Spain,
Poland, Denmark, Sweden, Russia, Mainland China, Japan, Hong Kong, Singapore,

Thailand, Myanmar, Vietnam, Indonesia, India, Malaysia, Australia, the Philippines,
Kingdom of Norway, Luxembourg, UAE, and Brazil.

014

About HTC

Unit

2013

Operating Revenue

NT$ Million

203,403

Operating Costs & Expenses

NT$ Million

207,373

Income Tax

NT$ Million

1,128

Employee Wages

NT$ Million

18,332

Note: The related figures are those listed in the consolidated statement.

The 2nd & 3rd Floors of the Taipei Headquarters were donated to the
HTC Foundation
Floor

Space Usage

Area (ping)

3F

HTC Foundation

923.982F

HTC Foundation

701.84

HTC 2013 CSR Report015

BrandIntroduction

HTC’s Challenge

How to enhance brand loyalty

Future Goal
To increase market share

To strengthen integration ofmarketing and to deepen thepenetration of our brand

HTC is committed to creating individualized experience and is convinced that each mobile device

should be centered on the needs of the user rather making the user subject to the product. HTC productdesign philosophy is not derived solely from survey results of consumer demand, but also from carefulobservation and respect of the interaction between individuals and technology over time.

We are committed to creating wonderful experience, and to instilling the concept of “Quietly Brilliant”

into HTC corporate culture, to constantly introduce innovative handsets to meet the needs of eachconsumer, and to help people enjoy a mobile lifestyle and entertainment of impeccable quality. To further
realize a people-oriented product design, HTC Sense™ has been based on the design concept of “a morehuman experience that is closer to life” to make the use of HTC mobiles both pleasant and delightful.

Today, taking pictures of things has become one of the most important every day functions of a mobile

Current Achievement
Creating a global smartphone with excellent design
The most valuable international brand from Taiwan
Announcing an admirable smartphone research
program “HTC Power To Give”

phone. In view of this, HTC has introduced new camera functions that allow a user to record audio and takepictures at the same time to capture each and every wonderful moment. The new camera also supports

wireless transmission so that a user can share the images with friends through a TV set. HTC mobile phones
can also extend your mobile life into a vehicle audio/visual entertainment system by receiving radio channels
all over the world. Furthermore, HTC provides cross-screen integration. HTC Sense TV™ uses cloudtechnology to turn the New HTC One into a remote control that works with most TV sets, set-top boxes andreceivers, allowing consumers to watch their favorite TV programs and sports at will.

Wisdom of Modesty & Amiability
At HTC, we believe that great things can be done in a modest and humble way. Wonderful things are better

experienced than expressed. At HTC, our achievements do not depend on slogans, but are built upon positive user
experience. We receive excellent feedback from all our users without prompting.

The HTC brand value is human-centered, and this drives us to continuous thought about how to make things

The HTC brand is popular amongst young and adventurous consumers. For this group of independent, discreteand self-challenging users, HTC’s pursuit of innovation is a symbol of pioneering that has won both praise andrecognition.

In 2013, the “Here’s To Change” global marketing communication program invited Robert Downey, Jr. tomore simple and natural and how to make the impossible possible. We have realized this human-centered philosophy

make a television commercial that would demonstrate a courageous challenge by HTC to the existing mobile

extraordinary and amazing experiences.

increase in advertising effectiveness of 12%, an improvement of brand development potential by 15% and an increasein product designs with more natural user interfaces and a concept that is closer to life. We bring our consumers

in HTC global brand awareness of 87% (Hall & Partner, 2013 brand tracking study).

We are quietly brilliant

At HTC, we put the user first and work hard in the pursuit of innovative

rp

is

es

scores and enjoy instant play through a rich and innovative overall telecommunications experience.

HTC worked with Qualcomm in 2013 to jointly organize “The Ultimate Smartphone Photo Booth” tour of somerof 130 individual HTC One phones was extraordinary. The documentary video of the campaign has had more than 5rand grow and our global R&D team can keep evolving the using experience toalso introduced the HTCFootballFeed mobile phone application that allows users to easily find the latest football league

major US cities. The demonstration of the excellent UltraPixel™ camera with a 540 degree camera array consistingSuon the user experience. By listening to what the user has to say, we can learnof billions around the world through the “Change Your Game” integrated marketing communication program. We havem

HonestHumbleSimpleDynamic
Innovative

HTC pays extra attention to details to enable consumers to experiencethe most advanced technology in the simplest way. We encourage feedback

Si

ity

We create the ultimate personalized user experienceat

In 2013, HTC sponsored the two top world football tournaments, the UEFA Champions League and UEFA Europa

League. HTC became their official global handset supplier. This sponsorship allowed HTC to be seen by audiencesic

the identity of the brand, and the continuous growth of HTC.

er
ent
ec
th

pl

experience and the references from users that drive the sale of HTC products,

Cust
om
er

designs that will enhance the user’s personal experience. It is the realPo
we

Our success comes from the praise of our users

telecommunications industry, to continue providing consumers with their innovative technology. The result was an

Hid

d

en

the maximum.

Our product design focuses on creating meaningful experiences
To give HTC products a simple yet outstanding style and provide excellent user experience, we design well-engineered, capable, and durable products that have a human oriented interface.

HTC has achieved much in terms of innovation, including the excellent press-and-shoot picture taking functionthat is comparable to that of mainstream digital cameras. Our products have HD recording and playback functions thatturn an HTC mobile device into a personal mobile theater. By incorporation of advanced audio technology, we giveour consumers the most authentic sound. The HTC smartphone picture taking functions and audio performance havemillion hits on the YouTube™ video community.

In addition, we announced HTC Power To Give™, at the Mobile World Congress convention. This program

employs a smartphone application developed jointly with Dr. David Anderson of the University of California, Berkeley.

It is an innovative mobile phone program that allows smartphone users to share the computing power of their devices

while they are idling and recharging. The processing capacity of many devices can be used together to work on
many problems that concern mankind, such as the search for a cure for cancer or Alzheimer’s, or environmental andecological conservation plans, or even the exploration of outer space for signs of life. The program, led by Chairwoman
Ms. Cher Wang, is not only a milestone of the HTC brand operation, but also allows us to help solve some very
important issues using the idle power of our mobile telecommunication devices.

Since its establishment, HTC has always followed the same principles: being brave to pursue innovation, driving

to have more people experience our extraordinary smartphone, and consistently realizing its brand philosophy of “being
quietly brilliant” as the company’s internalized culture.

become new benchmarks in the mobile phone industry.

HTC believes that a mobile device should be more than just a smartphone, and should meet all user needs for

personal audio/visual entertainment and social communication and be a universal mobile device that also represents
its user’s image.

Multilateral cooperation leads to innovation
To provide our users with more complete and comprehensive mobile services, HTC has long-term strategic

partnerships formed with many industry leaders, such as Google, Microsoft, and Qualcomm. Through collaboration in

research and development, we continuously create innovation that enables us to integrate hardware, software, content,
and operating systems more effectively for enhanced human interaction.

018

Brand Introduction

HTC 2013 CSR Report019

Honors and Awards

A Working Environment Incorporating Brand Spirit

HTC has industriously cultivated the smartphone market around its consumer-centered design philosophy and

The design of the new HTC R&D facility at Taipei HQ is based on the HTC brand spirit and displays the fourconcepts of “Customer at the Center,” “Simplicity,” “Surprise,” and “Hidden Power.”
HTC regards the creativity that stems from brainstorming as one of our most valuable assets. To promoteinterpersonal communication, the new facility is configured with many staff areas that allow our people to interact
and talk, this includes the interlacing sky bridges between the buildings that link departments together, and theinteraction rooms that project from the floors like transparent boxes. We hope that these interaction-oriented
spaces will encourage and promote cross-department synergism and cooperation, supporting the free extensionof creativity.

has received many prestigious awards. HTC won “The Best New Mobile Handset, Device or Tablet” award from the
Global System for Mobile Communications Association (GSMA) in 2013 and has repeatedly gained first prize in othersmartphone contests around the world.

HTC believes sharing is the best kind of interaction. To this end we will share the lobby on the first floor of the R&D
Building with the community. The HTC Gallery will continue to help young local artists show their creativity andwork to promote social and community interaction.

Global System for Mobile Communications Association (GSMA)HTC One won the“The Best New Mobile Handset, Device or Tablet” Award.

In addition, the HTC Gallery will cooperate with different institutions and artists to regularly showcase new culturaland artistic works. It will be open to the community schools, groups, and the public. Let us all get closer to the arts.
All the people who work in the building can also appreciate being in an art gallery that will inspire creativity andhelp HTC launch better and more amazing products.
In 2013 the HTC Gallery invited artists including Ming Ju, Teacher Kuo-Sung Liu, Teacher Ching Chang, Teacher
Tzu-chi Yeh and many others. HTC hopes to plant seeds in the heart of everyone through this sharing, so that art
and creativity can become part of the kind of energy of which Taiwan is so proud.

Chronicle of HTC Product Development in 2013
1999

2000

2002

2005

2007

2008

First color palm
size PC

First Microsoft
Pocket PC

First Microsoft
wireless pocket PC

First 3G
smartphone

First Touchsmartphone

First Google
Android phone

First WIMAX
smartphone

2010

2012

2013

First 4G Android
smartphone

First Smartphonewith Amazing
Cameramost awarded Smartphonethat brings new
perspectives on mobile
experience

Innovative
Research &Development
HTC’s Challenge

Expediting patent layout
Strengthening advertising ofproduct innovation

Future Goal
Continued innovation with thehuman-centered concept tomake user satisfaction withmobile phones better

Actively conducting innovative R&D
Since its establishment, HTC has invested heavily in cultivating R&D talent and developing technicalinnovation. The annual R&D investment is about 5-6% of the total operating revenue. Currently, our in-house R&D employees make up 22% of all HTC’s global employees. With this strength of innovation, HTC

has special insight into industrial trends and outstanding capability for meeting consumer demand. Thisputs HTC always in the lead.

HTC was the first brand to introduce both Windows and Android mobile phones, which gave thecompany a head start in mobile communication applications. Our observations on industrial trends, insight

Current Achievement
HTC ONE (M8) setting new innovation
standards 2013 for high-end mobile phones

into consumer needs, and strength in innovation have made it possible for us to bring leading innovations
to the smartphone market.

InnovationFirst

The First Windows Mobile phone
The First Android mobile phone
The First Dual-Mode GSM/WiMAX mobile phone
The First 3G/4G Android mobile phone
The First 4G LTE Android mobile phone

Engaging Diversified R&D Talent
HTC launched the HTC One Max in 2013 with a 5.9-inch Full HD screen and high-precision fingerprint identification.

It has a high level of security login ID to enhance data security. The design of the device cover allows operation with one
hand for both unlocking and identification. It is truly a smartphone with a one-touch unlocking design.

The HTC Mini+ has a smart Bluetooth receiver, a smart search function and a 1.5-inch OLED screen that can

HTC operates globally. To support the rapid growth of our business, we continuously engage talent in various fields

through diverse recruitment channels. We create jobs locally to develop our cross-culture and cross-discipline knowledge
and experience.

We have a talent-based recruitment policy and engage R&D talent available in the local labor markets wherever

display all calls to and from the phone in real-time, missed calls, messages and notices. Instant reply is possible

we operate. In 2013, a total of 3,769 R&D workers joined HTC globally. In addition to those in Taiwan, we have many

convenient for the busy businessmen. It again demonstrates that HTC has phone functions designed in accordance

different cultural backgrounds of our diverse employees will fuse and fuel innovative thinking, so as to support HTC

through the HTC Mini+ without the need to retrieve the phone from the pocket, bag, backpack, or briefcase. This is very
with the highest guidelines for comprehensively fulfilling user needs and provides a perfect experience through arigorous and precise design that realizes the HTC people-oriented design concept.

R&D employees coming from, or based in, other countries, such as Europe, America, and Asia. We expect that thein the development and launch of products that meet consumer needs in different regions and with different culturalcharacteristics.

Over recent years HTC has engaged an average of one thousand new employees annually. We recruit capable andHTC One max

5.9-inch Full HD large-screen
Built-in fingerprint identification to provide a high level of security login ID to enhance
personal smartphone data security

potential talent through fair and open recruitment channels. To ensure the talent has the knowledge and skills that suit theneeds of the company, HTC regularly participates in on-campus recruiting activities and employment seminars. Moreover,
HTC also co-organizes communications competitions with Taiwan’s Ministry of Economic Affairs to attract the excellent
workforce required in the world of innovative R&D and to identify those who have the skills and professionalism we need.

The sophisticated HTC mini+ Bluetooth receiver, 7.15mm body thickness, quick search
for relevant contact information with the HTC smart search function while dialing on theT9 keypad, provides an unparalleled Speed Dial​​and search experience.

TaiwanHTC One (M8)
We launched the HTC One (M8) in 2014. It has a high quality grain textured gray metal body, the brand new HTC
Sense 6, a SmartSensor Hub, and Motion Launch™ that allows activation of the phone by hand gestures.
The M8 can recognize hand gestures and touch screen trajectory to awaken and activate the corresponding
function or program. The brand new duo in-depth camera gives the images a professional presentation and there
are also creative and surprising special effects available. The HTC BoomSound™ audio has again become thebenchmark of smartphone sound quality.
The HTC One (M8) is the first duo in-depth mobile phone in the world to have such smart camera shooting
experience. The phone has been upgraded to a whole new level in combination with the new UltraPixel™ camera,
which has dual flash lights and Full HD 1080 high-definition video. It also has a series of exciting special effects
and editing functions that provide beautiful results and allow users to enjoy unprecedented shooting experience.
In addition, the “Extreme Power Saving Mode” with a fully charged battery provides up to two weeks of standby
power, which can be extended under different standby modes.
The HTC One (M8) which is equipped with so many innovative features without sacrifice of significant power
efficiency, also has an additional 40% battery power than the previous HTC One, provided under more stringent
technical requirements and specifications. In the “extreme power saving mode” stand-by power can be extended
up to two weeks. In fact, 60-hour stand-by time is possible even when the remaining power has dropped to only
20%. This helps HTC maintain its leadership in mobile phone innovation and research and development.

OthersO R D EM E P R O

GR

ES

SO

2013
R&D Staff
3,769

Taiwan Others

2012
R&D Staff
3,526

Investment in Innovative R&D
Unit

2011

2012

2013

Fixed R&D Investment

Million (NT)16,295

15,49012,543

Total Revenue

Million (NT)465,795

289,020

203,403

Percentage

%

3.5%

5.4%

6.2%

Note: The related figures are those listed in the consolidated statement.

024

Innovative Research & Development

HTC 2013 CSR Report025

Responsible
Management
We place great importance on corporate governance and operational transparency, and haveformulated and implemented corporate governance guided by the Company Act, Taiwan’s Securities andExchange Act, and other relevant laws to continue improving our management performance, and work toprotect the interests of our investors and other stakeholders through the comprehensive and systematic
implementation of CSR.

The management of HTC thinks highly of the internal auditors and has given them adequate authority

to encourage the proper review and identification of shortcomings in our internal control system and tomeasure operation efficiency as well as to ensure the system is effectively implemented. Internal auditors
also assist the Board of Directors and management in the conscientious execution of their duties and in
the practice of responsible corporate governance.

Corporate GovernanceIn addition, we also closely observe and adapt to the latest world trends and progressively implement
various systems to continuously enhance the quality of our corporate governance.

Over recent years, as our business model has been transformed, the scale of our operations hasgrown and overseas subsidiaries have been added, we have continued to review, amend, and supplement(where needed) related measures, processes, and implementation rules for our internal operations. Thishas been done to improve the operating efficiency and enhance corporate governance.

To achieve this high standard, we formulated the HTC Corporate Governance Framework, which has

been approved by the Board of Directors, and complies with the Corporate Governance Best-PracticePrinciples for all the TWSE/GTSM Listed Companies. The objectives being:

1. To appropriately and effectively divide authority and responsibility amongst the Board of Directors,
the executives, and the shareholders, and to build a management team that is fully responsible to ourshareholders;

2. To build a system where the executives and the Board of Directors are enabled to review the company’s
operations and achieve its goals;

HTC is committed to maintaining a solid corporate governance framework, which protects the rights

and interests of our vast number of shareholders through strengthening the competence of the Boardof Directors, developing the functions of supervisors, and respecting stakeholders’ rights and interests.

3. To cultivate and sustain a corporate culture that advocates accountability and diligence and maintainthe highest ethical standards; and4. To encourage the effective and responsible use of resources.

The management of HTC continued to value and support corporate governance in 2013. Headquarters has been

Board of Directors

actively reviewing the monitoring procedure for subsidiaries and constructing a global policy. Each department is riskoriented to continuously improve the internal control process. To make the internal control system and self-assessment

The HTC Board of Directors is composed of members that are elected by the shareholders. The Board ismore specific and transparent, we require all departments to assess the design of critical control points as well as

rights and benefits of our vast number of stakeholders, including the employees, the customers, the suppliers, and thebe issued. After examinating departmental internal control system self-assessment results, HTC issues an overall

responsible for supervision and management, ensuring the long-term interests of the shareholders, and caring for thetheir effectiveness. After the implementation of such self-examination a departmental statement of the results mustgovernment and the public, as well as for the realization of fully responsible governance.

statement of internal controls

Currently, there are six directors on the HTC Board (including two independent directors) and two supervisors.

monitoring management goals and long-term business strategy. The Board is also responsible for the evaluation of theComplete Disclosuresystem, assessing operating risks, and proposing strategies for the reduction of such risks.

and business information on the TWSE open information website (http://newmops.twse.com.tw) as required by

The group of directors and supervisors includes one female director and is primarily responsible for setting andCEO’s performance, overseeing CEO succession planning, maintaining an internal financial and accounting inspection

HTC is committed to real-time and transparent information disclosure. In addition to disclosing all major financial

regulation, we also hold quarterly online investor conferences, during which we provide predictive figures for operating

revenue and gross and net operating profits for the coming quarter so that investors can be continuously aware of

Independent Directors
HTC believes that good corporate governance is critical if a business is to gain the long-term funding that

underlies further investment and growth. We recognize that to achieve good corporate governance, it is necessary tocompany operations.

In addition to regular information disclosure, HTC also participates in investment forums and investor conferences

widen the scope of independent viewpoints in order to win the trust of the public and the shareholders. To this end,

held by domestic and international brokers to explain details of the HTC financial data, business performance, andto the provisions set forth in Taiwan’s Securities andpossible. Real-time and transparent information disclosure by HTC has been regularly affirmed by the competent

when the terms of some directors and supervisors expired in 2010, two independent directors were elected according
Exchange Act. This action served to solidify our corporate
governance, strengthen the independence and functionsof the directors, and improve the general performanceof the Board of Directors. Please refer to Page 49~53 of
the HTC 2013 Annual Report for a list of the 2013 HTC
Corporate Governance Organization Members.

Compensation Committee

Composition of HTC Management(Directors/Supervisors) by Age & Gender (2013)

7

>50
30-50

(0)

<30

(0)

＋

1

＝

8

The Compensation Committee is set up under the HTC Board of Directors. The committee is comprised of a director,

other published information to give investors as much information about the HTC financial and business situation as

authorities with an A+ rating. HTC received an A+ rating for the first time in the 6th information disclosure assessmentof the Securities and Futures Institute in [year] and the A+ rating has been awarded to HTC for three consecutive
terms, including A++ ratings in the 9th and 10th terms in 2011 and 2012.

We disclose our practice of corporate governance and legal compliance on the company website. For more

information about HTC governance policy and other related guidelines, please visit http://tw-investors.htc.com

Diversified Channels for Transparent Information Disclosure

an independent director, and an independent external expert. The Compensation Committee assesses the salary

Spokesperson & Deputy
Spokesperson

A spokesperson (and a deputy spokesperson) has been assigned for communication with themedia, investors, and analysts according to “Corporate Governance Best-Practice Principles for
TWSE/GTSM Listed Companies.”

viewpoint. The committee also makes suggestions to the Board of Directors for reference in decision-making. The main duty

Press Release, Press
Conference & Media Interview

The company’s latest developments are also communicated to our investors and the publicthrough press releases, press conferences, and media interviews.

remuneration policies and system of the Company directors, supervisors, and managers from a professional and objectiveof the Compensation Committee, which is done faithfully and with proper care for its lawful obligations, is the regular reviewof the annual and long-term performance of Company directors, supervisors, and managers, and the salary remuneration

policies, systems, standards, and structure. The Committee also periodically assesses their performance to determine thecontent and amount of remuneration and salary. Suggestions are submitted to the Board of Directors for discussion.

Website Platform

Supervisors

The Investor Relations Website is continuously maintained and updated with the latest HTC
Company development information. This includes annual reports, quarterly reports, and theannouncements of key events.

HTC has an appropriate number of supervisors. These supervisors regularly review the accounting of the quarterly

financial statements with Certified Public Accountants, to ensure their reasonable and proper expression. In addition, thesupervisors are also responsible for verification of the independence of the Certified Public Accountants and key stakeholdertransactions and to reasonably ensure the internal control system has been designed and executed effectively.

028

Responsible Management

HTC has established an Investor Relations Website (in both Chinese and English) throughwhich the investors can access and download the company’s financial statements, annual
reports, other financial news, information about investor conferences, and correspondence withshareholders. In the “Investor Service” section, contact information and electronic forms areprovided for investors to make contact with the Investor Relations Division by phone or by email.

Investor Conference &International/Domestic
Investor ForumHTC regularly holds investor conferences and from time to time participates in international anddomestic forums held by foreign brokers. Details of these are provided to explain company
operation, financial profile, strategic development, and business policies to the investors.

HTC 2013 CSR Report029

Strict Mechanisms for Avoiding Conflicts of Interest
HTC has established Rules for Derivatives Transaction, Credit Policy & Operational Procedure, and Regulations

Internal Audit System
The design and implementation of HTC’s internal

for the Appointment of Directors/Supervisors in Re-investment and has revised the Operational Procedures forcontrol system and the implementation of the internal

Regulations for Management of Subsidiaries, and Operational Procedures for Processing Internal Material Information

forth in the Standards for Publicly Held Companies forTransactions of Specific Companies, Business Conglomerates, and Parties, Regulations for Budget Management,
and Preventing Insider Trading as bases for internal operations.

After the establishment and subsequent revision of the Operational Procedures for Processing Internal Material

Information and Preventing Insider Trading, the company made internal announcements to all employees throughe-mail, and has also posted related information to our Intranet website. Furthermore, the latest version of the rules isalways accessible for immediate reference on the corporate website and on the Intranet.

In addition, as clearly set forth in the HTC Employee Manual, involvement in fraud, bribery, embezzlement, andviolation of business competition limitation may lead to a punitive dismissal. Any reports about the above offenses

may be sent to the heads of the related departments, the Human Resources Division, or the auditing unit. The Human
Resources Division is responsible for disciplinary action. A dedicated reporting channel (anti-corruption@htc.com) has
also been established for employees to expose any improper behavior that comes to their attention.

audit are performed according to the provisions as set

Internal Control Systems and the related laws. At present

there is a senior auditor at the head of the unit and six
dedicated internal auditors.

HTC has set up its internal audit unit as subordinate

to the Board of Directors. The internal unit is responsible
for assisting the Board of Directors and managementin checking any defects in internal control and inassessment of operational efficiency and performance,

as well as the accuracy of the financial statements andcompliance with the related laws. The unit also addresses
areas that need improvement in a timely manner toensure internal control is continuously and effectively
implemented. The audit results are used as a basis for

The Crime of Malfeasance and the Subsequent Handling Mechanism

the review and amendment of the internal control system
to advance sound management in HTC.

The internal auditors are qualified as required

1. HTC has enhanced the employee code of conduct with particular emphasis on personal ethics and therelationship with suppliers; moreover, top management has issued a notice to remind employees of company
core values, and employee obligations to strict compliance with the code of ethics and the prohibition ofengagement in any illegal or corrupt behavior.
2. Set up corruption investigation team and hot line: anti-corruption@htc.com
3. Request all manufacturers dealing with HTC to sign a Letter Commitment to Integrity.
4. HTC has invited prosecutors to give internal anti-corruption training programs to strengthen employee moral
awareness and to help employees understand the company anti-corruption policies and regulations. Each
employee is given a very clear assignment - to comply with the strict code of ethics and guidelines and not
to engage in any illegal or corrupt behavior. Every employee will be held accountable, irrespective of theirrole, rank, location, or seniority within the company, and this includes legal responsibility, for engaging in any
corruption, bribery, or fraud.

by statute, and they are required to pursue regularcompulsory advanced study for a set number of hours.

Information that includes the name, age, education,

experience, seniority and training received by each
auditor is submitted in the required format to Taiwan’s

Financial Supervisory Commission through the Internet
Information System at the end of January every year

for record. The appointment or termination of the HeadInternal Auditor must be approved by the Board of
Directors and submitted via the Internet Information
System for record by the 10th of the month following theapproval of such appointment or termination by the Boardof Directors.

5. Strengthen commodity inspection and acceptance procedures to reduce the risk of forged documents.
6. Setup a cross-departmental information security team to strengthen management of business secrets.
7. HTC top-management regularly issues notices to remind employees of the importance of keeping trade secrets
confidential and to educate employees about company security policy and the management of confidential
information.

030

Responsible Management

HTC 2013 CSR Report031

Risk Management
established an appropriate control mechanism after careful consideration of all the various operational uncertainties

Management of Climate Change Risk

management enhances our ability to create value.

disclose information about our climate risks, future development opportunities, emissions, and strategic management

HTC manages corporate risk with a focus on sustaining value for the shareholders and stakeholders. We havethat ensures a rapid response to uncertainty, as well as to any attendant risks and opportunities. Such careful risk

We have set up a complete organization for risk management and a well designed standard operational process

As an answer to requests from customers, HTC joined the Carbon Disclosure Project (CDP) in 2008. We voluntarily

mechanisms.

and procedures are in position. An internal management and training system guides our employees towards thecorrect concepts and proper approach to the implementation of all risk management. We also use the internal audit

Causesystem to regularly check the performance of various risk management measures and to ensure proper operation of

Responsible Body

Item

Description

Internal Audit Division

Risks about internal control

Allocating and managing funds, planning investment, controlling customer
credit, and conducting operational analysis as well as cost analysis
Evaluating the soundness and effectiveness of the internal control
systemGlobal Products Division

Risks about product trends

Identifying future trends for products and customer needs

Innovative R&D Center

Risks about product design
quality
Control of manufacturing
quality risk

Ensuring the design quality of products in terms of hardware andsoftware, as well as safety

Legal Affairs Division

Manufacturing Center
Customer Service &Quality Assurance Division

Risks about product quality

Managing all the risks connected with company contracts

Improving the manufacturing quality of our products
Providing after-sales service and improving the quality of the after-sales
services.

Management of Financial Risks

Legislative Risk
from Climate Change

Finance & Accounting
Division

Risks involving contracts
and legal matters
Business decisions &financial risk management

Operational Risk
from Climate Change

the risk managing mechanism.

Resulting Risk or Impact

Opportunity

Unstable or limited power supply.
Power supply may become unstableor limited due to peak demand forelectricity in the summer.

Shut down in production lines.
Shortened life or immediate damage
to instruments and devices due tounstable room temperatures.

Adjusting and optimizing production
processes in advance, to improve
efficiency and reduce energy
consumption.

Regional natural disaster
The increasingly extreme climate canbring about floods, super typhoons,super downpours, or even drought.

Grounded flights impacting
transportation.
Increased shipping time and costs.

Planning how to work with our
suppliers to improve the efficiency of
packing and transportation

Laws and standards for energy efficient
products (e.g. California Energy Law,
Energy Star, ErP, etc.)

Increased costs for materials andparts.

Introduction of a green supply chain.
Looking for green innovation
business (e.g. reduced packing andrecycled packing materials).

The Taiwan Draft Greenhouse Gas
Reduction Act.
Customer guidelines.
The customer may ask for our regulardisclosure of carbon emission.

Since power consumption is still themain source of greenhouse gas in
the ICT industry, the total emissionof greenhouse gas must increase
with the growth of business andproduction.

Providing KPIs (Key Performance
Indicators) for evaluating design
simplification and standardization,and manufacturing and testing
efficiency.

The high volatility of the global financial market and the dramatically changing exchange rates put great pressure

on management and may have an adverse effect on shareholder interests. To counteract these risks, HTC has

formulated a capital management scheme in which the tools, decision making, and approval processes are clearly
defined and documented.

In 2013, exports accounted for about 90% of the total HTC operating revenue. As product export sales and thecost of materials purchased from other countries were both quoted and accounted for in US dollars, partial write-off

between the purchasing and selling accounts in foreign currency serves as an automatic hedging mechanism. The

HTC started conducting product carbon footprint analysis in 2010. Since the front end of the line (FEOL) for

smartphones originates with upstream component suppliers, the complete carbon footprint life cycle analysis must relyon the cooperation of suppliers. HTC conducted four carbon footprint investigations as well as education and training
sessions for suppliers in 2013. A total of 41 suppliers and 121 persons visited and were trained to ensure the integrity
and accuracy of our data analysis.

rest of the revenue is then partially converted into NT$ according to the existing capital need. In the future we intend

to enhance the automatic hedging of foreign currency debit/credit offsets by using tools such as derivatives under theapplicable risk-control rules.

Management of Operating Risk
HTC has generally avoided high-risk, high-leverage investments, yet, as a part of our long-term business strategy,

we are still evaluating the risks and benefits of introducing new technology. To remain responsive to the potential risks

caused by increased costs as a result rapid industrial development, we control operating cost risks by strengthening
the functions of our products, reducing overall costs, and strictly controlling expenses.

032

Responsible Management

HTC 2013 CSR Report033

Management of Corporate Social Responsibility
Protection of IP Rights

To ensure effective discussion and treatment of CSR issues, HTC has maintained a CSR Committee since 2012and has also set up a dedicated team for formulating CSR policies, drawing up related action plans, performing cross-

HTC regards R&D and innovation as an essential force needed for the company to remain sustainable anddepartment coordination, and handling communication with, and feedback from, external stakeholders and our key

competitive. In particular, the protection of intellectual property rights is a key to maintaining our brand value. The

suppliers.

secrets. Of these, patent protection is particularly valued and is realized at two levels:

into the management of related departments, such as legal affairs, compliance, environment, procurement, humanprotection we put on our intellectual property rights covers four areas: patents, trademarks, copyright, and trade

We use clear organization and division of labor, through interdepartmental meetings, to integrate CSR work

resources, and marketing, to activate overall CSR and innovation. This ensures that CSR policies and measures are an
integral part of daily operations of the company.

Industry Level

Company Level

Positively looking for the transfer and licensing of patents
that are favorable to our technical development in order toexpand our existing technical field
Engaging in technical cooperation with leading domestic
and foreign research institutions, providing top talent with
opportunity to receive practical training in HTC, thereby
fueling our R&D with innovative thinking.

Positive filing of patent applications to protect the results of			
our various product R&D and technical innovation
Holding regular training courses for R&D staff about IP management
ncouraging our employees to invent and create
Setting up a dedicated unit under the Legal Affairs Division for 			
IP-related matters, including patent protection and dispute resolution

HTC has an active approach to the enforcement of our patent rights and deals with any infringement immediately

to protect the IP-related rights and interests of the company. For example, to protect our reputation HTC works closelywith the customs department and the police in many different countries to investigate and eliminate imitations andStructure of the HTC CSR Committee
Legal Affairs Division
Responsibility
Management

Internal Audit Division
Global Operation Center
Finance & Accounting Division

HTC Boardof Directors

BrandManagement

Global Sales & Marketing Division

HTC CSR
Committee

Sustainability
AgendaInnovative R&D Engineering Center

Global Brand Marketing Division

Innovative R&D Center

unauthorized products being sold on the market.

We also actively seek trademark protection all over the world and have registered HTC’s trademarks, innumerous countries. This includes HTC’s brands, product names (e.g., HTC One), and the names of various parts andtechnologies (e.g., HTC Sense, Zoe™). When imitations or unauthorized uses of our trademarks are found, HTC takes
legal action together with the local law-enforcement agencies to protect our rights and interests.

Partnerships

In addition, HTC also has adopted policies to protect the commercially valuable information that is not covered

Global Operation Center
Human Resources Divisionby trademark or patent protection, such as copyright of program code, product photos and images, and other trade
secrets and information about products to be launched. We use strict employment contracts and non-disclosureagreements to limit the disclosure of confidential information and protect our R&D results from disclosure.

The company has a positive attitude and employs mature strategies to protect all kinds of intellectual property

rights that set a firm foundation on which first class HTC brand value can be developed all around the world.

034

Responsible Management

Society
Participation

HTC Charitable Foundation
HTC Foundation

HTC 2013 CSR Report035

Mechanism for Committee Operation
The HTC “CSR Committee” convenes annually with each related unit and prepares a report of their CSR practices.

The CSR-related work and actions will be expanded to the supply chain in 2013 as planned. In addition to a CSR
compliance audit, CSR related education and training will be provided.

In addition, to ensure that the policies and decisions of the CSR Committee can be put into practice, we havedivided CSR activities into four areas: green products, environmental protection, occupational safety & health, andsocial responsibility, and have set up a dedicated management system for each. These have been verified as alignedwith the applicable international regulations and standards and help integrate company policy for sustainability andsocial responsibility into our daily operations.

CSR-Related Management Systems

The HTC Corporate Social Responsibility (CSR) Policy

The Green ProductsManagement System

Since the end of 2007, HTC’s Taoyuan facility and the Taipei building have regularly passed
all audits conducted by the international certification agencies, and obtained and maintained
certificates of IECQ QC080000 Hazardous Substance Process Management.

HTC is committed to observing all the International and Regional laws in the countries where it operates and to
do business with honesty and integrity. We will continue to provide innovative and quality products, protect theenvironment, care for the health, safety and human rights of our employees, and positively maintain our stakeholders’rights and interests.

Green Product Verification

In 2013, the HTC One became the world’s first smartphone inspected in accordance withinternational standards ISO/TS 14067:2013, PAS 2050:2011, ISO 14040:2006, as well as the
carbon footprint and life cycle assessment ISO 14044:2006.

This CSR policy helps HTC maintain social responsibility and to realize the vision of sustainable development. All our
related business partners advocate and share this policy with us and in this way we all protect and enhance the rights
and interests of our internal and external stakeholders.

The Environment
Management System

Observe applicable local laws and regulations.
Respect labor rights and interests and ensure fair employment.
Conduct positive energy-saving and carbon-reduction practices andvarious environmental protection tasks.

The Occupational Safety &Health Management System

Implement transparent financial management.
Continuously innovate and make improvements to products andservices to enhance customer satisfaction.
Attend to shareholders’ rights and interests, contribute to the care of thesocially disadvantaged, and support various public interest activities.

The Energy
Management System

We strive to minimize the impact of our operation on the environment. In addition to establishing
the ISO 14001 environment management system, we have made sure that all our manufacturing
sites around the world pass audits conducted by international certification agencies and obtainand maintain ISO 14001 certification. During 2010 to 2013, there were no penalties for any breachof regulations or laws.
To reduce the risks of workplace injury and reduce accidents, an occupational safety & healthmanagement system has been established according to OHSAS 18001, and we have madesure that our manufacturing sites around the world pass audits conducted by the international
certification agencies, and maintain OHSAS 18001 certification.
ISO50001 examines the source and amount of greenhouse gas emission according to ISO140641 Standards. The energy management system enables planned energy management to berealized, thereby supporting sustainable operation.

Perform proper corporate governance, be a responsible corporate
citizen, and maintain the highest ethical standards.

036

Responsible Management

HTC 2013 CSR Report037

G4 Material Issues and Boundary
The current HTC CSR report is based on the GRI G4 guidelines with a focus on disclosing G4 considerations,mainly concerning disclosure of material issues related to action, performance, and achievement.

The HTC CSR Committee members met to confirm the impact of the material issues on the

1

step

internal and external organization. In other words, the positive, negative, or potential impact on theeconomy, environment and society, taken as a whole in accordance with internal considerations,industrial conditions, industrial chain practice, and stakeholder’s suggestions as well as to confirm theimpact of each issue. We will gradually invite and encourage internal and external entities to join CSR
disclosure boundary in the further.

2

Basic onstep

● the degree of public concern over the issues● and their importance to the operations

The following procedures were used to determine andSource of external issues

Source of internal issues
Issue consideration basis andsourceIssue consideration basis and source● HTC Code of Conduct● ISO 26000 Guidelines

confirm HTC 2013 key CSR issues:
1. Consult the representative of each department.

● GRI G4

● HTC mid-tern and long-tern

2. Summarize and discuss the feedback from of each stakeholder.

● Requirements of government regulatory agencies

development strategy● Departmental development
policy3. List future refinement and improvement activity/direction in accordancewith PDCA management cycles.

● HTC Customer specifications● Electronic Industry Citizenship Coalition(EICC)● The UN Global Covenant● External opinions received by each department

3

A total of 40 CSR-related issues

EconomyEconomic performance

A,C

Market image

A,C

Indirect economic impact

A,C

Procurement practiceA

Within the Outside theorganization organization

Employer-employee
relations

A,B,C

Labor relations

A,B,C

Occupational Health andsafetyA,B,C

Education and training

A,B,C

Diversity and equal
opportunity

A,B,C

Supplier’s laborassessment

Working conditions
complaint mechanisms

Community
Anti-corruption

E

A,B,C

E

Within the Outside theorganization organization

A

Regulatory compliance

A,B,C

Responsible Management

Anti-discrimination

Within the Outside theorganization organization

E

Customer health and safety

E

Product and service
labelingbehavior

Child labor

A,B,C

E

Forced labor

A,B,C

E

Suppliers human rights
assessment

A,B,C

E

A,B,C

E

Human rights complaints
mechanism

A,B,C

Product liability

Freedom of association and
A,B,C
collective negotiation

EnvironmentE

Anti-competitive behavior

Human rights

E
E

Within the Outside theorganization organization

EnergyA,CWater resources

A,C

EffluxA,C

Sewage and waste

A,C

Impact of products andservices on the environment

A,C

E

F,G

Regulatory compliance

A,C

E

A

E

The overall environmental
situation

A,C

Environmental complaints
mechanism

A
A,C

A,B,C

E

A

Customer privacyEE

broadcasting● Character education

A,B,C

E

A

E

Regulatory compliance

Within the Outside theorganization organization

Conflict minerals

A

Brand management

A

Character education

A,B

E,F
D

Within the organizationA - HQ● Marketing and

High

A

E,F

Transportation

Supplier Environmental
impact assessment

Within the Outside theorganization organization

Marketing andbroadcasting

Others

A

A,B,C

step

B - R&D CenterC - Shanghai Plant

Level of Stakeholder Concern on the Issues

Labor conditions

038

Within the Outside theorganization organization2013 HTC Materiality Analysis● Brandmanagement● Economic
performance● Anti-corruption● Diversity and equal

opportunity● Supply chain
CSR management● Conflict minerals● Impact of products andservices on the environment● Procurement

practice● Efflux● Energy● Market image● Sewage andwaste● Employer-employee

relations● Occupational
health and safety● Water resources● Indirect
economic impact

Outside the organization
D - Local community

E - SupplierF - Corporate customers

G - Consumers

Low

Level of Impact of Issues on HTC’s OperationHigh

HTC 2013 CSR Report039

Partnership

HTC believes that good CSR partnerships are essential for good joint performance and result inmuch better corporate social responsibility. Such relationships also provide us with the opportunity for selfexamination and create better things for contribution to society.

For the response in the report and the disclosure of the relevant information, HTC has examined andidentified the stakeholders with which each department comes in contact by means of conferences ofdepartmental representatives, and by studies performed by the CSR Committee. Also, HTC screens its

most significant stakeholders by applying the Guidelines for Identifying Stakeholders, which use criteriasuch as responsibility, influence, intimacy, dependence, representation, and strategic intent. Thus, HTC’s

stakeholders are identified as: shareholders, customers, employees, suppliers, contractors, and local
communities.

HTC treats communication and interaction with our employees, customers, foreign labor, vocational

students, suppliers, and external stakeholders very seriously. We hope to create a close understanding

with our CSR partners through engagement, cooperation, and interaction, and to have an influence onsociety through sharing and learning.

In addition to the various hardware and software that provides convenience for our partners, HTC

has also established a number of communications channels to maintain good interaction, and the relevant

units are responsible for collecting suggestions from stakeholders according to their relevance andpotential impact on HTC operations. The suggestions and responses are regularly disclosed in the CSR
reports and incorporated in our future plans for improvement.

Value Stakeholder Engagement

Investors
General Shareholders
Corporate Shareholders
Rating Agencies

Corporate
Customers

GeneralConsumers

Major
Telecommunication
Operator

Concerned Issues
Communication Channels
and Frequency
042(finance, business)● Compliance with laws
and regulations● Operation Status● Strengthening corporate
governance● Strengthen risk
management● Key shareholder shareholding rates● Product quality

Partnership● After-service● Service quality

Construction
Contractors● Learning & growth● Working environment /labor conditions● Wage/welfare● Health & safety● Career development● Carbon footprint/ carbon

disclosure● Restricted substancemanagement● Corporate social
responsibility

1. Board of Directors meeting
1. Business review with key
4/yearcustomers (QBR meeting)
Quarterly
2. Shareholder conference		
1/year
2. Reply to customer inquiries
From time to time
3. Annual report 1/year
3.
Customer audit and replies
4. Investor Conference 		
to customers questionnaires
1/seasonAs required by the customer
5. Monthly revenue statement
4.
Meeting the customer
1/monthrequirements about
6. Visiting investors Standing
environmental and social
responsibilities As required
7. Investor Relationship Website
by the customer
Standing
8. Spokesperson Standing

Raw Material Suppliers

Cleaning/ Maintenance
Service Providers
Waste Disposal
Vendors

Local
Communities
Local Community
Associations
Local Civic Organizations
Local Governmental
Agencies
Local Media● Price competitiveness● Green products

General Employees

Foreign Employees● Pre-sales consulting● On-time delivery

Contractors

Contingent Workforce● Product quality● Service quality

Suppliers

Vocational Students &Trainees

Information andCommunication
Technology Operator● Information disclosure

Employees● Work-life balance● Raw material quality● Price competitiveness● Construction safety &● Environmental impact

1. Induction training Weekly
2. Patrol inspection in facility
Daily

1. Positive employee
engagement in public
interest activities
Irregularly
2. HTC cooperation
with governmental
agencies and non-profit
organizations in eco,environmental and otherpublic welfare activities
Monthly
3.Clean the beach Quarterly

health● Continuously stable supply● Supply chain management● Compliance with various

regulations● Technical capability● Cooperation with logistics/

transportation providers to
conduct effective packing (egpacking reduction and reuse)● Working environment & health● Machine/equipment safety● Carbon management training
and contests
1. Local service hotlines in 75 countries
to provide customers with real-timecommunication and assistance Daily
ongoing
2. Websites in different languages forcustomers to give feedback and to accessinformation in a real-time manner (50established, continuously increasing)
Daily ongoing
3. Dedicated email boxes for different
functions (PR, Service, Copyright, Security,etc) to provide convenient customer
contact with HTC Daily ongoing
4. Postal service survey for investigating
customer satisfaction Daily ongoing
5. Contacting customers who give negative
feedback in the satisfaction surveys toaddress their concerns Daily ongoing

1. Department quarterly
meeting Quarterly
2. One-on-one interview withsupervisors Irregularly
3. Annual performanceappraisal/ interview
Annually
4. New employee seminar
Weekly5. Employee assistance
hotline and mailbox,
Health Center, Employee
Aid Scheme From time totime
6. Labor-management
meeting Bimonthly

1. Supplier communication
activity Irregularly
2. Supplier annual conference
Annually
3. Guidance and audit for
suppliers Annually
4. Cooperation project with
suppliers for addressing
CSR and greenhouse gas
issues Two projects in 2013
(supplier CSR audit andcarbon footprint check)(air pollution, sewage
discharge, etc.)● Compliance to laws andregulations● Shaping the Corporate
image● Economic contribution● Social concerns● Public welfare● Cultivation of talent

HTC 2013 CSR Report043Corporate Customers“Customer First” is an HTC core philosophical value and also the foundation of the HTC business. While HTC

General Consumers

makes mobile phones bearing our own brand, we also work with the world’s leading ICT dealers in the development

owning business has resulted in the expansion of our customer base from a

relationships with many major carriers, including those Telecom companies that dominate the US and European

world. Our customers are our most precious asset, and this concept forms theof customized handheld devices, or in the launching of ‘co-branded’ handheld devices. We have established closemarkets as well as with some that are growing fast in the Asian markets. This way we can present our products to large
numbers of customers all around the world.

To create and cultivate a culture where honesty is valued, we have formulated the HTC Code of Conduct and CSR

Policy, in which all our expectations about employees’ ethical behavior are documented in detail.

We respect and strictly observe our agreements with corporate customers. In addition to maintaining absoluteconfidentiality and integrity throughout our facilities, we also maintain strict external control by means of carefully

worded contracts and non-disclosure agreements with all our key suppliers. We ensure that both internal and external
staff and vendors match the highest ethical business standards.

Protection of Customer Confidentiality
HTC makes a promise of “Strict observation of contractual obligations and confidentiality commitment” to all

customers. All information we provide to our customers is subject to clear policies and a system of strict internal

limited number of telecom carriers to vast numbers of consumers all over thebasis of HTC corporate service philosophy. When serving our customers, we treat
them as the very center and essence of our business. We think from the viewpoint

HTC has set up local service lines in 75 different countries that provide

direct communication and assistance around the clock, seven days a week.

Currently, our help desk can serve customers in 42 different languages, allowing
people from far corners of the world to contact HTC and speak in a familiar
tongue. We have several other channels through which customers may contact

HTC: email, SMS, and social network sites. We have also set up websites in 50
different languages that allow our customers to easily obtain information and givewith customers and suppliers in advance to maintain the absolute security of the confidential information belonging tohave also set up E-Care service centers in some major countries in Asia, where

our corporate customers.

face-to-face consultation and maintenance is available. Customers in Taiwan andAs we take customer satisfaction as our top priority, we have formulated the HTC Customer Satisfaction

Management Process as a basis for quality customer service to help us provide services that exceed the best

4.4

To provide more convenient maintenance services, we have agreements

courier services in Taiwan to collect and deliver mobile phones for repair. We

Corporate Customer Satisfaction Management

China

feedback without delay.

with some local logistics companies for the provision of door-to-door express

there was no damage to the rights or interests of any customer caused by a breach of privacy or from lost data in 2013.

4.14

satisfy, but also surprise the users.

property rights of customers may be incorporated into our controlling system. We complete confidentiality agreements

trained in all aspects of maintaining confidentiality when working with customers. Under our solid control mechanism,

Taiwanof a customer and always make efforts to ensure that our products will not only

control. In addition to technical data and hardware and software, information related to patents and other intellectual

The HTC privacy policy is also incorporated in the orientation training of new employees. Every employee is

HTC Consumers
Satisfaction

The transformation of HTC from a mobile phone maker to a large brand-

Hong Kong can also make on-line reservations for free instruction sessions in theuse of their HTC mobile phones. We are currently assessing the effectiveness of

Scoring criterion:these instruction sessions, and planning this service in some other countries.

5 = Very Satisfied
4 = Satisfied

In order to get information about consumer satisfaction, each time a

3 = Neutral

customer uses our services, they are invited to participate in a service satisfaction

2 = Dissatisfied

survey. This gives the customer a chance to give positive or negative feedback

1 = Very Dissatisfied

and address any concerns they might have. This is one of the ways we are able
to achieve our goal of customer satisfaction.

expectations of our customers.

To ensure that customer needs and expectations are regularly reached, we hold quarterly business reviews ofcustomer satisfaction. Each business unit is required to devise measures for the improvement of any areas that are

Heterogeneous alliance promoting environmental protection

lacking in this respect and to follow progress of these improvement measures until customer satisfaction reaches 100%.

Our indicators for managing customer satisfaction, in addition to product quality, delivery and after-service, also

include CSR performance. In particular, as demonstrated by the EICC, human rights, and environmental and energy

management have become new concerns for corporate customers and affect the global supply chain. For this reason,
we have established a dedicated team that regularly collects CSR information and remains in regular contact with our
corporate customers.

044

Partnership

Our work with Call2Recycle on battery recycling in North America, including payment of licensing fees, aims
to educate the users of rechargeable power about the benefits of rechargeable battery recycling and to set up
battery recycling programs in places where battery recycling has not yet been established.

Year
Licensing Fees (USD)

2011

2012

2013

Total

501.9437,565.49

35,408.66

73,476.09

HTC 2013 CSR Report045

Student Worker Partners
As a company deeply rooted in Taiwan, HTC is devoted to the provision of a fair and efficient environment where

employees can bring their talents into full play. We are happy to open all our many diversified jobs to local people andcultivate talent from Taiwan. We provide a real life working environment for school students to extend their education

Wage and Welfare for HTC Student Workers
Aspectthrough practical training. This not only helps students develop special skills and future employment capability, but

Educational
Training

A total of 243 training hours was provided for each grade in 2013 that exceeds the 216 hours required by the
Ministry of Education (72 hours for each grade in each semester with a total of 216 hours for three grades in
one semester).
The school directors and HTC production line supervisors together reviewed the course syllabus of thevocational schools to adjust the curriculum guidelines.
The courses treat theory and practice as equally important and include in-position practice (for learning
practical operations) and supplementary education (for understanding technical theory as a basis forpractice).
HTC engineers gave face-to-face teaching in our professional laboratories and classrooms.
Night training courses (lectures given by outstanding production line engineers and supervisors), offered
soft curricula and character education curricula to give students balanced physical and mental developmentin addition to professional and technical skills.

Wage

The initial monthly salary for each student worker was NT$20,600.
Upon completion of the 3-month working term and before returning to school, each student worker was
given gift coupons for a chain convenience shop (7-11) amounted NT$ 500.
The monthly salary for each student worker after his/her first year service was NT$21,600, higher than theminimum wage set by the Labor Standards Act.

WelfareLabor Insurance, National Health Insurance, Group Insurance, board, lodging, and annual leave and books
gift coupons were all provided for every student worker.
HTC provided transport for students to and from their schools during rotation intervals, to ensure their safety.
HTC provided meal subsidies.
HTC provided gyms and held sporting events.

Working Hours

The working time for student workers was seven hours a day, from Monday to Saturday (as opposed to fullworking days of 8 hours).
84 working hours per 2 weeks.
Daily overtime hours were less than 2 hours.
45 minutes for lunch break.

LodgingFree dormitories were provided with free water, power, and 24-hour air conditioning.
A NT$700 subsidy for bedding was given when student worker are on board to factory.

Consultation &Communication

Student guidance was performed by in-factory teachers.
Hotline 8585 was answered by dedicated staff to communicate with Student.
HTC provided life services, including counseling performed by mental health counselors.
HTC built up a long-term interaction network with schools, in-factory teachers, and students.
HTC worked with the Ministry of Education to complete annual appraisal and visits.
HTC reported to the competent authorities according to law (Labor and Human Resources Bureau, Taoyuan
County).

also provides the company with an important talent pool.

In 2013, HTC worked in co-operative education programs with the Nan Chiang Industrial and Commercial SeniorHigh School, Kao Yuan College, the Kao Ying Industrial Commercial Vocational High School, Da Der Commercial andTechnical Vocational School, Huade Vocational High School of Technology & Home Economics, and the Fan Shu

Vocational School. A total of 868 student workers were hired and took part. In addition to the well established practicaltraining plans approved by the Ministry of Education and supported by the hosting schools, we also provide thestudents with social coaching programs to help them cope with work, life, and education. This comprehensive systemgives the students labor rights and their interests are secured, while their living and educational needs are satisfied.

HTC DNA Program
The HTC DNA summer job internship program has been expanded worldwide. A total of 80 interns were recruited
after more than 3,500 résumés were reviewed. Of these, 20 interns were recruited from top universities around theworld and 60 from local public and private colleges and universities in Taiwan.
HTC offers internships in all departments in Taiwan, including research and development, business and marketing,legal affairs, finance, and media and public relations. HTC gives complete training over two-months in suchmatters as brand history and product descriptions and company culture. The interns also participate in actual
project execution, and regularly report progress and share case studies.

Dual System of Vocational Training Project, Bureau of Employment andVocational Training
This provides disadvantaged students with opportunities to receive an education in a co-operation project whereindustry and schools execute education programs and promote a spirit of vocational education in a pragmatic andpractical way. The “learning by doing” Dual System of Vocational Training Project also assures students of future
employment by teaching them high-tech skills and even training them in interpersonal relationships and workplace
adaptability. HTC and the Bureau of Employment and Vocational Training work together to promote this programfor students in four-year universities, as an alternative to the Industry-Academic Hand-in-Hand Project. In 2013,
the Lunghwa University of Science and Technology enrolled 58 students and Hsing Wu University of Science andTechnology enrolled 41 students under this project.

046

Partnership

Description

HTC 2013 CSR Report047Foreign Employees
The top priority for HTC when dealing with foreign employees is to raise the awareness of anti-discrimination

regulations, to eliminate harassment and the lack of proper discipline in the workplace. The provision of an open

communications channel and an appeals system is also necessary to ease the disquiet many foreign employees feel
when working and living abroad in Taiwan and to allow them to concentrate on their work.

HTC provides complete orientation training for new foreign employees at its facilities in Taiwan, including an

introduction to wages and welfare, explanations about the manufacturing process, environmental safety and health, work

rules, dormitory regulations and daily life management, etc. We also value and listen to the voice of our employees. In
addition to making detailed records of their feedback about their life and work, we communicate our concepts aboutsharing love and respect and teach them to review themselves honestly, love themselves, and respect others.

The health examination program for foreign workers is managed under a dedicated system and is identical to thatfor Taiwanese employees without any different treatment. We also manage follow up after the health examination, to

Wage and Welfare for HTC Student Workers
Listening to
the voice ofthe employee

Recording employee feedback
Holding quarterly labor-management meetings
Forwarding employee opinions
Following up handling results
Respecting employee decisions

Leisuremeasures

Complimentary wireless Internet access
The loan of mobile phones to newly recruited foreign employees that should be returned when they leave thecountry.
An offer of Chunghwa Telecom service at preferential rates.
Comfortable dormitory environment (air-conditioning available 24/7)
Comprehensive gym facilities
Library and prayer room
Corridor beautification and propaganda bulletinSoundhealth exam
program

Aligning the welfare system with the requirement of health exam for foreign labor as provided by theapplicable laws
Biennial health exam for employees
Follow-up of health exam results
Entry health exam (general physical exam, general health exam as designated by the Council of Labor Affairs,check for intestinal parasites, chest X-ray exam, check for dengue fever, and check for Hansen’s disease)

Reasonableagency fees

Fees determined according to the cost of the foreign labor coming to Taiwan from their respective countries
Established charging standards for the exporter countries of foreign labor
Punitive provisions for overcharges agreed with foreign worker agencies
Requiring the foreign worker agencies to clearly list the total charge amount
Verifying employee household certificates upon signing agreements
A first questionnaire survey before visa is issued
Second questionnaire survey 3 months after entry

Tax refund
tracking

Explaining tax policies to the employees
Giving advanced notice about the tax refund period
Encouraging employees to actively track the tax refund process
Asking employees to sign a “Proxy Statement for Claiming Tax Refund” before leaving Taiwan
Tracking foreign worker agencies for the tax refund check
Announcing the tax refund date
Allowing employees to sign and receive their tax refund checks by presenting their employee badges

Physical& mental
healthpromotion
activities

NYE celebrating activities
Annual travel (3 days during Chinese New Year Holiday)
Cultural trips throughout Taiwan
Trips to leading amusement parks
The “spiritual counseling office” available every Wednesday

ensure the state of health of the foreign employees.

In addition, we engage interpreters, managers, and consultants proficient in the different languages to giveour foreign employees assistance in their daily lives, language, culture, and mental needs. The HTC dormitories
have free Internet access, 24-hour air conditioning; the living quarters have well equipped gyms, reading rooms,
and prayer rooms. Regular activities are held exclusively for foreign employees, such as NYR parties, and annual

travel arrangements are made and regular labor-relations meetings are held to allow feedback about work and living
conditions to ensure their physical and mental well-being.

Regarding management: In addition to professional skills, we also provide education in character development

and communication skills, to build and strengthen good labor-management communications. For those foreign
employees who have expressed an intention to quit, in addition to respecting their will, we also arrange interviews to
assist in their future career planning and provide them with appropriate assistance.

048

Partnership

HTC 2013 CSR Report049

Contractor Partners
HTC focuses on industrial technology and works in collaboration with different professional contractors to jointly

Supply Chain Partners
Suppliers are a vital factor for the continued success of HTC and also are important partners that support

develop innovative products. In addition to learning from our long-term trusted contractors, we value each others’ job

our sustainable development. HTC is committed to fairness and legal compliance in all its conduct towards bothto these trusted partners to promote our joint success.

sharing, learning, and growth.

safety. We have also established comprehensive safety and protection measures of our own and make them available

consumers and suppliers and has invested consistently in building a win-win partnership with suppliers through mutual

In this regard, HTC formulates a comprehensive health and safety management plan each year to address thesafety and health management of our contractors. Safety and health hazard education and training sessions arearranged in advance for all newly-recruited construction personnel. We help construction workers understand the

HTC Supply Chain

operating environment, process safety requirements, and become familiar with the use of firefighting equipment toComponent

Equipment

Devices

Devices and Service

Manufacturing processequipment & Raw materials

Semiconductors/ Component suppliers/
Electron device manufacturers/ Mobile
device manufacturers

HTC

Telecom service
providers/ Consumers

prevent occupational accidents before they happen.

HTC focuses on its core technical expertise and works with contractors leading their respective professions to jointly

develop new products and technologies. When working with contractors who have a long relationship with HTC, we not
only value the mutual experience, but also job safety. We believe that only when appropriate protective measures havebeen implemented will contractors and HTC both bring their full strength into play to create a win-win situation.

HTC draws up a comprehensive plan for safety and health management every year addressing the safety andhealth of contractors to prevent occupational accidents. All new construction workers have to training training about
safety and health management, become acquainted with the work environment and safety rules for all processes, andalso become familiar with the use of fire-fighting equipment.

Construction management measures to be conducted by Contractors
The provision of site safety induction sessions at construction sites;

HTC was founded in Taiwan and is a Taiwanese company whose operations and procurement drives

development of related sectors. Except for certain key parts and components, HTC’s general procurement policy
is to use raw materials and equipment originating in Taiwan to the greatest extent possible. We not only require our

suppliers to provide quality services and products, but also measure our supply chain against stringent ethical andenvironmental standards.

Verifying information about construction workers and vendors;

Unit: NT$ 100 million

Monitoring high-risk operations;

Supplier Code

Maintaining facility access control;
Ensuring construction site safety;
Conducting safety and health management for new facility construction; andObtaining the required insurance for contractor employees.

Safety and health audit to be conducted by Contractors
Incorporating requirements for safety & health management in the written agreements with all contractors according
to the applicable regulations to clearly define contractor obligations and responsibilities, and evaluate all the risks
in the working environment, including risks from dangerous machines, so as to have proactive control and eliminate
potential hazards.

2013

2012

AmountPercentage of Total PurchaseAmount (%)

A

22,56618

Others100,375

82

Total Purchase Amount

122,941

100

A

20,78013

Others139,025

87

Total Purchase Amount

159,805

100

Interests
None

None

Formulating a system for on-site patrols and inspections according to the applicable regulations and contractual
requirements about labor safety & health. The performance of regular patrols, inspections and audits, working
precaution, records of the safety & health education of the workers, and all safety requirements to be met before,
during, and after the use of machines, tools, and equipment.

050

Partnership

HTC 2013 CSR Report051

Issue noticeSetthe audit
schedule

Require the suppliers to sign the“Corporate Social Responsibility (CSR) Survey and Declaration.”Set the Audit Dateand Schedule

The HTC Supplier
CSR compliance
audit includes fivestagesConduct the supplieron-site audit

Audited supplier replies
to the corrective actions

Conduct supplier classificationaccording to the audit result

After establishing the CSR unit in 2010, we initiatedHealth & Safety

HTC is a member of the Electronic Industry

an investigation of those suppliers that had implemented
CSR. Twenty major parts suppliers were chosen in June

Citizenship Coalition (EICC) and has formulated an HTC

2011 for CSR compliance audits. The audits not only

Supplier Code of Conduct based on the EICC Code of
Conduct, with the aim of working with our supply chain

rights of our workers, protect their safety and health, andPerform on-site
follow up audit
to close out thenonconformities
raised by initial
audit

CSR Assessment & Audit

Undertaking responsibility as an
EICC member

partners to protect the environment, uphold the human

Perform theon-site audit

Releaseaudit reports
and corrective
actions
requestEhticsManagement
Systems

verified their understanding of the HTC Supplier CodeLaborof Conduct, but also to provided them with consultationand counseling.

We audit our suppliers regularly in compliance

extend this social responsibility throughout the supply

with the EICC Code of Conduct. Twenty suppliers werechain system.

Enviroment

audited in 2011 and thirty in 2012. Thirty were due tobe audited in 2013, but the audits were cancelled forbusiness reasons. The supplier compliance audits wereresumed in 2014.

After joining the EICC in December 2010, HTC soon established the HTC Supplier Code of Conduct, based on

the Code of Conduct issued by EICC, for all our suppliers to observe. We will continue to fulfill the responsibilities of
EICC membership and conduct regular supply chain audits, participate in EICC activities, and perform all required
information disclosures.

Though our supplier audit program was temporarily suspended in 2013, we seek to conduct annual social

responsibility compliance audits on a subset of our suppliers to review compliance with the HTC Supplier Code of
Conduct and the applicable laws in force at the suppliers’ factory locations and ensure our suppliers all conform totheir social responsibilities. The audit covers labor conditions, environmental issues, health and safety policies, ethicalpractices, and related management systems. In addition to the on-site audit, our auditing team also offers coaching

and consultation and provides suppliers with all the latest information and knowledge during the audit process to give

CSR Educational Training
HTC expects that our compliance audit will help

our business partners recognize the importance ofcorporate social responsibility and, in turn, integrate CSR

components into their operation. To ensure suppliers’
support for HTC’s CSR policy, in the future we will alsoorganize and hold CSR training sessions that meet
individual suppliers’ situation and needs, helping our
supply chain to improve its CSR capabilities.

suppliers opportunities for growth.

HTC Supplier Code of Conduct
The HTC Supplier Code of Conduct details the responsibilities and regulations that have to be followed by all
suppliers doing business with HTC. In addition, HTC also conducts regular assessment of implementation of theCode as the basis for our further selection of business partners.
The provisions about labor issues, health and safety, and ethics were framed with reference to the related
documents issued by the EICC and United Nations Universal Declaration of Human Rights. For more information
about the HTC Supplier Code of Conduct, please see: http://www.htc.com/tw/about/corporate-responsibility/

052

Partnership

HTC 2013 CSR Report053

The green supply chain management system
HTC has employed a green supply chain management platform since 2006 to help R&D engineers select green

Responsible Procurement of Minerals
HTC has responded to global concerns about conflict minerals by supporting the Conflict-Free Smeltermaterials from the product database that comply with both international regulations and customer requirements.

Program and pledging not to use conflict minerals. HTC is working with suppliers toward a goal of purchasing only

green products.

procurement practice. Because these validation programs are relatively new and industry is still in transition, not all ofGreen materials are used from the start of design to significantly enhance the reliability and validation process offrom Conflict-Free Smelters verified by the EICC or with a Conflict-Free Smelter certification through a responsible
HTC’s suppliers have satisfied this requirement to date. Conflict-free minerals products are scheduled to be developed
for market launch in 2016.

To establish HTC’s goal of ensuring the sources of metal such as gold (Au), tantalum (Ta), tin (Sn), and tungsten(W) are conflict free, we and our suppliers have adopted the HTC Conflict Minerals Procurement Policy and suppliers

CERTIFICATE

sign Conflict-Free Minerals Letter of Guarantee, commiting to a concerted effort to avoid all use of conflict minerals.

OF COMPLIANCE

We have used of the Conflict Mineral Reporting Template issued by the Conflict Free Smelter Initiative (CFSI)

to investigate the sourcing of our suppliers. The questionnaire reply rate for HTC’s suppliers in 2012 was 92.54%.

HTC

HTC MET (Model 0P6B700, 0P6B Series)

According to the survey results, the major locations of smelters providing metals for HTC are China, Japan, the UnitedStates, and Indonesia, though these smelters may process minerals sourced from other locations. Obviously, HTC hastaken practical actions to address the associated impact and influence of conflict minerals.

HTC has not only monitored and managed its supply chain to discourage the use of electronic parts produced

UL 110 Mobile Phones
Standard
4786192953

44365-4270

01/27/2014 - 01/27/2015

Project Number

Certificate Number

Certificate Periodwith conflict minerals, but HTC also supports the CFSI audit and verification process to ensure the minerals HTC uses
will be conflict-free.

UL Environment investigated representative samples of the identified Product(s) to the identified Standard(s) or other requirements in accordance with the agreements and any applicable program service terms in place between UL Environment and the Certificate Holder (collectively “Agreement”). The Certificate
Holder is authorized to use the UL Environment Mark for the identified Product(s) manufactured at the production site(s) covered by the ULE Test Report, in accordance with the terms of the Agreement. This Certificate is valid for the identified dates unless there is non-compliance with the Agreement.

Tin mining on Bangka Island in Indonesia
In 2012, Friends of the Earth reported on the devastating environmental and social costs of tin mining on
Indonesia’s Bangka Island. HTC recognizes this serious issue and shares concern about environmental andsocial impact from tin mining in Indonesia. The results of HTC’s 2012 survey of first tier suppliers indicate that tin
originating from Bangka Island is used within HTC’s supply chain.
Because Bangka Island is the source of about a third of the global tin supply, it would be difficult at this time tocompletely eliminate Bangka Island tin from HTC’s supply chain. Additionally, the economy of Bangka Island isheavily reliant on tin mining, much of which is conducted by artisanal and small scale operations. Accordingly,
HTC is closely following the efforts of the EICC, in concert with Friends of the Earth, the Sustainable Trade
Initiative (IDH), and the international tin industry association (ITRI), to assess the local situation and explore
ways to support sustainable growth through responsible sourcing. HTC also has adopted policies designed topromote compliance by directing that, regardless of where materials are sourced from, suppliers must ensure that
responsible environmental and social practices are utilized throughout the supply chain, including prohibitions onchild labor, forced labor, and excessive damage to the environment.

1

The Conflict-Free Smelter Program website of the Conflict Free Sourcing Initiative is http://www.conflictfreesourcing.org.

2

The HTC’s conflict-free mineral products development will be conducted in accordance with the qualified 3TG Conflict-Free Smelter List (CFS List) published by the Conflict Free
Sourcing Initiative. HTC will continue to observe the development of the CFS List and take relevant measures and actions dynamically.

054

Partnership

HTC 2013 CSR Report055

HTC People

At HTC, we believe that the key to maintaining the momentum of innovation in a company lies in

its having competent and talented employees. HTC has a presence in many countries around the world
and recruits local talent who reflect HTC’s motto of “Quietly Brilliant™.” In recent years, we have fused
the strengths of both Western and Eastern talent, held onto our dreams and passionately faced all thechallenges to realize innovation and create an exciting HTC working environment that presents diversityand vitality, as well as enthusiasm.

Attracting and Retaining Talent
HTC embodies the concept of being “Quietly Brilliant,” integrates the advantages of combined

Eastern and Western talent, and insists on the spirit of going after our dreams, passion, challenges and the
pursuit of innovation to compete in a rapidly changing global mobile telecommunications market against
other international brands.

We have global distribution points deployed in many countries, provide a diverse and multinational

HTC was awarded “Employment Contribution Award 2010.”

working environment, and have promoted and built up a vision of strength and cross-cultural professional

HTC was recognized as an “Employer Adequately Hiring Handicapped
Workers in Taoyuan-Hsinchu-Miaoli Region” in 2011.

and guide them towards international careers in research and development, engineering, productIn 2012, HTC hired more than 5,300 employees in Taiwan, and was oneof the Top-10 Companies in the TWSE RA Taiwan Employment Creation
99 Index.

knowledge and experience. We promote international personnel training, recruit dedicated youth

development, business management, international marketing, and even literature and art in our global

Top-100 brand company. We nurture competitive transnational talent to show the world the solid strengthof HTC in Taiwan.

HTC Recruitment Plan and Development

People Employed - Disclosed by Age and Sex in 2013 – Taiwan and Shanghai Plant

HTC recruits an average of one thousand employees each year through fair and open recruiting channels to ensure

a proper balance of competent individuals with both talent and potential. To ensure that the knowledge and skills of the
new recruits meet the many different needs of the company, HTC regularly participates in campus recruitment activities

30↓█

30-50 █

50↑█and seminars that give students and employees the opportunity to interact and communicate.

In collaboration with Lunghwa University of Science and Technology, Yuan Ze University, Ming Chuan University,

China University of Technology, Chien Hsin University, Vanung University, Hsing Wu University of Science andTechnology, and Ming Chi University of Technology, HTC offered one year internships to 224 college students so theyTaiwanTotal 15,872

4,294

3,632

5,377

2,377

72

could engage with and adapt to corporate culture as early as possible and develop important occupational skills. HTC

158

also co-organizes a telecommunications contest with Taiwan’s Ministry of Economic Affairs to attract talent to participate

in the field of innovation and research and to discover people who have the kind of qualities and professional skills
needed by the company.

HTC is actively engaged in recruiting events organized by Taiwan’s Department of Labor and Employment Service

ShanghaiTotal 5,305

3,044

1,926

211

119 5

Office and has made changes to the workplace and environment to make it easy to provide job opportunities for people
with disabilities and allow them to exercise their skills and expertise.

Overview of Manpower Structure

People Employed - Disclosed by Age and Sex in 2013 – Taiwan and Shanghai Plant

HTC has always regarded employees as an essential part of our business. We actively recruit people who sharea worldwide sense of value with the company. At the end of December 2013, the HTC global employee workforce

General █Middle █Senior █totaled 19,252. Of these, 551 were foreign supervisors, accounting for 36.39% of the total number of executives

worldwide; foreign supervisors and professionals together accounted for 18.64% of the total number of executives andprofessionals worldwide and 20.41% of the 1,514 supervisors were women.

TaiwanTotal 15,872

HTC Manpower Overview
Male Taiwanese employees
Female Taiwanese employees
Male full-time workforce
Female full-time workforce
Male direct employees
Female direct employees
Male indirect employees
Female indirect employees
Male contingent workforce
Female contingent workforce
Male employees under fixed-term contracts
Female employees under fixed-term contracts
Percentage of employees younger than 30 years old
Percentage of employees aged 30 to 50 years old
Percentage of employees older than 50 years old

Unit

Individuals
Individuals
Individuals
Individuals
Individuals
Individuals
Individuals
Individuals
Individuals
Individuals
Individuals
%
%
%
%

2011

8,079
6,427
8,035
6,362
4,002
5,044
4,077
1,383
1,400
1,157
42
62
57.07%
41.40%
1.54%

2012

7,768
6,484
7,757
6,477
4,107
5,304
3,661
1,180
1,701
1,335
24
32
59.09%
39.41%
1.50%

2013

8,000
7,872
7,949
7,816
4,375
6,658
3,625
1,214
1,334
777
51
56
60.94%
37.61%
1.45%

6,153

1,787

7,459
60

369 8

2013 Shanghai
2,049
3,255
2,050
3,255
1,853
3,195
197
60
1,577
2,440
0
0
93.69%
6.22%
0.09%

ShanghaiTotal 5,305

2,015

3,246
35

9

Note: Senior: CEO, CMO, CFO and other executive positions above Vice GM
Middle: Department Heads, Managers, and Section Chiefs
General: Engineers, Overseers, Foremen, Administrators, Assistant Technicians, Trainees, Student workers, and foreign employees

Note: The above figures are all annual average.

058

HTC People

HTC 2013 CSR Report059

A Sound Wage and Welfare System
HTC is committed to maintaining an innovative, stimulating, and profit-sharing work environment. In addition

to meeting statutory requirements, we are also committed to fulfilling the needs of our employees and providing
appropriate welfare measures along with attractive and motivating compensation and benefits programs.

HTC has an annual pay raise scheme stipulated in accordance with the competitive industrial environment,

operating performance, and market benchmark standards. HTC promises to offer a long-term retention plan andbonuses for outstanding performance and makes contributions to long-term development. Furthermore, the generalmanager is to propose the award of additional yearly performance bonuses to the Board of Directors for resolution.

HTC issued employee stock options for 15,000,000 units in 2013. Each option is for the subscription of one shareof common HTC stock. The stock option price is based on the closing price of HTC common stock on the date of issue.
Having employee contributions integrated with the financial performance of the company encourages staff to continue
to contribute and be innovative.

In addition to bonuses, we invite outstanding teams and individuals to headquarters to receive public recognition

and bonus incentives and attend management seminars.

If an employee does not perform well in their originally assigned job and position, HTC has an internal

redeployment system available to provide the necessary assistance for redeployment, job enrichment, or planning acareer change.

HTC has an official and lawful retirement and pension plan for employees in Taiwan that was established when

the company was incorporated. An amount equivalent to 2% of an employee’s monthly salary has been appropriatedin the retirement reserve since November 1999. An amount equivalent to 8% of the monthly salary has also been

appropriated as a retirement reserve by the Labor Pension Committee since 2004. After implementation of the new
pension plan on July 1, 2005, in addition to the legal reserve for those employees who selected the new pension
contribution system, those employees with the old seniority system, after presenting the actuarial results to thecompetent authorities for approval, had their appropriation rate adjusted from 8% to 2%.

Salaries and Benefits for New Recruits

Diversified Employee Welfare

HTC employee compensation package includes a base salary and short-term and long-term incentives. For new
employees, we offer competitive pay based on job responsibility, education, work experience, and the market
benchmark. We are committed to a non-discriminatory hiring policy. All applicants are assessed on the basis of
their qualifications without regard to gender, race, nationality, age, religious belief, or political affiliation.

a pension fund, commercial group insurance, meal allowances, annual travel subsidy, physical exams, department’s dinner

The starting salary of HTC junior staff in 2013 was NT$23,400. The minimum wage in Taiwan in April 2013
was NT$19,047. The ratio of the minimum HTC salary to the lowest local starting salary ratio was NT$23,400 /NT$19,047 = 123%. R&D personnel with a Master’s Degree in a suitable major subject, earn a monthly salary of
NT$50,000 and 14-monthly salaries a year are offered.
Ratio

Taiwan（NTD）

Minimum salary
Local minimum wage

Shanghai（RMB）

23,40019,047

Minimum salary

Local minimum wage

2,020
1,620

123%
125%

We provide a wide range of employee welfare and benefits programs, including: Labor and National Health Insurance,(event) subsidy, monetary assistance on the Dragon Boat, Mid-Autumn, and Chinese New Year holidays, and for personal

events, like wedding and dependents’ funerals, and company club activities, free on-site gym and fitness training courses,
massage and bookstore gift coupons, etc. Benefits for employees outside of Taiwan may vary.

Welfare Committee
The HTC Welfare Committee is responsible for all employee benefit matters, including education scholarships forchildren, festival gifts, book gift certificates, department travel subsidies, activity subsidies, and group insurance. The
committee is also responsible for the gymnasium and outdoor playgrounds.

Group Insurance
HTC and the Welfare Committee buy group insurance for employees with a maximum coverage of 60 times themonthly salary, so that an employee who is hospitalized for sickness, injury, or who dies, can still provide some security
and protection for their families.

Annual Health Check Subsidies
All employees in Taiwan receive a health examination subsidy according to their job titles and rank. HTC signed

an agreement with the health examination agency to include the spouse and family in the health examination program.

060

HTC People

DL

IDL

Top Management

Qualification

Direct labor with one-year seniority

Indirect labor with one-year
seniority

Director and Junior VP andsuperiors with one-year seniority

Items

Health examination better thanrequired by law

Health examination better thanrequired by law

MRI + blood test

HTC 2013 CSR Report061

Free Dormitory for Students

Family Day 2013

HTC has given in-depth consideration to accommodation

space and other needs of students. Living and entertainment

HTC not only values our employees, but also places great value on family relationships. Family Day events areheld annually and all employees and their families are invited to participate. The mission is to bring the company
and the family closer through the Family Day events and HTC takes this opportunity to show their appreciation forthe loyalty and support of all our employees.

facilities, such as a gym, library, reading and common rooms,

as well as the provision of full-time administrators and guards
who form a joint force with the police and citizens to ensure
the safety and security of the residents.

Family Day events are periodically held by the company at the Taipei and Taoyuan offices that help the families of
employees appreciate the working environment and allow access to the available recreational facilities. Recreation
spaces as large as 140,000 square meters are available and up to 45% of the 12,000 people who take part are
employee family members.

Transportation Vehicles
HTC offers employees many different means oftransportation on several different routes for commuting to andA Family Day event was held on August 3, 2013. The featured themes were a LOHAS Hall activity, environmental
protection and energy saving, and health. The energy-saving design of the TPE1 Building, which received USA
LEED Gold Certification and Taiwan Green Building Gold Label, was introduced.

from work. The vehicles provided ensure safety and peace ofmind as well as being very convenient.

The Meal Subsidy Program
Meal subsidies of NT$55 for lunch, NT$75 for dinner,and NT$100 during holidays are offered to indirect labor.
Meal subsidies of NT$50 for lunch and dinner are available fordirect labor working during regular office hours..

Travel Subsidy
A travel subsidy of NT$2,000~NT$4,000, according toseniority, is provided to employees by HTC and the Welfare
Committee.

Sports Season
To encourage employees to be more involved in leisureactivities, HTC holds an annual sports event every July-August.
This has gone on for seven consecutive years since 2006. The
sports usually include basketball, table tennis, badminton, anddodge ball and even quiet games such as bridge and chess.

There were 624 participants in the 2013 sports event.

Diverse sports were offered to exercise both physical andmental ability. This helped many employees who were rarely
involved in physical activity to take part and enjoy themselves.

	
  
062

HTC People

HTC 2013 CSR Report063

Valuing Human Rights
and a High Standard of Professional Ethics
HTC Code of Conduct

HTC values human rights and equal compensationand does not tolerate gender discrimination. As aninternational corporation and a member of EICC (to view

We place great importance on employee integrity and uphold high ethical standards. The company has

the EICC membership list please visit http://www.eicc.

established the HTC Code of Conduct as the prime directive that directs all our employees in the performance of theirinfo/MEMBERSHIP.htm), HTC strictly follows the related

work. Every person in our employment, in any of our branches and subsidiaries, no matter their position, level andregulations and as a responsible employer incorporates carelocation, must comply with these ethical standards.

for human rights into all aspects of daily operations. All HTC

The HTC Code of Conduct establishes policies related to secrecy, corporate property, protection of corporate andoperating facilities in Taiwan and China received a humanpersonal information, employees and their direct relatives, consumers, vendor relationships and business etiquette,

rights inspection and impact evaluation in 2013.

business travel, conflicts of interest, external part time jobs, insider trading and so on, to place strict curbs on any kind of
dishonest activity. HTC has introduced procedures for donations by providing principles for their approval and handling.

All HTC employees are required to understand and observe the employee rules and other policies of thecompany. Supervisors are responsible for verifying that employees fully understand the contents of this code. In 2013,
all HTC employees completed an online review and signed the HTC Code of Conduct.

People are the mostPeopleare the mostimportant asset
important feature

New employees undergo an orientation training session on the same day they report for duty. They learn aboutthe HTC corporate policy, the Code of Conduct for employees, environment, safety, and health (ESH) policy andcorporate social responsibility. An e-learning program for new employees is also provided that explains the HTC
corporate principles using exemplary cases.

The HTC Code of Conduct has provisions that give clear directions for

employees who face conflicts of interest. In all countries where HTC operates theCode takes precedence over any local regulations unless there is direct conflict

Non-Discrimination and Harassment
Diversity of nationality is one of the characteristics of HTC staff and the principles of equality and non-discrimination are core company values. We are an equal opportunity employer and do not discriminate in employment
and personnel practices on the basis of race, sex, age, physical or mental disability, religion, national origin or any
other characteristics protected by law.

between the HTC code and the laws and regulations proclaimed by the local
government. In any case of conflict with the laws in force in places where HTC
operates, the local HTC HR team shall submit the context of the laws at issue
to HTC HQ for review. Except for a case such as the above, any violation of
the HTC Code of Conduct can lead to serious disciplinary action, including
the termination of employment.

No Child Labor
HTC strictly prohibits the use of under-aged labor in our own manufacturing facilities as well as those of ourmanufacturing suppliers. We mandate proof of age for employment to ensure we meet all local labor laws and therequirements of the jurisdictions where we operate.

Our Supplier Code of Conduct for manufacturing suppliers restricts any form of unfair labor practices and clearly

articulates our requirement that all factory workers are of legal working age.

064

HTC People

HTC 2013 CSR Report065

Valuing Female Employees
HTC regards the female workforce as very important. In view of the increasingly large number and influence ofworking women, we have continued to improve our policies and programs in the hope that a diverse culture based on
gender equity will help HTC become more competitive. The physical and mental caring mechanisms we provide for our
female employees include:

Employment and an Accessible Working Environmentfor People with Disabilities
As a responsible employer, HTC provides opportunities for people with disabilities. In addition to relying on talent-job

matching conducted by supportive organizations, we also allocate jobs in consideration of the characteristics of individual

handicapped workers. We can also tailor job descriptions and the working environment to allow the handicapped to have

A cancer screening program is part of the annual health check for women. This includes the choice of a Pap smear,a breast ultrasound exam, or a mammogram.

Consideration for the physiological needs of female workers, providing a comfortable environment for rest, the loanof free hot pads, menstrual pain assessment, health knowledge and education, physician consultation or referrals
and so on.

the opportunity to prove their abilities. Thorough education and training is provided to help employees with disabilities tomake a contribution to society and enhance their own quality of life. In 2013, HTC hired 180 people with disabilities, which
exceeded the mandatory minimum number by 17.

In addition to maintaining a handicap-accessible environment for our employees and visitors, we also have

employee volunteers who act as “Angels” to help handicapped coworkers handle the basic necessities of life and work.

nursing facilities and environment better than required by law, which feature a warm and comfortable nursing

environment, ultraviolet milk bottle disinfection devices, microcomputer thermos, comfortable sofa chairs, breast
milk storage refrigerator, and infant breast-feeding-related publications and light music. HTC has 25 breast-milking
rooms which were visited 33,732 times in 2013.

We provide employees with opportunities to have an enriched professional life in HTC. We encourage andsupport employees who give birth and raise children. In addition to providing full support for pregnant employees, we
also have an application mechanism for parental leave, so that postpartum employees can have parental leave andtake care of their babies with their future working rights fully assured.

Employees applying for Family Care Leave, 2010 to 2013
Year

2011

2012

2013

Male

9

56

131

Female

41

86

149

Total

50

142

280

Male

FemaleTotal

Employees applying for Unpaid Parental Leave in 2013

42

109

151

Employees supposed to return after Unpaid Parental Leave in 2013(A)

21

49

70

Employees supposed to return and those resuming duties after Unpaid Parental Leave in 2013 (B)

11

33

44

52.38%

67.35%

62.86%

Note: 1. Employees applying for Unpaid Parental Leave: Employees on Unpaid Parental Leave
2. Employees returning after Unpaid Parental Leave: Employees applying for Unpaid Parental Leave- Employees having filed return applications

066

HTC People

200
160
120
80
40
0

1

2

3

4

5

6

7

8

9

10

11

12

Mandatory

144

147

146

141

149

153

169

168

171

171

167

163

Actual

166

166

161

156

156

184

182

179

186

185

183

180

Excessive

22

19

15

15

7

31

13

11

15

14

16

17

HTC Shanghai Plant – Employee Training

Employees applying for Unpaid Parental Leave and Resuming Duty after Leave, 2011to 2013

Rate of return after Unpaid Parental Leave in 2013 (B/A)

Number of person

A friendly environment for breast pumping, in addition to the free selection of time for breast pumping, including

HTC values all employees equally, and those in Shanghai receive exactly the same training and health services
as those in Taiwan. In addition to front-line production operator safety training and operations discipline, themonthly ongoing internal training courses include job skills, management skills, and processing. Employees canalso join activity groups with interests that coincide with their own: hobby classes of many kinds, such as flower
arranging, yoga, beauty courses and so on.
New HTC recruits undergo an orientation training session on the day they report for duty to learn about HTC
corporate policy, the Code of Conduct for employees, ESH policy, and corporate social responsibility. An e-learning
program for new employees is also provided that explains the HTC corporate principles using exemplary cases.
In any case of conflict with the laws in force in places where HTC operates, the local HTC HR team shall submit
the context of the laws at issue to HTC HQ for review. Any violation of the HTC Code of Conduct can lead toserious disciplinary action, including the termination of employment.

HTC 2013 CSR Report067

Valuing Employee Health
HTC regards employees as a crucial asset. For this reason, we strive to create a working environment that is safe,

comfortable and which inspires creativity. We always care for employee working needs and try our best to satisfy them.
At HTC, we know that only when all our employees maintain their professional strength and engage themselves fully indevelopment of the company will HTC succeed as a corporation and enjoy sustainable development. HTC continues tohelp our employees maintain a proper life-work balance, as well as their mental and physical health.

Ensuring the health of our employees has the highest priority, and we strive to provide all employees with ahealthy and comfortable working environment. We pay particular attention to four areas: health management, healthenhancement, vocational health, and employee assistance. HTC has also established a response mechanism atmanagement level for all modifiable infectious diseases to ensure the effective use of support resources and safeguard
the health of our employees.

Setup of the HTC Staff Clinic (HTC Infirmary)

Health Enhancement Scheme for HTC Employees
Area

HealthManagement

HealthEnhancement068

medicine, rehabilitative medicine, general medical service, physical therapy, radiology, etc.

Actions
Health center for managing and planning affairs related to employee healthGeneral and outpatient rehabilitation services
MRI health exam and management for senior executives
Health exam and management for indirect staff
Health exam and management for direct staff
Health exam and management for new employees
Health exam and management for foreign employees
Health exam and management for catering staff
Health exam and management for special-operations staff
Special care and case follow-up management
Management/tracking for abnormal HE results
Health information webpage
Comfortable breastfeeding rooms
Monthly topic seminars
Cancer screening
Outdoor fitness equipment settings
Health steps (pictures /music)
CPR & AED course design

Smoking cessation promotion
Influenza vaccination
Infectious disease control and treatment
Blood donation activity
Aerobics

Vocational
HealthEstablishment and maintenance of HE Database for Special-Operation Staff
First-aid training
Prevention and treatment of occupational injuries and illness
Workers return to work management

Employee
Assistance

Mental consultations
Special counseling
EAP promotion activities and leaflets for new employees
EAP advocacy monthly newsletter

HTC People

In order to fulfill our commitment to care for the health of employees, we establishedthe HTC staff clinic in 2013 to provide employees with health services, including family

HTC employees are not required to pay a registration fee at the staff clinic. The

dependents of employees and suppliers (stationed at HTC to provide service) can betreated at the staff clinic and enjoy the same benefits and services as HTC employees.

Regular Health Checks
In addition to providing employees in Taiwan with regular statutory healthchecks, HTC provides an annual health check superior to that required by law. In theimplementation of various measures, the direct labor health examination rate in 2013 was

100%; indirect labor health examination rate was 89.48% which was a substantial increase(10.97%) over the previous year.

HTC employee health check measures
1. Held biennially
2. Health check items superior to those specified by theCouncil of Labor Affairs
3. Health Check Category:• General employee health checks• Specific health check for special work operators• Executives MRI health check

IDL Annual Health Check Rate
82.36%

89.48%
78.51%

4. Health examination subsidy, so that employees canenjoy a more comprehensive health examination
5. Contract health examination instituted to include
the dependents of the employees in the healthexamination program

2011

2012

2013

HTC 2013 CSR Report069

Health Follow-up Management

Taoyuan Health Center Patient Statistics

After a health check has been completed, the clinic staff will classify any abnormal results for management inaccordance with the findings. They will also help arrange the services of consulting physicians, conduct any relevant

Total

health management and education, and continue to care and track the health and condition of the employee as
required, according to the severity of the condition, to ensure patients receive comprehensive health care.

The HTC health management program includes: basic health data archiving, abnormal results hierarchicalmanagement, abnormality reporting, rechecking and follow-up, annual health check report statistics and analysis,

chronic disease management, and special disease case interviews and follow-up. Health promotion activities are also
arranged for common health check abnormalities to help employees manage their health.

8,163

Gynecology

providing employees with an additional comprehensive health care service, also

Ophthalmology

to neglect the importance of their health. For this reason HTC, in addition topromotes relevant health care programs to provide employees with accurate healthmanagement information and give staff the necessary self-health management
capabilities.

HTC Health Promotion Courses Participation in 2013
Infectious Exercise
Smoking First Aid Parenting
and diet
Trauma Cessation
Courses Vision Diseases
andweightCourse Courses Courses
for
Care
Cancerloss
Women
Prevention courses

2

6

2

3

1

18

13

2

5

6

58

Number ofparticipant

53

181

77

94

8

630

183

205

814

718

2,963

070

HTC People

KD

TPE1

Beijing

Beijing E. Road

TainanTaoyuanZhangjiang

Hsinchu

Total

10

1,440

19

52

66

1,314

49

13

2,963

2,167

292
402

Surgery

648

117
179
141

60

79
13
21

Gynecology

83
12
3
5
8
1
4
2

DentalDermatology

87
96
40

Dermatology

Oral

44
58
30

Oral

10
2
1

Otolaryngology

34
8

Otolaryngology

10
12

Headache

34
5
1

342

591
527
1,142
1,333
1,640

HealthConsultation

668

1,058

MuscularSoreness
2,681

220

Gastroenterology

Ophthalmology

8
3

438

180

38
11

254

867
662

異常追蹤
HealthConsultation

2011
341

271

62
15

79
88
88

Headache

2012
988

2013

3,265
Internal
Medicine

750
718

MuscularSoreness2013 Regional Health Promotion Courses Participation
Number of participants

428

Total

DentalTotal

Course
hours

1,594

2011
8,640

1,744
1,912
2,219

Surgery

It is well known that the pressure of a technology industry can cause employees

Human
EAP
Factors
Dental
Propaganda Engineering Carecourses

1,173Internal
Medicine

Gastroenterology

Health Promotion Programs

2012
8,270

2013

Taipei Health Center Patient Statistics

105
63

1,031

HTC 2013 CSR Report071Creating a Great Working Environment
Where Employees Can Work Happily
HTC provides all employees with a happy and healthy working

environment. To this end, HTC’s Taipei headquarters has devoted two floors- with the best views - to the construction of a multi-purpose recreational
center. This includes a lofty and spacious restaurant where employees canbe served healthy and nutritionally balanced gourmet meals.

A gym has been set up on the tenth floor where there are tall French

The Sense Academy
Overview of Gym Visits
Location

Person/Visits

Taoyuan

94,842

Xindian

55,878

Windows that allow enjoyment of the very fine view during workout

To stimulate employees’ art appreciation and aesthetic
application to life and design, HTC invites experts inbranding, aesthetics, and humanities, arts, worldwide fashionand other fields of interest, to help employees develop theiraesthetic sense and appreciate the balance of sense andsensibility while facing the pressures and challenges ofglobal science and technology development.

sessions. The HTC gym is open 24 hours a day and there are 74 different

pieces of fitness equipment available. Fitness coaches are available toprovide guidance and counseling. In addition, there are stress alleviation
courses, such as yoga, boxing and so on.

HTC has made an arrangement with a professional fitness consultancy

firm to provide employees with fitness coaches who can guide and help

them with fitness plan curricula, as well as providing advice about safety
and health and the avoidance of sports injuries.

HTC offers a wide-ranging employee health program that includes

a diverse selection of courses such as static yoga, Pilates, dynamic pop

Achievements of the Sense Academy
HTC Aerobic Classes
Participation
Location

Person/Visits

Taoyuan

5,575

Xindian

7,027

dance, flywheels, TRX core muscle development and so on. Employees

can select courses according to their needs and interest. HTC developed astaff app that allows employees to enroll in courses by tapping them on their

CourseLecturer

No. of Participants

Yan Po Chen

139

Master Chef Aki (Yen Chi Cheng)162

Lan Hung

180

Enhance science and technology work with sensibility

Wen Hua Wang

164

Don’t forget the initial dream and the dream comes true (I)Hsin Ling Shen

88

Don’t forget the initial dream and the dream comes true (II)Cheng Chung Wang

66

A dream is a treasure map
The secret recipe for success in the kitchen
Master thinking, a life with no regret – “Think fast slowly” review

phone screens to save themselves the time and trouble of waiting in line.

We have also signed a contract with the Eden Social Welfare

Foundation to set up a full-time blind massage area in the gym, where our
employees can enjoy a massage to relieve pressure and fatigue.

HTC has improved the green landscaping around our buildings andhas installed pot plants inside the offices. These plants, which give theareas a green freshness, are situated 20~50 meters apart all around theworking spaces and are changed regularly. The outdoors landscaping

has permanently arranged trees and shrubs that provide a pleasant green
environment for leisure.

HTC Massage Participation
Location

Person/Visits

Taoyuan682

Xindian

628

Gallery-like Environment
The ground floor lobby in the HTC headquarters building in Taipei is used as a gallery for art exhibitions. Many famousand potentially famous Taiwanese artists are able to show their work to the more than 2,000 employees, customers
and business partners who pass through the lobby each day. In addition, the 2nd and 3rd floors are used by the HTC
Education Foundation, which is focused on character education. The Foundation runs training classes to cultivate
domestic and foreign character education teachers who help children in remote villages to expand their life experienceand broaden their horizons.
The central staircases in our buildings are decorated with paintings made by members of the company painting
club and photographs taken by enthusiasts from the photography group. One work is displayed on each landing
and there is a text introduction to each. Green decorating ideas are also used, and there are plants in plots andhanging baskets. Background music is played and the stairwells are transformed into galleries with diverse
aesthetic elements. The fresh and interesting atmosphere helps to release both physical and mental stress.

072

HTC People

HTC 2013 CSR Report073

Employee Assistance Program (EAP)Art Appreciation - Magnus

The constant challenge and rapid changes in our highly technological industry can result in rather high job stressin our employees. The avoidance of stress is a major concern at HTC and we pay constant attention to employee

Number of participants and Art Festival sessions
Art Season courses

working hours to steer clear of disorder and the attending stress and fatigue.

Instructor

Number of participants

Puppet Show

Puppet & Its Double

42

Art Gathering

Taipei Art Troupe

65

Yu Hui Liao

42

Entering the classical music hall (TEP1 / TY)

Professor Chu Wei Liu

64/52

Traditional opera for you and me

Professor Mao Hsien Lin

38

Threesome (TPE1 / TY)

Ping-Fong Acting Troupe

142/98How to create a pleasant relationship between the sexes

Love of movies and music - CelloPhiharmonia Moments Musicaux

65

Chinese Opera kaleidoscope

Contemporary Legend Theatre

54

HTC has been working with the Hsinchu Lifeline Association since 2009 to provide employees with psychologicalcounseling and guidance with respect to working career, relationships, family and parenting, gender sentiments,
mental illness, and physical and mental stress. All employees are entitled to six free counseling sessions per year at
the expense of the company. By the end of 2013, 141 persons had taken advantage of counseling.
Appointment Hours: Monday ~ Friday 9:00am ~7:00pm
Reservation Tel: 439 595 or Mobile: 03-5260415

The Global Employees Photography Contest
HTC works hard to makeemployees feel appreciatedand the art environment at
headquarters encourages
them to exercise their creativity.
HTC held a global employee
photography competitionin 2013, and employees allaround the world caught
moments of joy and happinesson their HTC mobile phones.
A selection of these photos
are exhibited at the Taipei andTaoyuan facilities. The productquality shines through theseimages and they are muchappreciated by the employees
and by everyone else whosees them.

074

HTC People

Physical and Mental Pressure-Releasing Mechanism
To encourage our employees to develop the habit of exercise, we have built a high standard fitness center withfitness training professionals in attendance. Training courses are available that include slim curve, pain relief, aerobics,
yoga, and flywheels. In addition we have a contract with the Eden Social Welfare Foundation who have set up a fulltime blind massage facility. Employees can take advantage of the services of an expert masseur to relieve pressureand fatigue.
Most popular work: Beautiful Hallstatt (HTC
Taiwan)2ndPrize: True friendship (HTC Gurgaon)

We offer employees a wide range of interfaces, provide grants and encourage them to participate in community

activities. We urge employees to cultivate an interest in sports and leisure activities in their spare time to enhance life
experience. We organize all kinds of events, family days, sports competitions, and literary competitions for employees
to enjoy leisurely and friendly gatherings outside work.

Activity Groups
1st Prize: Festivities in the bridge cave (HTC
Shanghai)

3rd prize: Water Dance Elf (HTC Taiwan)

The available clubs are: Badminton, Puzzle Board Games, Orphanage, Hawaiian Guitar, Leisure Fun, YuanMin Rai-Chi, Creative Volunteer, Melody Health, Basketball, Table Tennis, Creative Aesthetics, Cycling, Music,
Photography, Fashion & Beauty, Tai-Chi, Ukulele, HTC Run, and Wine Tasting.

HTC 2013 CSR Report075

Upholding Healthy Catering
To ensure our employees have healthy and satisfying food, we have engaged experienced licensed chefs fromfive-star hotels and dieticians to design and produce healthy, nutritional, and delicious meals using ingredients from
reputable and certified food suppliers. The meals are nutritionally balanced and the number of calories is controlled,
giving HTC employees the opportunity to enjoy high quality and healthy food.

We strictly prohibit the use of food ingredients provided by shady suppliers and insist on food that complies

with CAS, GMP, ISO, and HACCP certification. The procurement of branded food ingredients is prioritized. An annual
procurement contract is signed with each source and inspection certificates are confirmed. We do our best to support
local Taiwanese producers.

In terms of the safety of food and health management, HTC ensures: environmental disinfection, the clothing of

kitchen employees, waste control, frozen food storage temperature, and energy use, are all controlled using a checklist. Food handling is strictly controlled from storage, cleaning and cutting, to cooking and serving.

Kitchen utensils and cups and glasses used in HTC meetings are all recycled. The use of self-supplied cups forcounter drinks is encouraged.

HTC
Café
One

HTC
BakeryOne

The café uses ILLY brand coffee from Italy which
is served in fine looking cups with exquisite flower
patterns. Delicious desserts help employees start eachbeautiful day and enjoy every happy moment.

Fresh, high-quality natural ingredients are used for thehand-made low-sugar and low-fat bread. The Juice
Bar provides a fruit feast that has no additives at anaffordable price.

Smoke-Free Workplace
HTC proactively addresses the government policy of a smoke-free workplace.

Tobacco control rules have been established and there is an absolute ban on indoors
smoking at all our facilities. In addition, we hold smoking-cessation courses for

employees who smoke. These courses are planned by physicians, social workers andnurses, and family members are invited to join. Tracking and follow-up coaching isprovided during and after the courses. We also provide pressure release massage as

an incentive for successful smoking cessation to encourage employees to quit smoking
on their own.

076

HTC People

HTC 2013 CSR Report077

Listening to Voice of the Employee
HTC employs more than 17,000 people around the world, and a sound internal communication mechanism is vitalto our operation and growth. For this reason, HTC pays serious attention to ensuring proper internal communications
and endeavors to maintain good harmony between the employees and management based on mutual trust.

HTC is committed to creating an atmosphere of mutual trust between employer and employees while also focusing

Employee Feedback Channels
To maintain a friendly working environment, HTC employees are able to report workplace problems and seek

assistance through a hotline.

on internal communications. A labor conference is held at our Taiwan office every two months and seven employee

representatives, elected in March 2013, regularly negotiate with seven company representatives. At least six annual
meetings are held. The minutes of these meeting are referred to in the resulting follow-ups which include any necessary
corrective action. In addition to these regular meetings, employees may also reflect their opinions through various
communication channels.

At labor-management meetings, pending issues not resolved in the last meeting are discussed first. The heads ofWork problems
Leadership style andcommunication

related departments are invited to attend and propose practicable improvement measures. In the event that any matter

Compensation, benefits, andworking hours

agreement.

Workplace sexual harassment,
sexual abuse, or sexual
discrimination

requires negotiation, the results are only valid if 75% of the attending representatives come to a properly negotiatedAll responses to proposals and the follow-up progress of these meetings are published on the HTC Intranet

website for review by all the employees. According to internal HTC statistics, the issues most frequently discussed in
the labor-management meetings are the working environment, parking and transportation, and catering management.

Direct labor at the production line: Ext. 38585
Indirect labor: Ext. 28585
HTC Employee Assistance E-mail:
HelpMe_8585@htc.com

Counseling and referral to
Employee Assistance Program

In addition to these regular staff communication meetings, we have also set up several other communications

channels through which employees may make suggestions and offer opinions. One of these is the employee

complaints system that has a complaint hotline, suggestion and complaint boxes, a complainant e-mail service, and asexual harassment complaint mailbox. Labor meetings and employee opinion surveys are held regularly for referenceby supervisors in such matters as leadership, internal operations, enhancing employee satisfaction, and work input
improvement. A good communications mechanism results in harmonious labor relations. Labor disputes, bad feelings
and losses can all be avoided.

Employee Satisfaction Survey
To investigate and understand specific employee comments about the company and seek suggestions andimprovements, we commissioned Aon Hewitt to conduct a global employee survey in 2013. Questionnaires were sentout to 6,884 employees and a total of 5,255 were collected, which represents a 76% response rate. There were 22

HTC Employees Notification System App
To provide employees with a more convenient information network and services, HTC
has built a proprietary company app to provide staff with readily available services, theseinclude relevant course information, the latest event announcements, staff clinic services,
as well as all kinds of reservations such as: regular physical examination, gym courses,
massage appointments, restaurant bookings, employee issues, and immediate feedback.

categories in the HTC Employee Questionnaire, with the degree of satisfaction illustrated as follows.

Relatively high satisfaction

Coworkers, Customer Focus, Immediate manager, Communication

Relatively low satisfaction

Managing Performance, Collaboration, Career Opportunities

In the relatively high satisfaction aspect it was clear that HTC staff appreciate relationships. A good relationshipwith colleagues and supervisors definitely makes employees more comfortable and happy. HTC employees also value
our relationship with customers and provide customer feedback on demand in a timely manner.

HTC is addressing the shortcomings reflected in the relatively low satisfaction comments by the introduction of a

new strategy and the promotion of improvement measures (e.g., opportunities for staff to meet with top management ina casual setting).

078

HTC People

HTC 2013 CSR Report079

Complete Education and Training Plan
The cultivation of talent is the foundation of a going business concern. HTC, while engaged in the pursuit ofgrowth and profit, is also committed to helping employees grow with the company. The creation of an environmentthat will help them continue to do this is very important. HTC is guided by business needs as well as personal careerdevelopment. The company strives to provide employees with enhanced professional skills, in addition to assistingthem in seeking a good career development direction, HTC has classified talent management and development as animportant management indicator. Employees should improve and grow with the company.

internal training courses based on the five core occupational functions so our employees can learn through diverse
channels and substantiate learning effectiveness.

Learning skills through exercise drills in a classroom environment and online learning.

Experts in different fields of specialization from all parts of the world are invited to share
their innovative concepts of industry trends and the roadmap of technology of the future.

ity

r

Po
we

Su
rp

r

es

H

Availability of mobile library and online learning platform and tools for encouragement of
employees in voluntary learning.

Language

HonestHumbleSimpleDynamic
InnovativeisAn emphasis on sense and sensibility through the integration of brand, aesthetics,
humanity, culture, and trend for compatibility - the school of wisdom.

m

ic

Cust
om
er

Si

e
idd

n

HTC provides a diverse and comprehensive learning environment, creates a learning culture, and promotes staff

growth and organizational development through internal and external training, job training, teaching and guidance byInternal training is designed on the basis of the 5 core functional areas of management
through a series of diversified channels of learning for reinforcement of the result.

Internal Training Courses

pl

e
th
at

learning program that includes: general staff training, leadership and management job training, professional skills

supervisors, online learning, and the self-taught approach.

We are quietly brillianttercen

HTC has a blueprint for systematic learning and development and provides diverse learning channels and an

environment that substantiates the promise of employee growth alongside that of the company. HTC cultivates a
training, and new employee training courses (including languages and new staff training).

Talent cultivation is a focus of HTC. We have a blueprint for systematic learning and development and design

Five core occupational functions

Diverse Learning Channels

Balanced

Communication

Customer-Internal
Training
Courses

work and lifeWork

efficiency

orientedInnovation

All Staff

An orientation will be held monthly
for new colleagues to help themunderstand the corporate cultureof the company quickly, develop
multilateral knowledge and skills,
and adapt to the environment
through the identification of thecorporate culture.

New

Colleagues

DiverseLearning
Channels

DirectLabor

Provide direct labor training in
professional knowledge andtechniques by job function andlevel of specialization (basicspecialization-advanced).

Leadership andManagement

For the incubation of key leading team, we have developed a series of Leadership
Development Framework for the training of function heads at all levels. The program is an
integration of core values, organizational development strategic direction, leadership andmanagement. Action plans have also been designed after each session of the program
so that management at all levels can realize their knowledge and skills in daily work anddemonstrate their leadership skills, including an evaluation before and after the training,keeping records under supervision, and presentation of insights after the training.

080

HTC People

HTC 2013 CSR Report081

Comprehensive Eucation and Training

e-Learning Platform

HTC employees are trained to face the severe challenges of global technology and grasp opportunities in theindustry. This is in addition to the department-specific courses needed enhance their professional technical knowledge.

An organized learning program is arranged that includes courses in company policy combined with subsidized
external training. NT$54.8 million was invested in employee training in 2011-2013 and total training time amounted to711,000 hours. A total of 158,000 persons received an average of 43.7 hours of training each.
Year

Item

Course hours

Number of persons

Average training hours

2011

170,459

52,457

11.19

2012

297.728

63,689

17.66

2013

242,943

41,879

14.83

The HTC e-Learning platform gives employees a range of learning tools and more flexibility to study according totheir needs and without the limitations of time, location, and the associated stress. They can also watch and listen torecordings made by experts or browse the rich collection of books in the library online. It is very easy and convenient
to learn professional and occupational skills without unnecessary interruption.

HTC e-Learning system

Diversified
Courses

Note: Total number of training hours of the year / total number of employees of the year (16,382) = average number of training hours per person of the year
Average number of training hours per person in 2011-2013 = total training hours in 3 years / average number of employees in 3 years (16,416)

New Employee Training Courses●

One-to-one courses●

Online courses●

Blended learning

Dynamic
Training
ReportProvide 26 different reportformats for departments
and employees

SupportAnnualTraining

Planning→Registration→Execution→Outcome Report

New employees receive comprehensive training from the day they first report for duty through several different

learning communication channels. These include new recruit monthly sessions and a variety of practical and online

courses to help new employees adapt to HTC culture and develop a full range of knowledge and skills in the shortest
possible time.

Mobile Library
We help employees develop good reading habits and enrich their knowledge by providing many diverse reading

In addition, the Share Tree campaign encourages new employees to talk to their predecessors to shareactivities and a rich collection of resources for professional and general knowledge.

information about the company and to help them join and quickly fit into the HTC family.

Cultivating Key Leaders
HTC actively promotes company culture in the face of rapidchanges in the global industry and new patterns of global enterprise

Lead
Peoplecompetition and cooperation. HTC quickly adapts to a constantly

changing environment and cultivates management talent with aninternational vision, expecting our excellent managers to becomepresent and future drivers who will continuously lead HTC towards
steady growth and development in times of hardship and challenge.

The company has a series of leadership courses, tailored forsupervisors at all levels, to cultivate key leadership teams. Whencurricula are planned, in addition to the core HTC values andstrategic organizational development direction, three occupational

functions of the company leadership and management are included:

Lead
Business

Lead
VisionIn 2013, leadership training courses were given to 2,211

persons.

082

HTC People

HTC 2013 CSR Report083

Training and Performance Integration
The purpose of the HTC annual employee performance evaluation is to help each employee get a clear view of

their work objectives that is consistent and in line with company business policy. This not only helps employees thinkand plan their annual job priorities to get the best results, but enhances company operating performance as well.

HTC has integrated a training and development system into performance management, and all employees(including staff and management) assess their personal goals and achievements through the drafting of a personalannual performance report and an interview with an immediate supervisor.

In addition, a progress and project development update mechanism provides for review of employee objectives

and plans. Employees can then be given timely feedback and their objectives can be updated for a win-win situation

Legal Training
HTC has arranged insider trading prevention and anti-corruption education and training for all mid-level andhigh-level executives; also, the following courses are promoted for the training of new employees:
Confidentiality & anti-insider trading – introducing HTC confidentiality clauses and promoting antiinsider trading;Intellectual property rights – introducing basic patent knowledge & patent application / incentive policies
US patent litigation – understanding the relevant US patent litigation related legal knowledge

and a brighter future with the company.

English Learning Resources and On-the-job Training Grants
As an international brand, HTC employees communicate with their international partners using a common

language – English. HTC places great value and importance on the development of English language ability in our
employees. In 2013, online English language training course participants numbered 198 persons and NT$348,000 in
grants was paid by HTC for a total of 4,969 training hours.

Online English Learning is provided to encourage staff to learn continuously and spontaneously. The choice ofsessions, the grade of difficulty and the learning hours and objectives are designed to match the abilities of students at
different competence levels.

HTC legal training results in 2013
Course Contents

Number of participants

Course hours

Anti-insider trading and prevention

389

2 hr.

Anti-corruption education and training

367

1.5 hr

IDL new employee legal training – confidentiality and anti-insider trading

1,432

35 min.

IDL new employees legal training – intellectual property rights

1,432

40 min.

IDL new employees legal training – US patent litigation

1,432

35 min.

In addition, HTC encourages employees to continue to absorb professional knowledge and to match their study

program to their work to ensure growth. We offer on-the-job graduate study grants and a scholarship program toencourage employees to continuously absorb professional knowledge and match their studies to their work for further
growth. In 2013, 66 employees took advantage of these program at a cost of NT$3,070,000.

084

HTC People

HTC 2013 CSR Report085

Environmental
Sustainability
AgendaHTC Sustainability Agenda

As a global leader in the innovative design of mobile phones, HTC recognizes that by minimizing the

Sustainable
Environment

Sustainable
DesignEnergy and climate change

Eco-design

GHG emission and reduction

Product carbon
footprint

Energy management system
Green facility
Green plant
Water resource management
Paper management
Educate and promote
environmental protection
Encourage employees to carpool

Eliminating the use ofhazardous substances

Sustainable
Processes
Environment, safety, andkealth (ESH) management
Proactively preventing
occupational accidents
Management of waste andhazardous substances
Building a green supply chain
Environment safety and healthManagement of hazardous
substances
Management of waste andchemicals

Sustainable
Packing

Sustainable
Product

Green packaging
material

Product carbon
footprint

environmental impact of our manufacturing processes we, and our vast number of consumers, can makea contribution to the well-being of our planet.

To this end, HTC has created a Sustainability Agenda incorporating five aspects: sustainable

environment, design, processes, packing, and product. We have put this concept of environmental

sustainability into action, have implemented controls, and are reducing the impact of our operations on thenatural environment.

Sustainable Environment
Response to Climate Change

Green Management Vision and Mid-term and Long-term Planning

Smart mobile devices have significantly changed the lifestyle, working patterns, learning ways and even theentertainment of modern people. These devices have become an indispensable part of daily life. When these products

Long-term

Cooperation with Society and Enterprises
in Environmental Protection

2016-2017

Mid-term

Management Mechanism Promotion
and System Establishment

2015-2016

Short-term

Based on the HTC experience to promote
corporate environmental protection
philosophy and establish an environmental
education living circle

HTC will reach our short-, medium-, and long-term goals of sustainable development by the performance,

management mechanism promotion and system establishment, as well as by cooperation with society and otherenterprises in environmental protection. Please contact us at: corporate_responsibility@htc.com if you have anysuggestions regarding HTC environmental protection.

2014 Environmental Safety andfamily Health establishment

Waste
reduction

088

GHG Emission and Reduction
HTC has been promoting the investigation and disclosure of greenhouse gas emissions in Taiwan factories andSustainable
SolutionsPaper
conservation

To this end, we have devised a dual-aspect strategy composed of adopting an energy management system andperforming energy-saving practices. On one hand we strive to optimize our management system to reduce energy

carbon.

2014 Corporate Environmental
Award Application

Water
conservation

results in the creation of a whole new integrated lifestyle that can be energy saving and carbon emission reducing.

positive influence and help the users of our mobile devices around the world have a smarter work and lifestyle with less2014 Energy-saving and Carbon
Reduction Action Label

Electricity
conservation

footprint. The use of mobile devices combines many of the aspects of daily life (work, leisure, learning, travel) andminimize hazardous substances in our products and reduce the use of packaging material. It is our mission to be a2016 Clean production
application2012 TY5 LEED application(Taoyuan Plant)of transportation and travel that is traditionally required for communication. This helps reduce the mobile user’s carbon

Through positive management of the supply chain and refining the green design of our products, HTC tries to2015 CNS 15506

2012-2014

emissions rise as a consequence. Nevertheless, smart mobile products are helpful in that they can reduce the amountconsumption, and on the other we use energy-saving technology to improve the energy efficiency of our products.

2015 Green procurement

Performanceare manufactured, energy consumption goes up in proportion to the output quantity and greenhouse gas (GHG)

2014 Annual Targets

Electricity consumption
reduced by

1.5%

Water recycled by60%

Paper consumption reduced
by

10

%

Waste recycled by70%

Environmental Sustainability Agenda

Measures2013 Achievements

office buildings since 2009. The plants in Mainland China have been included for investigation and disclosure since2010 through the ISO-14064-1 third-party verification.

Saving TY5-1F/6F lighting electricity
consumption

Saved 20,160 kWh electricity
annually

Saving TY3 dormitory on the back lighting
electricity consumption

Saved 24,080 kWh electricity
annually

Saving Taoyuan Plan lighting electricity
consumption

Saved 6,283 kWh electricity
annually

control over subsidiaries, including comprehensive statistics, and the monitoring of greenhouse gas emissions to

The use of recycled sewage water for
irrigation

Saved 182,500 tons of water
annually

the ISO 50001 Energy Management System and effective energy-saving measures.

Decrease of the use of photocopy paper

Saved paper 1,234,500
sheets annually

Reducing the volume of garbage output
Improving the waste recycling efficiency
and recycling rate

Recycled waste 2,785,082kg
annually

Total greenhouse gas emissions by HTC were 74,316.8t CO2e in 2013. The emissions were primarily CO2, while

CH4, N2O and HFCs emissions were in fairly small proportion. The scope of Category I includes methane escape, theuse of natural gas in kitchens and dormitories, refrigerant escape, and the fuel for emergency generators.

In the future, we will extend greenhouse gas emission investigation and external verification scope to include

improve the overall energy use efficiency and generate ecological benefits in accordance with the implementation of
In addition, HTC’s GHG emissions contained no PFCs, SF6, SOX and other waste gasses, and HTC does not use

any substances that might endanger the ozonosphere. The cooling and air-conditioning systems in HTC’s new building
all use environment friendly coolant R-134a, in an effort to preserve the ozonosphere.

HTC 2013 CSR Report089

Energy-Saving Actions

HTC GHG Emission
Total Emission

Unit

2011 (TW)2012 (TW)2013 (TW+KQ)

Total Emission Scope 1

t-CO2e1,664.57

1,782.79

5,692.840

Total Emission Scope 2

t-CO2e40,796.16

43,875.82

68,623.959

Eco-Efficiency

NT$

10.98

6.33

2.74

Emission intensity

t-CO2e

2.93

3.20

3.51

CH4 emission

t-CO2e1,112.48

1,099.701

2,004.96

N2O emission

t-CO2e

2.07

2.369

3.10

HFCs emission

t-CO2e001,127.10

Note: 1. Eco-efficiency value (revenue generated from each unit of greenhouse gas emission) = Operating revenue (in millions) / greenhouse gas emission
2. Emission intensity values (greenhouse gas emission per employee of the unit) = greenhouse gas emission / Number of employees
3. Taiwan and Shanghai plant greenhouse gas investigated in accordance with the operational control method
4. Taiwan greenhouse gas investigation in 2013, due to the new construction of the Dazhi Plant and the Hsin-Hua No 18 dormitory in the boundary organization, there was asignificant change of greenhouse gases emission over the threshold of 3%; therefore 2013 was re-set as the baseline year.
5. The result of the Shanghai Plant greenhouse gas investigation in 2013, showed the change of greenhouse gases emission did not exceed the threshold of 3% and so the2012 greenhouse gas emission remained the baseline.
6. The IPCC 2007 4th Assessment Report “Global Warming Potential value” is quoted for the Global Warming Potential (GWP).
7. The 2012 electricity emission coefficients (0.532 Ton CO2 / 1,000kWh) published by the Ministry of Economic Affairs Bureau of Energy in 2013 is quoted in the Taiwan area.
8. The electricity emission coefficients (0.81 Ton CO2 / 1,000kWh) published in the China regional power grid baseline emission factor bulletin in 2013 is quoted for the
Shanghai Plant.

Energy Consumption
HTC’s main source of energy is electricity. Total electricity consumption between 2010 and 2013 increased withthe expansion of the manufacturing facilities. For example, the increase in electricity consumption from 2012 to 2013
was due to the introduction of the KQ plant and the Hsin Hua No 18 dormitory.

HTC Electricity Consumption
Units

2011

2012

2013

1,000 kWh/Year

66,66082,473

117,748.69

GJ

239,976.00

296,902.80

423,895.28

Operating revenue

NT$1 million

465,795

289,020

203,403

Energy intensity

1,000 kWh/person

4.60

5.79

5.56

NT$

6.99

3.5

1.73

Environmental Indicators
Electricity

Eco-efficiency value

Note: 1. The eco-efficiency value (revenue generated from each electricity consumption unit) = Operating revenue (millions) / electricity consumption
2. Energy intensity = Electricity consumption / Number of employees
3. GJ = Electricity (kWh) * 0.0036

090

Environmental Sustainability Agenda

Since large manufacturing centers are where the employees and the equipment consume energy most, we

focus our energy-saving efforts on the energy management of the large manufacturing centers, and carry out different
energy-saving strategies and measures according to the individual states of our respective facilities.
Energy-Saving Efforts

ActionPower Management

T5 and LED power-saving lamps
Infrared sensor switches for lighting
Large machinery overhead lighting fixtures reduced and removed
Five out of the six elevators in the RD Building closed on Holidays
Process optimization and two plants merged

Air-Conditioning
Control

Improvements of AC system
Environmentally friendly coolant and energy- saving high- performance machines

Energy Efficiency

Refined mode settings of refrigerated air dryers
Gearless permanent magnet synchronous motors for elevators

Use Habit

Using both sides of copy paper
Turning lights off

In order to build a low-carbon emission living and work environment, we use green energy, including the use ofsolar panels, cold air heat pumps, electric vehicles, and the installation of energy-saving equipment.
Energy-saving program

Descriptions

Solar panels

Taipei headquarters has solar panels that generate electricity used for lighting the staircases andbasement.
The dormitory at the Taoyuan Plant was equipped with solar panels in 2013 that cost NT$11.5
million. The power is used to heat shower water for the employees.

Cold air heat pumps
for air conditioning

Taoyuan and Taipei Headquarters are equipped with cold air heat pump systems for shower water
for the employees and other uses.
The cold air heat pump system absorbs heat energy from the atmosphere (or water) and this istransferred to water in the system through a high-efficiency heat exchanger. The heated water isstored and forms a large volume supply of low-cost hot water. The air released after this process
becomes dry and cool and is used for air conditioning. This dual purpose system is efficient andeconomical.

Electric vehicles
and bicycles

Taipei headquarters has installed an ample number of power charging sockets for electricvehicles and bicycles to encourage employees to use low pollution and energy efficient means oftransport.

Energy-saving
installation / equipment

Fire Safety Indicators
To save energy, HTC has installed 4,892 fire-safety light fixtures. Currently, LED light and PL light
fixture is used 100% in the manufacturing facility.
Infrared automatic on/off devices
Where the need for lighting is low, or there are no safety concerns, light fixtures have automatic on/
off switches that turn off after a certain time if there are no persons present.
Independent pull ring lamps
Individual LED pull ring lamps are installed over desks that can be reached by hand and turned off
by the employee on the way out to save energy and reduce carbon emission.

HTC 2013 CSR Report091

Energy-Saving Measures on Sites
Firm measures have been implemented for energy-saving and carbon-reduction within the plants. These

measures include air conditioning system performance management, the replacement and control of lighting
equipment, air compressor feature adjustment, and the reduction of energy consumption by the elevators.
Item
Lighting
SystemElevators

092

In 2013, power regulation for the TY5 Building and Taipei headquarters resulted in

the electrical power factor being adjusted to 100% (which increases energy efficiency)
and ice storage air-conditioning system expenses were reduced. The building power
consumption reflected a saving of NT$ 9,455,078.

Traditional high energy consumption T8/T9 fluorescent lamps are being phased out and a switch to LED energy-savinglamps is under way. This represents a 50% saving of power when compared to conventional lighting.
Time-based control for lighting equipment installed in offices, linking infrared sensors to lighting switches in someareas, thereby using automatic sensing and time-based control measures to save power effectively.
Taipei headquarters is equipped with daylight control. The use of natural light plus automatic on/off light fixtures helps
reduce the waste of power.

Gearless permanent magnet synchronous traction motors that are more powerful in terms of torque than gear-based
traction machinery eliminate power wasted driving gears, resulting in power savings of 30 to 40% compared toconventional motors.
The ReGeNelevator energy-regenerating driving device that uses innovative green technology to integrate energy
regenerating modules with the inverters. These devices convert energy, that might otherwise be wasted during
operation of the elevators, into electricity.
Power feedback during no-load ascending and full-load descending operation is used. The weight difference between
the cabin side and the counterweight side of an elevator reaches a peak when the cabin is fully loaded or empty. At
these times the elevator consumes the most energy and has the highest power feedback efficiency. The larger the travel,
the more power is generated. The maximum rate is 70% and this generated electricity is fed back to the grid for use byother devices in the building.
Holiday elevator control and single elevator operation.
Taking different in-process energy-saving measures for different air compressors used in the buildings, wherein
the schemes conducted including closing refrigerated air dryers, refining operating modes and lowering operation
parameters.

AirConditioning
SystemSetting up Energy-Saving Operation and Management Rules for Air-Conditioning Equipment for managing maintenanceand performance and the evaluation and review of efficient use of air-conditioning equipment and piping.
Using environmentally friendly coolants and energy-saving high-performance machines in chiller units.
Improving low-performance chiller systems by adding frequency conversion control.
Replacing manually-controlled fan motors for cooling towers with those using enthalpy-based energy-saving control.
Incorporating all air-conditioning systems into energy-saving management and monitoring and controlling air-conditioning
systems in terms of frequency conversion, timing and CO2.
The smart ice storage air-conditioning system helps reduce the peak power consumption load by one-third. Surplus nighttime power is used to produce ice that is used for air conditioning during the day. This arrangement helps reduce peakday-time power consumption loads.
Integrating air-conditioning systems, replacing low-efficiency chillers, setting up a dedicated control room to perform
unified management.
Adding production lines with automated assembly and testing robots, so as to significantly reduce average power
consumption per production unit.
Replacing old power-consuming drinking fountains.
Pull ring lamp systems are used for automatic on/off lighting installations, as well as independent partition switches.
Solar panels have been installed on the Taipei headquarters building roof and the electricity produced is used to light thestaircases and basement.
The employee dormitory of Taoyuan Plant has solar panels that are used to heat the bathroom shower water.
A cold air heat pump energy-saving system is also used for heating water for the bathrooms and kitchens.
Taipei headquarters parking lot traffic is controlled by an RFID parking management system. The RFID system is very
effective and saves the need for an extra parking floor.
Taipei headquarters encourages employees to carpool and to drive less polluting cars. Carpool parking space is offered
for environmentally friendly cars, and secure bicycle racks and showers are available for cyclists.
Taipei headquarters Energy Management System is equipped with automatic on/off control that is synchronized with
office working hours. Manual as well as automatic switching makes the lighting system flexible, but avoids the waste ofelectricity caused by people forgetting to turn off the lights. The energy management system real-time screen can becolor-coded to identify the on/off mode state so the management personnel can see the situation at once.

Environmental Sustainability Agenda

2013 Energy-Saving Programs and Effectiveness
ProgramDazhi Road No 2 10
Hp air compressor
operating pressure
reducedTY5 1 floor air
compressor CDA
operating pressure
reduced
H 3 floor air
compressor pressure
setting reduced for asecond time
TY3 floor dormitory
1F light fixtureschanged to LED

TY5 1.2.5 floor robot
overhead light fixture
removed
Reduced theuse of the heavy
power-consuming
Chamber.
Process optimizationand two plants
mergedObjective

Electricity
consumption
reduced by

1.5%

Description

Air
Compressor

OthersEnergy-Saving Programs and Effectiveness

Performance

Units

kWh saved

3,431.00

3,429.60

kWhReducing carbon emission

1,825.29

1,824.55

Kg / CO2e

Saving expense

10,293.00

9,259.92

NT$

kWh saved

365,875.00

365,871.44

kWhReducing carbon emission

194,645.50

194,643.61

Kg / CO2e

Saving expense

1,097,626.00

987,852.89

NT$

kWh saved

492,083.00

492,079.20

kWhReducing carbon emission

261,788.16

261,786.13

Kg / CO2e

Saving expense

1,476,249.00

1,328,613.84

NT$

kWh saved

23,562.00

19,240.00

kWhReducing carbon emission

12,534.98

10,235.68

Kg / CO2e

Saving expense

63,648.00

51,948.00

NT$

kWh saved

16,371.00

23,362.00

kWhReducing carbon emission

8,709.37

12,428.58

Kg / CO2e

Saving expense

44,217.00

63,077NT$

kWh saved

95,438.00

141,065.00

kWhReducing carbon emission

50,773.02

75,046.58

Kg / CO2e

Saving expense

240,506.00

380,876

NT$

kWh saved-

1,578,800.00

kWhReducing carbon emission-

839,921.60

Kg / CO2e

Saving expense-

4,262,760.00

NT$

Ratio of savings to total
annual consumption

0.004%

0.443%

0.596%

0.023%

0.025%

0.171%

1.913%

Note: 1. The amount saved was calculated in accordance with the average of NT$2.7/kWh for industrial power announced by the Taiwan Power Company.
2. The carbon dioxide emission coefficient was calculated in accordance with the 0.532 (kg/kWh) announced by the Energy Agency.
3. Savings from the reduction of pressure was deduced from the adjusted down pressure.
4. Saving from replacement and removal of light fixtures were deduced from power conversion.
5. Savings from reduced use of the Chamber was deduced from time control and power conversion.
6. Savings from process optimization and the merging of the plants were calculated by comparing the actual consumption in 2012 and 2013.

HTC 2013 CSR Report093

Adopting an Energy Management System
HTC introduced an energy management system in accordance with ISO 50001 to gain a full picture of internal

Green Plant
The factories and offices disclosed in the boundary organization report thisenergy use. The applicable regulatory requirements and energy benchmarks were implemented, and HTC set energy

year have been established in industrial and commercial areas after environmental

to properly manage energy consumption to reduce costs and GHG emissions and other environmental impacts. A

implemented in compliance with local regulations and internal environmental policies

performance indicators and short-, middle-, and long-term improvement goals. Systematic management allows HTC

consideration and evaluation. The relevant environmental protections have been

progressive action plan was adopted to eliminate the waste of energy caused by bad habits or incorrect information.

and specifications designed to minimize impact on the local ecosystem and animaland plant species. Nevertheless, we encourage each operating facility to undertake
environmental protection and beautification actions. A green building program has

been introduced for new buildings to provide a high quality working environment for
all our employees.

HTC’s Taipei headquarters was honored to receive the Green Building Label fromthe Taiwan’s Ministry of Interior in 2013, and the HTC Taipei Headquarters Building

Active Use of Solar Photovoltaic
HTC is not a heavy energy consumer. However, we are committed to the conceptof energy-saving and carbon reduction within our operation and we also use
renewable energy. The rooftop of the dormitory is covered with solar panels thatgenerate electricity used for the hot water supply systems. The hot water is stored
and used as a normal hot water supply for cleaning and washing that effectively
reduces the consumption of natural gas.
By the effective use of solar photovoltaic energy in 2013 we were able to save
98,161 kWh of natural gas energy and carbon emission was reduced by 184,445 kg
CO2 / kWh which is equivalent to the amount of carbon absorbed by 10,249 trees.
Note: 1. Natural gas saved (kWh) = average solar heating temperature (℃) - Water Temperature (℃) x water per ton
required 1000 (Kcal) / per kWh Gas 8500 (Kcal) x average daily use of 175 (tons)
2. Natural gas calculated at NT$19.06/kWh
3. Natural gas carbon emission coefficient calculated in accordance with the 1.879 (kg / kWh) on the greenhousegas emissions management table version 6.0.1.

received the LEED (Leadership in Energy & Environmental Design) gold certificationfrom the US Green Building Council (USGBC). The energy saving design, after energy

simulation analysis, shows that a 42.2% saving of electricity has been achieved, as compared to the baseline scenario.

Green Landscaping
We uphold the concept of environmental sustainability and regularly increase our green space. The HTC outdoors

green area now totals 56,034m2 and there are many tree species native to Taiwan on the grounds, such as Camphor,

Yellow Cypress and the Taiwan Golden-rain Tree. There are now 810 individual trees and our employees enjoy the lush
green surroundings to their work environment.

To improve air quality, we have planted trees extensively inside the factories and offices, which purify the indoor air

by reducing CO2 concentration. The annual management fees for our green environment amounts to NT$5 million, which
is used to provide our offices with green areas to help reduce indoor air pollution (dust, carbon dioxide, and VOCs).

The surroundings and parts of the inside of HTC factories that have plants are gardens, not just patches of green.

There are functional green walls, green corridors, and a green roof. The sewage treatment equipment and passages
are curtained by green walls and green corridors. The green roof is covered with light colored paint that reflects
sunlight and reduces the heat island effect to improve the green energy and carbon reduction benefits.

Excellent Environmental Impact Assessment Green Award
HTC Taipei Headquarters received the highest “Green Award” in the 2012 impact assessment of the New Taipei City
Environmental Burea. Incidentally, HTC was the only company to receive this award during the year.

Tree Type

NumberCamphor

90

Maple

45

Yellow cypress tree

60

Lobular Terminalia

70

Podocarpus

340

Larch

50

Taiwan Golden-rain Tree60

Common Garcinia

50

Indian Rosewood

20

Taiwan Cherry

25

Total

094

Environmental Sustainability Agenda

Tree Type

Number810

HTC 2013 CSR Report095

Water Resource Management

Sewage Treatment

Global warming makes climate change increasingly significant, and this means that water conservation has become

an important issue. Although manufacturing at HTC does not involve large water consumption, it is still our responsibility

as a world citizen to preserve water resources in our daily operations by reducing water use and encouraging our people
to maintain good water management, recycling, and reuse.

The water source at the HTC facilities is tap water. The production line processes at our facilities do not use any

he wastewater generated by our facilities is mainly domestic sewage from washroom and for other cleaning uses

and restaurant wastewater that contains no process wastewater. Such domestic sewage can be directly drained tosanitary sewers without the risk of any adverse effect on nearby waters.

Since January 2013, the average output of our sewage treatment plant reached 600 tons, sufficient for replacing
tap water for garden irrigation and toilet flushing.

water, so no industrial wastewater is generated. HTC consumes water only for office and employee use.

In 2013, the total water consumption of our facilities in Taoyuan came to 370,267 tons; the output of treated domestic

sewage was 220,430 tons. Water recycled from treated domestic sewage was 160,985 tons, representing 73% of the totaltreated volume. The amount of water recycled was much higher than the goal of 60% set for the year of 2013.

Office/Facility Water Use and Water Conservation Measures
Year
2012

2013

Drained Water, Recycled Water and Average BOD Concentration in Effluent
Year

Facility(ton)Drained Water (ton)Recycled Water (ton)Average BOD Concentration (mg/l)

2011

Taiwan plant

102,40745,646122012

Taiwan plant

87,195

119,324

19.7

Taiwan plant

59,445160,985

15.3

Shanghai plant

-

-

209

2013

Facility

Use in 2012 (Unit: ton)

Water Conservation Measures

Taoyuan393,208

Adding recycled water irrigation; installed water-saving faucets-

TPE1 started using water-saving devices

Taoyuan370,267

60% of the recycled sewage water is used for irrigation

Facility

Receiving Water

TPE1 & TPE2

510,280

Use of rainwater for plant irrigation

TaoyuanDongmen Stream

Shanghai plant532,793

Use of river water for plant irrigation

TPE1

Dedicated Drainage in New Taipei City

TPE2

Dedicated Drainage in New Taipei City

Shanghai plant

Shanghai Bailonggang sewage treatment center

TPE1

Water discharge

Rainwater Recycling
HTC has a rainwater recycling system in which the recycling statistics are continuously monitored and recorded

by a sophisticated computerized system. The collected rainwater and air conditioning water have been recycled forthe flushing of toilets and irrigation since August 2013. In 2013, the Taoyuan plant recycled a total of 1,324,518 litersof wastewater and the Hsintien office recycled 4,939,000 liters for a grand total of 6,263,518 liters of effectively saved
water resources.

Water-saving Sanitation Equipment
HTC gives top priority to the use of sanitary equipment with a water-saving label. For example, that with awater-saving label from Taiwan’s Water Resources Agency, Ministry of Economic Affairs, the Water AwarenessLabel (WaterSense) of the US Environmental Protection Agency, or water-saving equipment tested by the Industrial

Technology Research Institute (ITRI). The faucet device installed with water-saving spiral (Model: SD-103-2) allows thefaucet to reduce the amount of water outflow -- a test performed by ITRI showed a 64.4% water saving. Each of thesefaucets is expected to save 77 liters of water per day. All the toilets and urinals in the bathrooms should be energy
efficient and have the WaterSense Label of the United States Environmental Protection Agency.

096

Environmental Sustainability Agenda

HTC 2013 CSR Report

097

Sewage Recycling
The green fields and planted areas inside the factories are irrigated with recycled sewage water without

increasing the total amount of water consumed. The water conservation management program was introduced andimpemented in 2012 with a target of 60% sewage water recycling set for 2013 – 73% was actually achieved.

Paper Management
To achieve a reduction in the amount paper consumed, we haveintegrated photocopying, scanning, and facsimile functions in office machines

to the personal computer. The functions have also been linked to employee ID

number. A computer printout will not be authorized until the ID card has been

Sewage recycling strategy and effectivenessdetected and approved by the office machine. The file can then be selected,

Strategy and effectivenessSewage recycling

Annual target

60%

Recycled water for irrigation (tons)

160,985

Sewage water output (tons)

220,430

Amount saved (NT$)

2,125,002

Actual waste water recycling rate73%

printed and collected. This procedure has effectively reduced the number of

uncollected printouts and achieved a reduction in paper consumption andgreatly improved energy saving management.

When a document is scanned, it is not printed out, but after the employee

ID has been recognized and scanning has been completed, the file is sent to
the employee’s email address as a message attachment. Faxes are handled

by one fax machine in the factory. To send a fax the employee uses the fax
program in his own PC and a paper printout for faxing is no longer required.

These measures enabled HTC to save 2.09 million sheets of paper in

2013. We are continuing this mission of reducing paper consumption by 10%
annually and review performance regularly at the quarterly Environmental

Protection and Health and Safety Committee meetings to achieve optimum
paper savings.

098

Environmental Sustainability Agenda

HTC 2013 CSR Report099

Environmental Protection Education and Promotion
HTC makes full use of staff activity space to regularly stimulate and enhance the environmental consciousness andEncourage Employees to Carpool
HTC has a large number of employees. We understand that emissions from travel and transportation have aawareness of the employees. We make energy-saving and carbon reduction announcements in the form of banners andserious impact on the environment. To reduce carbon emissions generated from employee travel and transportation,

advocate a sustainable environment through the new employee sustainable education program (11,899 visits in 2013),

Taoyuan plant, the MRT Chungho Jingan stop and the Taoyuan plant, Taipei headquarters and the Taoyuan plant, andicons and energy-saving and carbon reduction labels such as “turn off the light” and “save water and electricity”. We also
the environmental policy card, mobile phone app, computer screen savers, and other means.

we encourage the use of the shuttle buses we provide. The bus routes run between the MRT Yuanshan stop and thethe Taoyuan train station and Taoyuan plant.

Currently, the HTC shuttle buses can carry about 1,280 people per day, and this represents some reduction of thegreenhouse gas emission that would otherwise come from staff vehicles.

HTC Shuttle Buses Carpool Performance
HTC shuttle bus route

Schedule

Number of passengers daily

Yuanshan to Taoyuan

20

Taoyuan to Yuanshan

20

Chungho to Taoyuan

40

Hsintien to Taoyuan

420

Taoyuan to Hsintien

460

Taoyuan train station to Taoyuan Plant

140

Taoyuan Plant to Taoyuan train station

180

MRT Yuanshan stop and Taoyuan plant
MRT Chungho Jingan stop and Taoyuan plant
Taipei headquarters and Taoyuan plant

To promote sustainable energy awareness of employees and turn it into a personal habit, we established theGreen Energy Pavilion on our Family Day in 2013, enabling everyone to see our environmental protection and energysaving achievements and allowing employees to experience environmental protection in an interactive way.

Taoyuan train station and Taoyuan plant

Staff Environmental Improvement Proposals
We value employee proposals for improvement, as well as the opinions of our customers. We have a systematicmanagement and reporting system that uses both external and internal reports as a basis for review and improvement.
Subject

Internal

External

100

Environmental Sustainability Agenda

Feedback Interface

Improvement Mechanism

The internal Employee Services App is available fordownload by HTC employees who can use it to makeinstant photos to illustrate their relevant comments
for review and further processing by a responsible
department.

The Environmental Safety Department will carry out any
necessary corrective action in accordance with the valid
suggestions and opinions of employees. Review and follow
up of such improvements are addressed at the weekly
meetings of the Safety and Security Committee.

The routine inspection mechanism of the Environment
Safety and Health Department.

Routine voluntary inspection by the Environment Safety and
Health Department reduces environmental security issues.

The Health and Safety Committee improvement plan.

Every department can propose protection, safety andhealth improvement programs to foster environmental
safety and health and reduce risk.

The environmental protection department is responsible
for collecting customers’ green requirements andregulations and to ensure their implementation.

Take corrective action for, and follow-up on, products that
do not meet the ITS (Issue Tracking System) requirements.

Participate in some foreign customers’ Eco-rating
programs.

Assess product eco-design and green production tominimize the impact of mobile phones on the environmentand society. Prompt the up- and downstream supply chain
to adopt the appropriate green activities.

HTC 2013 CSR Report101Sustainable Design
Sustainable Design Concept
We go far beyond a consideration of the applicable laws and regulations in the design and development of oursustainable products. Every stage, from the initial proposal and planning, R&D design, experimental, engineering,
preproduction trials, and mass production, all the way to disposal of the product, is given full Life Cycle Assessment(LCA) evaluation. We break down the process into very detailed parts, to give our R&D team a complete picture of thecomplicated environmental considerations.

We endeavor to minize harm to the environment while making mobile devices that will satisfy our consumers’

needs. To achieve this we strive, from the earliest design and development stages, to select materials for production
with low environmental risk and to exclude all internationally restricted substances

UL Environment Certificate Platinum Rating

We believe that HTC products are helpful and improve daily life by the provision of efficient communications and

The HTC One (M7), HTC One (M8), and HTC One Max series launched by
HTC have been rigorously verified by an impartial third party verification
institution resulting in the award of the UL Environment Platinum
Certificate for the HTC One (M7) in January 2013, based on the UL ISR
110 standard to measure the environmentally friendly factors for mobile
phones. This standard includes consideration of environmentally sensitive
materials, energy consumption monitoring, manufacturing and operational
processes, and the impact on human health and the environment. Only aproduct that meets the highest environmental protection requirements of
the UL ISR 110 standard can justify the award of a Platinum Certificate.

	
  help to promote an integrated lifestyle that could lead to reduced GHG emissions. However, we also recognize that themass production and shipment of our mobile devices, and the materials and substances we use, all have an impact on
the environment.We believe that by careful design of the products from the very beginning of their life cycle, we canminimize adverse effects on the environment.

We have set about optimizing product design by improving energy efficiency, reducing hazardous substances,

Green Marks obtained by HTC
Green Mark

refining packaging design, and ensuring product recyclability. We work with our R&D team, customers, material
suppliers, and technical service providers to set up a systematic platform that ensures smooth communication. We
stress innovative thinking and strive to develop sustainable products that pose the least threat to the environment.

BC

102

Environmental Sustainability Agenda

Description

Applicable Area

Verified by a third-party verification company (UL) as
meeting North American (US and Canada) energy
efficiency requirements.

Power supply units.

Verified by a third-party verification company (UL) as
satisfying UL, sustainability standard for mobile phone,and rated as Platinum.

Mobile phones, accessories.
(including shipping packaging )Verified by a third-party verification company (UL/TUV/ITS) as complying with California appliance efficiency
regulation.

Mobile phones, including
Accessories with rechargeable
batteries, etc.

Working with Call2Recycle to properly recycle usedbatteries in the US and Canada.

Battery.

HTC 2013 CSR Report103Enhancement of Energy Efficiency
An analysis of energy efficiency starts with the raw materials used to produce the electronic telecommunications

product, its manufacture, life cycle and disposal. A mobile phone’s raw material carbon footprint is low, as is that of the
manufacturing process and usage, when most of the greenhouse gas is emitted. We concentrate on energy-savingfrom the early design and research and development phase. All power supplies used for HTC products must comply
with the relevant international energy consumption specifications: US Energy Star, California Energy Commission, the

EU Code of Conduct, the EuP, and Energy Efficiency Certification (EEC) with third-party verification. The power supply
devices used for all specific models in 2013 meet the 0.03W standby power minimum energy consumption standard.

The HTC R&D team has developed excellent power management modes that allow the phone (depending on user

habit) to automatically enter Standby mode to extend battery life. Some of our phones have an ambient light sensing

Participation in the Foreign Service Carriers’ Eco-Rating Program
In 2013, HTC continued taking part in the Eco-Rating Programs run by several
foreign service carriers. As part of the program, an evaluation of the social
responsibility of HTC and the eco-design of products and green production was
carried out. Improvements were made to reduce the impact of the productionof our mobile phones on the environment and society. This evaluation andranking has also driven the companies in our supply chain to improve theirenvironmental policies and further ensure the sustainability of our products.

function that controls the LCD backlight according to the ambient light level in order to provide a comfortable reading
environment and also to save power.

Recyclability
We start a full evaluation of a product for recyclability at an early stage of the R&D process. To do

HTC One (M8) Extreme Power-saving Mode

this we conduct a simulation of disassembly and analyze the material composition of the product andrelative recycling rate. In addition, we carry out a series of strategies such as material marking (as per the
standards of ISO 11469 and ISO 1043) and component simplification and degree of ease of disassembly.

The HTC One (M8) offers a highly optimized
power-saving functionality. After the phone has
been activated, battery life can be effectively
extended to provide the user with basic functionsin the energy-saving standby mode, these include
phone calls, texting, and sending e-mails. Energy
can be saved and carbon emission kept downeven while synchronous communication is being
carried out.

>ABS+PC<

Then feedback is given to the R&D team about any useful and valuable strategies. Currently, HTC productcan meet the present and known future requirements for recycling.

Reducing Hazardous Substances
In 2005, HTC unveiled the world’s first mass-produced RoHS-compliant PDA mobile phone. Today we requirethat all parts, components, modules, materials, and so on delivered to HTC meet a set of requirements which are evenstricter. The HTC Substance Control List not only restricts the six substances controlled by RoHS, but also others
restrained by international environmental regulations and customer requirements.

In addition, we established (as early as 2006) a platform for unified management of our entire green supply chain

to help our R&D engineers select green materials that meet international environmental regulations and customer

requirements from the HTC product database. By introducing green materials from the source, we are able tosignificantly improve the reliability of our green products and shorten the verification time. The management platform
was revamped in 2008 to provide a more convenient and simpler user interface, and improve the overall efficiency ofhazardous substance control.

Electromagnetic Compatibility
Among the radio frequency specific absportion rate (SAR) regulations currently in force, FCC (US) and CE (EU)are the most strict, and all HTC products satisfy these requirements. HTC products also comply with the rules onelectromagnetic interference issued by all major countries, with an EMI value 3dB lower than the criteria of the
FCC and CE.

104

Environmental Sustainability Agenda

HTC 2013 CSR Report105Sustainable Manufacturing Process
Environment, Safety, and Health (ESH) Management
HTC provides and maintains a safe and healthy working environment as part of our environmental protection,

safety and health, and energy management efforts. To fulfill our commitment to securing employee safety, HTC

promotes occupational safety and health management systems at all our facilities. A Labor Safety Committee carriesout basic work for environmental protection, safety and health management, as well as the prevention of pollution.

All our facility management systems comply with the OHSAS18001 standard for Occupational Health and Safety

Management. Every new employee is given complete safety and health educational training upon entry. We have also

published an ESH Management Manual and Safety and Health Rules which have also been posted on our Intranet
website for employees to consult at any time.

Labor Safety Committee
Facility

Percentage of Labor Representatives

Taoyuan

28 members in total, 12 being labor representatives, making up 46%

TPE1

Class 3 unit as per SS Regulation, no Safety Committee required

TPE2

Class 3 unit as per SS Regulation, no Safety Committee required

In addition, we update the occupational accident prevention plans every year according to current safety andhealth management. The focus is on compliance with safety and health laws and regulations, the identification of
hazards to reduce risk, management of controlled, hazardous or dangerous material, communication of safety andhealth information, and contractor management.

In addition, we have prepared emergency response plans for accidents caused by human error, such as, fire,

explosion, leakage, mechanical breakdowns, injury to persons, or disease. We are also prepared for natural disasters

like typhoons, floods, and earthquakes. We react by immediate implementation of the related emergency plan, in-

HTC ESH Policy
HTC continues to provide safe and healthy working conditions for employees while also continuing
comprehensive environmental protection and efficient energy management. With this fundamental commitment in

mind, we abide by the following basic principles to provide our employees, customers, suppliers, and contractors
with the best quality working environment that makes an ample contribution to sustainable development.

process response measures, and later post reviews and give feedback. We hold regular fire and evacuation drills toensure the proper action to secure the safety of personnel and also HTC property.

HTC has introduced an environment management system as per ISO 14001 and received third-party verification.

The environment policy was formulated by HTC headquarters in Taoyuan and local facilities are required to carry it out.
Goals have been set that are aligned with the policy and systematic implementation has been completed. The policy
has been incorporated into daily management.

We are committed to saving water resources and energy, and to waste reduction. There is an annual budget

for upgrading software and hardware equipment which amounted to NT$362 million in 2012-2014 to substantiate ourphilosophy of a sustainable business operation.

3. We require our employees to comply with regulations and operating standards onenvironmental protection, safety, hygiene and health, and the proper use of energy.
4. We are committed to avoiding foreseeable dangers and we conduct loss control.

5. We comply with the requirements set forth in all applicable laws and regulations.

單位：新台幣千元

Year

2012

2013

Water resources, energy, and waste reduction expenditure

105,000

125,700

Environmental Sustainability Agenda

2. We also place equal importance on the safety and health of our employees, customers,
suppliers, and contractors.

6. We shall use, maintain, and continuously improve our management systems for environmental
protection, safety and hygiene and health, and energy efficiency.

Environmental expenditure106

1. We place equal importance on environmental protection, safety and hygiene and health,production, quality, and energy efficiency.

HTC 2013 CSR Report107Proactively Preventing Occupational Accidents
HTC has identified the prevention of occupational accidents as a top priority of facility management. By following

The Environment, Safety, and Health-Related Training Schedule
Aspectthe Occupational Accident Prevention and Self-Inspection Plan, we prevent occupational accidents and perform selfinspection to achieve our zero-accident goal.

In 2013, our work covered eight aspects: Safety and Health Organization, Management of Safety and Health,

Education and Training for Safety and Health, Standard Operating Procedures and Job Safety Analysis, Inspections

New employees
education and training

for Safety and Health, Emergency Response, Medical Care, and Safety and Health Campaign for the comprehensive
prevention of occupational accidents.
AspectMeasureSafety and HealthOrganization

When modifying its organizational system or adding a new business body, HTC reports to the related
inspection agency according to law.

Management of
Safety and Health

HTC tracks accident statistics, conducts accident investigation analysis, calls meetings of the Labor
Safety and Health Committee, patrols and investigates to prevent accidents, as well as implementing
contractor access management.

Education andTraining for Safety
and Health

HTC regularly holds ESH training.

Standard Operating
Procedure and Job
Safety Analysis

HTC has formulated operating regulations, maintained these regulations as well as safe working
procedure, supplemented safety and health rules, and performed hazard communication and risk
assessment.

Inspections for
Safety and Health

Periodic inspections are carried out of all the working environments, vehicles, equipment, facilities, andfire-fighting equipment. This includes stored organic solvents and processes in which they are used,ionizing radiation dosage, and infrared detection in the work environment.

Emergency
Response

HTC updates the response plans every year and holds emergency response drills.

Medical Care

HTC purchases medical consumables, provides physical exams for new employees and a health checkfor existing employees, and also holds health exams and management for special hazards.

The Safety and
Health Campaign

We implement and participate in forums, put up posters, circulate comics, and slogans, and regularly
update and communicate work safety advice. We monitor and improve work efficiency in accordance withall the government regulations.

MeasureEnvironmental safety and health training programs are formulated in accordance with the environmental safety
and health-related laws and regulations and the company’s operating needs. New employees are educatedand trained to ensure they have appropriate understanding of all the environmental safety and health related
practices. The following courses are provided for relevant new employees in accordance with actual practice:
New employees general health and safety education and training (includes fire-fighting training);
Self-defense and firefighting training by groups;
Employee job rotation and general labor safety and health education and training;
Operations using organic solvents and general hazard awareness training.
The company stipulates an on-the-job employee education and training program in accordance with therelevant government regulations and a career growth plan for each employee. The following courses arescheduled annually or handled by professional outside institutions:

Employee on-the-job
training

Equipment safety
management andemergency response
measures

Organic solvents process supervisors and operators general hazard awareness training;
Forklift (1 ton or more) operator training;
ISO14000 chief auditor training;
OHSAS18000 internal auditor training;
Safety and health management personnel / managers;
Labor safety and health personnel on-the-job credit hours training;
Council of Labor Affairs occupational health nurses training;
Nurses credit hours training;
Radiation safety training;Self-defense firefighting training by group;
Emergency response drills;
Emergency personnel on-the-job training.
Plan emergency drills and maintain an emergency response mechanism.
Arrange monthly fire-fighting training for new employees and self-defense and fire-fighting drills by group
every six months. This ensures employees will be able to use the fire-fighting equipment correctly in an
emergency.
Arrange personnel evacuation drills in accordance with the emergency response mechanism to ensure
employees are able to evacuate the premises by a safe route and in a timely manner in an emergency.

Full-time Environmental Safety and Health Personnel Training
Courses

108

Environmental Sustainability Agenda

Number of trainee

Total training time

ISO 14001+OHSAS 18001+ISO 50001 internal auditors

17 persons

51 hours

Energy management personnel training

5 persons

90 hours

CDP seminar in 2012

3 persons10.5 hours

CDP seminar in 2013

3 persons10.5 hours

HTC 2013 CSR Report109

HTC places great value on pollution

prevention tasks. To reduce impact on theenvironment, HTC continues to invest a

lot of money in pollution control facilities.
Responsible personnel who are trained

externally and have obtained the relevant

licenses and certificates are responsible

for the prevention and control of pollution

Taiwan plant

TargetAverage Injury Frequency
Rate (FR)
Person-Time/ Million Working Hours

Actual Value

Average Injury Severity
Rate (SR)Day/Million Working Hours

Target0.4

and for facilities and maintenance.

Actual Value

Actual Value

0.36

Regular audits are carried out to ensure
all pollution prevention tasks are managed

4 Target
1.5

properly by trained personnel so thatthe impact of pollution is minimized. Thiseffective management ensures that the

GRI Injury Indicators
Injury Frequency Rate (FR)

These related measures have beeneffectively carried out at HTC and theaverage employee injury frequency rate

Shanghai plant

Target(FR) was 0.36 person-time/per million

Average Injury Frequency
Rate (FR)(SR) was 4 days/per million hours worked

Targethours worked, average severe injury rate
– failing to meet our 2013 annual goal

for a severe injury rate of no more than

Person-Time/ Million Working Hours

Average Injury Severity
Rate (SR)Day/Million Working Hours

Target0.42

1.5 days/per million hours worked. In

1.28
Actual Value

2013, most occupational injuries were theActual Value

Actual Value0

result of traffic accidents (115 cases) that
happened during commutes. Fifteen others0

were the result of tripping, falling, catch

Lost Day Injury Frequency Rate per Million Hours Worked

2011

2012

2013

Taoyuan

0.21

0.29

0.36

Shanghai plant

0.19

0.21
0.4

Management
Target

0.4

2011

2012

2013

Taoyuan

1

3

4

0

Shanghai plant

1

1

0

Taoyuan:0.4
Shanghai:0.42

Management
Target1.2

Taoyuan:1.5
Shanghai:1.28

1.2

Note: Injury Frequency Rate = Incidence of Lost-Time Injury×1000000/total hours
worked)Note: Injury Severity Rate=Days Lost for Lost-Time Injury×1000000/Total Hours Worked

Incidence Rate (IR)Occupational Disease Rate (ODR)

environmental protection purpose of “clean
production” is properly achieved.

Injury Severity Rate (SR)

Injury Frequency Rate per Million Hours Worked

2011

2012

2013

Taiwan

0.04

0.06

0.07

Shanghai plant

0.04

0.04

0

2011

2012

2013

Taiwan000Shanghai plant

0

0

0

Note: Incidence Rate = Total Incidences / Total Hours Worked × 200,000*

Note: ODR = Occupational Disease Cases / Total Hours Worked × 200,000*

Day Lost Rate (LDR)

Absence rate (AR)(*: adjusted for 50 weeks a year, 40 working hours per week, and per 100 employees)

2011

2012

2013

Taiwan

0.14

0.64

0.73

Shanghai plant

0.10

0.23

0

Note: LDR = Total Days Lost/ Total Hours Worked × 200,000*(*: adjusted for 50 weeks a year, 40 working hours per week, and per 100 employees)(*: adjusted for 50 weeks a year, 40 working hours per week, and per 100 employees)

TaiwanShanghai plant

2011

2012

2013

1.16

6.23

4.47

-

-

0

Note: Absence rate (AR) = Total Days Lost/Total Days Worked

and roll, and incised injuries that occurred
within the facility.

We will advertise the safe commute

arrangements and work on the concept ofsafety to reduce the Severity Rate.

Contact with high or low
temperature 1.54%
Improper action
1.54%
Others 3.08%
Falls 5.38%

110

Environmental Sustainability Agenda

Traffic Accidents
88.46%

Occupational
Injury Cases,
2013

HTC 2013 CSR Report111Management of Waste and Hazardous Substances

Touch Screen and LCD Recycling

The major manufacturing operation at HTC is the assembly of smartphones, so the only waste gasses areproduced by welding, with no NOx or Sox emission. We handle and dispose of waste according to our self-regulated

Process for Removal and Handling of Business Waste, and practice good resource recycling to ensure cleanliness of

Our energy-saving strategy is directed to waste prevention at the source of its generation. Initially, touch screensthat failed final test were disposed of entirely as waste. Since 2011, the screens have been separated from the
LCDs in a dismantling process and salvageable and good components are returned to production.

Proper Waste Management

We recycled 371,510 touch screens and 638,631 LCDs in 2013 which amounted to 18.34 tons of electronic waste
reduction. This accounts for NT$773 million. This is truly a win-win reduction of waste at the source and a great
economic benefit.

the working environment and reduce environmental impact. The related measures include:e:Engaging qualified service providers to properly handle and dispose of our business waste as required by
the applicable laws;
Using a Patrol and Inspection Form for regular checks of waste storage/ transient areas and requiring noncompliance to be corrected by a deadline;
Using an ESH Check and Self-Assessment Form and audit to perform operation management and risk
ranking management;
Performing irregular trailing audits of the contractors and on-site checks of treatment compliance.

Touch Panel and LCD waste recyclingType

Recycling weight (tons)

Recycling rate (%)

Touch Panel

5.57

60%

LCD

12.77

85%

Reducing, Recycling, and Reusing
HTC actively promotes the concept of waste reduction. Our strategy is a reduction of waste from the source byclassification and advocacy. Recycling has absolutely top priority to reduce the loss of valuable resources.

At the front end, we have educated our employees to reduce waste from the source and to practice recycling

through classification, recovery, and management. At the back end, we adopted manual classification management to

Mobile Telecommunications Products Waste Recycling

return recyclable products to the production line for reuse. Regular online reports are made on waste output and wastematerials that are safely stored.
Measures

Methods

Set up recycling bins and commission manual sortingof domestic waste.

Set up recycling bins and encourage and promote staff sorting ofdomestic waste. Employees recycled 131,862kgs of domestic waste
in 2011~2013.

Used batteries, light tubes and information technology
objects must be recycled.

We have recycling stations for used batteries and light tubes available
to the employees.

According to the statistics of the Taiwan Environmental Protection
Administration (EPA), a kilogram of gold can be recovered from 30,000
recycled phones and 10,000 phones will yield a kilogram of silver. The
10,000 phones recycled can also help save 220,000 kWh of electricity,equivalent to the amount used by 57 average families in Taiwan in a
year, or a reduction of 140 metric tons of carbon dioxide emission. In
consideration of these facts, we signed a mobile telecommunications
product waste recycling memorandum of understanding with the Taiwan
Environmental Protection Agency in 2011.

All these measures resulted in a year by year increase in recycling amount to a grand total of NT$31.1 million in2011 ~ 2013. This represented an increase from 56.89% to 65.82%, which is close to our environmental sustainability
goal of 70%.

In addition, we have been collecting statistical data on waste recycling and waste incineration at our facilities

in Mainland China since 2013. The waste recycling volume at the Shanghai plant was 808,601 kg in 2013; waste
incineration was 825,600 kg, accounting for 49.48% of the total waste recycled volume.

112

Environmental Sustainability Agenda	
  HTC 2013 CSR Report113All our employees are encouraged in recycling and green behavior by regular positive promotion campaigns.

They are urged to sort and reduce general domestic and office waste. We also encourage employees, guests, andvisitors who bring take-out foods and drinks with them, to use environmentally friendly tableware and drinking cups. In
addition, we have identified batteries, lamps, and discarded mobile devices, etc., as items to be fully recycled.

In addition to domestic waste recycling within the plants, we have also initiated the recycling of paper, plastic,

and scrap metal. The recycled waste after being sorted manually is sent to recycling plants for treatment and further

processing. We also intend to develop waste recycling technologies and implement sorting procedures to reduce theproportion of remaining non-recyclable waste.

HTC Waste Statistics
Treatment

Unit:kg

Treated Amount
2012

2013

Recovery

2,464,345

2,930,592

3,618,398

Incineration

1,802,185

1,522,195

2,385,210

all the different chemicals used in parts, components, and the manufacturing process:1. We have appointed dedicated staff to regularly inventory, patrol, inspect, and verify the management of chemicals
in our facilities, including:
Recording the type and amount of chemicals used and the storage status of stock chemicals (including
storage container management);

2. Ensuring that gas extinguishing systems use environmentally safe substances: replacing the existing CO 2
extinguishing systems with halide extinguishing equipment.

Shanghai plantPaper

1,258,878.0

515,924

Plastic

1,201,192.5

292,471

Pallets

151,386.0

1,899

Waste metal

20,599.0-

Waste Computers

2,794.0-

Printed circuit boards containing scrap metal and its power dust

77,288.9

206

Solder paste cans

1,282.0-

Ferrous metal

16,338.0-

Gold-plated boards

1,208.5

-

280.0

-

-

689

53,835-

Life Resources Recycled

the use of chemicals by international regulations, we have taken positive measures to manage and monitor the use of

Requiring personnel handling chemicals to wear basic protective gear.

TaiwanOthersmanagement of the use of hazardous substances and chemicals. To answer the increasingly strict controls placed on

Checking whether the information of chemicals is complete, such as, Safety Data Sheets (SDSs) for example;

Weight of Recycled Material at HTC

Waste printed circuit boards with components attachedAt HTC, we recognize that in the new green competition between businesses all over the world, the only way

to effectively ensure compliance with the applicable laws and client requirements during manufacturing is active

Checking whether the responsible unit has labeled the chemicals correctly;

2011

Category (Unit: kg)

Management of Hazardous Substances and Chemicals

3. Ensuring emergency lighting uses environment friendly batteries: replacing lead-acid batteries with nickel-cadmium
batteries.
4. Setting up a management system for agents used in cooling towers: the use of cleaning agents that have therequired safety certificate, or comply with the applicable regulations for cleaning cooling towers.
5. Ensuring that suppliers and contractors manage chemicals properly: check the chemical management by the
suppliers in terms of environmental protection, safety, hygiene, and corporate social responsibility. Investigate andperform audits and checks of the ranking of the internal management system of the vendors.

Building a Green Supply Chain
To effectively reduce the use of hazardous substance in parts and components, we require all our parts suppliers

to pass HTC’s green parts verification process, ensuring the parts supplied comply with international requirements forenvironmental protection.

HTC and our supplier partners have jointly established sound analysis, testing and report collection systems.

Through conscious management of our green supply chain, we can ensure that all materials used in HTC products andall parts and components are environmentally friendly as required by regulations.

Our internal green design and supplier management ensures HTC products comply with EC directives and allother international environmental requirements, as evidenced by all the related documents and certificates, including
chemical test reports, material composition sheets, safety data sheets, and so on.

In addition, our strategy is to buy environmentally friendly products to substantiate our environmental protection

concept of “recyclable, low pollution, and resource-saving.” We express the purchase of environmentally friendly

products as a priority in our procurement specifications to firmly integrate the concept into our daily operations.
Between 2011 and 2013, green procurement totaled NT$84.76 million.

114

Environmental Sustainability Agenda

HTC 2013 CSR Report115Sustainable Packing
HTC mobile phone products are packed using materials that make transportation safe and add aesthetics to the

products upon delivery. We also consider the impact the packaging materials will have on the environment when they

History of HTC Sustainable Packaging

are discarded. The materials we use must be compliant with regulations, environmental friendly, and sustainable. In

VolumeHas been reduced year by year, one pallet can
carry more packs.

WeightHas been reduced, helps to reduce CO2 emissions
resulting from transportation.

Transportation

One pallet can carry more packs, helps reduce
freight.

Material

Fast growing materials [sugar cane (bagasse),bamboo].

Results

Renewable material; more easily recycled with less
CO2 emission.

packaging design, consideration is given to the following:
1. Reduction of the amount of material used;
2. The use of biodegradable raw material;

3. Printing with environmental friendly ink (soy ink);
4. The facilitation of shipment;
5. The education of the consumers about recycling packaging material.
All the packaging materials for HTC products are compliant with the EC directive

on packaging (EU 94/62/EC) and the US requirement on packaging (state toxics inpackaging laws). The printing ink used on the packaging material is low-volatility ink
or soy ink certified by the American Soybean Association. These efforts minimize theimpact of our product packaging materials on the environment.

\All the packaging materials we used in 2013 are highly-recyclable, and two main packaging designs were used:

Lightweight folded- paper
packaging design

70%~80% from recycled paper pulp, which is 100% recyclable after being discarded.

Lightweight integrated
packaging design

Formed by 65% sugar cane bagasse and 35% bamboo pulp, and is 100% recyclable
and biodegradable.

2009

2011

2012

2013

Hero box

Glueless box

Lighten Package

Lighten Package

Dimensions

183x89x60mm

168x89x56mm

150X89X54mm

160x160x28mm

Weight

170g

113g

65g

95g

Package volume
reduced by 50%

LightweightLightest

No Glue

90% from fast growing
materials

We use sustainable and recycled materials for packing as far as possible. In the event that it is necessary to use

virgin paper in the packaging materials, HTC always requires our paper suppliers to provide paper certified by the
Forest Stewardship Council (FSC) or the Program for the Endorsement of Forest Certification (PEFC).

The HTC’s Standard Mobile Phone Box
is 100% Recyclable and Biodegradable
HTC has elaborated the energy-saving and power-saving functionsin the colored mobile phone box and manual. Environment friendly
material is used for the box (75% sugar cane and bamboo fibre)that is 100% recyclable. In addition, HTC always buys paper fromsuppliers who provide paper certified by the Forest StewardshipCouncil (FSC) or the Program for the Endorsement of Forest
Certification (PEFC) to promote the concept and awareness ofenvironmental protection.

116

Environmental Sustainability Agenda

ECO
FeatureSoy ink used forprinting

Soy ink used forprinting

99% recyclable andbiodegradable
FSC certified paper
Soy ink used for printing

Composed 98% of recyclable
paper and material
Made at least 75% from fastgrowing bagasse (a sugar cane
product) and bamboo
Printed using vegetable-based
ink rather than petroleumbased ink

HTC 2013 CSR Report117Sustainable Productmanufacture, production, and consumption by users of HTC products on the environment. The concept of life-cycle-

Product Carbon Emission Reduction

and fully comprehensive green information for the initiation of life-cycle-investigation (LCI) on the supply chain to

extraction of raw materials to product manufacture and distribution, and from delivery and consumption, to final

In response to the global warming crisis, HTC constantly looks for ways to reduce the impact and influence of

thinking (LCT) is our way of approaching this, and we start with R&D. The R&D engineers are provided with quantified
establish a database of the key parts and components and their environmental impact.

The impact of our products on global climate change and their carbon footprint has been analyzed from thedisposition. According to the results of the analysis, the carbon footprint of the smartphones is most significant in the

HTC product carbon footprint calculations are based mainly on ISO 14040 and ISO 14044. Direct data arecollected from HTC factories and upstream suppliers, and by using internationally-accepted life cycle assessment

phase of raw material extraction and product manufacturing, as well as consumption by users. HTC is therefore giving
our full attention to the planning and implementation of carbon reduction.

software and databases. Indirect data are collected from SimaPro and Ecoinvent. Customers are given transparent
product-related environmental information for reference after a product carbon footprint report or Eco Declaration has
been verified by a third-party.

Product Carbon Footprint Verification in 2013

Carbon Footprint-Related Plans and Reports over the Years

We chose the HTC One to serve as a representative product and worked with our suppliers to have it pass carbon
footprint certification by the third-party notification body - German Rhine. The HTC One was the first smartphonein the world to comply with international standards ISO/TS 14067:2013, PAS 2050:2011, ISO 14040:2006, and ISO
14044:2006 in a carbon footprint and life cycle assessment. This shows that all details of this HTC product - fromdesign to production and usage to end-of-life, have been calculated and disclosed in accordance with full life
cycle and carbon emission analysis. The carbon footprint in communications and service is also in compliancewith the standards.

HTC has been conducting product environmental impact investigation and analysis
in accordance with life cycle assessment methods since 2010. The annual actionplans are set out below::

2. We participated in the Low Carbon Product Design Program of the Industrial
Development Bureau MOEA in 2011, and completed carbon footprint
analysis and low carbon design counseling with 15 major suppliers.

Life cycle and emission ratio

58.4%
7.2%

1. We participated in the Product Environmental Information Disclosure
Program of Taiwan’s Industrial Development Bureau MOEA in 2010,
and completed the Environmental Protection Declaration (EPD) with 19
suppliers.

3. We cooperated with 11 suppliers to complete the ISO/TS14067 productcarbon footprint inspection in 2013.

34.3%
0.1%

4. Our main action plan in 2014 is to establish carbon reduction targets andaction programs by providing the major suppliers with detailed life cycle
investigation data analyses.
Product Environmental Declaration (EPD) report
http://environdec.com/en/Detail/?Epd=8226#.Uzpg5PmSxMU

Resource
extraction

118

Production

Environmental Sustainability Agenda

Transport

Usage

End of Life

Carbon footprint report
http://www.htc.com/assets-desktop/images/csr/tw/download/HTC-One-CFPreport.pdf	  HTC 2013 CSR Report119SocialInvestment andContribution
HTC has long been committed to social care and public welfare and supports and sponsors

care for disadvantaged families, providing their children with opportunities to receive education, andhumanitarianism and we have developed our company character culture at a local level. While weespouse humanitarianism and contribute to a peaceful and harmonious society. The HTC Foundation

the HTC Education Foundation and the HTC Social Welfare and Charity Foundation. HTC advocatescontinue to pursue business growth and technical innovation, we care very much about disadvantaged
families and give their children opportunities to receive education. This is a distinctive corporate culture ofwhich HTC is rightfully proud.

raising funds for environmental and ecological preservation. We engage in public interest activities toplays an important part in community engagement and social services to instill the core values of integrity,honesty, care, love, positive thinking, and respect for natural resources.

The people in the HTC Foundation believe that: everyone has good personality; mutual respect andsupport exists between one individual and another and between groups; entrepreneurs are honest andHTC Foundation

responsible global citizens; political leaders are capable and willing to strive for the welfare of the people,

to help the disadvantaged and to reduce the continuously widening poverty gap; and countries can all getalong with each other. To realize these beliefs, we urge all leaders to join forces to encourage a “character
culture.” Leading by personal example will influence others to value character in daily life. By good

https://zh-tw.facebook.com/htcfoundation
The HTC Foundation focuses on promoting character education, working to help children andyoungsters develop good character by supporting both schools and teachers. We place great importanceon building moral character and culture for communities and towns in cooperation with local government,

example we can cause others to pass on interest in culture, aesthetics, art, and an appreciation of theserious need and the details of environmental protection. We can beautify the environment, preserve thenatural landscape and historical sites, respect natural resources that are shared by us all, and jointly takebetter care of our wonderful planet.

The HTC Foundation invested NT$21,779,600 in funding education programs in 2013 and the HTC

Social Welfare Charity Foundation invested NT$88,702,100 in relevant charity events.

Achievement

VisionEveryone has a good personality. People respect and support each other. Let us make the planet lovely
together.

MissionParticipation of Character Education between 2004 and 2013
Carnegie

Total

699

382

102

1,183

Person-Time

35,651

27,184

5,474

68,3092009~2013 Teenager training and Participation lecture courses
Youngster

Character Lecture Celebrity Lecture

Summer Institutein Character
Education

Total

No. of Sessions

36

28

31

2

97

Person-Time

1,187

2,212

13,14870

16,617

1. To encourage the development of good campus culture by influential education projects and thecontinuous and systematic encouragement of teachers, parents, and students.

Rock Education Program in 2013

2. To encourage the development of good urban character culture by influential education projects andurging local communities to work towards this end.

Support and help is provided to their teams who work together to construct a character learning environment.

3. Care for disadvantaged families and the provision of educational opportunities for young people to givethem the knowledge and character that allow them to become contributing members of society.

ideas to promote character-related training and to establish a feasible training mode to upgrade social character andCharacter Statement
1. To actively and enthusiastically influence others with honesty and good character in both personal andprofessional life and to set a good example with our own conduct;
2. To protect the environment and to develop a cultural and aesthetic disposition through readings; and3. To be a world citizen, to make reasonable efforts to help the poor and the disadvantaged in the world, andto encourage people to respect and support one another.
We hope through these actions, people can jointly internalize the core values of integrity, honesty, love,mutual respect, caring for one another, and positive thinking.

122

Excellent Life

No. of Sessions

Our mission is to instill core values of integrity, honesty, care, love, positive thinking, and respect for natural
resources by untiring efforts to educate.

Objectives

Character Education

Social Investment and Contribution

The HTC Foundation works with schools, townships, and corporate institutions that care about character education.
To this end we have promoted “Rock Education” and planned and worked together with others who share ourmorals. The following related training courses were promoted at 768 schools and corporations in 2013.
Classes
1. Dale Carnegie® “incentive training” principal class

Courses

2. Dale Carnegie® “incentive training” faculty class

Enhancing confidence, attitude control, understanding others,
expressing opinions, and setting targets

3. Excellence in Life “In-depth communications and expression
training” faculty / character township class

Emotion EQ, beliefs, language power, and self-image andvalue

4. HTC “character education” principal classCharacter school, model, implementing character praise, anddiscipline

5. HTC “character education” faculty class
6. HTC “character enterprise” faculty / character township classCharacter enterprise, model, implementing hiring, complaints,
and discipline by character

7. HTC school / parents character workshops (target: schooland student parents participate)

Cultivating core values and character in children

8. HTC character township “character monthly meeting”

Character discussion and values clarification; adult learningand practice

9. HTC teenagers “multi-fortune Leadership” courses (juniorhigh and senior high classes, the class instructor, andadministrative team to participate)

Enhancing self-confidence, positive attitude, driving force,
attractive personality, you can change the world

HTC 2013 CSR Report123English Character School in Taitung
The HTC Foundation has established character-building schools in the English language in Hualien, Yunlin, andChiayi. The Taitung English character school was established in 2013. Its mission is to assist in the promotion ofcharacter education using a series of specially provided programs. Domestic character is fostered and a civic
education curriculum is included that will build both character and English language ability. We hope this can beextended to every corner of Taitung County to build character and also to teach the students to speak English.
The Taiwan Character Summer School of 2013 ran a character education immersion workshop that was
attended by 37 people from 6 different schools around the country. The mission was to help them understandcomprehensive character education using different learning methods. Lectures, discussions, reflection, feedback,the exchange of experiences, games, and team power meetings were all used to build experience that could betaken back and used in their Home schools.

Five-Day Character Building Family Camp and Summer Vacation at the
Hualien Character and English Institute
A Character Building Family Camp was held by the HTC Foundation and Hualien Character and English Instituteas a joint summer vacation family break. Separate courses were provided for parents and children. The program
for the parents lasted two days and no lodging was provided. The students’ course spanned five days and fournights, and lodging was provided. Expenses were paid by the HTC Foundation and participation was free.
Character Building Family Camp-Parent Session
The content of the student courses was discussed during the parents’ two-day study, and a session aboutcommunications skill entitled Excellent Life-Expression Skills for Deep Communication was held. This introduced
several important concepts: the importance of values, image and value, the power of words, and tips for
effective communication. The intention being that participating parents and students would continue practicing
the character pointers and positive thinking they learned, so these would become parts of a character-building
process in the family.
Character Building Family Camp-Student Session
The 5-day study for the students covered five aspects of behavior: respect, concentration, honesty, responsibility,and gratitude, and two attitudes: positive thinking and self-confidence. Character123, a course about practicalconflict-resolution skills, and 10 English language sessions led by foreign teachers were also included.

124

Social Investment and Contribution

Planned Development for 2014
Character Education in Schools: Implementation of character building education in individual school andstrengthening character networking:
1. Development of Regional Success Mode – Continuous follow-up of the development of highlighted schools and help
for them in building up a core model for character education.

2. Development of Partnership with Schools – Giving assistance for the integration of character education schemes
according to the development of the school’s core teaching framework.

3. Development of Leadership (Professional) Community of Character Education – Developing a community by “Handin Hand” or “Professional Field” means.

4. Strengthening Regional Strategic Alliances – Strengthening character education networking through integrated
courses or large conferences.

5. Link to other Domestic and Foreign Character Education Resources.

Character Education in Villages and Towns

1. romoting character learning by way of Character Learning Centers or a Character Academy
Scheduling character sharing monthly meetings, two hours a month;
Cultivating seeded sharing promoters for going to villages and towns to hold character sharing sessions,cultivating character education;

Calling the existing local resources, womens’ associations, community-building groups, etc., to work together;
Organizing book clubs/growth groups for promoting continual learning and growth, currently done in the form of a
Celebrity Lecture in Character.

2. Inspiring active learning and positive engagement
Enhancing the function of the Character Committee;
Cultivating seeded sharing promoters for Character Sharing Sessions;
Planning group activities to promote motivation and engagement within groups;
Assisting in producing character websites for towns and villages.
3. Engaging other local organizations
Engaging schools, city councils, farmers’ associations, hospitals, and other companies or businesses.

HTC 2013 CSR Report125Other Social Engagement Activities
Donations of Digital Products

In addition to sponsoring the social

work upheld by the HTC Foundation, HTC
also positively engages in public interest

HTC works with the National Tsing Hua University in the collection

activities through other channels. In 2013, ourof old computers for donation to Sierra Leone in West Africa throughaccomplishments in social works included:

the international Lion Group. New life is given to these second-handcomputers which are then sent to this rather remote African country. HTC

HTC Power To Givealso donates tablet PCs to high schools and provides cloud services

that allow teachers and students to learn comprehensively from a hugeknowledge base and communicate with large numbers of others.

To apply the power of telecommunications

to the solution of some social problems, HTC“Warm Winter for Love”
Book Donation Eventpromoted the HTC Power To Give project in2013, which takes advantage of the power ofthe quad-core or eight-core processors used in

mobile phones and the 3G/4G and Wi-Fi cloud,HTC started off the Autumn Festival “Let Love Embrace You”, ausing the computing power available during

first wave of second-hand book donations, with 781 books that will help

idle time to participate in some major scientificchildren in single-parent families or those being raised by grandparents.

projects around the world.

The book donation event was held for pupils at the Jhuci Elementary

There are many large scientific programs

School in Chiayi County.

that require enormous computing resources.

Donations of Used Articles and thePromotion of Environmental Charity

Using the facilities available in a normal
computer lab, some of these might run for

hundreds of years without accomplishing verymuch. However, if everyone in the world with a

HTC continues to promote environmental charity, support themobile phone were to contribute idle processor

donation of blankets and winter clothing, care for the elderly living alone

time, a great deal of scientific progress could

in remote areas, and also supports the donation of books, used bicycles,

be made.

and daily supplies to disadvantaged groups in the community.

HTC and Dr. David Anderson at the University of California, Berkeley, worked together to develop a mobile phone

application that allows smartphone users to access BOINC, a distributed computing platform, and share computing
resources while the phone is being recharged. There are many major questions that require lots of computing power,such as cancer research, the quest for a cure for Alzheimer’s, the supply of clean drinking water around the world,many ecological matters, climate change, and even the exploration of outer space to find signs of life. To share, justdownload the HTC Power to Give App and complete the relevant settings. When the mobile phone:Power is on,

There is more than 90% power,

A WiFi network connection exists,

The screen is not active.

The HTC Power to Give app will automatically activate the phone to take part in a computation of global

importance. Of course, the computing capacity of a single mobile phone over a short time does not add up to much.
However, if one considers the many other mobiles also connected, it can add up to the power of several supercomputers. HTC expects the assembly of mobile telecommunications devices to help solve some very importantworld issues.

126

Social Investment and Contribution

HTC 2013 CSR Report127Beach and Mountain Cleaning Activities
HTC is committed to the promotion of the concept of internal environmental protection and encourages employees

Blood Donations
Four times every year HTC cooperates with the Hsinchu Blood Center to hold blood donation drives. Many of

to participate in such activities outside the factory as well. Employees have participated in beach and mountainour kind-hearted employees have developed the habit of regular blood donation. Every time the mobile vehicle fromand enhance the awareness of protection.

by Hsinchu Blood Center as a standing Honorable Blood Donor Group.

cleaning since 2011 that has inspired them to care for forest and water resources and work to optimize the environment

Date

Location

2013/1/5

Jhuwei fishing port beach cleaning

2013/5/18

Jhuwei fishing port beach cleaning

2013/9/22

Jhuwei fishing port beach cleaning

2013/12/15

Hu Tou Shan mountain cleaning

2014/5/24

Taoyuan City San-Ming Park

the Blood Center comes by our employees all line up to make donations to give back to society. HTC is recognizedStatistics of Blood Donation
Requirement for Honorable Blood Donor Group - 25,000 c.c.
311,250

287,250

286,500

300,250

2012

2013

238,250

Sponsorship of Schooling for Disadvantaged Children
For many years, the HTC Foundation has been taking care of disadvantaged, children and providing them with theopportunity to receive education. The education program highlights continuous learning and HTC plays an active part

134,750

134,000

in community engagement and social services. HTC cultivates communication with the children and the community topass on the core values of integrity, honesty, care, love, positive thinking, and respect for natural resources.

The HTC Child Support ClubThe HTC Child Support Club was founded in 2006 as a spontaneous association formed by HTC employees.

2007

2008

2009

2010

2011

The members raise money that is donated to the China Children’s Fund (CCF) to support the sponsorship of children
in need. In 2013, 245 HTC employees made donations. The funds raised by the HTC Child Support Club and the

Employee Welfare Committee came to NT$2,700,700, and was used to sponsor 210 children. Among those, 202 weredomestic children while eight of these were from foreign countries, including Guatemala, Indonesia, the Philippines,
Senegal, Sri Lanka, Qirghiz, and Paraguay.

128

Social Investment and Contribution

HTC 2013 CSR Report129Assurance Statement

130

Assurance Statement

HTC 2013 CSR Report131

GRI G4 Comparison Table
GENERAL STANDARD DISCLOSURES
Indicator

Disclosure Item

Page Number andComment

Identified Omission Externaland Explanation
Assurance

Indicator

Statement from the most senior decision-maker of the organization

G4-2

Description of key impacts, risks, and opportunities

6-7

●

G4-24

List of stakeholder groups engaged by the organization

6

●

G4-25

Basis for identification and selection of stakeholders with whomto engage

G4-26
G4-27

ORGANIZATIONAL PROFILE
G4-3

Name of the organization

G4-4

Primary brands, products, and services

G4-5

Location of the organization’s headquarters

G4-6

Number of countries where the organization operates

G4-7

Identified Omission Externaland Explanation
Assurance

STAKEHOLDER ENGAGEMENT

Strategy and Analysis
G4-1

Page Number andComment

Disclosure Item

42-43

●

41

●

Organization’s approach to stakeholder engagement

42-43

●

Stakeholder groups that raised each of the key topics and concerns

42-43

●

3

●

August, 2013●

Annually●3●130-131

●

134

●

2

●

12, 19

●

3

●

G4-28

Reporting period for information provided

15-16

●

G4-29

Date of most recent previous report

Nature of ownership and legal form

17

●

G4-30

Reporting cycle

G4-8Markets served

15

●

G4-31

Contact point for questions regarding the report or its contents.

G4-9

Scale of the organization

17, 54●G4-32‘In accordance’ option the organization has chosen

G4-10

Total number of employees

54

●

G4-11

Percentage of total employees covered by collective bargaining
agreements

We don’t havelabor union

G4-33

●

Organization’s policy and current practice with regard to seeking
external assurance for the report

G4-12

Describe the organization’s supply chain

117

●

G4-13

Significant changes during the reporting period

No significant
changes●

G4-14

Whether and how the precautionary approach or principle isaddressed by the organization

106-109

G4-15

List externally developed economic, environmental and social charters,
principles, or other initiatives to which the organization subscribes or
which it endorses

48

G4-16

List memberships of associations and national or international
advocacy organizations

REPORT PROFILE

GOVERNANCE
G4-34

Governance structure of the organization

28

●

●

G4-35

Process for delegating authority for economic, environmental andsocial topics from the highest governance body to senior executives
and other employees.

28

●

●

G4-36

Whether the organization has appointed an executive-level positionor positions with responsibility for economic, environmental andsocial topics

35

●

●

G4-37

Processes for consultation between stakeholders and the highest
governance body on economic, environmental and social topics

42-43

●

G4-38

Composition of the highest governance body and its committees

28●

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17

Whether any entity included in the organization’s consolidated financial Refer to page 229~231
statements or equivalent documents is not covered by the reportof Annual Report

●

G4-39

Whether the Chair of the highest governance body is also an
executive officer

No

●

G4-18

Process for defining the report content and the Aspect Boundaries

38-39

●

G4-40

28

●

G4-19

List all the material Aspects identified in the process for defining
report content

Nomination and selection processes for the highest governance bodyand its committees, and the criteria used

38

●

G4-41

30

●

G4-20

For each material Aspect, report the Aspect Boundary within theorganization

Processes for the highest governance body to ensure conflicts ofinterest are avoided, managed and disclosed to stakeholders

38

●

G4-42

35

●

G4-21

For each material Aspect, report the Aspect Boundary outside
the organization

Highest governance body’s and senior executives’ roles in the
management of economic, environmental and social impacts

38●

No significant
changes

Measures taken to develop and enhance the highest governancebody’s collective knowledge of economic, environmental and social
topics

35

●

G4-22

Effect of any restatements of information provided in previous reports,
and the reasons for such restatements

G4-43

G4-23

Significant changes from previous reporting periods in the Scope andAspect Boundaries.

Shanghai office isalso including inboundaries this year

G4-44

Processes for evaluation of the highest governance body’s
performance with respect to governance of economic, environmental
and social topics

36

●

132

GRI G4 Comparison Table●●

HTC 2013 CSR Report133SPECIFIC STANDARD DISCLOSURES
Page Number andComment

Identified Omission Externaland Explanation
Assurance

DMA and
Indicators

Indicator

Disclosure Item

G4-45

Highest governance body’s role in the identification and management of
economic, environmental and social impacts, risks, and opportunities

G4-46

Highest governance body’s role in reviewing the effectiveness of theorganization’s risk management processes for economic, environmental
and social topics

35

●

G4-47

Frequency of the highest governance body’s review of economic,
environmental and social impacts, risks, and opportunities

38-39

●

G4-EC1

G4-48

Highest committee or position that formally reviews and approve

28

●

G4-49

Process for communicating critical concerns to the highest governance
body

28

G4-52

Process for determining remuneration

G4-53

How stakeholders’ views are sought and taken into account regarding
remuneration

G4-54

Ratio of the annual total compensation for the organization’s highestpaid individual to the median annual total compensation for all
employees (excluding the highest-paid individual) in the same country

29

●

G4-55

Ratio of percentage increase in annual total compensation for theorganization’s highest-paid individual to the median percentage
increase in annual total compensation for all employees (excluding thehighest-paid individual) in the same country.

29

●

7

Organization’s values, principles, standards and norms of behavior

Identified Omission
and Explanation

External
Assurance

CATEGORY: ECONOMIC●
Aspect: Economic Performance15●

Direct economic value generated and distributed

15●

G4-EC2Financial implications and other risks and opportunities for theorganization’s activities due to climate change

33

●

●

G4-EC3Coverage of the organization’s defined benefit plan obligations

Refer to page 179 ofAnnual Report

●

29

●

G4-EC4

Financial assistance received from government

No such assistance

●

29

●

Aspect: Market PresenceG4-DMA

60

●

60

●

121

●

G4-DMAETHICS AND INTEGRITY
G4-56

Page Number andComment

Disclosure Item

G4-EC5

Ratios of standard entry level wage by gender compared to local
minimum wage at significant locations of operation

Aspect: Indirect Economic Impacts
G4-DMA
G4-EC7Development and impact of infrastructure investments andservices supported

127●

Significant indirect economic impacts, including the extent
of impacts

127

●

51

●

Refer to page 42~43
of Annual Report

●

89

●

18, 65●

G4-57

Internal and external mechanisms for seeking advice on ethical andlawful behavior, and matters related to organizational integrity

G4-EC830●

Aspect: Procurement Practices

G4-58Internal and external mechanisms for reporting concerns about
unethical or unlawful behavior, and matters related to organizational
integrity

30●

G4-DMA
G4-EC9Proportion of spending on local suppliers at significant locations ofoperation
CATEGORY: ENVIRONMENT

Aspect: Energy
G4-DMA
G4-EN3

Energy consumption within the organization

90●

G4-EN5

Energy intensity

90●

G4-EN6

Reduction of energy consumption

93-94

●

G4-EN7

Reductions in energy requirements of products and services

104

●

96

●

96

●

Aspect: Water
G4-DMA
G4-EN8134

GRI G4 Comparison Table

Total water withdrawal by source

HTC 2013 CSR Report135

DMA andIndicators

External
Assurance

DMA and
Indicators

Disclosure Item97●

G4-EN31

Total environmental protection expenditures and investments
by type

G4-DMA

89●

G4-EN15 Direct greenhouse gas (GHG) emissions (SCOPE 1)

90●

G4-EN16 Energy indirect GHG emissions (SCOPE 2)90●

G4-EN18 GHG emissions intensity

90●

Aspect: Environmental Grievance Mechanisms

93, 94●G4-DMANo such emission●

G4-EN34

96, 112●Sub-Category: Labor Practices and Decent Work97●

Aspect: Employment112-114●

G4-DMA

None

●

102

Disclosure Item

G4-EN10 Water sources significantly affected by withdrawal of water

Page Number andComment

Identified Omission
and Explanation

Aspect: Emissions

G4-EN19 Reduction of GHG emissions
G4-EN21 NOx, SOX, and other significant air emissions

G4-EN22 Total water discharge by quality and destination
G4-EN23 Total weight of waste by type and disposal method
G4-EN24 Total number and volume of significant spills●

G4-DMA

52●

G4-EN33

Significant actual and potential negative environmental impacts inthe supply chain and actions taken

53

●

100

●

Number of grievances about environmental impacts filed,addressed, and resolved through formal grievance mechanisms

None

●

56

●

Total number and rates of new employee hires and employee
turnover by age group, gender and region

58

●

●

G4-LA2

Benefits provided to full-time employees that are not provided
to temporary or part time employees, by significant locationsof operation

61-62

●

G4-LA3Return to work and retention rates after parental leave, by gender

66

●

60

●

We don’t havelabor union

●

107

●
●

Extent of impact mitigation of environmental impacts of products
and services

103, 105●

G4-EN28

Percentage of products sold and their packaging materials thatare reclaimed by category

112, 113●

Aspect: Labor/Management Relations
G4-DMA

Aspect: Compliance

Monetary value of significant fines and total number of significant
G4-EN29 fines and total number of non-monetary sanctions for non-monetaryfor non-compliance with environmental laws and regulations

106, 115

G4-LA1

G4-EN27

G4-DMA

External
Assurance

CATEGORY: SOCIAL

Aspect: Products and Services
G4-DMA

Identified Omission
and Explanation

Aspect: Supplier Environmental Assessment

Aspect: Effluents and Waste
G4-DMA

Page Number andComment

104

●

None

●

G4-LA4

Minimum notice periods regarding operational changes, including
whether these are specified in collective agreements

Aspect: Occupational Health and Safety
G4-DMA

Aspect: Transport

G4-LA5Percentage of total workforce represented in formal joint
management-worker health and safety committees that help
monitor and advise on occupational health and safety program

106

G4-DMA

101●

Significant environmental impacts of transporting products andG4-EN30 other goods and materials for the organization’s operations, andtransporting members of the workforce

101●

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days,
and absenteeism, and total number of work-related fatalities, byregion and by gender110-111

Total environmental protection expenditures and investments
by type101●

G4-LA8

Health and safety topics covered in formal agreements with tradeunions

We don’t havelabor union

●

80

●

G4-EN31136

GRI G4 Comparison Table●

Aspect: Training and Education

Aspect: Supplier Environmental Assessment
G4-DMA

Data can’t bebroke down bygender

106●

G4-DMAHTC 2013 CSR Report137

DMA andIndicators

Disclosure Item

G4-LA9Average hours of training per year per employee by gender, andby employee category

82

Programs for skills management and lifelong learning that support
G4-LA10 the continued employability of employees and assist them inmanaging career endings

80-81

●

G4-HR6Percentage of employees receiving regular performance and
G4-LA11 career development reviews, by gender and by employee
category

84（100%）●Aspect: Assessment

Page Number andComment

Identified Omission
and Explanation

Data can’t bebroke down bygenderExternal
Assurance●

Composition of governance bodies and breakdown of employees
G4-LA12 per employee category according to gender, age group, minority
group membership, and other indicators of diversity

56●

28, 58, 67●

G4-LA15Significant actual and potential negative impacts for labor
practices in the supply chain and actions taken

G4-LA16

Number of grievances about labor practices filed, addressed, andresolved through formal grievance mechanisms

51

●

53

●

otal number of incidents of discrimination and corrective
actions taken

G4-HR4

Operations and suppliers identified in which the right to exercise
freedom of association and collective bargaining may be violated
or at significant risk, and measures taken to support these rights

79

●

None

●

G4-HR5138

Operations and suppliers identified as having significant risk forincidents of child labor, and measures taken to contribute to theeffective abolition of child labor

GRI G4 Comparison Table

Total number and percentage of operations that have been subject
to human rights reviews or impact assessments

G4-DMA
Significant actual and potential negative human rights impacts inthe supply chain and actions taken

64

●

None

●

52

●

52

●

45

●

45

●

79

●

None

●

30

●

Aspect: Human rights grievance mechanisms

G4-HR12

Number of grievances about human rights impacts filed,addressed, and resolved through formal grievance mechanisms

Aspect: Anti-Corruption
G4-DMA
G4-SO3

Total number and percentage of operations assessed for risks
related to corruption and the significant risks identified

30●

G4-SO4

Communication and training on anti-corruption policies andprocedures

85●

Confirmed incidents of corruption and actions taken

30

●

34

●

None

●

32

●

None

●

102

●

64

●

G4-SO5None●

Aspect: Anti-Competitive behavior
G4-DMA

64

●

65

●

G4-SO7

Total number of legal actions for anti-competitive behavior, antitrust, and monopoly practices and their outcomes

Aspect: Compliance
G4-DMA
G4-SO8Aspect: Child Labor
G4-DMA

External
Assurance

Sub-Category: Society

Aspect: Freedom of Association and Collective Bargaining
G4-DMA

Operations and suppliers identified as having significant risk
for incidents of forced or compulsory labor, and measures
to contribute to the elimination of all forms of forced orcompulsory labor

G4-DMA

Aspect: Non-Discrimination

G4-HR3G4-DMA

G4-HR11

Sub-Category: Human Rights

G4-DMA

Identified Omission
and Explanation

Aspect: Supplier human rights assessment

Aspect: Labor practices grievance mechanisms
G4-DMA

Page Number andComment

Aspect: Forced or Compulsory Labor

G4-HR9Aspect: Supplier Assessment for Labor Practices
G4-DMA

Disclosure Item

G4-DMA

Aspect: Diversity and Equal Opportunity
G4-DMADMA and
Indicators

64

●

None

●

Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with laws and regulations

Sub-Category: Product Responsibility
Aspect: Customer Health and Safety
G4-DMAHTC 2013 CSR Report139

DMA andIndicators

Disclosure Item

G4-PR1

Percentage of significant product and service categories for which
health and safety impacts are assessed for improvement

105●

G4-PR2

Total number of incidents of non-compliance with regulationsand voluntary codes concerning the health and safety impacts ofproducts and services during their life cycle, by type of outcomes

None

●

116

●

G4-PR3

Type of product and service information required by theorganization’s procedures for product and service informationand labeling, and percentage of significant product and service
categories subject to such information requirements

100%

●

G4-PR4

Total number of incidents of non-compliance with regulations andvoluntary codes concerning product and service information andlabeling, by type of outcomes

None

●

G4-PR5Results of surveys measuring customer satisfaction

45

●

116

●

Page Number andComment

Identified Omission
and Explanation

External
Assurance

Aspect: Product and Service Labeling
G4-DMA

Aspect: Marketing Communications
G4-DMA
G4-PR6

Sale of banned or disputed products

None

●

G4-PR7

Total number of incidents of non-compliance with regulations andvoluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship, by type of outcomes

None

●

44

●

44

●

103

●

None

●

55

●

18

●

120

●

Aspect: Customer Privacy
G4-DMA
G4-PR8

Total number of substantiated complaints regarding breaches ofcustomer privacy and losses of customer data

Aspect: Compliance
G4-DMA
G4-PR9

Monetary value of significant fines for non-compliance with laws
and regulations concerning the provision and use of products
and services

Aspect: Conflict Minerals
G4-DMA
Aspect: Brand Management
G4-DMA
Aspect: Character Education
G4-DMA140

GRI G4 Comparison Table