2012 HTC CSR REPORT

Here’s To Commitment

HTC 2012
Corporate Social Responsibility Report

2012
HTC CSR Highlight
ONE and only international Smartphone brand enterprise

1

Taiwan’s2

5.4% of revenue invested in innovation and R&D

3

More than

5,300 employees hired in Taiwan. Named as one of theTop-10 constituents of the TWSE RA Taiwan Employment Creation
99 Index

100% recyclable packaging material

4

Uses

5

Headquarters building rated as

6English learning resources for employees of7

Handicapped employees exceed the mandatory

8

Salary for newly hired student workers NT$
after one year of service NT$

LEED Gold

21,6004,831 hours
21% minimum rate

20,600 per month,

930 first tier suppliers passed CSR compliance audit, 			
a pass rate of 100%

10

Established

4 Character & English Institutes in Taiwan, where
65,494 persons received character education, and 768 schools
and related institutions joined the Cornerstone Education Project

Editorial Principle
Thank you for reading the first “Corporate Social Responsibility (CSR) Report” issued by the HTC Corporation

Information Disclosure Period(HTC). HTC has an open and honest approach to the review and disclosure of our executive performance related to all

We plan to issue the HTC Corporate Social Responsibility Report annually. This report has a time coverage of

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

year 2012 from January to December, but since this is the first one, as full a picture of all our CSR achievements in

to integrate our CSR strategies into the organization, and we start off with a comprehensive response to all thesevarious aspects to date, will be given. The content and information about some issues refers to work carried out in 2010

issues.

and 2011, as well as the HTC CSR management policies, key issues, and performance, responses and activities for

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

major CSR issue that relates to our future development, we make it clear at the beginning of each section which challenge
we are facing, our current achievements, and our goals for future development. By understanding and commitment toReport Basisthese 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 2012.

This report was composed according to the GRI G3.1 Guidelines issued by the Global Reporting Initiative (GRI),

This report has been prepared in Chinese and English. Both versions are posted on our official website and are

and verified by SGS-Taiwan (an independent third party) as meeting the GRI G3 B+ Application Level according toavailable for downloading (www.csr.htc.com).

AA1000 Assurance Standard.

Correspondence with Global Regulations & Guidelines

HTC CSR Website

1. UN Global Compact: Although Taiwan is not a member of the United Nations, HTC, as a global brand, is committedThis 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.

to act as a responsible business that follows the Ten Principles of the UN Global Compact 2001. For a comparisonof HTC work with the Ten Principles, please refer to Page 124 of this report.

2. ISO 26000 Principles: For guidance on social responsibility established by the International Standards Organization(ISO), this report also provides a comparison between HTC work and the seven core CSR matters as set forth in

The HTC 2012 CSR Report (HTC CSR Report 2012) is downloadable in PDF format.)the ISO 26000 Standards, including corporate governance, human rights, labor practices, the environment, fair
operating practice, consumers issues, and community involvement & development. For a comparison of HTC work

2012 HTC

年企業社會
2012

責任報告書

Hi, we’re HTC.

with the ISO 26000 Principles, please refer to Page 124 of this report.

CSR REPORT

Here’s To Com

mit

Forwards-Looking Statements & Statistical Calculations

2012 HTCCSR Report

宏達國際電子股份
有限公司
總公司及工
廠
桃園縣桃園
市興華路23號
電話：+88
6-3-375325
2

台北辦公室

TPE1：新北市新店區中
興路3段88號
TPE2：台北市新店區寶
電話：+88
6-2-891241
強路6-3號138
樓 電話：+88
6-2-891241
網址 http://www38.htc.com

宏達國際電
子股份有限
公司

hTC封面-0828.ind

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

2012年企業社

會責任報告

However, because some of these issues are uncertain and subject to variable factors (such as policies, laws andd 1

2013/8/28

international regulations), it should be noted that they have been made after discussions on current HTC status and are

4:55:23 PM

HTC 2012 CSR Report

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

Report Scope and Boundary
The boundary of this report covers the HTC operations in Taiwan, including the

Taoyuan Headquarters and factories, Taipei Building One, Taipei Building Two , Hsinchu
office and Tainan office, representing all HTC operations in Taiwan. In the future, we will

Taoyuan
HQ & Factory
Hsinchu
Software R&D Center

expand the coverage of our CSR report to make more complete and effective disclosure.

according to the related international standards and bases of calculation. In the event that any special calculation
TPE1
TPE2

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 2012, please let us know tohelp us make continuous progress.

Geographic Coverage of the HTC CSR Report 2012
Boundary2

Add

HQ & Factory

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

Taipei Building 1

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

Taipei Building 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+886-3-3753252

Tainan Software R&D Center+886-3-3753252

Editorial Principle

4F, No 701, Sec 1, Ximen Rd, West Central Dist, Tainan City, Taiwan

Contact us

Tel
TainanSoftware R&D Center

CSR, HTC Corporation

Contact: Huang Ya-Hui +886 (0)3 375 3252 Ext 31529
E- mail: corporate_responsibility@htc.com

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

HTC 2012 CSR Report3

Products 12

Responsible
Management

Organization Structure 14

Corporate Governance 31

Environmental
Sustainability
AgendaReport Scope and Boundary 1

Global Operational Locations 16

Risk Management 36

Sustainable Environment 88

Editorial Principle 2

Re-investment& Affiliated Companies 17

Management of Corporate
Social Responsibility 40

Sustainable Design 98

About HTC

Contents

Message from the Chairperson 6
Message from the CEO & President 8

Overview
of Financial Performance 18

The HTC Expectation
for Excellent CSR Fulfillment 9

Awards Earned 19

Sustainable Manufacturing Process 102
Sustainable Packaging 108

Assurance Statement 118
GRI 3.1Comparison Table 120
Global Compact
and ISO 26000 Comparison Table

124

Brand
Introduction

Partnership
Corporate Customers 48

Social Investment
and Contribution

Brand’s Core Principle 23

General Consumers 49

HTC Foundation 111

Chronicleof HTC Product Development 24

Student Workers Partners 50

Other Social Engagement Activities 116

Foreign Employees 54
Contractor Partners 56
Supply Chain Partners 57

Innovative
Research& Development
Actively
Conducting Innovative R&D 27
Engaging
Diversified R&D Talent 29

HTC People
Attracting and Retaining Talent 64
A Sound Wages
and Welfare System 66
Valuing Human Rights
and a High Standardof Professional Ethics 68
Valuing Employee Health 72
Listening to Voice of the Employee 80
Complete Planning forTalent Cultivation
and Career Development 81

Message from the Chairperson
I am excited to introduce the first HTC “Corporate Social Responsibility Report”. This report was made in

In 2012, the HTC Foundation signed a 30-year MOU withaccordance with the internationally recognized sustainability reporting guidelines and standards for information

the Taitung County Government for the founding of the Taitung

our stakeholders, of the HTC engagement and achievements in social responsibility and in the pursuit of sustainableeducation from the Education School, at the University of

disclosure, and has passed external verification. It is an honest and transparent communication to the public, and all
operations in 2012.

The year 2012 was one in which there was a tremendous surge in the Smartphone industry and also one that saw

many revolutionary changes in the global ICT industry in general. Smartphones are enriching our lives, improving ourwork efficiency, and making our professional and personal lives totally different. This is an age of mobility, and we can
expect this new age to have significant impact on the development of the Smartphone industry.

2012 is also the year HTC celebrates its 15th birthday. The diligent efforts made by HTC in the Smartphone market

have not only resulted in excellent financial return but also in international recognition for the company by several
well known ranking organizations. These include the Men’s Journal that awarded HTC the “Best Android SmartphoneAward”, the Laptop Magazine that awarded HTC the “Best Smartphone of MWC”, Tom’s Hardware that awarded HTC
with “Best in Show”, and in addition we received the “Taiwan Excellence Silver Award”.

To take the opportunities and face the challenges that are coming along with industrial progress we arestrengthening our core competence by keeping a focus on R&D, technical innovation and market maneuvers. We arealso working with several leading players in related sectors and are “joining forces to create shared value” to fire up
more innovative energy through strategic alliances and technical exchange.

We are absolutely committed to change. HTC formed the CSR Committee in 2012 chaired by me with the missionof internalizing CSR in respect to management, branding, partnership, and social participation. We have carried out
CSR audits over the entire HTC supply chain, and have encouraged our suppliers to acknowledge and implement the
HTC “Supplier Code of Conduct.” This combination of CSR action with respect to branding, governance, employees,
partners and the supply chain, with day to day operations management, has created a positive CSR circle.

Character & English Institute. Chair professors of character

Missouri-St Louis, have been invited to come to Taiwan to leadcharacter education in the domestic schools. This Institute will

help local schools build up leading teams that will promote anddeepen civic and character education in Taiwan and cultivate
more local talent.

We are also committed to persistence and will face

the increasingly competitive global Smartphone market withzeal and vitality. We will start with humanism, to proactively

anticipate coming trends and customer needs. We will
also keep working on innovation, technology and branddevelopment. We are a positive and optimistic company andwill translate our abundant resources and strength into more
and much stronger momentum, and focus on increasing ourcore competence in business development and enhance ourmarket strategies for global success.

The success of HTC is underlain by our experience andcontinuous feedback from customers which has a profoundinfluence on HTC thinking and behavior. I believe that thecare and input from various stakeholders will further fuel our
progress towards a more sustainable future and enable us to

We are also committed to innovation as well as the integration of the concept of environmental protection into

operate introspectively and make changes and take action thatlevels of sustainable environment, sustainable design, sustainable processes and sustainable packaging. This agenda

the public. HTC is a responsible corporation that advocatesprocess, design, packaging and supply chain management. Soon after it was completed in 2012, the new HTC

long-lasting support, encouragement and advice in our future

or daily operations and products. To this end we have launched the HTC Agenda of Sustainability, covering the four

will add value for shareholders, customers, employees andalso serves as a guide for HTC to implement sustainable practice in terms of the facility environment, manufacturing

both innovation and sustainability and we hope to have yourHeadquarters Building in Taipei was rated as LEED Gold. The excellent environment of the new HQ is conducing toendeavors.

creativity, enthusiasm and ambition. It serves all the needs of the HTC employees with respect to comfortable lowcarbon surroundings and includes many well thought out facilities for leisure and health activities.

We are committed to caring for, and the cultivation of local talent, and have established a sound compensation

and welfare system. We also help employees from foreign countries fit into our corporate culture and create diversified

products. As for social care, the HTC Social Welfare and Charity Foundation has long sponsored social welfare

HTC Corporation
Chairpersonorganizations and the disadvantaged, supported education projects in Taiwan and other countries, and granted

scholarships to disadvantaged students around the world. The HTC Education Foundation has also promoted various
civic and character education projects. In addition to the donation of teaching materials, the Foundation works witheducational institutions in Taiwan and other countries to plan education projects and originates stimulating educational
projects to advance overall character education.

6

Message from the Chairperson

HTC 2012 CSR Report7Message from the CEO & President

The HTC Expectation for Excellent CSR Fulfillment

HTC has published its first “Corporate Social Responsibility Report (CSR Report)” to showcase details of its

Corporate Social Responsibility (CSR) is a matter that involves almost every aspect of company operation, fromproactive sustainable business operations and results. A unique feature of this report is that details of some of thecorporate governance, to the employees, the environment and society, and almost everything else. This is the firststakeholders’ information about how HTC will continue to contribute to sustainable development for our employees, ourit is right and proper for a business to fulfill its social responsibility. As a next step, HTC will promote strategic

opportunities and challenges we will be facing in the future have also been included. This gives the public and ourcommunity and the industry chain.

Taiwan occupies a very important place in the world technology industry and the country is OEM and ODM-

centric… and thus faces intense competition from newly emerging countries. Every industry is focused on creativity
and innovation, but they are still prioritizing international innovation, technical excellence, product quality and branding.
However, there are many challenges and difficulties which need to be faced in these areas.

HTC is headquartered in Taiwan and has a strong sense of belonging to the country. This plays a very importantrole in HTC goals and visions and in the development of technological and industrial value as well as the attraction of
top talent and the globalization of our business. HTC aims to leverage its global brand to push Taiwanese talent onto
the global stage and be competitive on a world wide scale. All these actions will transform our local talent and add tothe value of our products. This is our responsibility and promise.

The rapid and dynamic development of the mobile Internet industry and smart devices

is driving work, people and industrial development. The smart device industry integrates
computing, communications, software, hardware, mechanical function and design,
aesthetics and audiovisual technologies. We need to attract diverse talent to HTC anddesign new products that will fulfill the needs of the users. Human experience and value plays

a very important role and HTC will continue to steadily uphold its human-centered design
vision.

This promise is easier said than done, but if HTC does not do it, there will be no

chance of success. HTC will continue to uphold the ideal of innovation, and by profit

published HTC CSR report. My personal belief is that this has been done from the right perspective simply because
improvement and learn how to do its own job well, continue to communicate openly with the public and accumulate thepower needed for continuous progress from the feedback and suggestions we get and from our giving back to society.

I believe that CSR is a job that has to be done from a very basic level, to be led by members of senior

management who share a common vision and teach by personal example. It should be managed through a wellplanned process that enables our well trained people to internalize all the values we respect. Only when the foundationof CSR is well set, and it is has become an integral part of company culture, included in design, manufacture andpersonnel management, will it be possible to maintain the kinetic energy needed for continuous advancement. To
achieve this, we have devised a three stage strategy:

1. Communication: making good use of promotion and communication to ensure all employees realize the importanceof CSR;

2. Conduct: understanding how to embed CSR concepts into designing and making HTC products throughcommunication and benchmarking, and taking positive action;

3. Internalization: integrating CSR into daily HTC operations and management systems.
In addition to the internalization of CSR, I would also like to encourage all our HTC employees to engage in social

work. By complete planning and training, we can all contribute to volunteer work that benefits the public and matches

their individual interests. This is not simply good for the HTC Education Foundation, but is the right thing to do from theperspective of CSR. With a well-built corporate volunteer system we can inspire HTC employees to help others. This
will improve their quality of life and also make the world we live in a better place.

This report is merely the beginning. I urge everyone in HTC to stand firm on this matter,sharing with employees through the various performance bonus and welfare programs,

starting with communication and implementation, to ensure that CSR is substantiallyvaluable employees and we want the public and stakeholders to understand theCommittee, we will all need to work hard to expand our influence to our supply chain

we will stimulate HTC employees to work harder. This first CSR report is all about ourimportance HTC places upon them. This is the HTC understanding and commitment
towards sustainable development. We want to help Taiwanese talent shine on the
global platform and also create more value-added products and services.

internalized. In addition to full communication, discussion and promotion inside the CSR
partners, and create a sustainable mechanism that supports continuous growth

inside and around HTC. I look forward to the future fulfillment of CSR with all of
you at HTC.

For me, this first HTC CSR report is just the start. We will continue operating

our business with the highest ethical standard and reduce negative impact
on the environment as much as possible, and we will also continue to giveback to society in many different ways. Product technology development will

Director

resource utilization, avoid the use of hazardous materials and reduce electronic

HT Chobe focused on the value chain and we will continue our efforts to ensure efficientwaste. Our fine HTC products and services will continue to attractive those users
who are satisfied they are using not only most technologically advanced products,

but also products that come from properly sustainable production. We welcome any

support and feedback that will help us in our endeavors towards further sustainable

operations.

HTC Corporation
CEO & President

8

Message from the CEO & President ．The HTC Expectation for Excellent CSR Fulfillment

HTC 2012 CSR Report9About HTC

ative
Innov

SimpleHonestHumbleDynamic

Name: HTC Corporation (listed on 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: Smartphones/HTC phone accessories

A Global Leader of Innovation
and Design in the Mobile Phone Industry- HTC
The HTC Corporation (HTC) was established in 1997. As a global leader of innovationand design in the smart phone industry, we believe in the power of being quietly brilliant, andmaintain a modest and amiable attitude while creating good things for the world.

It is our belief that a consumer’s good experience can say more than a thousandpromotional words. This is also the core principle HTC follows when acting as a company, aninnovator and a partner. We are devoted to creating excellent personal user experience. HTC’s
thinking about product design and manufacturing is based not only on our survey of user’s
needs, but also our long understanding about the interaction between humans and technology.

HTC believes that instead of letting customers search for products, each mobile device

should be designed especially for its target user. For this reason, we continue to deepen our

passion for innovation, with the assurance that smart handheld devices can provide people witha better life. This is the gist of the HTC innovative design.

Since the birth of the brand in 2007, HTC has developed one of the Top 5 Smartphonebrands by the industrious accumulation of experience and the pursuit of innovativetechnology. In 2011, HTC was ranked #98 in the Interbrand 100 Best Global Brands. HTC

took a global market share of 4% for smart phones in 2012, making it one of the top ten
mobile phone brands. HTC is also one of the Taiwanese brands that is growing most rapidly
on the International market.

Looking into the future, HTC is committed to continuously make full use of its limitlesscreative capacity to integrate innovative design and brand spirit into our mobile devices for abetter customer experience. We shall base our innovative products on customer satisfaction

and persist in our consumer-oriented business principle to provide more satisfying products andservices. We will continue to strengthen our global management, and expand further into theinternational market to make HTC a first choice for users of Smartphones.

Products
HTC currently focuses on Smartphones, including Smartphones and tablets using the Android and Windows

Phone operating systems. In view of the increasing popularity of smart devices, we are devoting much effort toinnovation, 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 todevelop innovative products to match the lifestyles of the different consumer groups. In this way more people canexperience 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 in

Main HTC Product: Smartphones
Year

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

2011

49,47046,571

263,261

2012

59,51732,863

168,434

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 ofnecessary shutdown and off days.

launching the first GSM/WiMAX 4G smartphones and 4G LTE Windows Phones. This serves to firmly endorse theleading HTC 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 approachto continuously provide real cutting-edge smartphones and demonstrates its commitment to both users andshareholders through its growing global marketing and service network.

AwardWinning
Products

The HTC One X was rated as the best Android phone in 2012 by many leading
publications. Forty-nine of these gave this phone an average score of 89.4%,
higher than any other Smartphone on the market.
The HTC One X and One S were both nominated for Taiwan Excellence Awards in
2012, and in 2013 won the silver and HTC One S won the gold awards respectively.
The HTC Windows Phone 8X and DROID DNA were both listed in the Top-10
Smartphones of 2012 by LAPTOP. The HTC Windows Phone 8X was named by
ZDNet as the best Windows Phone of 2012. The HTC DROID DNA was the firstsmartphone equipped with a 1080p HD screen on the US market, and was praised
by ZDNet as having the best screen seen in 2012. CNET also recognized the
DROID DNA as one of the Top-5 mobile phones.
The HTC Butterfly led sales in the Asian market and won very positive responsewith a more than 90% weighted rate as the “Recommended Model” (Bazaarvoice,
March 2013)
According to Hall & Partners, 48% of global Smartphone users are consideringan HTC as their next phone, evidencing the fact that HTC is excellent in providing
quality smartphones for consumers who zealously search for hi-tech products.

Product Sales: Smartphones & Others (Accessories)
Year

Domestic Sales

Export Sales

VolumeValue

Volume

Value

2011

12,63020,056

146,899443,823

2012

7,545

20,338139,070

262,577

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

12

About HTCHTC 2012 CSR Report13Organization Structure
AGM
Board
Internal Audit Division
Checking the effectiveness of internal
control, evaluating its integrity, andmonitoring the accuracy of financial
and accounting data.

Chairperson
CEO & President
President ofEngineering & Operations
Responsible for execution of products
research and development, responsible
for global production management.

14

Chairperson

CEO & President

General Manager for R&D & Operations

Director

Cher Wang

Peter ChouFred Liu

HT ChoAbout HTC

R&D Center

Responsible for R&D and fostering a research culture within the company.

Operations Center

Manage global production capacities, plant expansion, production and quality control;
coordinate delivery schedules; manage global after-sales service to ensure HTC products
meet customer demand / expectations.

MarketingResponsible for global corporate image, public relations, global branding & marketing
activities strategy and execution .

Sales

Leads the global product sales, responsible for production promotion, new customer
development, customer relations, customer service and communication.

Innovation Center

Conduct R&D work related to new technologies, potential future products and applications;provide results/ findings to other R&D departments for further development. To deliver stellar
innovation and consistent user enjoyment, we will analyze market trends, develop and manage
new product offerings, and simulate the growth direction and strategy of our products.

Studio Engineering

Responsible for development of design and innovation research strategy; conduct
innovation products design and research.

Finance & Accounting

Responsible for corporate governance, investor relations, global tax planning, cash
management, investment planning, risk management, shareholder services and businessand cost analyses.

Talent Management

Handle corporate human resource development and administration; promote HTC corporate
culture and employee benefit programs; conduct organizational and human resource
planning to support corporate development.

Legal

Responsible for all HTC contracts, trademarks, patents, intellectual properties, lawsuits andother legal affairs.

HTC 2012 CSR Report15

Global Operational Locations
Copenhagen, Denmark

Re-investment & Affiliated Companies
The HTC re-investment policy focuses on businesses within its industry, and particularly on the sectors that

Moscow, Russia

EurpoeMilton Keynes, UK

relate to its core services and are regarded as beneficial to long-term development. The aim being the continuous

Warsaw, Poland
Utrecht, Netherlands
Paris, France Frankfurt, Germany

improvement of product and service quality, the strengthening of the development of key technologies, and to always

Slough,UK

keep an eye out for possible future market demand, to maintain and enhance core competitiveness.

ASIA PacificRome, Italy
Madrid, Spain
Seoul, Korea

China Shanghai
MEA
Dubai

SuzhouNew Delhi, India

Hong Kong
HO Chi Minh, Vietnam

Mumbai, India

Chennai, india Bangkok, Thailand
Singapore
SeattleUSA

Before making any investment, we carefully evaluate and analyze the industrial trends, market competition,

our teams’ experience, business patterns and risks. We then make strategic investment by the purchase of stock or

Japan , Tokyothrough merger or acquisition.

Headquarter

In 2012, HTC took a positive position in strategic investment. In the western world, HTC incorporated a trend-

Taipei, Taiwan
Taoyuan, Taiwan
Tainan, Taiwan

setting earphone maker, Beats; an on-line AV provider, the Saffron Media Group; and an interactive gaming company,

Onlive; and provided a synchronized platform for Dashwire and a learning application platform for children in ‘Zoodles’.

Manila, Philippines

In China, HTC incorporated its competitor in mobile financial services, F-ROAD, to further enhance overall business
特別記載事項
特別記載事項competitiveness.

Kuala Lumpur, Malaysia
Jakarta, Indonesia

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the USA, Canada, the UK, Germany, France, Mainland China, Japan, Korea, Italy,

HTC BRA SIL

000.00%100.00%HTC Belgium BVBA/SPRLHTC Belgium BV BA / SPRL

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7
特
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HTC(BVI)
Invest m ent One ( BV I)
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FunStream Studio,Inc.

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HTC Innovat ion Lim it ed
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100.00%HTC Nordic ApS HTC Nordic A pS

000.00%100.00%

Dashw ire, Inc.

100.00%Inquistive Minds, Inquist
Inc.
ive Minds, Inc.

HTC Germany GmbH.
HTC Germ any Gm bH.
100.00%HTC Iberia S.L.

100.00%HTC Poland sp. z.o.o.
HTC Poland sp. z.o.o.
100.00%HTC FRANCEHTC FRA NCE
CORPORATION CORPORATION

000.00%100.00%

Sa ronSaﬀron Media Group
Ltd.Media Group Lt d.
100.00%HTC Com m unicat ion
HTC Communication
Canada, Lt d.
Canada, Ltd.
100.00%HTC Electronics (Shanghai)
威宏電子（上海）有限公司
HTC Norway AS. HTC Norw ay A S.
Co.,Ltd.
HTC Netherlands HTC
B.V. Net herlands B.V.

100.00%HTC America
Innovation Inc.

HTC Iberia S.L.

HTC ( Thailand) Lim it ed
HTC (Thailand) Limited

100.00%

One & Company One & Com pany
Design, Inc.
Design, Inc.

99.33%

HTC
Sout h East ern Europe
HTC South Eastern
Europe000.00%Lim it ed Liabilit y Com pany
Limited Liability Company
HTC Italia SRL

HTC Philippines Corp.
HTC Philippines Corp.

御達有限公司000.00%000.00%HTC (Australia and
HTC
New(A ustZealand)ralia and New Zealand)
PTY LTD.
PTY LTD.

宏達通訊有限公司 HTC Communication Co.,Ltd.

100.00%HTC NIPPON Corporation
HTC NIPPON Corporat ion

100.00%HTC America Inc.HTC A m erica Inc.

100.00%HTC RUS LLC.

HTC RUS LLC.

000.00%000.00%100.00%ABAXIA SAS

A BA X IA SA S

000.00%100.00%HTC BLRHTC BLR

100.00%

Sa ron Digit al Lt d.
Saﬀron Digital Ltd.
100.00%100.00%HTC Com m unicat ion
HTC India PrivateHTC
LimitedIndia Privat e Lim it ed HTC Communication
Sweden AB
Sw eden A B
100.00%HTC South Eastern
HTC
EuropeSout h East ern Europe
S.a.r.l
Luxem bourg S.a.r.l
Limited Liability Company
Lim it ed Liabilit y Com panyHTC LuxembourgHTC
000.00%

7

Saﬀron Digital Inc.
Sa ron Digit al Inc.
特別記載事項

service. Offices have been established in all the major markets of the world, including

HTC Holding
HTC Holding Cooperatief
U.A. Cooperat ief U.A .

000.00%000.00%

特別記載事項

HTC stands in the immediate presence of its customers and provides instant

1.00%

00.00%

High(H.K.)
Tech Com put er ( H.K.)
High Tech Computer
Lim it ed
Limited

宏達電投資股份有限公司
HTC Investment Corporation

100.00%100.00%000.00%100.00%PT. High Tech Com put er
PT. High Tech ComputerIndonesia
Indonesia

000.00%High Tech Computer (Suzhou)
宏達電子（蘇州）有限公司
Co.,Ltd.

High Tech Computer
HighAsia
TechPaciﬁc
Com put er A sia Paciﬁ c00.00%
Pte. Ltd.
Pt e. Lt d.

100.00%100.00%000.00%00.00%

operational HQ, HTC provides the customer with a network of professional services.

100.00%000.00%000.00%

Sydney, Australia

Europe, the Americas and Asia. With the coordination and integration of the

99.99%HTC BRASIL

宏達國際電子股份有限公司
HTC Corporation

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

100.00%HTC EUROPE CO.,LTD.
HTCEUROPE CO., LTD.HTC America Holding
HTC AInc.
m erica Holding Inc.

100.00%0
0
0Thailand, the Philippines, Indonesia, India, Malaysia, Australia, UAE and Brazil.

About HTC

特
別
記
載
事
項

HTC Middle East HTC
FZ-LLC
Middle East FZ-LLC

1
00. 相互投資公司：無。
2. 相互投資公司：無。
6

the Netherlands, Belgium, Greece, Spain, Poland, Denmark, Russia, Singapore,

16

7

HTC 2012 CSR Report

17

1
0
7

Overview of Financial PerformanceAwards Earned

2012 was a year of the fiercest competition in the history of Smartphones with the global Smartphone market

Award Giving Body
or Name of Competition

being oligopolized by Samsung and Apple. However, HTC was still able to maintain the capability of making a profit
since it is the third biggest profit-making mobile phone company in the world.

The consolidated revenue of HTC in 2012 was NT$ 289 billion, with a consolidated gross profit rate of 25.23%,

and a consolidated net profit rate at 6.51%. The consolidated net profit after tax (of the parent company) was as high2012

as NT$ 16.8 billion, and earnings per share over the year was NT$ 20.17, demonstrating HTC’s excellent financial
performance which is the result of a diligent focus on the core business.

J.D. Power and Associates

HTC had the second highest rate of customer satisfaction amongst US
Smartphone manufacturers.

Taiwan Stock Exchange Corporation

HTC was listed amongst the Top-10 on the TWSE RA Taiwan Employment Creation
99 Index.

Laptop Magazine

The HTC One X was named the Best Smartphone by Laptop Magazine at theInternational Conference on Communications.

Tom's Hardware

The HTC One X was given first place by Tom’s Hardware at the International
Conference on Communications.

NT$ Million

2010

2011

2012

Operating Revenue

278,761465,795

289,020

Ministry of Economic Affairs, R.O.C.

HTC One S won Taiwan Excellence Awards Golden Prize

Operating Costs & Expenses

234,629

397,007270,200

Ministry of Economic Affairs, R.O.C.

HTC One X won Taiwan Excellence Awards Silver Prize.

Operating Net Profit

44,132

68,78818,820

Ministry of Economic Affairs, R.O.C.

HTC won NO.1 on Branding Taiwan Top 20 in succession.

Non-Operating Revenue & Profit

1,143

2,783

2,240

Ministry of Economic Affairs, R.O.C.

HTC was given Award for International Trade.

Non-Operating Costs & Losses

311

147

1,610

Profit before Tax

44,96471,424

19,450

Income Tax

5,449

9,125

1,861

PC Magazine

HTC won the Consumer-Voted Best Mobile Phone Award.

Consolidated Profit

39,51562,29917,589red dot

The HTC EVO 4G won Best of the Best.

Net Income/Loss-Parent Company Shareholders

39,534

61,976

16,781IDEA 2011

The HTC Droid Incredible won the Gold Prize in Communication Tools.

Employee Wages

19,42424,194

18,076

IDEA 2011

The HTC EVO 4G won the Silver Prize in Communication Tools.

Social Investment /Donation

305.5

378.5825.15

IDEA 2011

The HTC Legend won the Bronze Prize in Communication Tools.

CTIA Wireless

The HTC Thunderbolt won Emerging Technology Awards in the Smartphone Category.

Notebooks.com

The EVO View 4G won the CTIA Best Smartphone Award.

CNET

The HTC EVO 3D won the CTIA Honor Award.

PhoneArena.com

The HTC EVO 3D won the CTIA Consumer-Voted Best Smartphone Award.

Gazelle.com

The HTC EVO 3D won the CTIA First Prize.

PhoneArena.com

The HTC EVO 3D won the CTIA Best Product Award.

Laptop Magazine

The HTC EVO 3D won the CTIA Best Product Award and Best Smartphone Award.

PC World

The HTC EVO View 4G won first prize at the CTIA wireless show.

BGR

The HTC EVO View 4G won the CTIA First Prize.

T3

The HTC Flyer was recognized as the world’s 10th most popular tool.

Mobile World Congress

HTC was recognized as the Best Mobile Phone Manufacturer of the Year.

Ministry of Economic Affairs, R.O.C.

HTC topped number One on Branding Taiwan Top 20.

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

Cash Donation
2010

2011

HTC Education Foundation

150,000,000

150,000,000

HTC Social Welfare and Charity Foundation

150,000,000

150,000,000

Total

300,000,000

300,000,000

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

18

Award or Title Won

Floor

Space Usage

Area (ping)

3F

HTC Foundation

923.982F

HTC Foundation

701.84

About HTC

2012
Building donation was madein place of cash.

2011

HTC 2012 CSR Report19BrandIntroduction

ative
Innov

SimpleHumbleHonestDynamicTo
increase
market share
身為全球手機產業創新與設計領導者，HTC明白只要能減少手機製造過程中對環境的影響，就能跟廣大的消費者一起，為地球環境作出貢獻。
To strengthen
FutureGoal
integration of marketing
也因此，HTC提出「永續議程」概念，透過「永續環境、永續設計、永續製程及永續包裝」4個支柱，將環境永續理念化為行動，致力於掌控及減少營運對自然環境所造成
Achievement
and to deepen thepenetration of our brand的影響。

HTC’s Challenge
Current
Achievement

How to enhance brand loyalty

The most valuable international brand from Taiwan

永續環境●

能源與氣候變遷●綠色廠區

HTC works hard to make things simple and natural, device operation is always● 能源管理系統● 水資源管理
centered around human interactionand HTC make theimpossible possible. HTC is devoted

to creating individualized experience for our users and that is why we can continue to makebreakthroughs that surprise our customers. We believe that users should not be limited by
the product, the mobile device should be designed with all user needs in mind. When adevice is designed and produced, in addition to consumer surveys, HTC also bases the永續包裝design on long-term observations and analyses of the interaction between the individual and永續設計technology.

HTC

●

綠色包材

We●strive to create amazing experience, and “being quietly brilliant” is deeply

生態化設計

永續議程

rooted into the HTC corporate culture. We continue to launch innovative mobile phones tomeet the● different
needs of the consumers, and to help people enjoy trouble free mobile
產品碳足跡
communications and entertainment. Our human-centered product design, HTC Sense™

brings an 削減有害物質
extraordinary and amazing humanized user experience to realize a closer-to-life●

design concept.

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

永續製程functions of a mobile phone. In view of this, HTC has introduced new camera functions that● 環境安全衛生
有害物質管理allow a user to record audio andtake pictures at the●sametime to capture each and every● 廢棄物、化學品管理
wonderful moment. The new camera
also supports wireless transmission so that a user canshare the images with friends through a TV set. HTC mobile phones can also extend yourmobile life into a vehicle audio/ visual entertainment system by receiving radio channels allover the world. Furthermore, HTC provides cross-screen integration. HTC Sense TV™ uses

cloud technology to turn the New HTC One into a remote control that works with most TV
sets, set-top boxes and receivers, allowing consumers to watch their favorite TV programs
and sports at will.

We are quietly brilliant

HonestHumbleSimpleDynamic
Innovative

and amazing experience.

is

es

r

At HTC, our achievements do not depend on slogans, but are built up byrp

humble way. Wonderful things are better experienced than expressed.

Su

At HTC we believe that great things can be done in a modest andrand a concept that is closer to life. We bring our consumers extraordinarymitycentered philosophy in product designs with more natural user interfacesSi

ic

and also to make the impossible possible. We have realized this human-

ter
cen
he
t
at

pl

continuous thought about how to make things simpler and more natural,

Cust
om
er

The HTC brand value is human-centered and this drives us toPo
weBrand’s Core Principle

positive user experience. We receive excellent feedback from all our users

Hid

de

n

without the need for prompting.

Our Success Comes from the Praise of Our Users
At HTC we put the user first and work hard in the pursuit of innovative design that will enhance personal user

experience. It is the real experience and the references from users that drives the sale of HTC products, the identity ofthe brand, and the continuous growth of HTC.

We Evolve Ultimate Personalized User Experience
HTC pays extra attention to detail to enable consumers to experience the most advanced technology in thesimplest way. We encourage the feedback of user experience. By listening to what the user has to say we can learn
and grow and our global R&D team can keep evolving the using experience to the maximum.
HTC is a brand particularly favored by adventurous young people. To such an independent, self-challenging

consumer group, ever-innovating HTC holds a leading position that is worthy of their admiration and recognition.

Despite the ever increasing advertising by Apple and Samsung in certain markets, HTC still fills the budget

gap with unique innovation and earns consumer hearts in a positive way. Currently, HTC is the No 3 “Most Desired”

Smartphone brand. This is particularly the case amongst 18 to 29 year old users. HTC is a rising brand that “makes
continuous progress” (Hall & Partners, 2013/Q1).

HTC has set new standards for the camera functions and audio performance of mobile phones. The new HTC

One has introduced an unprecedented way of using mobile phones. This has been realized by HTC BlinkFeed™
that provides a real-time, dynamic home screen, HTC Zoe™, that has a dynamic display and allows very easy image
sharing. It has an integrated HTC UltraPixel camera that represents a new level of picture taking in mobile phones. In

addition the HTC BoomSound™ and Sense Voice™ audio innovations add further intense user experience to the use of
the phone.

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

trying to have more people experiencing its extraordinary smartphones, and consistently realizing its brand philosophyof “being quietly brilliant” as the company’s internalized culture.

Our Product Design is Interaction and Experience Value
To give HTC products a simple yet outstanding style, and provide excellent user experience, we design wellengineered, 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

that turn an HTC mobile device into a personal mobile theater. By incorporation of the advanced audio technology
from Beats, we give our consumers the most authentic sound. The HTC Smartphone picture taking function and audio
performance have become new benchmarks in the mobile phone industry.

HTC believes that a mobile device should be more than a just 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 with many industry leaders, such as Google, Microsoft and Qualcomm. Through collaboration in researchand development, we continuously create innovation that enables us to integrate hardware, software, content andoperating systems more effectively for enhanced human interaction.

22

Brand Introduction

HTC 2012 CSR Report

23

A Working
Environment
Incorporating
Brand Spirit

Honors and Awards
The design of the new HTC R&D facility at Taipei HQ is based on the HTC brand spirit

and displays the four concepts of “Customer at the Center”, “Simplicity”, “Surprise”, and“Hidden Power”.

HTC regards the creativity that stems from brainstorming as one of our most valuableassets. To promote interpersonal communication, the new facility is configured with

HTC has industriously cultivated the smartphone market around its consumer-centered design philosophy and hasreceived many prestigious awards. After being recognized by the Global System for Mobile Association (GSMA) as the“Best Mobile Phone Company” in 2011 and listed amongst the Best 100 Global Brands in 2011, HTC once again won firstplace in the “Survey of the Top Taiwan Global Brands” in 2012. Many of its excellent mobile phones received awards in the
categories of advanced technology, product design and innovation.

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 the interaction
rooms that project from the floors like transparent boxes. We hope that these interaction-oriented spaces will encourage and promote cross-department synergism andcooperation, supporting the free extension of creativity.

HTC believes that sharing is the best kind of interaction. When the space layout at the
new facility was being decided, our senior managers, who love innovation and advocate

Proof of the
Reputationof the New“HTC One”

Evidence of the quality and reputation of the new HTC One is reflected in “The BestNew Mobile Phone, Device or Tablet Award 2013” received from the Global System
for Mobile Communications Association (GSMA).

the arts, expressed the intention of sharing the lobby on the ground floor with the public.

The New HTC One was recognized by Tech Radar as the Best Phone and the Bestin Show at the International Conference on Communications.

their creative work and in turn enhance interaction between HTC and the community.

The new HTC One was ranked as the Best Smartphone by Mobile Geeks.

They planned the area as space for art exhibition, where young local artists could show
This art space is called the “HTC Gallery” and is open to the public as a space where

different organizations and artists can exhibit cultural and artistic work. The gallery
brings art and culture closer to the public and especially to school children andstudents. Working in this facility is like working in a world of art, and this stirs creativity
and contributes to better and more impressive HTC products.

In June 2012, to celebrate completion of the building and the 15th anniversary of HTC,
we invited Ju Ming, Taiwan’s most famous and world renowned sculptor, to exhibit his“Taichi Series” in the HTC Gallery. His large work ”Single Whip” was set at the center ofthe lobby and perfectly represented the HTC wisdom of modesty and amiability, and themomentum that overcomes all challenges.

Additionally, the Windows Phone 8X and Windows Phone 8S won the “Red Dot Award: Product Design 2013 ®)”,

clearly showing that HTC has passed its competitors in innovation and design.

The awards won over the last few years are clear evidence of the HTC capability of refining user experienceand making innovative changes to its products. They are also witness to many breaks-through and also the HTC
commitment to keep improving.

*Note: The Red Dot Design Award is one of the world’s most influential and creditable awards for industrial design.

Chronicle
of
HTC
Product
Development

24

Brand Introduction

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

First 4G Android
smartphone

First smartphonewith Amazing
CameraHTC 2012 CSR Report25

Innovative Research& Development

ative
Innov

SimpleHonestHumbleDynamic

Continued
innovation withthe human-centeredconcept to make use
satisfaction
with mobile phones better

Future Goal
Achievement

Expediting patent layout
Strengthening advertisingof product innovation

HTC’s Challenge
Current
Achievement

New HTC ONE setting new innovation
standards for high-end mobile phones

Actively Conducting Innovative R&D
Since its establishment, HTC has invested heavily in fostering R&D talent anddeveloping technical innovation. The annual R&D investment is about 4-5% of the total
operating revenue. Currently, our in-house R&D employees make up 30% 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. This puts HTC always in
the lead.

HTC is the first brand to introduce both Windows and Android mobile phones, and thisgives the company a head start in mobile communication applications. Our observations
on industrial trends, insight into consumer needs, and strength in innovation have made it
possible for us to take the lead in the Smartphone market.

Innovation

First

●

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 Sense® introduced in 2009 provides unheard-of mobile phone user experience. After this we launched aseries of clouding and AV services in 2011, including HTC Watch and Beats Audio, allowing the users to enjoy morebrilliant personal entertainment through HTC mobile phones.

In 2011, when 4G high-speed mobile communications started, HTC led the way in introducing HTC Thunderbolt,

the first LTE Android smartphone, and HTC Titan II, the first LTE Windows Phone, to bring high-speed wirelessbroadband technology into the daily lives of users; and HTC took the lead in the field of 4G mobile phones.

To further satisfy regional markets with differing needs, HTC launched several more high- performance andhuman oriented Smartphones in 2012, and has partnered with technology leaders all over the world to provide users
with more options.

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

we operate. In 2012, a total 3,526 R&D workers joined HTC globally. In addition to those in Taiwan, we have many
R&D employees coming from, or based in, other countries, such as the US, China, the UK, Belorussia and Japan. We
expect that the different cultural backgrounds of our diverse employees will fuse and fuel innovative thinking, so as

to support HTC in the development and launch of products that meet consumer needs in different regions and withdifferent cultural characteristics.

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

This series incorporates amazing camera and authentic sound and comes with theexclusive ImageSense™ that provides superb image functions. Sales of this model took off
globally soon after launch.

HTC TITAN II

This was the world’s first 4G LTE Windows Phone, and is a popular entry-level model.

Windows Phone 8X by HTC &Windows Phone 8S by HTC

These Smartphones were launched jointly with Microsoft and received Red Dot Awards.

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 the Ministry of Economic Affairs, to attract the excellent
workforce required in the world of innovative R&D, and identify those who have the skills and professionalism we need.

HTC Desire Family & 5” Full HD high-end products working with Android
DROID DNA by HTC launched jointly with the US carrier Verizon & HTC J Butterﬂy launched jointly with theJapanese carrier KDDIHTC Butterﬂy marketed across Asian markets such as China and Taiwan

New
HTC One

The new HTC One is HTC’s flagship smartphone designed to give hitherto
unknown user experience. New HTC One has a seamless and smooth metal
back, while featuring innovative functions that include:
The even more innovative HTC Sense® includes HTC BlinkFeed™
Homescreen, which is a brand new dynamic homescreen allowing users toeasily keep up with the world and get the latest personalized news updates
from their social network;

TaiwanOthersO R D EM E P R O

GR

ES

SO

2012
R&D Staff
3,526

HTC Zoe™ records images captured by the HTC UltraPixelcamera as aliving album, this redefines the way people take, view and share photos;
HTC BoomSound™ delivers the best audio performance of all existing
mobile phones. With its frontal stereo speakers powered by built-in
amplifiers and its amazing Full HD screen, users can enjoy music, films orgames with the ultimate AV experience;
HTC Sense TV™ turns the new HTC One into a remote control working withmost TV sets, set-top boxes and receivers. Through cloud technology, thisallows consumers to watch TV programs and search for their favorite TV
programs in an intuitive way.

Investment in Innovative R&D
Unit

2010

2011

2012

Fixed R&D Investment

Million (NT)12,940

16,295

15,490Total Revenue

Million (NT)278,761465,795

289,020

Percentage

%

4.6%

3.5%

5.4%

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

28

Innovative Research & Development

HTC 2012 CSR Report29Responsible
Management

ative
Innov

SimpleHonestHumbleDynamic

We place great importance on corporate governance and operational transparency,

and have formulated and implemented corporate governance according to company law,
the securities exchange act, and other relevant laws, to continue improving our management

performance, and protect the interests of our investors and other stakeholders through thecomprehensive and systematic implementation of CSR.

The management of HTC thinks highly of the internal auditors and has given themadequate authority to encourage the proper review and identification of shortcomings in

our internal control system and to measure operation efficiency as well as to ensure thesystem is effectively implemented. They also assist the Board of Directors and managementin the conscientious execution of their duties and in the practice of responsible corporate
governance.

Corporate Governance
HTC is committed to maintaining a perfect corporate governance framework, which

protects the rights and interests of our vast number of shareholders through strengthening
the competence of the Board of Directors, developing the functions of supervisors andrespecting all the stakeholders’ rights and interests. In addition, we also closely observe andadapt ourselves to the latest world trends and progressively implement various systems tocontinuously enhance the quality of our corporate governance.

Over recent years, as our business model has been transformed, the scale of ouroperations has grown and overseas subsidiaries have been added, we have continued

to review, amend and supplement (where needed) all the related measures, processes,

and implementation rules for our internal operations. This has been done to improve theoperating 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-Practice Principles 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 isfully responsible to our shareholders;

2. To build up a system where the Executives and the Board of Directors are enabled toreview the company’s operations and achieve its goals;

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

Board of Directors
The HTC Board of Directors is composed of members that are elected by the shareholders. The Board is

responsible for supervision and management, ensuring the long-term interests of the shareholders, and caring for therights and benefits of our vast number of stakeholders, including the employees, the customers, the suppliers, thegovernment and the public, as well as for the realization of fully responsible governance.

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

The group of directors and supervisors includes one female director and is primarily responsible for setting andmonitoring management goals and long-term business strategy. They are also responsible for the evaluation of the

CEO’s performance, overseeing CEO succession planning, maintaining an internal financial and accounting inspection
system, assessing operating risks, and proposing strategies for the reduction of such risks.

Supervisors
HTC has an appropriate number of supervisors. These supervisors regularly review the accounting of thequarterly financial statements with Certified Public Accountants, to ensure their reasonable and proper expression. In
addition, the Supervisors are also responsible for verification of the independence of the Certified Public Accountants
and key stakeholder transactions and to reasonably ensure the internal control system has been designed andexecuted effectively.HTC has an appropriate number of supervisors. These supervisors regularly review theaccounting of the quarterly financial statements with Certified Public Accountants, to ensure their reasonable andproper expression. In addition, the Supervisors are also responsible for verification of the independence of theCertified Public Accountants and key stakeholder transactions and to reasonably ensure the internal control system
has been designed and executed effectively.

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

Members of the HTC Governing Teamthe terms of some directors and supervisors expired in 2010, two independent directors were elected according toName

Position

Cher Wang

Chairpersonstrengthen the independence and functions of the directors and improve the general performance of the Board of

HT ChoDirector; Compensation Committee Member

Wen-Chi Chen

Director

Tan Ho-Chen

Director

David Bruce Yoffie

Directorsupervision of the company compensation system. The committee also sets annual and long-term performance

Chen-Kuo Lin

Independent Director; Compensation Committee Chairman

from a professional and objective viewpoint. The committee also regularly evaluates the achievement of set goals byJosef Felder

Independent Director

Huang-Chieh Chu

Supervisor

Shao-Lun Lee

Supervisor on behalf of Way-Chih Investment Co.,Ltd.

Jerry H.C. Chu

Supervisor

to widen the scope of independent viewpoints to win the trust of the public and the shareholders. To this end, when
the provisions set forth in the Securities and Exchange Act. This action served to solidify our corporate governance,
Directors.

Compensation Committee
A compensation committee has been established under the Board of Directors and is composed of three

directors, including one independent director. The committee is responsible for assisting the Board in thegoals for directors, supervisors and executives as well as the compensation policy, system, standards and structure
directors, supervisors and executives to help determine the content and level their compensation.

The compensation committee collects the latest compensation-related changes in the industry, setscompensation policies for the CEO, the senior heads and employees and assesses the annual performance of theCEO, the members of the Board of Directors and the supervisors.

Compositionof HTC Management(Directors/Supervisors)
by Age & Gender32

Responsibility Management

8

>50
30-50

（0）

<30

（0）

＋

1

＝

9

HTC 2012 CSR Report33Complete Disclosure
HTC is committed to real-time and transparent information disclosure. In addition to disclosing all the major

Strict Mechanisms for Avoiding Conflicts of Interest
HTC has established “Rules for Derivatives Transaction”, “Credit Policy & Operational Procedure”, andfinancial and business information on the TWSE open information website (http://newmops.twse.com.tw) as regulated,“Regulations for the Appointment of Directors/ Supervisors in Re-investment” and has revised the “Operationaland net operating profits for the coming quarter are given so that investors can be continuously aware of company

Management”, “Regulations for Management of Subsidiaries”, and “Operational Procedures for Processing Internal

we also hold online investor conferences quarterly, where the predictive figures for operating revenue and grossoperations.

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

Procedures for Transactions of Specific Companies, Business Conglomerates and Parties”, “Regulations for Budget
Material Information and Preventing Insider Trading” as bases for internal operations.

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

held by domestic and international brokers, and visits our major investors in Taiwan or other countries, to explain details

Information and Preventing Insider Trading”, the company made internal announcements to all employees throughabout the HTC financial and business situation as possible. The fact that HTC regularly disclosures information in aalways accessible for immediate reference on the corporate website and on the Intranet.

of the HTC financial data, business performance, and other published information to give investors as much information

real-time and transparent manner has been recognized by the competent authorities. In 2012, HTC was ranked as A+
and listed in the TOP-10 & A++ Listed Companies in the 9th Securities & Futures Institute Information Transparency
and Disclosure Ranking and received several awards.

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

information about HTC governance rules and other related guidelines, please visit http://www.htc.com.

e-mail, and has also posted related information to our Intranet website. Furthermore, the latest version of the rules is
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 has also been established for
employees to expose any improper behavior that comes to their attention.

Internal Audit System
Diversified Channels for Transparent Information Disclosure
Spokesperson & Deputy
Spokesperson

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

Press Release, Press
Conference & MediaInterview

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

Website Platform

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

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.

The design and implementation of the HTC internal control system and the implementation of the internal audit are

performed according to the provisions as set forth in the Standards for Publicly Held Companies for Internal Control
Systems and the related laws.

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 management in checking any defects in internal control and in assessmentof operational efficiency and performance, as well as the accuracy of the financial statements and compliance withthe related laws. The unit also addresses areas that need improvement in a timely manner to ensure internal control is

continuously and effectively implemented. The audit results are used as a basis for the review and amendment of theinternal control system to advance sound management in HTC.

The HTC internal audit unit has an appropriate number of competent internal auditors chosen according tocompany scale, the business situation, management needs and the provisions of the related laws. At present there issenior auditor at the head of the unit and six dedicated internal auditors.

The internal auditors are qualified as required by statute, and they are required to pursue regular compulsory

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 the Financial Supervisory Commission
through the Internet Information System at the end of January every year for record. The appointment or terminationof the Head Internal 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 the approval of such appointment or termination by the Board of
Directors.

34

Responsibility Management

HTC 2012 CSR Report

35

Risk Management
HTC manages corporate risk with a focus on sustaining value for the shareholders and stakeholders. We haveestablished an appropriate control mechanism after careful consideration of all the various operational uncertainties
that ensures a rapid response to uncertainty, as well as to any attendant risks and opportunities. Such careful risk
management enhances our ability to create value.

Management of Operating Risk
HTC has never made high-risk, high-leverage investment, yet, as a part of our long-term business strategy,

we are still positively evaluating the risks and benefits of introducing new technology. To remain responsive to theWe have set up a complete organization for risk management and a well designed standard operational process

and regulations 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

system to regularly check the performance of various risk management measures, to ensure proper operation of therisk managing mechanism.

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

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

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

Item

Description

Legal Affairs

Risks involving contracts
and legal matters

Managing all the risks connected with company contracts

Finance & Accounting

Business decisions &financial risk management

Allocating and managing funds, planning investment, controlling customer
credit, and conducting operational analysis as well as cost analysis

Internal Audit

Risks about internal control

Evaluating the soundness and effectiveness of the internal control system

Global Products

Risks about product trends

Identifying future trends for products and customer needs

R&D Center

Risks about productdesign quality

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

Operation Center

Control of manufacturing
quality risk

Improving the manufacturing quality of our products

Customer Service &Quality Assurance
Division

Risks about productquality

Providing after-sales service and improving the quality of the after-sales
services.

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

on management and have an adverse effect on shareholder interests. As a counter to this HTC has formulated acapital management scheme in which the tools, decision making and approval processes are clearly defined anddocumented.

Legislative Risk from
Climate ChangeManagement of Financial Risks

mechanisms.

Operational Risk from
Climate Change

Responsible Body

Cause

Resulting Risk or Impact

Opportunity

Unstable or limited power supply.

Shut down in production lines

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

Power supply may become
unstable or limited due to peakdemand for electricity in thesummer.
Regional natural disaster
The increasingly extreme climate
can bring about floods, supertyphoons, super downpours, oreven drought.
Laws and standards for energy
efficient products (e.g. California
Energy Law, Energy Star, ErP, etc.)
The Taiwan Draft Greenhouse Gas
Reduction Act.
Customer guidelines.
The customer may ask for our regulardisclosure of carbon emission.

Shortened life or immediate damage
to instruments and devices due tounstable room temperatures.
Grounded flights impacting
transportation
Increased shipping time and costs

Increased costs for materials andparts
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.

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

Introduction of a green supply chain.
Looking for green innovation business(e.g. reduced packing and recycled
packing materials).
Providing KPIs (Key Performance
Indicators) for evaluating design
simplification and standardization, andmanufacturing and testing efficiency.

In 2012, exports accounted for about 93% 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
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.

36

Responsibility Management

HTC 2012 CSR Report37

1. In April 2008, IPCom GMBH & CO., KG (“IPCom”) filed a multi-claim lawsuit

against the Company with the District Court of Mannheim, Germany, alleging that
the Company infringed IPCom’s patents. In November 2008, the Company filed

PatentRelated
Litigation
andResults

declaratory judgment action for non-infringement and invalidity against three of
IPCom’s patents with the Washington Court, District of Columbia.

Protection of IP Rights

In October 2010, IPCom filed a new complaint against the Company alleging patent

HTC regards R&D and innovation as an essential force needed for the company to remain sustainable andcompetitive. In particular, the protection of intellectual property rights is a key to maintaining our brand value. The

protection we put on our intellectual property rights covers four areas: patents, trademarks, copyright and trade
secrets. Of these, patent protection is particularly valued and is realized at two levels:

Industry Level

Company Level

infringement of patent owned by IPCom in District Court of Dusseldorf, Germany.

In June 2011, IPCom filed a new complaint against the Company alleging patent infringement of patent owned by
IPCom with the High Court in London, the United Kingdom. In September 2011, the Company filed declaratory

judgment action for non-infringement and invalidity in Milan, Italy. Legal proceedings in above-mentioned courtsin Germany and the United Kingdom are still ongoing. The Company evaluated the lawsuits and considered therisk of patents-in-suits are low. Also, preliminary injunction and summary judgment against the Company arevery unlikely.

Positively looking for the transfer and licensing of patents
that are favorable to our technical development, toexpand our existing technical field

In March 2012, Washington Court granted on the Company’s summary judgment motion and ruled on non-Engaging in technical cooperation with leading domestic
and foreign research institutions, to provide top talent with
opportunity to receive practical training in HTC, thereby
fueling our R&D with innovative thinking.

appeal decision.

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

infringement of two of patents-in-suit, IPCom has filed motion for reconsideration on the two patents with the

Appeal court. In December 2012, the district court has granted a stay on case currently in the US pending
As of March 15, 2013, the date of the accompanying independent auditors’ report, there had been no critical

hearing nor had a court decision been made, except for the above. 2. From March 2010 onwards, Apple Inc.
(“Apple”) and the Company have filed patent infringement actions against the other respectively in the U.S.

International Trade Commission (“ITC”), U.S. District Court for the District of Delaware, German district courts,
and English High Court. On November 11, 2012, the two companies have reached a global settlement that
includes the dismissal of all current lawsuits and a ten-year license agreement. The scope of this license

agreement covers both the current and future patents held by the parties as agreed upon and specifically set
forth in the agreement, with royalties payable as prescribed.

3 In January 2012, Eastman Kodak (“Kodak”) filed a lawsuit against the Company concurrently with the ITC andU.S. District Court of Western District of New York (“New York court”), alleging that the Company infringed its

patents. Kodak requested ITC and New York court to prevent the Company from exporting to and selling in

United States devices made using Kodak’s patents and damage compensation, respectively. In January, 2013,
HTC has an active attitude with respect 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 closely with the customs department and the police in many different countries to investigate and eliminate
imitations and unauthorized products being sold on the market.

We also actively seek trademark protection all over the world and have registered all the HTC marks, in more than

one hundred countries. This includes all HTC brands, product names (eg HTC One, etc), and the names of various

parts and technologies (HTC Sense, HTC Zoe, etc). When imitations or unauthorized use of our trademarks is found,
HTC takes legal action together with the local law-enforcement agencies to protect our rights and interests.

In addition, HTC also has regulations in position to protect the commercially valuable information that is notcovered by trademark or patent protection, such as copyright of program code, product photos and images, and othertrade 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

a U.S. bankruptcy judge presently approved the sale of 1,100 Kodak digital image patents including the patentsin-suit to a third party. All litigation procedures involving HTC have been stayed.

2. In May 2012, Nokia Corporation (“Nokia”) filed a lawsuit against the Company, HTC America, Inc. and Exedea,
Inc. (“the Company”) concurrently with the ITC, Delaware court and the District Courts of Mannheim, Munich andDusseldorf in Germany (“German courts”), alleging that the Company infringed its patents. Nokia requested
ITC to prevent the Company from exporting to and selling in United States devices made using Nokia’s patents

and requested Delaware court and German courts to grant damage compensation upon Nokia. The Company
subsequently filed revocation actions against Nokia’s asserted patents in London High Court. The Company
evaluated that there is no direct relation between the associated technology used in the Company’s devices

and patents claimed by Nokia. The Company believes the lawsuits have limited impact on its financial results orsales activities.

4. As of March 18, 2013, the date of the accompanying independent Auditors’ report, there had been no critical
hearing nor had a court decision been made, except for the above.

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

38

Responsibility Management

HTC 2012 CSR Report39Management of Corporate Social Responsibility
To ensure effective discussion and treatment of CSR issues, HTC has run a CSR Committee since 2012, andhas also set up a dedicated team for formulating CSR policies, drawing up related action plans, performing crossdepartment coordination, and handling communication with, and feedback from, the external stakeholders and our key
suppliers.

We use clear organization and work breakdown, through interdepartmental meetings, to integrate CSR work

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.

into the management of related departments, such as legal affairs, compliance, environment, procurement, humanresources, 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.

Structure of the HTC CSR Committee● Legal Affairs

Responsible
Management● Internal Audit● Operation Center● Finance & Accounting

HTC Board

HTC CSR
Committee

Brand
Management

Sustainability
AgendaPartnership● Sales● Marketing● R&D Center● Innovative Center● Operation Center● Talent Management

The HTC“Corporate Social Responsibility (CSR) Policy”
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 willcontinue to provide innovative and quality products, protect the environment, carefor the health, safety and human rights of our employees, and positively maintain our
stakeholders’ rights and interests.
This CSR policy helps HTC maintain social responsibility and to realize the vision ofsustainable 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 andexternal stakeholders.
Observe applicable local laws and regulations.
Respect labor rights and interests and ensure fair employment.
Conduct positive energy-saving and carbon-reduction practices
and various environmental work.
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 careof the socially disadvantaged, and support various public interest
activities.
Perform proper corporate governance, be a responsible corporate
citizen and maintain the highest ethical standards.

● Operation Center

SocialParticipation

40

Responsibility Management● HTC Charitable Foundation● HTC Cultural and Educational Foundation

HTC 2012 CSR Report41

Management Process for CSR Issues

Sources of Internal Issues
In addition, to ensure that the policies and decisions of the “CSR Committee” can be put into practice, we have

Bases and Sources ofIssue for Consideration

divided CSR activities into four areas, “green products, environmental protection, occupational safety & health, andHTC Code of Conductsocial responsibility”, and have set up a dedicated management system for each. These have been verified as aligned

HTC middle- and long-term
development strategies

social responsibility into our daily operations.

with the applicable international regulations and standards, and help to integrate company policy for sustainability andAccording to

Development policies ofdivisions

The extent the issue concerns the public

CSR-Related Management Systems

The importance of the issue to our operation

The Green Products Management System

Identify and determine key HTC CSR issues for2012 using the following processes:

40 CSR-related issues
in total

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

1. Assembling the representatives from all divisions

Sources of external Issues

2. Summarizing and discussing stakeholder feedback

Bases and Sourcesof Issue for Consideration

3. List future advancement and improvement
activities/ directions according to the PDCA
management cycle.

The Environment 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 regularly pass

the audits conducted by international certification agencies, and obtain and maintain ISO 14001 certification. In 2010,
there were no penalties for any breach of regulations or laws.

GRI G3.1
The ISO26000 Framework
Requirements ofgovernmental regulatory
agencies

The Occupational Safety & Health Management System

High

To reduce the risks of workplace injury and reduce accidents, an occupational safety & health management system● Corporate

HTC client requirements

The UN Global Compact
External opinions received
from individual divisions

The impact degree of CSR issues on the enterpriseElectronic Industry
Citizenship Coalition ( EICC)

Low

42

Responsibility Management

has been established according to OHSAS 18001, and we have made sure that all our manufacturing sites around● Sustainable

R&D
Governance● Responsible● Sustainable
Management
Design● Supply Chain ● Sustainable
Management
Packing● BrandManagement

the world regularly pass the audits conducted by the international certification agencies, and maintain OHSAS 18001
certification.

The Energy Management System
ISO50001 examines the source and amount of greenhouse gas emission according to ISO14064-1 Standards. The● Employee● Social
WelfareHealth● Social Welfare ● Energy
Management● Human Right● Green Plant● Employee
Development ● Sustainable
Manufacturing
Process

The concern degree of stakeholders on the CSR issues

energy management system enables planned energy management to be realized, thereby supporting sustainable
operation.

High

HTC 2012 CSR Report

43Partnership

ative
Innov

SimpleHonestHumbleDynamic

HTC believes that good CSR partnerships are essential for good joint performance andresult in much better corporate social responsibility. Such relationships also provide us withthe opportunity for self-examination and create better things for contribution to society.

HTC treats communication and interaction with our employees, customers, foreignlabor, student workers, suppliers, and external stakeholders very seriously. We hope tocreate a close understanding with our CSR partners through engagement, cooperation andinteraction, and to have an influence on society through sharing and learning.

In addition to the various hardware and software that provides convenience for ourpartners, HTC has also established a number of communications channels to maintain

good interaction, and the relevant units are responsible for collecting suggestions fromstakeholder according to their relevance and potential impact on HTC operations. The

suggestions and responses are regularly disclosed in the CSR reports and incorporated in
our future plans for improvement.

Emphasis on the Interaction with Stakeholders

Investors
General Shareholders
Corporate Shareholders
Rating Agencies

Corporate
Customers

GeneralConsumers

Major Telecommunication
Operator

Employees

Suppliers

Contractors

General Employees

Raw Material Suppliers

Construction Contractors

Local
Communities

Cleaning/ Maintenance
Service Providers

Local Community
Associations

Waste Disposal Vendors

Local Civic Organizations

Contingent Workforce
Student Workers &Trainees

Information andCommunication
Technology Operator

Local Governmental
Agencies

Foreign Employees

Local Media● Information disclosure

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

1. Board of Directors meeting/
4 times per year
2. Shareholder conference/
Once per year
3. Annual report/ Once peryear
4. Investor Conference/
Quarterly
5. Monthly revenue statement/
Once per month
6. Visiting investors/ Standing
7. Investor RelationshipWebsite/ Standing
8. Spokesperson/ Standing

Partnership● Product quality● Pre-sales consulting● Learning & growth● Raw material quality● Service quality● After-service● Working environment /● Price competitiveness● Price competitiveness● Product quality● On-time delivery● Service quality● Green products● Health & safety● Career development● Carbon footprint/ carbon

disclosure● Restricted substancemanagement

1. Business review withkey customers (QBR
meeting)/ Quarterly
2. Reply to customer
inquiries/ Whenevernecessary
3. Customer audit andreplies to customers
questionnaires/ As
required by thecustomer
4. Meeting the customer
requirements about
environmental andsocial responsibilities/
As required by thecustomerlabor conditions● Wage/welfare● Work-life balance● Construction safety &● Environmental impact

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

1. Positive employee
engagement in public
interest activities/ Monthly
2. HTC cooperation
with governmental
agencies and non-proﬁtorganizations in eco,environmental and otherpublic welfare activities/
Monthly

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/ Anytime
necessary
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 in2013 (supplier CSR audit
and carbon footprint
check)(air pollution, sewage
discharge, etc.)● Compliance to laws andregulations● Shaping the Corporate
image● Economic contribution● Social concerns● Social Participation● Cultivation of talent

HTC 2012 CSR Report

47

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

General Consumers
The transformation of HTC from a mobile phone maker to a brand company has resulted in the expansion of

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

our customer base from a limited number of telecom carriers to vast numbers of consumers all over the world. Ourclose relationships with many major carriers, including those Telecom companies that dominate the US and European

When serving our customers, we treat them as the very center and essence of our business. We think from theof customized handheld devices for them, or in the launching of ‘co-brand’ handheld devices. We have establishedmarkets 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 foster 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 externalcustomers are our most precious property and this concept forms the basis of HTC corporate service philosophy.
viewpoint of a customer and always make such efforts that our products will not only satisfy, but also surprise the user.

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 give feedback without delay.

To provide more convenient maintenance services, we have agreements with some local logistics companies

staff and vendors match the highest ethical business standards.

for the provision of door-to-door express courier services to collect and deliver mobile phones for repair. We haveProtection of Customer Confidentiality

is available. Customers in Taiwan and Hong Kong can also make on-line reservations for free instruction sessions in

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 control.

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

rights of customers may be incorporated into our controlling system. We complete confidentiality agreements with all
customers and suppliers in advance to maintain the absolute security of all the confidential information belonging toour corporate customers.

also set up E-Care service centers in some major countries in Asia, where face-to-face consultation and maintenancethe use of their HTC mobile phones. We are currently assessing the effectiveness of these instruction sessions, andplanning this service in some other countries.

In order to get information about consumer satisfaction, each time a customer uses our services, they are invited

to participate in a service satisfaction survey. This gives the customer a chance to give positive or negative feedback
and address any concerns they might have. This one of the ways we are able to achieve our goal of customer
satisfaction.

The HTC privacy policy is also incorporated in the orientation training of new employees. Every employee istrained in all aspects of maintaining confidentiality when working with customers. Under our solid control mechanism,
there was no damage to the rights or interests of any customer caused by a breach of privacy or from lost data in 2012.

Corporate Customer Satisfaction Management
Because customer satisfaction is 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
expectations of our customers.

To ensure that customer needs and expectations are regularly reached, we review the customer satisfaction inquarterly business reviews. Each business unit is required to devise measures for the improvement of any areas that arelacking 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 mentioned in EICC, human rights, environment and energy management
have become new concerns for corporate customers and affect the global supply chain. For this, we have establishedFree Door-to Door
Collection and Delivery
HTC
MaintenanceCentera dedicated team that regularly collects CSR information and remains in regular contact with our corporate customers.

48

Partnership

HTC 2012 CSR Report49Student Workers Partners
Wage and Welfare for HTC Student Workers
AspectEducational
Training

The accumulated training hours for 2012 was 178 hours, more than the 108-hours minimum thresholdrequired by Ministry of Education.
The courses were designed by HTC and the teachers were from the cooperating schools.
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 for practice).
HTC engineers gave face-to-face teaching in our professional laboratories and classrooms.
HTC additionally provided evening training hosted by our excellent engineers and supervisors focused on
character education, safe browsing and other moral topics.

Wage

The initial monthly salary for each student workers was NT$20,600.
Upon completion of the 3-month working term and before returning to school, each student workers wasgiven gift coupons for a chain convenience shop (7-11) amounted NT$ 500.
The monthly salary for each student workers after his/her first year service was NT$21,600, higher than theminimum wage of NT$18,780 as set down by the Labor Standards Act.

WelfareLabor Insurance, National Health Insurance, Group Insurance, board, lodging, annual leave and books gift
coupons were all provided for every student workers.
HTC provided transport for students to and from their schools during rotation intervals, to ensure their safety.
HTC provided meal subsidies (NT$30 for breakfast, NT$50 for lunch, NT$50 for dinner).
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 2weeks
Daily overtime hours was less than 2 hours.
45 minutes for lunch break.

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

Lodging

people and foster talent from Taiwan. We take positive social responsibility by engaging in co-operative education

programs in which we provide a real life working environment for school students to extend their education throughpractical training. This not only helps students develop special skills and future employment capability, but also
provides the company with an important talent pool.

In 2012, HTC worked in co-operative education programs with the Nan Chiang Industrial and Commercial

Description

Consultation &Communication

Senior High School, Kao Yuan College, the Kao Ying Industrial Commercial Vocational High School, Da Der
Commercial and Technical Vocational School, Huade Vocational High School of Technology & Home Economics● Free 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.

Student guidance was performed by in-factory teachers.
Hotline 8585 was answered by dedicated staff to communicate with Student HTC.
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)and the Fan Shu Vocational School. A total of 417 student workers were hired and took part. This represented 2.89%
of all company employees. We treat the students, who take part in this vocational training program, as important

HTC coworkers. In addition to the well established practical training plans approved by the Ministry of Educationand supported by the hosting schools, we also provide the students with social coaching programs to help themcope with work, life and education. This comprehensive system gives the students labor rights and their interests are
secured, while their living and educational needs are satisfied.

50

Partnership

Shift Schedule for HTC Student Workers
On-duty time
(From)

Off-duty time (To)Working Hours
per Day

Break Times

Day-Shift A for 6-Day Term

07:50

16:05

7

09:50-10:05, 12:00-12:45, 14:45-15:00

Day-Shift B for 6-Day Term

08:00

16:15

7

10:00-10:15, 12:15-13:00, 15:00-15:15

Day-Shift C for 6-Day Term

08:10

16:25

7

10:10-10:25, 12:25-13:10, 15:10-15:25

Shift

HTC 2012 CSR Report51

IndustryAcademic
Hand-in-Hand
Project

In 2012, HTC worked with the Fan Shu Vocational School, the Lunghwa University of
Science and Technology, the Kuang-Fu High School and the Minghsin University of

Science and Technology in “Industry-Academic Hand-in-Hand” Project, providing

100 job shadowing opportunities in total. The graduated student workerss followed a

training program of 4-days work, 2-days school and 1-day off and are positioned toenter one of the Universities cooperating with HTC. The benefits of this Hand-in-Hand
Project include:

1. Accumulating early practical experience and preparation for employment.
2. Developing professional skills.

This provides disadvantaged students with opportunities to receive an education
in a co-operation project where industry and schools execute education programs

and promote a spirit of vocational education in a pragmatic and practical way.
The “learning by doing” Dual System of Vocational Training Project also assures

students of future employment by teaching them high-tech skills and eventraining them in interpersonal relationships and workplace adaptability. HTC andthe Bureau of Employment and Vocational Training work together to promote thisDual System
of Vocational
Training Project,
Bureau of
Employment
and Vocational
Training

program for students in four-year universities, as an alternative to the IndustryAcademic Hand-in- Hand Project. In 2012, the Lunghwa University of Scienceand Technology enrolled 68 students and Hsing Wu University of Science andTechnology enrolled 50 students under this project.

Cooperation
with the China
University ofTechnology

52

Partnership

The China University of Technology opened a special class in 2012 and enrolled 86

students for this class. These students work at HTC from Monday to Friday, and go
to school on the weekends so they can attend to both work and study. This gives thestudent workers working for HTC an alternative channel for further education, andhelps them to complete their studies without monetary concerns.

HTC 2012 CSR Report53Foreign Employees
The top priority for HTC when dealing with foreign employees is to raise the awareness of anti-discrimination

regulations, to eliminate repulsion harassment and the lack of proper discipline in the workplace. The provision of anopen 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, 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 about sharing loveand respect also 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, toensure 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 24hour air conditioning; the living quarters have well equipped gyms, reading rooms, prayer rooms and even free Internet
access. Regular activities are held exclusively for foreign employees, such as NYR parties, 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.

Care Measures for Foreign Employees
Listening to
the voice ofthe employee● Recording employee feedback ● Holding quarterly labor-management meetings ● Forwarding employee

Leisure life
measure● Free wireless Internet ● Comfortable dormitory environment with air-conditioning all day ● Sound Gym

Soundhealth exam
programopinions ● Following up handling results ● Respecting employee decisions

environment and equipment ● Library, Prayer room

● 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 healthexam (general physical exam, general health exam as designated by the Council of Labor Affairs, check forintestinal parasites, chest X-ray exam, check for dengue fever, check for Hansen's disease)● Fees determined according to the cost of the foreign labor coming to Taiwan from their respective countries

Reasonableagency fees

● Established charging standards for the exporter countries of foreign labor ● Punitive provisions forovercharges 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 firstquestionnaire survey before visa is issued ● Second questionnaire survey 3 months after entry● Explaining tax policies to the employees ● Giving advanced notice about the tax refund period ●Tax refund
tracking

Physical &mental healthpromotion
activities

54

Partnership

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● NYE celebrating activities ● Annual travel (3 days during Chinese New Year Holiday) ● Cultural trips

throughout Taiwan ● Trips to leading amusement parks

HTC 2012 CSR Report55

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

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

promote industrial development. When working with contractors who have a long relationship with HTC, we not only

our sustainable development. HTC is committed to fairness and legal compliance in all its conduct towards bothhave been secured will the contractors and HTC both bring their full strength into play to create a win-win situation.

sharing, learning and growth.

value the mutual experience, but also the job safety at their end. We believe that only when full protective measures

HTC draws up a comprehensive plan for safety and health management every year in consideration of the S&H
management of the contractors to prevent occupational accidents.

Our initiatives for promoting safety and health management at the contractor include: compliance with S&H

regulations, hazard identification to lower risk, the management of controlled, hazardous or dangerous materials andcommunication of S&H information, to improve management and reduce S&H risk by engagement of all the employees

of both the contractor and HTC. In addition, HTC has also obtained OHSAS18001:2007 Occupational Health & Safety

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

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

development of the related sectors. Except for certain key parts and components, it is general procurement policy
to use raw materials and equipment that originates 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.

Management System Certification. All new construction workers have to receive full training about safety and healthmanagement, and become acquainted with the work environment and safety rules for all processes, and also befamiliar 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;• Verifying the information about construction workers and vendors;

Supplier CodeAmountPercentage of Total Purchase Amount (%)

A

20,78013

Others139,025

87

Total Purchase Amount

159,805

100

Coalition (EICC) and has formulated an “HTC Supplier Code• Ensuring construction site safety;of Conduct, with the aim of working with our supply chain• Conducting safety and health management for new facility construction; and• Obtaining the required insurance for contractor employees.

None

HTC is a member of the Electronic Industry Citizenship• Monitoring high-risk operations;• Maintaining facility access control;Interestsof Conduct” according to the Electronics Industry Codepartners to protect the environment, uphold the human rightsof our workers, their safety and health, and extend this social
responsibility to the supply chain system.

EhticsSafety 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 obligation and responsibility, and evaluate all the risks inthe working environment including that from dangerous machines, so as to have proactive control and eliminate
potential hazards; and• 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

Labor

Management
Systemprecaution, records of the safety & health education of the workers, and all safety requirements to be met before,

Enviroment

during and after the use of machines, tools and equipment.

Health & Safety

56

Partnership

HTC 2012 CSR Report

57

The HTC Supplier
SR Compliance
Audit Includes
Five Stages

NoticeSet
the audit
schedule

Ask supplier to sign
“Supplier Statement for CSR Survey”

Set the Audit Dateand Schedule

Perform theon-site audit/

Releaseaudit reports
and corrective
actions
requestPerform on-site
follow up audit
to close out thenonconformation
raised by initial
audit

Performthe Supplier On-site Audit

Audited Supplier Reply
Corrective Actions

Conduct Supplier Classificationaccording to Audit Result

According to the results of the supplier audits in 2012, health and safety (including employee dormitories andUndertaking Responsibility as an EICC Member

restaurants) and working conditions were identified as the major issues. HTC addressed the identified issues and theAfter joining the Electronic Industry Citizenship Coalition (EICC) in December 2010, HTC soon established the “HTC

supplier partners made adequate improvements.

Supplier Code of Conduct” according to the Electronic Industry Code of Conduct issued by EICCE for all its 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 the required information disclosure.

We conduct annual SR compliance audits on our suppliers according to the “HTC Supplier Code of Conduct”,

Rank

Issue

Description of Non-Compliance1

Health & Safety

Workers not wearing personal protective equipment, incomplete patrol and inspection, andlack of emergency lighting in public areas.

1-1

Employee Dormitories

Lack of clothes hangers in dormitory shower rooms, broken shower nozzles, and lack ofemergency lighting equipment or substitutes in rooms.

1-2

Employee Restaurant

Catering staff not wearing masks during catering, plates for cooked food not well prepared
during catering, and incomplete specimen sampling.

Working Conditions

No one day off per 7 working days, young workers on duty not wearing identity marks, andovertime exceeding the statutory limit.

and the applicable laws in force at the suppliers’ factory locations, to ensure our suppliers all conform to their social
responsibilities. The audit covers labor conditions, environmental issues, Health and safety, honest and ethicalpractices and the related management systems. In addition to the on-site audit, our auditing team also offers coaching
and consultation, and provides the suppliers with all the latest information and knowledge during the audit process, togive them every opportunity for growth.

2

CSR Educational Training
HTC
Supplier
Code of
Conduct

The HTC Supplier Code of Conduct details the responsibilities and regulations that have

It is HTC’s expectation that our compliance audit would help our business partners to recognize the importanceto be followed by all suppliers doing business with HTC. In addition, HTC also conductsof corporate social responsibility and in turn integrate CSR components into their operation. For ensuring suppliers’of business partners.

suppliers’ states and levels to help our supply chain to develop their capability of fulfilling CSR.

regular assessment of implementation of the Code as the basis for our further selection

support to HTC’s CSR policy, in the future we will also organize and hold CSR training sessions that meets individual

The provisions about labor issues, health and safety, and ethics were framed withreference 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: www.csr.htc.com

CSR Assessment & Audit
In 2010, under the direction of the Fred Liu the President of Engineering and Operations we establisheda dedicated team to be in overall charge of CSR affairs. The team very soon started an investigation into CSR

implementation by suppliers. In June 2011, 20 key suppliers received audits in terms of CSR compliance. During theaudits, the team verified that the partners understood the HTC Supplier Code of Conduct, and also provided all theaudited suppliers with consultation and coaching. In 2012, 30 key suppliers were audited for CSR compliance, making
the audit rate is 100%.

Indicator

2011

2012

2013 (Goal)No. of Audited Vendors

20

30

40

100%

100%

100%

Completed rate : (No. of Audited Vendors/Total No. of selected suppliers )58Partnership

HTC 2012 CSR Report59Others 12%

Responsible Procurement of Minerals

Sum of countries with
no. of smelters below 5%

The Democratic Republic of Congo and the surrounding Great Lakes Region of Central Africa possess significant

mineral resources, including gold (Au), Tantalum (Ta), Tin (Sn), and Tungsten (W), all of which are necessary raw
materials for electronic equipment (“conflict minerals”). The mining and extraction process in this area is rife withviolence and other breaches of human rights used to generate extortionate profits through an illegal mineral trade,

Others 36%

Indonesia 32%

which has even led to massacres and other extreme violations of human rights in recent years.

Sum of countries with
no. of smelters below 4%

USA 12%Tin

As part of a global effort to combat the trade of such conflict minerals, HTC supports Dodd-Frank Wall Street

Tungsten(Sn)

Reform and Consumer Protection Act(H.R.4173) and the Conflict-Free Sourcing Initiative’s Conflict-Free Smelter (CFS)(W)

China 50%

Program and endeavors to avoid using any conflict minerals or any raw mineral materials mined in the “conflict”
countries in Central Africa. Specifically, HTC has committed to work with our suppliers to ensure that they employ

Russia 13%

responsible procurement practices. We require suppliers to only use minerals from conflict-free smelters recognized by

EICC or an equivalent certifying body as conflict-free, to the greatest extent possible. By 2016, we plan to utilize only

Malaysis 6%

China 19%

certified conflict-free minerals in our products.

Japan 13%

Japan 7%

To ensure conflict-free sources of Gold (Au), Tantalum (Ta), Tin (Sn), and Tungsten (W) during this transitional

period, HTC currently avoids, and asks its suppliers to avoid, any minerals from mining operations in Africa’s Great

Lakes regions. Our suppliers are required to follow the “HTC Policy for Procurement of Conflict Minerals,” and toanswer the “EICC Conflict Minerals Reporting Template” and sign the “Conflict-Free Material Assurance Letter.”

In 2012, we incorporated conflict minerals compliance into HTC’s suppliers Social Compliance audit anddocumented the requirements for supplier management. In addition, we made random visits to the metal smelters

Japan 27%

working for HTC to confirm the sources of metals and the smelting process. In the future, our audits of smelters will

Others 36%

China 34%delve deeper into issues related to conflict minerals to achieve stricter and more prudent control.

Others 40%

We utilized the EICC-GeSI Conflict Minerals Reporting Template to survey all suppliers that provide the related

Sum of countries with
no. of smelters
below 4%Goldmaterials to HTC, with a response rate as high as 92.54%. According to the survey, HTC currently uses metals primarily(Au)

from mines in China, Japan, the US and India, demonstrating that HTC’s policies aimed at avoidance of the use of

Tantalum

Sum of countries with
no. of smelters
below 9%(Ta)

conflict minerals are having a positive impact.

The smelters in the HTC supply chain are listed in the table below. HTC not only asks its suppliers not to use

electronic components made with minerals from conflict areas, but also uphold certification of conflict-free-minerals
operation, with the hope of eliminating all use of conflict minerals.

Item

Gold

Tantalum

Tin

TungstenNo. of countries

20

12

18

9

No. of smelters

111

31

115

40

No. of EICC CFS Identified smelters

12

11

--

--

China 24%

USA 9%

USA 17%

Japan 13%3

In order to protect the suppliers’ information, the data are expressed in percentages. For more details, please contact HTC CSR contact window – Grace Huang.

4

In the charts, HTC shows the 4 source countries of 3TG metals are listed in the category of Others as below in alphabet order.
(1) Gold : Australia, Canada, Germany and Switerland. .

60

1Electronic Industry Citizenship Coalition Conflict-Free Smelter (the abbretion is CFS) Program website: http://www.eicc.info/CFSProgram.shtml

2

HTC will develop conflict-free mineral products according to the Conflict-Free Smelter List (CFS List) issued by Electronic Industry Citizenship Coalition. To date, the list includes qualified
smelters for Gold and Tantalum only. HTC will continuously track the progress and take responsive measures and action.

Partnership(2) Tantalum : Australia, Brazil, India, and Thailand.
(3) Tin : Brazil, Korea, Peru and USA.
(4) Tungsten : : Australia, Canada, Korea and Germany.

HTC 2012 CSR Report

61

HTC People

ative
Innov

SimpleHonestHumbleDynamic

In HTC, we believe that “the key to maintaining the momentum of innovation in acompany lies in its having competent and talented employees”. HTC has presence in many

countries around the world, and recruits local talent who reflect our Brand spirit which is theidea of “being Quietly Brilliant”. In recent years, we have fused the strengths of both Westernand Eastern talent, held onto our dreams and passionately faced all the challenges to realize

innovation and create the challenging HTC working environment that presents diversity andvitality as well as enthusiasm.

HTC was awarded “Employment Contribution Award 2010” .
HTC was recognized as an “Employer Adequately Hiring
Handicapped Workers in Taoyuan-Hsinchu-Miaoli Region” in 2011.
In 2012, HTC hired more than 5,300 employees in Taiwan, and was
one of the Top-10 Companies in the TWSE RA Taiwan Employment
Creation 99 Index.

HTC added more than one thousand newly recruited employees in both 2011 and2012. Through fair and open selection, we positively recruit talent that has capability

and potential. To ensure that the recruits are professionally aligned with the needs of thecompany, in addition to subjective interviews, we also use objective tests to evaluate
language ability (English), logic, aptitude and professional skills. In this way we canselect professional and talent oriented people for the company.

HTC actively builds close relationships with schools and institutions. In practice,

we regularly take part in school campus recruiting events, and we hold symposia toprovide a platform where school students and HTC can interact and exchange ideas.

We also open standing jobs and summer-vacation jobs to school students to give them
opportunities to learn and fit into our corporate culture at an early stage in their careers.
We train students and give them the competence required for the workplace, anddiscover the talent that deserves further cultivation along the way.

In addition to recruitment it is also a strategy of HTC Human Resources to retain

talent. HTC HR has a retention program in place to encourage talented employees toremain with us and continue to contribute to the company. As a part of this program,annual long-service award ceremonies are held and awards are given to employees

who have worked for HTC for 5 years, 10 years and 15 years. In addition, we haveestablished an internal transfer system that assists employees with transfer between
departments as needed for job enrichment and career planning.

Overview of Manpower Structure
HTC has always regarded employees as its most important property. HTC recruits talented people from aroundthe world who have the same goals as the company. This is particularly important for jobs involving product design,

The Proportion of Male and Female of all ranks, 2010-2012

the user interface, the Brand and Marketing. We have engaged many professionals in Europe and in the US. As

of December 2012, the total number of personnel across HTC global operations is 17,575, including 468 foreign

2010

department heads that represent 31.77% of all global department heads. Foreign department heads and professionals

2011

2012

equals 15.35% of the total global number of department heads and professionals. Furthermore, amongst the 1,473
HTC supervisors, 21.32% are female.

HTC Manpower Overview

General55%

45%

Subtotal 10,291

54%

46% Subtotal 13,644

50%

50% Subtotal 12,178

Middle82%

18%

Subtotal 506

81%

19% Subtotal 717

83%

17% Subtotal 1,925

6,477

Senior87%

13%

Subtotal 101

85%

15% Subtotal 145

86%

14% Subtotal 149

4,002

4,107

Note: Senior: CEO, CMO, CFO and other executive positions above Vice GM

3,777

5,044

5,304

Individuals

2,923

4,077

3,661

Female indirect employees

Individuals

983

1,383

1,180

Male contingent workforce

Individuals

335

1,400

1,701

Female contingent workforce

Individuals

263

1,157

1,335

Male employees under ﬁxed-term contracts

Individuals

28

42

24

Female employees under ﬁxed-term contracts

%

11

62

32

Percentage of employees younger than 30 years old%

57.84%

57.07%

59.09%

Percentage of employees aged 30 to 50 years old%

40.61%

41.40%

39.41%

Percentage of employees older than 50 years old

%

1.55%

1.54%

1.50%

Unit

2010

2011

2012

Male Taiwanese employees

Individuals

6,138

8,079

7,768

Female Taiwanese employees

Individuals

4,760

6,427

6,484

Male full-time workforce

Individuals

6,110

8,035

7,757

Female full-time workforce

Individuals

4,749

6,362

Male direct employees

Individuals

3,215

Female direct employees

Individuals

Male indirect employees

Note: The above figures are all annual averages

64

HTC People

Middle: Department Heads, Managers, Section Chiefs
General: Engineers, Overseers, Foremen, Administrators, Assistant Technicians, Trainees, Student workerss, and Foreign employees

The Proportion of Male and Female by Age , 2010-2012

2010

2011

2012

Under 30

54%

46%

Subtotal 6,303

51%

49% Subtotal 8,278

51%

49% Subtotal 8,421

30~50

60%

40%

Subtotal 4,426

62%

38% Subtotal 6,005

61%

39% Subtotal 5,617

Over 50

34%

66%

Subtotal 169

32%

68% Subtotal 223

29%

71% Subtotal 214

HTC 2012 CSR Report65Sound Wages and Welfare System
It’s our commitment to create an innovative, challenging, and profit-sharing workplace. We provide an attractive

wages and welfare scheme that allow employees using their strengths to their fullest potential, continuous theirdevelopment as well as participating in the profit-sharing plan alongside with the company’s growth.

HTC work environment is fun, dynamic, progressive, and full of energy. We continue promoting various employee-caring programs to assure our concerns of employee welfare, creating more harmonious working relationships, andmaintaining the effective communication between employee and management. In addition to meet the legislative
mandates and regulation, HTC contributes significant time and resources to promote a wide range of welfare benefits
programs to meet our employees’ individual needs.

HTC employee compensation package includes a base salary, short-term and long-term incentive. For new

employees, we offer a competitive pay based on job responsibility, education, work experience and the market
benchmark. We are committed to non-discrimination hiring policy. All applicants are assessed on the basis of their
qualification without regard to gender, race, nationality, age, religious belief, or political affiliation.

In addition, employee performance appraisals are conducted annually to assess employee’s commitment,

performance and contribution. Employee’s performance result, potential development and compensation market

benchmark will be the reference for employee’s merit increase, promotion, career development, incentive and bonus.
By doing so, we are confident that the compensation scheme and employee development are aligning with company’s
financial performance and motivate employees’ continuous innovation and contribution.

Longer lasting extended battery

Diversified Employee Welfare
We provide a wide range of employee welfare andbenefits programs, including: Labor and National Health
Insurance, a pension fund, commercial group insurance,
meal allowances, annual travel subsidy, physical exams,

department’s dinner (event) subsidy, monetary assistanceon the Dragon Boat, Mid-Autumn, and Chinese New

Year holidays, and for personal events, like wedding anddependents’ funerals, and company club activities, free
on-site gym and fitness training courses, massage andQuietly brilliant is doing
great things in a humble way
with the belief that the best things
are experienced, not explained.

66

HTC People

bookstore gift coupons, etc..

In accordance to legislative mandates, HTC offersa pension plan that deposits pension reserve fundregularly to a dedicated bank account governed by

the Supervisory Committee of the Workers’ Retirement
Reserve Fund.

HTC 2012 CSR Report67Valuing Human Rights and a High Standardof 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 theirregulations and as a responsible employer incorporates

must comply with these ethical standards.

info/MEMBERSHIP.htm), HTC strictly follows the related

work. Every person in our employ, in any of our branches and subsidiaries, no matter their position, level and location,

care for human rights into all aspects of daily operations.

Particular clauses are set out in the HTC Code of Conduct, including those related to secrecy, corporate property,

protection of corporate and personal information, employees and their direct relatives, consumers, vendor relationships

Non-Discrimination andHarassment

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

Diversity of Nationality is one of the characteristics

All HTC employees are required to understand and observe the employee rules and other policies of theof HTC staff and the principles of equality and non-company. The related supervisors are responsible for verifying that employees fully understand the contents of thisdiscrimination are core company values. We are ancode, and regularly (at least once a year) review the code.

equal opportunity employer and do not discriminate in

New employees undergo an orientation training session on the same day they report for duty. They

employment and personnel practices on the basis of race,

sex, age, physical or mental disability, religion, national
origin or any other characteristic protected by Law.

No Child Labor
HTC strictly prohibits the use of under-aged laborin 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 andclearly articulates our expectation that all factory workers areof legal working age.

People are the mostimportantfeature
asset
importantlearn about the 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.

The “HTC Code of Conduct” has provisions thatgive clear directions for employees who face conflicts ofinterest. In all countries where HTC operates the Codeshall take precedence over any local regulations unlessthere is direct conflict between the HTC code and thelaws 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.

68

HTC People

HTC 2012 CSR Report69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 software and hardware, 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:

The provision of female-specific cancer screening every year, including pap smears and breast sonography ;Satisfying the female physiological needs by maintaining a comfortable rest environment, lending heating pads

for free use, providing assessment of dysmenorrhea, giving the related health education, and arranging medical
consultation and referral; andCreating a breastfeeding-friendly environment by providing facilities superior to those set out by legislation. These
include warm and comfortable breastfeeding spaces, UV feeding bottle sterilizers, microcomputer electric thermos,

comfortable sofas, refrigerators for storing breast milk, baby and breastfeeding posters and light music. HTC has 27
breastfeeding rooms, which in 2012 were used 35,839 person-times.

We provide employees with opportunities to have enriched professional life in HTC. We encourage and support

employees to give birth and raise children. In addition to providing full support for pregnant employees, we also have anapplication mechanism for parental leave in place, so that the postpartum employees can have parental leave and takecare of their babies with their future working rights fully assured.

Employment of the Disabled and an Accessible Working Environment for
the Handicapped

Employees applying for Family Care Leave, 2010 to 2012

our employees. To this end, the creation of more job opportunities and work of a diverse nature is a very good starting

In HTC, we recognize that the basis for fulfilling our corporate social responsibility is to accord good treatment to

Year

2010

2011

2012

9

9

56

Female

27

41

86

Total

36

50

142

Male

point. In 2012, HTC hired 168 handicapped people and this exceeded the mandatory minimum number by 23. (Theabove-mentioned numbers have been weighted.)

As a responsible employer, HTC is willing to hire disabled people. In addition to relying on talent-job matching

conducted by the supportive or sheltering bodies, we also allocate jobs in consideration of the characteristics ofindividual handicapped workers. We can also tailor job descriptions and the working environment, to allow thehandicapped to have the opportunity to prove their abilities. Thorough education and training is also provided to allow

Employees applying for Unpaid Parental Leave and Resuming Duty after Leave, 2010 to 2012
Year

Employees applying for Unpaid Parental

Employees supposed to return after Unpaid Parental
2012 Employees supposed to return and those resuming duties
after Unpaid Parental (B)Rate of return after Unpaid Parental (B/A)

Male

Female

Total

32

88

120

12

51

63

2

31

33

16.67%

60.78%

52.38%

Note: 1. Employees qualified to apply for Unpaid Parental Leave: Employees having been on Maternity or Paternity Leave
2. Employees applying for Unpaid Parental Leave: Employees on Unpaid Parental Leave
3. Employees returning after Unpaid Parental Leave: Employees applying for Unpaid Parental Leave- Employees having filed return applications

70

HTC People

the handicapped to make a contribution to society and enhance their own quality of life.

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.

Actual Hired Disabled Employees vs. Mandatory Minimum Number
Year

Average of Actual Hired Number
Average of Mandatory Minimum Number
Difference in Percentage

2010

2011

2012

71

151

170

91

122

140

-22%

+24%

+21%

HTC 2012 CSR Report71Valuing Employee Health
HTC regards employees as its most valuable property. For this reason, we strive to create a working environmentthat is safe, comfortable and which inspires creativity. We always care for employee working needs and try ourbest to satisfy them. In HTC, we know that only when all our employees maintain their professional strength andengage themselves fully in development of the company will HTC succeed as a corporation and enjoy sustainable

development. HTC continues to help our employees maintain a proper life-work balance as well as their mental andphysical 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 notifiable infectious diseases to ensure the effective use of support resources and safeguard
the health of our employees.

2012 IDL Examined Rate

Health Enhancement Scheme for HTC Employees
Area

HealthManagement

82.36%

2012 Breakdown of IDL Unexamined Staff by Department

78.51%

Work

65%

Health center for managing and planning affairs related to employee healthAttending physicians
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
Management/tracking for abnormal HE results
Health information webpage

601
20%
6%

188

HealthEnhancement

Comfortable breastfeeding rooms
Smoking cessation courses
Monthly topic seminars
A pressure-releasing site for employees
Flu shots
Pap smears
Breast sonography
Colorectal cancer screening
Oral cancer screening

2011

2012

R&D

Manufacturing

9%

53

82

CSD

Administrative

Note: 1. IDL means indirect labor

Vocational
HealthEstablishment and maintenance of HE Database for Special-Operation Staff
Management of work-related injuries
Prevention of vocational diseases

Employee
Assistance

Mental consultationsFirst-aid training

EAP promotion activities and leaflets for new employees

2. CSD means customer service department

As a principle of health management in HTC, indirect staff must have a health exam at the end of their first year ofservice, and after that once every two years. Direct staff are required to have a health exam every two years.

In 2012, the examination rate for indirect staff was 78.51%, less than for 2011. An investigation revealed that thisdiscrepancy was the result of delays caused by the employee’s concentrating on their work. We have taken corrective
actions to address this problem, such as issuing notification to individuals and asking department heads to urge
indirect staff to have health examinations. A 100% examination rate is expected for 2013.

72

HTC People

HTC 2012 CSR Report73Health Consultation
Because people who work in the technology industry are often under great pressure and ignore their personal

health, HTC has arranged a comprehensive health-care mechanism, and our health centers work closely with medical
services to give follow-up care and treatment to high-risk groups based on the results of health exams. We also try to

Statistics on Outpatients of
Taoyuan Health Center
Total

Total

2012

instill proper health-care habits in our employees by holding health courses to encourage a good healthy lifestyle.

1,549
1,149

Surgery

Tainan 90

Taoyuan 514

Hsinchu 14

1,058

Hsintien 483

Total 1,101

Gastroenterology

401

Gynecology

402
228

No. ofNo. ofSessions ParticipantsFirst aid

960

Smoking cessation

13

374

Prevention of infectious diseases
and cancer

7

127

Exercise and losing weight

4

28

Healthy vision

2327

A healthy alimentary canal

3

58

Parent-children interaction

1

33

Easy wound treatment

3

94

Total

42

1,101

Dental88
88
43

Dermatology

96
40
60

Oral

58
30
36

Otolaryngology

HeadacheMuscularSoreness
HealthConsultation

750
718
648

179
141
92

Ophthalmology

Course

2011
8,640

8,270
Internal
Medicine

Participants in Health Courses in 2012

Statistics on Outpatients of
Taipei Health Center

0
0
8

281
1,640

241

591
527
1,333
718
668

1,058

2010
4,307
2,167
1,912
2,219

2012
Exception
tracking
HealthConsultation

HTC People

662

0
105
63

Internal
Medicine

60

Surgery

62
15

Gastroenterology

13
21

Gynecology

123Ophthalmology

81

Dental20Dermatology

18
3

Oral

1

Otolaryngology

2
1

Headache5
1

MuscularSoreness

38
11

220

2

Vendor345 individuals
4%

IDL
2,808 individuals
34%

74

2011
341

988

Treatment ratio
DL and IDL from
Taoyuan healthcentersDL
5,117 individuals62%

註： 1. DL為直接人員
2. IDL為間接人員

HTC 2012 CSR Report75Creating a Great Working
Environment and Enabling
Employees to Work Happily
HTC has always pursued the enhancement of

employee health and the maintenance of a happy and

The Sense
AcademyThe HTC Sense Academy provides courses that help to develop and foster anappreciation of art and form in our employees. An aesthetic sense to life and design work
helps every employee to experience the beauty of life, and the pleasure they get from thecourses has a positive effect on both their personal and professional lives.

congenial work environment. Two floors in the HTC

Achievements of the Sense Academy

been turned into a multi-function recreation center. Our

CourseLecturerContemporary art and fashion esthetics

Rongdi Lu

82

Spatial revolution in new age art museums

Chingchih Li

107

Ancient aroma and modern charm- Porcelain

Liheng Chen

81

Chiang Hsun – Awakening of Aesthetics

Chiang Hsun

198

Talking to the world through services

Stanley Yen

157

Finding Passion

Weiwen Li

123

Living seriously, thinking randomly, doing carefully

Hwaimin Lin

164

headquarters building in Taipei, with the best views, havespacious staff restaurant on the 9th floor engages statedinner-level chefs who design menus that integrate bothWestern and Eastern food. The results are very healthy

and nutritionally well balanced meals and delicacies.
The gym is on the 10th floor, which is the only floor in

the building with French windows, where our people canwork out and also enjoy the wonderful views. The gym

is open 24 hours a day and has 74 exercise machines
and other equipment. Fitness trainers provide coaching

and consultation at scheduled times. The gym also holds

No. of Participants

pressure-releasing training courses that include Yoga

and boxing. The 17th floor is the ‘stadium’ which has aceiling height of 10 meters and can be used as an indoor
court for basketball, tennis or badminton.

Gallery-likeenvironment

The ground floor lobby in the HTC headquarters building in Taipei, is used as a gallery

for art exhibitions. Many famous and potentially famous Taiwanese artists are able toshow 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, that is focused on character education. The foundation runs

training classes to foster domestic and foreign character education teachers who help
children in remote villages to expand their life experience and broaden their horizons.

The central staircases in our buildings are decorated with paintings made bymembers of the company painting club and photographs taken by enthusiasts fromthe 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
and hanging baskets. Background music is played and the stairwells are transformed

into galleries with diverse aesthetic elements. The fresh and interesting atmospherehelps to release both physical and mental stress.

76

HTC People

HTC 2012 CSR Report77Upholding Healthy Catering

Physical and Mental Pressure-Releasing Mechanism
The technology industry is always changing and is very competitive. People working under pressure can often

become very highly stressed. In recent years, there have been many news reports about the disorderly behavior ofhelp employees release pressure.

the opportunity to enjoy high quality and healthy food.

fatigued and over-stressed technical people. These reports urge us to arrange working and leisure time in ways thatfood suppliers. The meals are nutritionally balanced and the number of calories is controlled, giving HTC employees

HTC has worked with the Hsinchu City Lifeline Association since 2009 to provide counseling for our employees

Our restaurant staff works under strict rules of hygiene and safety. Check lists are used to manage environmental

that includes such matters as work and career, interpersonal relationships, family and parenting, and mental andhygiene, kitchen staff attire, kitchen waste control, the temperature of refrigerators and freezers and energy use. The

had been used 204 person-times.

Hazard Analysis and Critical Control Point (HACCP) and are closely monitored.

physical health. Every HTC employee is entitled to have six free counseling sessions. By the end of 2012, the service
In addition, for encouraging our employees to take regular exercise, we have established a well-equipped fitness

preparation of different foods, that includes cutting, washing, storing and cooking, are performed as regulated by

In addition, to promote the concept of a healthy diet, and answer the trend of light eating, the staff restaurant

center that is currently operated by a professional fitness company and provides various programs, including bodyhas launched healthy meals, slimming meals and other healthy light dishes. The meals are marked with Red, Yellow

the Eden Social Welfare Foundation for the services of their blind masseurs in the gym as a relaxation option.

according to personal needs and health considerations.

shaping, muscle stiffness improvement, aerobics, yoga and freewheel training. We have also signed a contract with
We provide our employees with a pressure interface and provide

activities. We encourage them to use their leisure time for

HTC positively advocates the government policy of a smoke-free workplace. Tobacco control rules have been

exercising and enriching recreation. We also hold events
like family days, sporting events and literary contests, togive further encouragement to employees to have ahealthy social life.

HTC People

Badminton Club
Table-Top Puzzle Game ClubChild Support Club
Ukulele Club
Leisure and Recreation Club
Yuan-Men Taijiquan Club
Creative Volunteer Club
Health-Enhancing Music ClubClub
Basketball Club
Table Tennis Club
Creative Aesthetics Club
Cycling Club
Singing Club
Photography Club
Fashion and Beauty ClubHTC Runor Green labels which give quantitative information about nutritional content. This makes it very easy to select a meal

Smoke-Free Workplacesubsidies and awards for employees who participate in these social

78

To ensure our employees have “healthy and satisfying food”, we have engaged experienced licensed chefs anddieticians to design and produce healthy, nutritional and delicious meals using ingredients from reputable and certified

Wine Tasting Club
Badminton Club
Table-Top Puzzle Game ClubChild Support Club
Ukulele Club
Leisure and Recreation Club
Yuan-Men Taijiquan Club
Creative Volunteer Club
Health-Enhancing Music Club
Basketball Club
Table Tennis Club
Creative Aesthetics Club
Cycling Club
Singing Club
Photography Club
Fashion and Beauty ClubHTC RunWine Tasting Club

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 and nurses, and family
members are invited to join. Tracking and follow-up coaching is done 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.

These efforts resulted in HTC receiving the “Excellent Healthy Workplace Award” in 2009, and in 2012 our HQbuilding in Taipei successfully passed the Self-Certification of Healthy Workplace held by New Taipei City Government.

HTC 2012 CSR Report79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 employee and management based on mutual trust.

To maintain and improve labor-management communications, HTC has free and open channels and platforms

for employees to express themselves. We hold labor-management meetings every two months which are attended

by seven employee-elected representatives and seven members assigned by management. Open and unlimited
discussion is held on such matters as the management system and employee welfare issues. The minutes arerecorded and filed to track improvements.

At labor-management meetings, pending issues not resolved in the last meeting are discussed first. The heads ofrelated departments are invited to attend and propose practicable improvement measures. In the event that any matter

requires negotiation, the results are only valid if 75% of the attending representatives come to a properly negotiatedagreement.

A Complete Talent Cultivation andCareer Development Plan
Talent cultivation lays the foundation for a sustainable company operation. While HTC continues to pursue

profitable growth, it provides a supportive environment for employee’s continued learning and development along withthe company’s success. Taking into consideration of company’s talent development strategy and employees’ leaningneeds, HTC offers a systematic talent development plan and career development opportunities in order to strengthen
employee’s professional skills and advance to career success. That is, talent development is regarded as one essential
management indicator to ensure HTC employee’s continuing growth as the company’s success.

Diverse Learning Opportunities
To deliver our commitment of supporting employee’s continuous growth as company’s success, in addition toactively recruit talent from all areas, HTC schemes a comprehensive learning roadmap that strengthen the professional

skills and knowledge and at the same time develop employee’s leadership competencies and immerse in a diverse
learning context. HTC learning roadmap covers the following areas of learning and development including: HTC

All 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.”

Newcomer Orientation Program, the essential skills and professional training courses provided by the individual

department and Online English learning programs, the individual contributor training series based on HTC core values
and competencies, and HTC Global Leadership Program to cultivate the next generation HTC leaders.

Other than the traditional training and learning programs designed and offered by the company, in order to

In addition to regular labor-management communication meetings, we also maintain diversified feedback

provide the employees with the flexibilities in learning and development, HTC has implemented one customerized HTC

In addition, we also hold surveys amongst our employees to gather useful information for further improvements

tuition subsidies programs to encourage employees taking part the training and skill development programs provided

communications mechanism and harmonious labor-management relationship, and has suffered no losses resulting

training and development is about NT$32 million, a total number of 150,000 employees has participated in training

channels, including the Grievance Hotline, Suggestion Box, Suggestion Email, and Sexual Harassment Complaints.

e-learning management system available for all HTC employees to enjoy learning at their pace and has a variety ofin leadership, internal operations, and employee working satisfaction and engagement. HTC is proud of thisby the professional groups outside the company. In the year of 2010-2012, the budget and resources allocated forfrom any labor-management dispute.

program with the total of training hours of about 550,000 hours. That is, it is about the average of 29.27 hours per
participant

Employee Satisfaction Survey
To understand employee feelings about work

Individual
Self-Learningand determine the extent employees engage with thecompany, uncover any factors that can improve employee
engagement with their work and with the company,and develop plans of action, HTC will hire Aon Hewitt

On-LineLearning

in 2013 to make an employee voice survey of its global

DiverseLearning
Channels

operations. The results of the survey and subsequentaction plans will be published in the second half of 2013.

Supervisors’
Coaching

Internal
Training

External
Training

Year

2010

2011

2012

Time (Hours)

89,550170,459

297,728

No. of Participants

26,15952,457

63,689Per-Capita Training
Time (Hours)

7.20

11.19

17.66

Item

Note: Total training time for the year /Total employees for the year = Per-capita training time
for the year.

On-JobTraining

80

HTC People

HTC 2012 CSR Report81Complete Education and Training PlanAs the organization continues success and growth, HTC become larger and are more dynamic than ever. To

M

Global Leadership
ProgramT

Professional Skill
CoursesI

Personal Development
Coursesmake sure all employees ride the same wave and are ready for all sorts of changes, HTC devise a comprehensive

learning roadmap that provide a clear guideline and steps to help employees development themselves and prepare foral the challenges in the fact of changes

All Employees(including
Indirect Staff)

Training courses based on five core values delivered via series of diverse learning methods
On-the job training and skill training and practices through on-line courses
Thinker Forum sets up a stage for world-leading professionals sharing experiences and research with HTC
employees
Sense Academy offers a place for employees immersing in aesthetics, humanities and art while reflecting on
the meaning and promises of HTC brand
Addition learning resources such as various online course and a great collection available in HTC library

New
Employees

A complete new hire onboard program with the clear purposes of: be welcomed, be informed and be supported
helps newcomers fit into HTC workplace quickly and smooth the transition and comprehend the HTC philosophyof being “Quietly Brilliantt”.

Leadership

HTC Global Leadership Program is designed based on HTC leadership competency requirements that stressthe importance of HTC core values and focuses on organizational development strategies and leadership andmanagement functions.

Direct Staff

Provides direct employees with skill and technical training in accordance with one’s job function, responsibilities
and experiences (i.e. basic-professional-advanced).

Job Duty

Leadership

Senior Executives

Advanced

New employees
Orientation
Communication

Specialty
Customer Focus andBusiness Oriented

Department
Management

Sr. Supervisor

Profession
Management

Supervisor

Foundation

Design Thinking
Work Life Balance
Language
Productivity

1. HTC Global Leadership Program: HTC Global Leadership Program: the program is designed based on HTC
leadership competency requirements and HTC leadership pipeline. Two levels of leadership program are available
for the managers based on the title, years of services at HTC. In addition, managers are required to complete theenter level before taking part the advanced leadership program series.

2. Professional Skill Courses: Technical and specific skill training programs are available for employees who want toadvance and improve the professional skills and knowledge.

3. Personal Development Courses: To cultivate a true HTCer, we have deign a series of individual contributor
training and development courses that are based on HTC 5 core values and the promise of HTC brand.

Communication: Enhancing personal and team communications skills

Customer Focus and Business Oriented: business etiquette, culture differences, and service attitude
Design Thinking Program: design thinking and innovation & creativity

Productivity: MS Office Program Training, time management, and database program

Work-Life Balance: Employee healthy & safety workshop, stress management, and various fitting programs.

Language Program: 24-7 Online English learning program and classroom-based business English workshop
New hire on board Program: Onboard Day Orientation and Brand & Culture Orientation Workshop

82

HTC People

HTC 2012 CSR Report83Training Program Aligned with Performance Appraisal Management
ProgramFeatured Workshops
Periodically, HTC invites world-class scholars and researchers coming to HTC to share their researches and

HTC implements performance management that requires each employee sets personal performance objectives

introduce the latest technology trends and business forecast with all HTC employees. In addition, the special workshop

aligned with the company missions and objectives and to ensure the employee’s continuous improvement throughout

developing the ability of appreciating beauty, nature and sensitivity. All the efforts are in hope of providing a holistic

help the employees improve and advance their skills and knowledge necessary for accomplishing their performancechanging business world.

and goals annually and conducts self-appraisal review 2 times a year to ensure the employee’s personal growth isaligned with brand promises brings unique learning experiences to all employess regarding to aesthetics andthe year. In addition, HTC annual training program plan is developed in accordance with company’s objectives todevelopment programs that cover all required skills and abilities to success and compete in a rapid developing andobjectives.

Foster Future Leaders
Facing globalization and ever increasing competition in today’s business world, HTC believes its leaders’ qualities

cannot be limited the professional excellence. Instead, having the global mindset and the ability to build the effective

partnership across functions and groups are more important than ever. Only leaders with the abilities from bothscopes are able to create a innovative operation and steer the teams and company towards a continuous success andpromising future.

To prepare HTC managers for the future challenges, HTC provides a series of leadership and management

program based on HTC leadership competency requirements. The program content and components cover: HTC corevalues, business strategies, leading change and effective teams. In addition, to make sure all the skills are applied to
day-to-day practices. The activities such as post-training assignments, observation and feedback, coaching guidance
and form,...etc. are used as a means to evaluate the effectiveness of the program. In 2012 a total of 1479 trainees arecompleted the leadership program.

English Learning Resources

In 2012, we enriched the orientation training program for new employees with content
related to some issues of the Personal Data Protection Law, particularly

Privacy and Security and Prevention of Insider Trading - introducing the HTC
confidentiality clause and promoting the prevention of insider trading;Intellectual Property Rights - introducing basic knowledge of the patent system andintroducing HTC patent applications/ incentive policy ; andUS Patent Litigation - providing information about the US patent litigation involving
HTC and the related legal knowledge.

Legal education and communication privacy and security in 2012For being a multi-national corporation with the employees working together around the world, HTC employee

requires not only the professional skills and knowledge, but also the sufficient English skills to work effectively with

CourseNo. ofParticipantsTimeteams from different cultures and regions of the world. To encourage the employees to improve their English skills

IDL New Employee Orientation for Legal Affairs- US Patent
Litigation

188

35 min.

provide one 24-7 online English program, which has set up different level standard for employees’ assessing their

IDL New Employee Orientation for Legal Affairs- Intellectual
Property Rights

193

40 min.

English subsidy program and accumulated learning

IDL New Employee Orientation for Legal Affairs- Secrecy
Obligation and Prevention of Insider Trading187

35 min.

US Patent Litigation18

35 min.

Intellectual Property Rights

23

40 min.

Secrecy Obligation and Prevention of Insider Trading18

35 min.

and ability, HTC provides different subsidy programs for employees to take part of English learning program andlingual skill level in order to apply for the tuition subsidy. In 2012, a total of 429 employee participated in online
hours are 4,831.

In 2012, there were 429 person-times using the on-line learning program, and HTC granted subsidies of

NT$705,500. The accumulated number of training hours
reached 4,831.

84

IDL New
Employee
Orientation
for Legal
Affairs

HTC People

Year

2011

2010/11~2011/9

2012

2012 /6~2013/1

No. of Participants

480

429

Total training Hours

4,627

4,831

Total Amount of
HTC Subsidies (NT$)

1,243,000

705,500

HTC 2012 CSR Report85Environmental
Sustainability Agenda

ative
Innov

SimpleHonestHumbleDynamic

As a global leader in the innovative design of mobile phones, HTC recognizes that byminimizing the impact of our manufacturing processes on the environment, we and our vast
numbers of consumers, can make a contribution to the well being of our planet.

For this reason, HTC has set up its “Sustainable Agenda” from four aspects: “sustainable

environment, sustainable design, sustainable processes and sustainable packing ”, we haveput our concept of environmental sustainability into action and are positively controlling andreducing the impact of our operations on the natural environment.

Sustainable
Environment

Energy and climate change
Energy management system
Green facility
Water resource management

Sustainable
DesignEco-design	Product carbon
footprint	Eliminating theuse of hazardous
substancesmanagement

HTC
Sustainable
AgendaSustainable
Processes

Environment safety and healthManagement of hazardous substances
Management of waste and chemicals

Sustainable
Packing	Greenpackagingmaterial

Sustainable Environment
Response to Climate Change
Smart mobile devices have significantly changed the lifestyle, working patterns, learning ways and even the

Adopting the Energy Management System
To gain a full picture of its internal energy use, HTC introduced an energy management system as per ISO 50001

entertainment of modern people. These devices have become an indispensable part of daily life. When these products

in 2011. The applicable regulatory requirements and energy benchmarks, were implemented and HTC set the energy(GHG) emission rises as a consequence. Nevertheless, smart mobile products are helpful in that they reduce theto properly manage energy consumption to reduce costs and GHG emission and other environmental impact. A

are manufactured, the energy consumption goes up in proportion to the output quantity and the greenhouse gas
amount of transportation and travel that is traditionally required for communication. This helps reduce the mobile user’s

carbon footprint. The use of mobile devices combines many of the aspects of daily life (work, leisure, learning, travel)
and results in the creation of a whole new integrated lifestyle that is energy saving and carbon emission reducing.

To this end, we have devised a dual-aspect strategy composed of “adopting an energy management system” and“performing energy-saving practice”. On one hand we strive for optimizing our management system to reduce energy
consumption, and on the other we use energy-saving technology to improve the energy efficiency of our products.

By positive management of the supply chain and refining the green design of its products, HTC tries to minimize

hazardous substances in its products and reduce the use of packaging material. It is our mission to be a positive
influence and help the users of our mobile devices around the world have a smarter work and lifestyle with less carbon.

performance indicators, and short-, middle-, and long-term improvement goals. Systematic management allows HTC
progressive action plan was set up to eliminate the waste of energy caused by bad habits or incorrect information.

GHG Emission and Reduction
HTC has complied with GHG emission inventories and disclosure for its facilities and office buildings in Taiwan

since 2009. In 2010, the HTC facilities in China were also included in the scope of inventory and disclosure, and thework has received third-party verification.

In addition to Taoyuan and Taipei, the HTC offices in Hsinchu and Tainan are also included in the scope of theinventory. According to the inventories, the use of electricity is the major source of GHG emission in all HTC operations,with fugitive GHG emission taking a meaningful part.

Total GHG emission by HTC came to 45,658.61 tons of CO2e in 2012. In the future, we will continue to expand thescope of GHG emission inventory and external verification to the subsidiaries under our control, so as to have overall
surveillance and management of GHG emission. We shall also go on promoting the energy management system as

per ISO 50001 and other effective energy-saving measures, to improve the overall energy-using efficiency and create

Overview of
HTC Energy andClimate ChangeManagement

To address the issues of greenhouse gas and global warming, HTC

introduced GHG inventories as per ISO 14064-1, and obtained an

ISO14064-1 Greenhouse Gases Verification Statement. Through thisbetter eco-efficiency for energy revenue.

Overall, CO2 accounts for the major part of HTC GHG emission, while CH4, N2O and HFCs together are a minor

component. The emission of Scope 1 is mainly from fugitive methane, natural gas for kitchen use, coolant and fuel forsystem, HTC monitors energy use, and has set up the necessary energy-

emergency generators.

Starting in 2009 all the HTC facilities in Taiwan have been successively

substances that might endanger the ozonosphere. The cooling and air-conditioning systems in HTC’s new building all

saving strategies and actions.

included in the organizational boundary for inventory.

The HTC GHG emission contained no PFCs, SF6, SOX and other waste gas, and HTC does not use any

use environmental friendly coolant R-134a, as our effort to preserve the ozonosphere.

The HTC facilities in China have also been taken into the boundary for

inventories and disclosure since 2010. According to external verification,
the use of electricity is the major emission source.

HTC GHG Emission
Total Emission

Unit

2010

2011

2012

reports on carbon risk and planning and the results of carbon management.

Total Emission Scope 1

t-CO2e1,811.56

1,664.57

1782.79

In the future HTC will incorporate all the subsidiaries under its control

Total Emission Scope 2

t-CO2e31,944.55

40,796.16

43,875.82

Total

t-CO2e33,756.11

42,460.73

45,658.61

Eco-Efﬁciency

NT$

8.26

10.98

6.33

HTC is a member of the Carbon Disclosure Project (CDP) and regularly

into the GHG emission inventories (and ensure they receive externalverification) to continuously monitor and control the overall GHG emissions.

Note: Eco-Efficiency (revenue created by per unit GHG emission) = Operating Revenue (NT$ Million)/GHG Emission

88

Environmental Sustainability Agenda

HTC 2012 CSR Report89Energy Consumption Analysis

Summary of Energy Consumption in 2012

Power Purchased (kWh)The energy used in HTC operations is mainly derived

82,473from electricity. Between 2010 and 2012, the total power

consumption showed an increase as we expanded ourand commissioning of Facility B.

2012

HTC Power Usage
Environment Indicator

Unit

2010

2011

2012

Electricity

MWh /year

52,197

66,66082,473Operating Revenue

NT$ Million

278,761465,795

289,020

5.34

6.99

3.5

Eco-Efﬁciency

NT$

Note: Eco-Efficiency (revenue created per unit GHG emission) = Operating Revenue (NT$ Million)/Power Consumption

82,473GJ

187.84239.98296.90kl/year

4.4

21.2

23.31

GJ

144.74697.37661.18kl/year

1.2

2.9

5.86

GJ

43.58

105.32116.21kg/year0.00820.00390.0072

GJ

0.32

0.15

0.28

MWh

258.8

263.2

326.1

GJ

10,095.79

10,267.43

12,725.06

Tap water

degree/yearNA

340,537

393,208

Emission-receiving river

River Name

Dongmen Stream

Dongmen Stream

Dongmen StreamNA102,407

216,430NA

45,646

119,324

12.9%

30.35%

LPG for kitchen and dormitory
LNG
Water

Total displacement of tap water
Total recycled /reused water

Energy-Saving Actions
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

90

ActionPower Management

T5 and LED power- saving lamps
Infrared sensor switches for lighting

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

Environmental Sustainability Agenda

2012

66,660

Diesel2011

2011

52,197Gasoline (both 92 and 95)

2010

2010

MWh /year

Electricity

52,177increase over that of 2011 was the result of the completion

Unit

Power Usage

66,660facilities. For example, the 2012 power consumption

Environment Indicator

Percentage of recycled /reusedwater in total water consumption

1,000L/year%/year

GHG Emission
Direct GHG emission (Scope1)

t-CO2e/year

1,811.56

1,664.57

1,782.790

Indirect GHG emission (Scope2)

t-CO2e/year

31,944.55

40,796.16

43,875.821

CH4 emission

t-CO2e/year

143.02

1,112.48

1,099.701

N2O emission

t-CO2e/year

0.62

2.07

2.369

HFCs emission

t-CO2e/year

1,170

0

0

Total recycled and treated waste

kg/yearNANA

2,764,799

Total incinerated waste

kg/yearNANA

1,522,195

Waste Treatment Cost

NT$ 10,000/year

NANA

3,888,625

Waste Treatment

HTC 2012 CSR Report91Saving

3%

Power
Energy-Saving Measures
Item

AirConditioning
SystemDescription
Setting 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 airconditioning systems in terms of frequency conversion, timing and CO2.
Integrating air-conditioning systems, replacing low-efficiency chillers, setting up a dedicated control room to perform
unified management, to improve the efficiency of air-conditioning systems from 1.2 - 1.5 kW/RT to an average of 0.8- 0.9 kW/RT, equaling to 2.95Mhw saving, and 1,581.2 ton CO2e emission-reduction per year, recognized as “Model
Project for Energy-Saving and Carbon-Reducing Program, Manufacturing Sector” by Industrial Development Bureau,
Ministry of Economic Affairs.

Lighting
SystemProgressively replacing traditional high-consumption T8/T9 fluorescent lamps with T5 and LED power-savinglamps, thereby effectively reducing 94.18 ton CO2e emission in 2012.
Implementing time-based control for lighting equipment in offices, linking infrared sensors to lighting switches insome areas, thereby using automatic sensing and time-based control measures to save power effectively.

Air
Compressor

Taking different in-process energy-saving measures for different air compressors used in the buildings, wherein
the schemes conducted in 2012 include closing refrigerated air dryers, refining operating modes and lowering
operation parameters, leading to power savings of 136,000kWh and carbon reduction of 72.9 ton in 2012.

Elevator

Using gearless permanent magnet synchronous traction motors that are more powerful in terms of torque than gearbased traction motors, and eliminating ineffective power consumption caused by gears, leading to a power save of
30 – 40% as compared to the conventional traction motors.
Adopting “ReGeNelevator energy-regenerating driving devices” that use innovative green technology to integrateenergy regenerating modules on the inverters, so that the potential energy and kinetic energy generated during theoperation of elevators can be converted into electricity.
Using power feedback of no-load ascending and full-load descending (The weight difference between the cabinside and the counterweight side of an elevator come to peaks when the cabin is fully loaded or empty. At this time,the elevator consumes the most energy and has the highest power feedback efficiency. The larger the travel, themore conversion to electricity, with the maximum rate of 70%. The generated electricity is fed back to the grid for use
by other devices in the building.)

OthersAdding production lines with automated assembly and testing robots, so as to significantly reduce average power
consumption per production unit.
Establishing heat recovering installations for supplying substitute electricity.
Replacing old power-consuming drinking fountains.
Adding inverters to pump motors.

Energy-Saving Schemes and Results
Programme

H-1F LED lighting

Underground Parking
Lot, H+TY3
LED lighting
Underground Parking
Lot , P
Time-based lighting
control
Kitchen, Unit H
Lowering frequencyof 30HP added/
injection fan
Unit H
Energy-saving settingof chiller
Kitchen, Unit H
Lowering frequency of60HP exhaust fan
3F, Unit H
Lowering operating
parameters of aircompressor
Unit TY3
Turning off one 700
ton Centrifugal Chiller
at night
Unit TY3
Lowering DC chiller
load of clean room
1F, TY5
Turning off refrigerated
air dryers in air
compressor room
#2 Dachi Rd.
Machine and pressureadjustment for air
compressor

92

Environmental Sustainability Agenda“Projected”
Performance for Year

Accumulated
ResultUnit

Power Saved

1,558.00

67,908.40

kWh

Carbon Reduced

835.0936,398.90

Kg-CO2e/kWh

Cost Saved

3,895.00

203,725.20

NT$Power Saved

73,851.67

107,801.10

kWh

Carbon Reduced

39,584.49

57,781.39

Kg-CO2e/kWh

Cost Saved

184,629.17

323,403.30

NT$Power Saved

31,755.00

32,016.00

kWh

Carbon Reduced

17,020.68

17,160.58

Kg-CO2e/kWh

Cost Saved

79,388.00

96,048.00

NT$Power Saved

8,280.00

8,370.00

kWh

Carbon Reduced

4,438.08

4,486.32

Kg-CO2e/kWh

Cost Saved

20,700.00

20,925.00

NT$

Power Saved

293,760.00

146,880.00

kWh

Carbon Reduced

157,455.36

78,727.68

Kg-CO2e/kWh

Cost Saved

734,400.00

367,200.00

NT$

Power Saved

3,780.00

1,890.00

kWh

Carbon Reduced

1,013.04

1,013.04

Kg-CO2e/kWh

Cost Saved

9,450.00

4,725.00

NT$

Power Saved

18,297.80

18,297.78

kWh

Carbon Reduced

9,807.62

9,807.61

Kg-CO2e/kWh

Cost Saved

45,744.50

45,744.45

NT$Power Saved

46,800.00

241,500.00

kWh

Carbon Reduced

25,084.80

129,444.00

Kg-CO2e/kWh

Cost Saved

1,170,000.00

3,018,750.00

NT$Power Saved

28,080.00

32,400.00

kWh

Carbon Reduced

15,050.88

17,366.40

Kg-CO2e/kWh

Cost Saved

70,200.00

81,000.00

NT$Power Saved

25,842.00

25,842.00

kWh

Carbon Reduced

13,851.31

13,851.31

Kg-CO2e/kWh

Cost Saved

64,605.00

64,605.00

NT$

Power Saved

23,689.00

23,689.02

kWh

Carbon Reduced

12,697.30

12,697.31

Kg-CO2e/kWh

Cost Saved

59,223.00

59,222.55

NT$

Percentage of Power
Saved in Total Power
Consumption of 20120.089%

0.141%

0.042%

0.011%

0.193%

0.002%

0.024%

0.317%

0.042%

0.034%

0.031%HTC 2012 CSR Report93Green Plant
All the facilities and offices we took into the organizational boundary for disclosure this year are locatedin Industrial Park and Business areas that have passed Environmental Impact Assessment, and we perform allenvironmental protection work as required by the local regulations, and provided in our internal environment policy,
to ensure that our operations do not represent a significant impact on the local ecosystem, animals and plants.

Nevertheless, we still encourage our operations to actively green and beautify the surroundings. Also, in the processof designing our new buildings and facilities, the concept of “green building” is introduced, to refine the working
environment quality for our employees.

During the process of planning and building the facility in Taoyuan and the new building for “HTC HQ in Taipei”,

we have set a goal to be rated by the US Green Building Council (USGBC) as Gold-rated LEED (Leadership in

Energy and Environmental Design). We complied with the requirements of LEED from the planning, and design tothe construction phrase, and required that all contractors fulfill all these specifications in detail as well. After energy
simulation analysis, the energy-saving design was found able to reduce power consumption by 11.3% (Taoyuan) and13.7% (Taipei ), respectively, as compared to a baseline scenario.

These two building will serve as new standards for all new HTC facilities. We will accommodate our employees

and visitors in a space that is environmentally friendly, energy-saving, water-preserving, comfortable and healthy.

“HTC HQ in Taipei” is a green building recognized as Gold-ranking

in Leadership in Energy and Environmental Design (LEED), and utilizes anumber of energy-saving and carbon-reducing, environmentally protective
measures:

Green lighting: Full use of LED lighting saving 80% power as compared to

traditional lighting; solar panels on the roof convert light into electricity forTheinternationallyrecognized Goldranking green
building, is energysaving and carbonreducing the whole
day long.

powering lights on staircases and in the basements; movement sensor-based

lighting switches in public areas automatically turn off lights when they are notrequired; energy-saving designs are used such as daylight controls in naturally lit areas

and outdoors; lighting schedules are set, and lighting is partially off during the night oron days when the building is not occupied, for effective use of lighting equipment.

Power-regenerating elevators save 60% of the power: elevators are equipped withenergy regenerating systems so that the electricity generated during no-load ascending
and full-load descending can be fed into the grid for use elsewhere.

RFID parking management and electric vehicle charging equipment: RFID equipment serves to effectively
manage the use of parking spaces and can save up to a whole floor to reduce impact on the environment;

electric vehicle charging equipment supplies power to charge electric cars and motorcycles, catering to
the up-coming use of green transportation.

Smart air-conditioning systems lower peak loads by 1/3: ice-storage air-conditioning systems using excess

Recycling
and Reusing
Resources〉Construction waste rate 87%〉Recycled construction material 23%〉Local construction material 32%

grid power at night to make ice used for daytime air-conditioning, this reduces the peak daytime power
load; 200m3 of ice produced at night can support 70% of the cooling needs of the building in summer; thebuilding has a hollow structure that provides better natural lighting, better ventilation and as a result more
efficient energy-saving.

Simulation analysis of the building’s energy-saving design found a saving of 13.7% in power consumption(kWh) as compared to a baseline scenario; from its commissioning to date, the design has been saving an
average of 150 tons of CO2 emission every month. This represents a very big cost saving for the company.

IndoorEnvironment
Quality

Energy-SavingDesign〉Energy-saving efficiency up to 11.3%〉High-performance electric〉Motoring air quality〉Increasing ventilation volume

appliances〉Energy-saving for process

of external gas

exhausting systems〉Low-emitting materials〉Indoor air washing〉Frequency conversion control forchiller towers〉Energy-saving lighting

Sustainable Base
〉Protophyte and multi-level

planting〉Base water-preserving design〉Bicycle parking space〉Carpooling parking space〉Environmental protection

Water-Saving
Design〉Domestic water use reduced by 64%〉Recycling 220,000 ton rainwater

every year
〉Water-saving sanitary equipment〉Reuse of condensed water andrecycled water〉Drought-enduring ornamental

protophyte

parking space

94

Environmental Sustainability Agenda

HTC 2012 CSR Report95

Water Resource Management
Water-Saving Strategies
Water management involves recycling, reuse and conservation, and the steps we have taken include:●

The collection and filtration of rainwater that is used for flushing toilets, irrigation or stored for fire fighting.

●

The use of water-saving faucets in washrooms and pantries.

●

The use of dual-flushing systems in toilets.

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 andencouraging 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

water, so there is no industrial wastewater generated. All the water consumed is for office and employee use. In 2012,

the total water consumption of our facilities in Taoyuan came to 393208 tons, the output of treated domestic sewage

was 216430 tons. Water recycled from treated domestic sewage was 119324 tons, representing 55% of the totaltreated volume. The amount of water recycled was much higher than the goal of 33% set for the year (2012).

Sewage Treatment
Office/Facility Water Use and Water Conservation Measures in 2012
FacilityUse (Unit: ton)

Water Conservation Measures

Taoyuan393,208

Adding recycled water irrigation; installed water-saving faucets-

TPE1 started using water-saving devices

TPE1

The 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 2012, the average output of oursewage treatment plant reached 550 tons, sufficient for replacing tap water for garden irrigation and toilet flushing.

Drained Water, Recycled Water and Average BOD Concentration in Effluent
Risk
Management of
Water Supply
Suspension(Engineering)

HTC has established an emergency response procedure for dealing with suddeninterruption of the water supply. When notice of an interruption is received, thefirst thing to do is call the Water Company and get information about the start time,
estimated restoration time and the site that will be involved. This information is thenpassed on to the responsible supervisors, plus information about how much water isreserved in each tank and in the 1,500 ton tank. In the event that the suspension is
expected to last for more than 24 hours, water rationing is first implemented in areasthat can stand a limited water supply by closing valves and turning off water pressure
pumps. When the water supply is restored, a delegated person will monitor the water

inflow and the float valves on the tanks and keep the supervisors informed about the
progress, until the water supply has returned to normal.

96

Environmental Sustainability Agenda

Year

Unit

2010

2011

2012

Drained Water

N/A-

50,260216,430

Recycled Water

N/A-

45,646

119,324

Average BOD Concentration

mg/l

-

69

69

Please provide waste water drainage
information by receiving waters
Facility

Receiving Water

TaoyuanDongmen Stream

TPE1

Dedicated Drainage in New Taipei City

TPE2

Dedicated Drainage in New Taipei CityHTC 2012 CSR Report97

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,and preproduction trials, and mass production, all the way to discard of the product, is given full LCA (Life Cycle
Assessment)evaluation. We break down the process into very detailed parts, to give our R&D team a complete pictureof the complicated environmental considerations.

We believe that the mobile devices we design and make will satisfy our consumers needs while remaining

harmless to the environment. To achieve this we make sure, from the earliest design and development stages, that

all the materials selected for production of the device have the lowest environmental risk and we ensure that allinternationally restricted substances are totally excluded.

We work diligently to reduce the use of environmentally harmful substances, to increase recyclability, improve thereuse of resources, and reduce the adverse effects our products have on the environment. HTC’s sustainable designconcept is reflected in three areas: 1) increased energy efficiency, 2) recyclability, 3) reducing hazardous substances,with the serious intention of making our products really green and competitive.

Green Marks obtained by HTC
Green MarkWe believe that HTC products are helpful and improve daily life by the provision of efficient communications andalso contribute to the overall reduction of GHG ( Greenhouse Gas)emission. However, we also recognize that the mass

production and shipment of our mobile devices, and the materials and substances we use, all have an impact on theenvironment. However, we also believe that by careful design of the products from the very beginning of their life cycle,
we can minimize the adverse effects on the environment.

We have set about optimizing product design by improving energy efficiency, reducing hazardous substances,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.

98

Environmental Sustainability Agenda

BC

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 (e.g. SGS)
as the paper meeting FSC (Forest Stewardship Council)
Standards

Packaging materials, Paper
for printed material, etc.

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 RBRC to properly recycle used batteries inNorth America

Battery

Using soy ink recognized by ASA

Packaging materials, paper
for printed materials, etc.

HTC 2012 CSR Report99Positive
Response to
Product Green
Verification

Since 2006, all the mobile phones produced by HTC have been verified by internationallyrenowned third party verification companies, e.g. SGS, TUV and ITS through chemical
analysis, to comply with the EU directives on environmental protection.

In addition, HTC also positively responds to the green verification programs to which ourcooperate customers belong, such as ULE and the Eco-rating system, to ensure that all
our products meet the green requirements of our customers.

Enhancement of Energy Efficiency	  An analysis of the total life cycle of an electronic communication product reveals that the most energy consuming

part of the whole carbon footprint is materials and manufacturing, which are also the main sources of GHG emission.

HTC therefore pays extra attention to energy-saving at the design stage and requires all power supply units used with
HTC products to comply with international energy-consumption regulations, including:	  Electromagnetic
Compatibility

Among the SAR regulations currently in force, FCC (US) and CE (EU) are the strictest,
and all HTC products satisfy these requirements. HTC products also comply with the rules

about electromagnetic interference as issued by all nations, with an EMI value 3dB lower
than the criteria of the FCC and CE.

● US Energy Star● US California Energy Commission● EU Code of Conduct● Directive of Eco-design Requirements of Energy- related Products

The HTC R&D team has developed excellent power management modes, that allow the phone (depending onuser habit) to automatically enter Standby mode to extend battery life. Some of our phones have an ambient lightsensing function that controls the LCD backlight according to the ambient light level, to provide a comfortable reading
environment and also to save power.

In 2012, HTC took part in the Eco-Rating Programs run

Participationin theEco-Rating
Programby several service carriers. As part of the program, anevaluation of the social responsibility of HTC and the eco-

design of products and green production was carriedout. Improvements were made to reduce the impact ofthe production of our mobile phones on the environmentand society. This evaluation and ranking has also driven
the companies in our supply chain to become green to

Product
CarbonFootprint

further ensure the sustainability of our products.
By integrating the concept life cycle thinking (LCT) into the R&D process, we are able

to provide our R&D engineers with quantitative green information, and we also conduct
life cycle inventory analysis (LCI) for the supply chain, to build up an environmental load
database for our key components and parts.

Recyclability

Evaluation of the HTC product carbon footprint is based on ISO 14040 and ISO 14044.
Using internationally recognized LCA software, such as SimaPro, it is possible to obtain

figures of high quality. After third-party verification, we have issued an Eco Declaration toprovide transparent environmental information about our products for reference.

We start a full evaluation of a product for recyclability at an early stage of the R&D process. To dothis 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.

>ABS+PC<

Then feedback is given to the R&D team about any useful and valuable strategies. Currently, HTC productcould meet the present and future requirements for recycling.

Carbon Emission of HTC Product throughout the Lifecycle

65.9%

9.9%

23.9%

Positively Cutting Hazardous Substance

0.3%

In 2005, HTC unveiled the world’s first mass-produced RoHS- compliant PDA mobile phone. Today we require thatall parts, components, modules, materials and so on delivered to HTC meet a set of requirements which are even stricter.
The HTC Substance Control List not only restricts the six substances controlled by RoHS, but also others restrained byinternational environmental regulations and customer requirements.

Resource
extraction

Production

Transport

Usage

End of LifeIn 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 requirementsfrom the HTC product database. By introducing green materials from the source, we are able to significantly improve thereliability of our green products and shorten the verification time. The management platform was revamped in 2008 toprovide a more convenient and simpler user interface, and improve the overall efficiency of hazardous substance control.

100

Environmental Sustainability Agenda

HTC 2012 CSR Report101Sustainable Manufacturing Process
ESH Managemen
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 its facilities. A Labor Safety Committee carries out
basic work for environmental protection, safety and health management, as well as the prevention of pollution.

Labor Safety Committee
Facility

Percentage of Labor Representatives

Taoyuan

27 members in total, 13 being labor representatives

TPE1

Class 3 unit as per SS Regulation, no Safety Committee required

TPE2

Class 3 unit as per SS Regulation, no Safety Committee required

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 the “ESH management Manual” and “Safety and Health Rules” which have also been posted on our Intranet
website for employees to consult at any time.

In addition, we update the occupational accident prevention plans every year according to current safety andhealth management. The focus is on compliance with S&H laws and regulations, the identification of hazards to reducerisk, management of controlled, hazardous or dangerous material, communication of S&H information, and contractor
management.

In addition we have prepared emergency response plans for accidents caused by human error, such as fire,2013 Environment Protection andOccupational Safety and Health Policy
HTC strives to provide a safe and healthy working atmosphere for all of our employees while
adhering to sustainability best practices which protect our environment. HTC follows theguidelines below to achieve sustainable development and to ensure a better quality working
environment for our employees, customers, suppliers and contractors.

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-process response measures, and later post reviews and give feedback. We hold regular fire and evacuation drills, to

1. We regard environment, safety, health, productivity, quality and effective energy managementwith equal importance.

HTC has introduced an environment management system as per ISO 14001 and received third-party verification.

2. We regard the safety and health of employees, customers, suppliers and contractors withequal importance.

it out. Goals have been set that are aligned with the policy and systematic implementation has been done. The policy

3. We require our employees to observe all guidelines regarding safety, operating procedures,
environmental protection, hygiene, health and energy management.

ensure the proper action to secure the safety of personnel and also that of HTC property.

The environment policy was formulated by HTC headquarters in Taoyuan and local facilities are required to carry out
has been incorporated into daily management.

4. We are committed to preventing foreseeable dangers and loss control.
5. We follow required laws and regulations.
6. We will continue to practice and improve on our environment, safety, health and energy
management systems.

102

Environmental Sustainability Agenda

HTC 2012 CSR Report103Positively Preventing Occupational
Accidents
TC has identified the prevention of occupational

accidents as a top priority of facility management. By
following the “Occupational Accident Prevention and Self-

Inspection Plan”, we prevent occupational accidents andperform self-inspection, to achieve our zero-accident goal.

In 2012, 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 for Safety and Health”, “Emergency
Response”, “Medical Care” and the “Safety and HealthCampaign” , for the comprehensive prevention ofoccupational accidents.

By effectively performing the related measures, in2012 the HTC employee average injury frequency rate (FR)was 0.17 person-time/ per million hours worked, average

AspectMeasureSafety and
HealthOrganization

When modifying its organizational
system or adding a new business body,
HTC reports to the related inspection
agency according to law

Managementof Safety and
HealthThe works include accident statistics,
accident investigation analysis, calling
meetings of the Labor Safety and HealthCommittee, patrolling and investigations
to prevent accidents as well as
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, maintains these regulations
as well as safe working procedure,
supplements (amends) S&H Rules, andperforms hazard communication andrisk assessment.

Inspectionsfor Safety and
HealthHTC conducts regular inspectionsof workplaces, vehicles, equipment,
facilities and fire fighting apparatus,
and also monitors radiation andelectromagnetic waves in operating
environments.

injury severity rate (SR) was 2.71days/ per million hours

worked, injury severity rate was lower than 1.2 days/ permillion hours worked. We failed to achieve the annual goal.

In 2012, most occupational injuries were caused by traffic

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 check forexisting employees, and also holds
health exams and management for
special hazards.

accidents (80 cases) that happened during commutes.

Seven others were missteps, falls, clip-and-roll and incised
injuries that occurred in the facility.

In the future, we will communicate the importance ofcommuting and job safety, to lower the injury severity rate.

Traffic
Accidents

Falls 4%
Missteps 3%
Clip-and-Roll

1%

The Safety
and HealthCampaign

HTC holds and participates in various
symposia as required by the regulations,posts promotion marks and slogans, andfrequently updates and communicates
information about job safety.

Injury Frequency Rate (FR)Injury Severity Rate (SR)

Injury Frequency Rate per Million Hours
WorkedLost Day Injury Frequency Rate per Million
Hours Worked

2010

2011

2012

Taoyuan

0.1

0.21

0.17

Management Target

0.5

0.4

0.4

Note: Injury Frequency Rate = Incidence of Lost-Time Injury×1000000/total hours worked)

2010

2011

2012

Taoyuan

0.43

0.69

2.71

Management Target

1.5

1.2

1.2

Note: Injury Severity Rate=Days Lost for Lost-Time Injury×1000000/Total Hours Worked)hours
worked)GRI Injury Indicators
Occupational Disease Rate (ODR)

Incidence Rate (IR)Taoyuan

2010

2011

2012

0.02

0.04

0.03

Note: Incidence Rate = Total Incidences / Total Hours Worked × 200,000*

Taoyuan

2010

2011

2012

0

0

0

Note: ODR = Occupational Disease Cases / 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 )Day Lost Rate (LDR)
Taoyuan

2010

2011

2012

0.09

0.14

0.54

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)

91%
Occupational
Injury Cases,
2012

Incised Injuries

1%

104

Environmental Sustainability Agenda

HTC 2012 CSR Report

105

HTC Waste Statistics

Unit: kg

Treated AmountTreatment

2010

2011

2012

Recovery

1,657,442

2,464,345

2,930,592

Incineration

989,996

1,802,185

1,522,195

Weight of Recycled Material

Management of Waste and Hazardous Substances
The major manufacturing operation at HTC is the assembly of Smartphones, so the only waste is gas produced byCategory

Paper

PE

Plastic

Waste metal

Waste
Computers

Waste Miscellaneous
Plastics

Unit (kg)1,152,835

127,820

689,514

6,746

586

85,368Category

Waste Pallets

Waste Colored
Cases

Waste Material
Gum

Waste Jigs and
Bakelite

Life Resources Recycled

Unit (kg)106,650

46,375395

5,619

36,797welding, without NOx or SOx emission. We handle and dispose of waste according to our self-regulated “Process for

Removal and Handling Business Waste”, and practice good resources recycling, to ensure cleanliness of the working
environment and reduce environmental impact.

HTC has engaged qualified service providers to properly handle and dispose of our business waste as requiredby the applicable laws. We also perform irregular trailing audits of the contractors and on-site checks of treatmentcompliance. In our facilities, a Patrol and Inspection Form is used for regular checks of waste storage and transientareas. A deadline for the correction of any non-compliance found is given. We have also designed an ESH Check andSelf-Assessment Form and performance audit, to realize an effective management and assessment mechanism, therelated measures include:

Proper Waste Management● Engaging qualified service providers to properly handle and dispose of our business waste as required by theapplicable laws;● Using a Patrol and Inspection Form for regular checks of waste storage/ transient areas and requiring non-compliance 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.

Reducing, Recycling and Reusing
Our waste reducing strategy is to use sorting practices that reduce the generation of waste from the very

beginning, and makes reuse a priority, to improve recycling and efficient reuse of resources.

Plastic trays can be taken as an example, we have engaged a service provider to carry out recycling for laterreuse. As to other recyclable resources, we entrust several reuse dealers recognized by the government to purify

waste and turn it into material suitable for reuse by industry. The annual average HTC recycling rate is as high as 60%.

Many waste items are subject to physical sorting to allow reuse and are only finally discarded when further use has
become impossible. We also regularly make on-line reports about temporary waste storage and yield according to law.

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 2011, we introduced the “LOHAS Green Week” for the first time. The campaign included a series of events

focused on environmental protection, energy-saving and health. In a themed event for “World Environment Day”, we

encouraged our employees to bring their own cups and tableware from home, to drive employee to voluntarily reduce
the use of disposable tableware.

Management of Hazardous Substances and Chemicals
In 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 positive

management of the use of hazardous substances and chemicals. To answer the increasingly strict control placed on

the use of chemicals by international regulations, we have taken positive measures to manage and monitor the use of
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);● Checking whether the responsible unit has labeled the chemicals correctly;● Check whether the information of chemicals is complete, such as Safety Data Sheets (SDSs) for example;● Requiring personnel handling chemicals to wear basic protective gear.

2. Ensuring that gas extinguishing systems use environmentally safe substance: replacing the existing CO2
extinguishing systems with halide extinguishing equipment.

3. Emergency lighting uses environmentally 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.		Ensure 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 up a Green Supply Chain
To effectively reduce the use of hazardous substance in parts and components, we require all our parts suppliers

to pass the HTC green parts verification process, to ensure the parts supplied comply with international requirements
for environmental 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 the materials used in HTC products
and all parts and components are environmentally friendly as regulated.

Our internal green design and supplier management ensures HTC products comply with EC directives and all otherinternational environmental requirements, as evidenced by all the related documents and certificates, these include
chemical test reports, material composition sheets, SDS, and so on.

106

Environmental Sustainability Agenda

HTC 2012 CSR Report107Sustainable Packaging
HTC mobile phone products are packed using materials that make transportation safe and add aesthetics tothe products upon delivery. We also consider the impact the packaging materials will have on the environment when

History of HTC “Sustainable Packaging”

they are discarded. The materials we use must be environmentally friendly and sustainable. In packaging design,

2009

consideration is given to the following:

1. Reduction of the amount of material used;

2011

2012

Hero box

Glueless box

Lighten Package

183x89x60mm

168x89x56mm

150X89X54mm

170g

113g

65g

2. The use of biodegradable raw material;

3. Printing with environmentally friendly ink (soy ink);
4. The facilitation of shipment.

All the packaging materials for HTC products are compliable with the EC directive on packaging (EU 94/62/EC)

and the US requirement on packaging (Model Toxics in Packaging Legislation of USA). The printing ink used on the

packaging material is low-volatility ink or soy ink certified by the American Soybean Association. These efforts minimize
the impact of our product packaging materials on the environment.

We use sustainable and recycled materials for packing as far as possible. In the event that it is necessary to use

Dimensions
Weightvirgin paper in the packaging materials, HTC always asks our paper suppliers to provide paper certified by the Forest
Stewardship Council (FSC) or the Program for the Endorsement of Forest Certification (PEFC).

All the packaging materials we use are highly-recyclable, and two main packaging designs are used:

ECO Feature
VolumeHas been reduced year by year, one pallet can carry more packs.

WeightLightweight folded- paper packaging design

Lightweight integrated packaging design

70%~80% from recycled paper pulp, which is 100%
recyclable after being discarded.

Formed by 65% sugar cane bagasse and 35% bamboo
pulp, and is 100% recyclable and biodegradable.

Has been reduced, helps to reduce CO2 emission resulting fromtransportation.

Transportation

One pallet can carry more packs, helps reduce freight.

Material

Fast growing materials (sugar cane (bagasse) bamboo).

108

Environmental Sustainability Agenda

HTC 2012 CSR Report109Social Investment
and Contribution

ative
Innov

SimpleHonestHumbleDynamic

HTC has long been committed to social care and public welfare, and supports andsponsors the “HTC Education Foundation” and the “HTC Social Welfare and Charity

Foundation”. HTC advocates humanitarianism and we have developed our company
character culture at a local level. While we continue to pursue business growth and technicalinnovation, we care very much about disadvantaged families, and give their children

opportunities to receive education. This is a distinctive corporate culture of which HTC is
rightfully proud.

HTC Foundation
The HTC Foundation focuses on promoting character education by working to help

children and youngsters develop good character by supporting both schools and teachers.
We place great importance upon building up moral character and culture for communities

and towns in cooperation with local government, care for disadvantaged families, providing

their children with opportunities to receive education, and raising funds for environmental
and ecological preservation. We engage in public interest activities to espousehumanitarianism and contribute to a peaceful and harmonious society. The Foundation plays
an important part in community engagement and social services to instill the core values ofintegrity, honesty, care, love, positive thinking and respect for natural resources.

The people in the HTC Foundation believe that “everyone has good personality; mutual

respect and support exists between one individual and another and between groups.

Entrepreneurs are honest and responsible global citizens; political leaders are capable andwilling to strive for the welfare of the people, to help the disadvantaged and to reduce thecontinuously widening poverty gap. Countries can all get along with each other. To realize
this belief we urge all leaders to join forces to encourage a “character culture”. Leading bypersonal example will influence others to value character in daily life. By good example wecan cause others to pass on interest in culture, aesthetics and art, and an appreciation of theserious need and the details of environmental protection. We can beautify the environment,

preserve the natural landscape and historical sites, respect the natural resources that areshared by us all, and jointly take better care of our wonderful planet.

Character Statement

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.

1. (To actively and enthusiastically influence others with honesty and good character in both
personal and professional life and set a good example with our own conduct;
2. To protect the environment and develop a cultural and aesthetic disposition through reading; and3. To be a world citizen, and make reasonable effort to help the poor and the disadvantaged in theworld, and 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.

VisionTo promote and facilitate the building of good characters so people learn to be respectful andsupportive to each others, and together we make the world a better place to live in.

MissionBy providing high quality educational programs for schools, families and communities to facilitate acontinuous learning and growing process in character development so together we foster a commonand shared values for mankind such as honesty, trustworthiness, love, respect, care, positive thinking
and value of the natural resources.

Objectives
1. To facilitate and assist schools to develop and implement character education on a continuous
basis, and to bring together school principals and teachers to lead character development, setthemselves as good models for others, and to cultivate a character culture within the schools.
2. To provide high quality educational programs to facilitate and assist the development and buildingof character cities so the rootage of character culture becomes substance in the character cities.
3. To provide educational care and assistance to the youth from disadvantaged families in order tooffer them opportunities to grow and develop with good characters, so they lead to have successful
lives in the future.

112

Social Investment and Contribution

Achievements
Participation of Character Education between 2004 and 2012
Carnegie
Total

Character Education

Excellent Life

Total

No. of Sessions

669

369

87

1,125

Person-Time

34,227

26,5874,680

65,4942009~2012 Teenager training and Participation lecture courses between 2004 and 2012
Youngster
Total

Character Lecture

Celebrity Lecture

Total

No. of Sessions

29

27

28

84

Person-Time

1,087

2,062

11,698

14,847

Cooperative Schools in the Cornerstone Education Projectbetween 2004 and 2012
Kindergarten
6

Elementary Junior High Senior High Vocational
SchoolSchoolSchoolHigh School
493

136

70

32

College

Town

Corporate

Total

12

12

7

768

HTC 2012 CSR Report113Planned Development for 2013

Character andEnglish InstituteRooted in
Taitung

After Hualien, Yunlin and Chiayi, the HTC Foundation started a fourth “Characterand English Institute” in Taitung. The aim was to encourage and support
teaching teams that actively promote character education in Taiwan through aseries of courses to deepen character and civil education at the local level. In

this way it was hoped that a character nurturing message could be introduced

Character Education in Schools: Implementation of character building education in individual

to every remote corner of Taitung County, to cultivate students with goodschools and strengthening character networking:English language ability as well as excellent character.

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 schools 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. Promoting character learning by way of “Character Learning Centers” or a “Character Academy”● Scheduling character sharing monthly meetings, two hours a month;● Fostering seeded sharing promoters for going to villages and towns to hold character sharing sessions, fosteringcharacter education;● Calling the existing local resources, woman’s associations, community-building groups etc, to work together;● Organizing book clubs/growth groups for promoting continual learning and growth, currently done in the form ofa “Celebrity Lecture in Character”.

2. Inspiring active learning and positive engagement● Enhancing the function of the “Character Committee”;● Fostering 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.

A “Character Building Family Camp” was held by the HTC Foundation and
Hualien Character and English Institute as a joint summer vacation family break.

Separate courses were provided for parents and children. That for the parents

lasted two days and no lodging was provided. The student’s course spanned
five days and four nights, and lodging were 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-Five-Day“Character Building
Family Camp” andSummer Vacation
at the Hualien
Character andEnglish Instituteday study, and a session about communications skill entitled “Excellent Life-

Expression Skills for Deep Communication” was held. This introduced several
important concepts: the importance of values, image and value, the powerof words, and tips for effective communication. The intention being thatparticipating parents and students would continue practicing the character
pointers and positive thinking they learned, so these would become parts of acharacter 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” about practicalconflict-resolving skills, and 10 English language sessions led by foreignteachers were also included.

3. Engaging other local organizations● Engaging schools, city councils, farmers’ associations, hospitals and other companies or businesses.

Cooperation with Foreign Character Education Institutions
1.`“Center for Character and Citizenship”, University of Missouri● A ten-year sponsorship fund, from 2012 to 2021, aimed at sponsoring the Center’s character-leading education

around the US and other countries.

2. “Center for Character and Citizenship”, University of Missouri● A two-year project for the production of character educational training DVDs; and for sponsoring the production of

lectures and teaching materials from nine character lecturers of the Leadership Academy in Character Education.

3. “CHARACTERplus Character Education Resources”, Missouri● A five-year sponsorship project, aimed at sponsoring Kansas City, Missouri to develop character education resources.

114

Social Investment and Contribution

HTC 2012 CSR Report115Other Social Engagement Activities
In addition to sponsoring the social work upheld by the HTC Foundation, HTC also positively engages in public

interest activities through other channels. In 2012, our accomplishments in social works included:

Blood Donations
Four times every year HTC cooperates with the Hsinchu Blood Center to hold blood donation drives. Many of ourkind-hearted employees have developed the habit of regular blood donation. Every time the mobile vehicle from theBlood Center comes by our employees all line up to make donations to give back to society. HTC is recognized by
Hsinchu Blood Center as a standing Honorable Blood Donor Group.

Statistics of Blood Donation■ Taoyuan

Requirement for Honorable Blood Donor Group - 25,000 c.c.

■ Hsinchu

Sponsorship of Schooling for Disadvantaged Children

311,250
287,250

For many years, the HTC Foundation has been taking care of disadvantaged, children and providing them with

286,500

the opportunity to receive education. The education program highlights continuous learning and HTC plays an active

238,250

part in community engagement and social services. HTC fosters communication with the children and the community
to pass on the core values of integrity, honesty, care, love, positive thinking and respect for natural resources.

134,750

134,000
109,500

The HTC Child Support ClubThe HTC Child Support Club was founded in 2006 as a spontaneous association formed by HTC employees.

The members raise money that is donated to the Taiwan Fund for Children and Families to support the sponsorship of
16,0002007

116

26,5002008

Social Investment and Contribution

2009

children in need. In 2012, 321 HTC employees made donations. The funds raised by the HTC Child Support Club and17,000

10,2502010

2011

the Employee Welfare Committee came to NT$3,234,530, and was used to sponsor 254 children. Eight of these were2012

from foreign countries, including Guatemala, Indonesia, the Philippines, Senegal, Sri Lanka, Qirghiz and Paraguay.

HTC 2012 CSR Report117Assurance Statement

118

Assurance Statement

HTC 2012 CSR Report119

GRI G3.1 Comparison Table
AspectSectionStrategy and 1.1
Analysis
1.2

Description of key impacts, risks, and opportunities.

SectionDisclosure Items

Disclosure
Level

page

●

4.10

Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social performance.

40~41

●

6, 36

●

2

4.11

Explanation of whether and how the precautionary approach or principle isaddressed by the organization.

36~39,101●●

10, 23~25●

4.12

Externally developed economic, environmental, and social charters, principles,or other initiatives to which the organization subscribes or endorses.

57,60,124●

Governance,
Commitments, 4.13
andEngagement 4.14

Memberships in associations and/or national/international advocacy
organizations.

57

●

46~47

●

42

●

2.2

Primary brands, products, and/or services.

2.3

Operational structure of the organization, including main divisions, operatingcompanies, subsidiaries, and joint ventures.

14

●

2.4

Location of organization’s headquarters.

2●

Number of countries where the organization operates, and names of countries
with either major operations or that are specifically relevant to the sustainability
issues covered in the report.

Aspect6

Name of the organization.

16

●

2,17

●

16

●

13,18

●

No significant change

●

19,25

●

2

●

First publication●

Annually●

2.6

Nature of ownership and legal form.

2.7

Markets served.

2.8

Scale of the reporting organization.

2.9

Significant changes during the reporting period regarding size, structure, orownership.

2.10

Awards received in the reporting period.

3.1

Reporting period for information provided.

3.2

Date of most recent previous report

3.3

Reporting cycle.

3.4

Contact point for questions regarding the report or its contents.

3

●

3.5

Process for defining report content.

42

●

3.6

Boundary of the report.

3.7

State any specific limitations on the scope or boundary of the report.

List of stakeholder groups engaged by the organization.

4.15

Basis for identification and selection of stakeholders with whom to engage.

4.16

Approaches to stakeholder engagement, including frequency of engagementby type and by stakeholder group.

46~47

●

4.17

Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting.

42~43

●

EC

Disclosure on Management Approach9

EC1

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers andgovernments.

18

●

EC2

Financial implications and other risks and opportunities for the organization’s
activities due to climate change.

37

●

EC3

Coverage of the organization’s defined benefit plan obligations.

66

○

EC4

Significant financial assistance received from government.

None

●

EC5

Range of ratios of standard entry level wage compared to local minimum wage
at significant locations of operation.

66

○

EC6

Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation.

57

●

EC7

Procedures for local hiring and proportion of senior management hired fromthe local community at locations of significant operation.

63

●

EC8

Development and impact of infrastructure investments and services provided
primarily for public benefit through commercial, in-kind, or pro bono
engagement.

24,115●EC9Understanding and describing significant indirect economic impacts,
including the extent of impacts.

29,53,63,71

●

2

●

2,3

●

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced
operations, and other entities that can significantly affect comparability fromperiod to period and/or between organizations.

No relevant issues●

3.9

Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to the compilationof the Indicators and other information in the report.

2

●

3.10

Explanation of the effect of any re-statements of information provided in earlier
reports, and the reasons for such re-statement.

First Publication

●

3.11

Significant changes from previous reporting periods in the scope, boundary,or measurement methods applied in the report.

First Publication●

EN

Disclosure on Management Approach

3.12

Table identifying the location of the Standard Disclosures in the report.

120

●

EN1

Materials used by weight or volume.

108

○

3.13

Policy and current practice with regard to seeking external assurance for thereport.

118

●

EN2

Percentage of materials used that are recycled input materials.

108

●

EN3

Direct energy consumption by primary energy source.

91

●

4.1

Governance structure of the organization, including committees under thehighest governance body responsible for specific tasks, such as setting
strategy or organizational oversight.

31~33

●

EN4

Indirect energy consumption by primary source.

90~91

●

EN5

Energy saved due to conservation and efficiency improvements.

93

●

4.2

Indicate whether the Chair of the highest governance body is also an
executive officer.

Chairman is not an executive
officer●

EN6

Initiatives to provide energy-efficient or renewable energy based products andservices, and reductions in energy requirements as a result of these initiatives.

92~95

●

For organizations that have a unitary board structure, state the number ofmembers of the highest governance body that are independent and/or nonexecutive members.

32,33

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

93

●

4.3

●

EN8

Total water withdrawal by source.

96●

Mechanisms for shareholders and employees to provide recommendations ordirection to the highest governance body.

34,40,47●

No significant impact on water
sources●

Linkage between compensation for members of the highest governance body,senior managers, and executives, and the organization’s performance.

32●

Processes in place for the highest governance body to ensure conflicts ofinterest are avoided.

35

●

4.7

Process for determining the qualifications and expertise of the members of thehighest governance body for guiding the organization’s strategy on economic,
environmental, and social topics.

32~33

4.8

Internally developed statements of mission or values, codes of conduct, andprinciples relevant to economic, environmental, and social performance andthe status of their implementation.

23,41,57,69

4.9

Procedures of the highest governance body for overseeing the organization’s
identification and management of economic, environmental, and social
performance, including relevant risks and opportunities, and adherence orcompliance with internationally agreed standards, codes of conduct, andprinciples.

4.4
Governance, 4.5
Commitments,
and
4.6
Engagement● means fully disclosed

120

Statement from the most senior decision maker of the organization about therelevance of sustainability to the organization and its strategy.

Disclosure
Level

page

2.1

Organizational 2.5
ProfileReportParameters

Disclosure Items○ means partially disclosed

GRI G3.1 Comparison Table– means none disclosure

40~41

Economic

EN9

Water sources significantly affected by withdrawal of water.

Environmental EN10

Percentage and total volume of water recycled and reused.

95,96

●

EN11

Location and size of land owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protected areas.

All plants are located in theindustrial area

●

EN12

Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas.

All plants are located in theindustrial area

●

EN13

Habitats protected or restored.

All plants are located in theindustrial area

●

EN14

Strategies, current actions, and future plans for managing impacts on
biodiversity.

Not applicable

●

EN15

Number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations, by level of extinction risk.

Not applicable

●

EN16

Total direct and indirect greenhouse gas emissions by weight.

89,91

●

EN17

Other relevant indirect greenhouse gas emissions by weight.

91

●

●

●

●

87,103● means fully disclosed○ means partially disclosed– means none disclosure

HTC 2012 CSR Report121Aspect

Section
EN18
EN19

Environmental

Emissions of ozone-depleting substances by weight.
NO, SO, and other significant air emissions by type and weight.

EN21

Total water discharge by quality and destination.

EN22

Total weight of waste by type and disposal method.

EN23

Disclosure
Level

page
93,95

●

Manufacturing process andproduct does not use ozonedepleting substances●

No combustion process●

AspectSectionDisclosure Items

Disclosure
Level

page

HR5

Operations identified in which the right to exercise freedom of association andcollective bargaining may be at significant risk, and actions taken to support
these rights.

59,69

●

HR6

Operations identified as having significant risk for incidents of child labor, andmeasures taken to contribute to the elimination of child labor.

58
No relevant risk discovered after
2012 audit●

HR7

Operations identified as having significant risk for incidents of forced orcompulsory labor, and measures to contribute to the elimination of forced orcompulsory labor.

58~59

●

HR8

Percentage of security personnel trained in the organization’s policies orprocedures concerning aspects of human rights that are relevant to operations.

None

●

HR9

Total number of incidents of violations involving rights of indigenous people
and actions taken.

No relevant issues

HR10

Percentage and total number of operations that have been subject to human None/ Planning to initiate internal
rights reviews and/or impact assessments.
mechanism in 2013

●
●

97

●

106~107●

Total number and volume of significant spills.

No relevant issues

●

EN24

Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III, and VIII,
and percentage of transported waste shipped internationally.

No relevant issues

●

EN25

Identity, size, protected status, and biodiversity value of water bodies
and related habitats significantly affected by the reporting organization’sdischarges of water and runoff.

No relevant issues

●

EN26

Initiatives to mitigate environmental impacts of products and services, andextent of impact mitigation.

98~101,107

●

HR11

EN27

Percentage of products sold and their packaging materials that are reclaimed
by category.

Number of grievances related to human rights filed, addressed, and resolved
through formal grievance mechanisms.

No relevant issues●

SO

Disclosure on Management Approach

EN28

Monetary value of significant fines and total number of non-monetary sanctions
for noncompliance with environmental laws and regulations.

No fines

●

SO1

-

EN29

Significant environmental impacts of transporting products and other goods
and materials used for the organization’s operations, and transporting
members of the workforce.

No significant environmental
impacts

Nature, scope, and effectiveness of any programs and practices that assess
and manage the impacts of operations on communities, including entering,
operating, and exiting.

●

SO2

Percentage and total number of business units analyzed for risks related tocorruption.

-

○

SO3

Percentage of employees trained in organization’s anti-corruption policies andprocedures.

69

○

SO4

Actions taken in response to incidents of corruption.

No relevant issues●

SO5

Public policy positions and participation in public policy development andlobbying.

No relevant issues●

SO6

Total value of financial and in-kind contributions to political parties, politicians,
and related institutions by country.

No relevant issues●

SO7

Total number of legal actions for anticompetitive behavior, anti-trust, andmonopoly practices and their outcomes.

No relevant issues●

SO8

Monetary value of significant fines and total number of non-monetary sanctions
for noncompliance with laws and regulations.

No relevant issues●

SO9Operations with significant potential or actual negative impacts on local
communities.

Our operation activities would
not have actual or potential
impact on local communities

●

SO10

Prevention and mitigation measures implemented in operations with significant
potential or actual negative impacts on local communities.

Not applicable●

PR

Disclosure on Management Approach

98

PR1

Life cycle stages in which health and safety impacts of products and services
are assessed for improvement, and percentage of significant products andservices categories subject to such procedures.

100

○

PR2

Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services during
their life cycle, by type of outcomes.

No relevant issues●

PR3

Type of product and service information required by procedures, andpercentage of significant products and services subject to such information
requirements.

99~101●

Total number of incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes.

No relevant issues●

PR5

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction.

48~49

○

PR6

Programs for adherence to laws, standards, and voluntary codes related tomarketing communications, including advertising, promotion, and sponsorship.

48~49

○

EN30

Total environmental protection expenditures and investments by type.

91

LA

Disclosure on Management Approach

63

LA1

Total workforce by employment type, employment contract, and region.

64

●

LA2

Total number and rate of employee turnover by age group, gender, and region.

65

○

LA3

Benefits provided to full-time employees that are not provided to temporary or
part-time employees, by major operations.

63,66,70,72~79●

LA4

Percentage of employees covered by collective bargaining agreements.

No labor union●

LA5

Minimum notice period(s) regarding operational changes, including whether it
is specified in collective agreements.

Act in accordance with theLabor Standards Law●

LA6Percentage of total workforce represented in formal joint management–worker
health and safety committees that help monitor and advise on occupational
health and safety programs.

102

●

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, andnumber of work related fatalities by region.

105○

Education, training, counseling, prevention, and risk-control programs in place
to assist workforce members, their families, or community members regarding
serious diseases.

72~74

●

Human Right

Society

No relevant issues
57

LA9

Health and safety topics covered in formal agreements with trade unions.

No labor union

●

LA10

Average hours of training per year per employee by employee category.

81

○

LA11

Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing career
endings.

81~85

●

LA12

Percentage of employees receiving regular performance and careerdevelopment reviews.

84

○

LA13

Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership, andother indicators of diversity.

64,71

●

LA14

Ratio of basic salary of men to women by employee category.

66,68~69○

LA15

Return to work and retention rates after parental leave, by gender.

70

●

HR

Disclosure on Management Approach

69

HR1

Percentage and total number of significant investment agreements that
include human rights clauses or that have undergone human rights screening.

No significant investment in
2012

●

HR2

Percentage of significant suppliers and contractors that have undergone
screening on human rights and actions taken.

58

●

PR7

Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising,promotion, and sponsorship by type of outcomes.

No relevant issues●

HR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained.

85

○

PR8

Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data.

No relevant issues●

HR4

Total number of incidents of discrimination and actions taken.

No relevant issues●

PR9

Monetary value of significant fines for noncompliance with laws andregulations concerning the provision and use of products and services.

No relevant issues●● means fully disclosed

122

Initiatives to reduce greenhouse gas emissions and reductions achieved.

EN20

Labor
Practices andDecent Work LA8

Human Right

Disclosure Items○ means partially disclosed

GRI 3.1 Comparison– means none disclosure

PR4
Product
Responsibility● means fully disclosed○ means partially disclosed– means none disclosure

HTC 2012 CSR Report123Global Compact and ISO 26000 Comparison Table
Global Compact
Category

Human Rights

Labor

Environment

Principles

Page

Businesses should support and respect the protection of internationally proclaimed human rights.

57,68

Make sure that they are not complicit in human rights abuses.

57,68

Businesses should uphold the freedom of association and the effective recognition of the right to collective
bargaining.

57,68

The elimination of all forms of forced and compulsory labor.

51~59

Effective abolition of child labor.

57,68

Elimination of discrimination in respect of employment and occupation.

68~71

Businesses should support a precautionary approach to environmental challenges.

37,101

Undertake initiatives to promote greater environmental responsibility.

87

Encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption

98~101Businesses should work against corruption in all its forms, including extortion and bribery.

69

ISO 26000
Core
subjects

IssuesPages

Organizational System for making decision andgovernanceimplementation of executing goals

Human rights

Due diligence

57~59

Human rights risk situations

57~59

Avoidance of complicity
Resolving grievances

57,68
36,38

57,68
57

Respect for property rights

38,39

57,69~71

Fair marketing, factual and unbiased
information and fair contractual practices

48,49

Civil and political rights

57,68

Protecting consumers' health and safety

98~101

Economic, social and cultural rights

57,68

Discrimination and vulnerable groups

Fundamental principles and rights at work

57,68

Employment and employment relationships

63

Health and safety at work

Sustainable consumption
Consumerissues

66~79

Social dialogue

Prevention of pollution

124

Responsible political involvement

Pages

Fair operating Fair competition
practices
Promoting social responsibility in the value
chain

80
102~105

Human development and training in theworkplaceThe
environment

IssuesAnti-corruption

32,40

Conditions of work and social protection
Labor
practicesCore
subjects

81~85
106~107

Sustainable resource use

108

Climate change mitigation and adaptation

37,88~89

Protection of the environment, biodiversity
and restoration of natural habitats

94~97

Global Compact and ISO 26000 Comparison Table

Community
involvement
anddevelopment

Consumer service, support, and complaintand dispute resolution

45

101
46~47,49

Consumer data protection and privacy

48

Access to essential services

49

Education and awareness

46~47

Community involvement

111,116

Education and culture

113~115

Employment creation and skills development
Technology development and access

29,63
27

Wealth and income creation-

Health-Social investment

18

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