Professional Documents
Culture Documents
Corporate Social
Responsibility Report
目 錄
3
Message from the Chairman
Shareholder, employee and social
responsibility, all three are the same.
Keep makes CSR to become PSA’s DNA.
4
a clear quantitative financial performance target, enhances shareholders
and investors' confidence in the long-term investment value of the group and
a good return on shareholder equity, which can create higher economic
value in a long-term and stable manner and give back to shareholders,
investors, employees, and partners.
5
In order to achieve the purpose of lowering the situation and transparent
communication, the group companies have established mechanisms
including proposal systems and suggestion boxes. In addition, we use
technology and audiovisual to produce and broadcast corporate culture
short films through online communication platforms to increase
cross-company communication and strengthen global colleagues'
understanding of the business philosophy and the development of each
company's characteristics. Employees' feedback is very positive. Every year,
through questionnaires or random employee satisfaction surveys, we learn
about our colleagues' thoughts on corporate governance, so as to formulate
or adjust human resources policies in a timely manner.
The companies under the PSA Huake business group continue to carry out
7
many actions on business performance, green energy products and
environmental protection, including:
Occupational Health and Safety Policy: Comply with occupational health and
safety laws and regulations, and continue to improve management and
effectiveness, so it was recognized by the 2010 Friendly Workplace
Environment Medal.
Employee health: create a smoke-free and pregnant-friendly working
environment, provide health checks and obtain the highest certification of a
healthy working environment.
Environmental protection and green energy products: Strictly abide by
environmental protection laws and regulations, actively develop green
energy products that comply with international environmental regulations to
customers, and have obtained multiple certifications.
In the CSR report last year, I mentioned that I hope that with the support of
shareholders and colleagues, CSR will become the DNA of the PSA Huake
business group! I am very pleased that after a year, the group has seen
more concrete progress in all aspects of CSR. Use actions to demonstrate
the implementation of equal emphasis on shareholder value, employee care
and social responsibility, and continuous practice to make CSR the DNA of
PSA!
8
Message from the President
Taiwan's semiconductor industry will write a
miracle in 2020, and it will continue to grow
against the trend despite the impact of the
epidemic, which is a bumper year. The output
value broke through the NT$3 trillion mark for
the first time, reaching 3.22 trillion yuan, an
annual increase of 20.9%. Among them,
DRAM will also grow by 4% in 2020. The IC
packaging industry was 377.5 billion yuan, a
9% increase from 2019. The output value of
the IC testing industry reached 171.5 billion
yuan, an increase of 11.1% from 2019. With the popularization of vaccines
and the opening of the economy and the gradual recovery, semiconductor
technology is expected to further boost the growth of the global
semiconductor market in 2021.
Benefiting from working and studying at home, the purchasing power of
enterprises and consumer markets has increased, and applications such as
artificial intelligence (AI), 5G, data centers, and high-performance computing
(HPC) have become popular. In the future, these projects will still be the
main driving force driving the development of the semiconductor industry.
With this development advantage, the future will be the best opportunity for
Taiwan to grasp the reorganization of the global supply chain. We look
forward to continuing to consolidate its important position in semiconductors
and become an important base for the next generation of information
technology under Taiwan's strategy of continuing to strengthen the
development of information and digital industries. .
The semiconductor industry must face the challenge of integrated design of
9
different technologies and functions. Huadong Technology is in the memory
packaging and testing industry in the downstream of semiconductors.
Facing the impact of industry competition and the impact of the epidemic, as
well as the continuation of factors such as the US-China trade war, Huadong
Technology will cautiously respond to market changes and continue to
uphold the spirit of "lean, agile and united", and continue to strengthen Own
specialization in packaging and testing technology, production and service. ,
Provide professional services to customers, in order to become the world's
most competitive packaging and testing service provider.
President John Yu
10
Material Topics Identification
As for the topics of concern in 2020, we base on the material topics of GRI
Standard, making a list which reflects effect to economy, environment,
society by Walton or internal and external topics and affect stakeholder’s
strategic decision. Through internal discussion, 17 material topics and
boundaries are selected from the list.
The importance is determined by the key point of Walton company
operation. Then, we collect assessment of “influence on stakeholder
assessments and decisions” and “significant of economic, environmental,
and social impacts” of each topics by inviting each departments to judge
the impact of important topics to Walton’s development and stakeholders.
The analysis result is as below.
Topic boundaries:
11
12
Communication with Stakeholder
Walton collects all comments from stakeholders by several ways as below:
Topic of Concern
Market Presence ◆Customer (direct customer & end-customer) visit and audit
Supplier Chain ◆Regular meetings( weekly, monthly and quarterly)
Management Training ◆Supplier assessment from customer
and Education Regulation ◆Develop new product and technology
Compliance ◆Customer satisfaction survey
Green Product ◆Investigation and improvement on industry environment and
Product Responsibility corporate responsibility
Corporate Citizenship ◆Claim Channel E-mail:EICC1999@walton.com.tw
Responsibility Administration Department Mr. Ken Su
◆Periodical meetings:
Labor-Management meeting and employee communication
meeting are held periodically. All department leaders’
participation and discussion are required. Employees can raise
proposals for need and improvement, which enhance the
value of Walton.
Market Presence ◆Occasional meetings: Opinions of employees can be released
Employment through the way listed below anytime and responded by ADM
Training and Education department,
Occupational health and ◆【Walton Advanced Engineering, Inc. Communicating/Claim
safety Channel】
Freedom of association 1.TEL:(07)811-1330 ext. 1999 E-mail:
and collective bargaining 2.EICC1999@walton.com.tw
3.President’s mail box:Mail boxes are set up in each site
4.Paper mail address:No.18, North First Road, K.E.P.Z,
Kaohsiung 806, Taiwan, ROC Administration Department
Mr. Ken Su
◆Internal website
◆Sexual harassment grievance
Procurement practices
Supplier chain ◆Supplier audit
management Training ◆Review report or meeting
and Education ◆【Communicating/Claim Channel】
Occupational health E-mail:EICC1999@walton.com.tw
and safety Administration Department Mr. Ken Su
Anti-corruption
13
◆
Economic performance ◆
Market presence ◆
◆
◆
◆
Local ◆
Climate change ◆
Communities
Regulation compliance ◆【 】
& NGO
14
1. Walton Overview
1.1 Introduction of Walton
Walton Advanced
公司全名 華東科技股份有限公司
Engineering Inc. was Employee 2,372
founded in 1995 April. Capital NTD 5,063,811,440
Established date 1995/4/6
We provide memory Product and technique Semiconductor Assembly and Teating
assembly and testing Chairman Anthony Chiao
Director John Yu
services with more Kaohsiung Export Processing Zone
Headquarter
than US$ 500 million (K.E.P.Z)
15
Walton Advanced Engineering (Suzhou) Inc., Walton Holding Universal Ltd., and Lead
Success Inc. are the subsidiary companies of Walton. The company profiles are as
below.
Established
Subsidiary Company Industry Operating Item
Date
Walton Holding Universal Ltd. 2003.11 Investment Professional Investment
Walton Advanced Electronic Production of semiconductor
2003.12
Engineering(Suzhou), Inc. Manufacturing assembly and testing
Walton Holding (Hong Kong) Ltd. 2011.12 Investment Professional Investment
Electronic IC equipment trading and
Xinfeng Technology, Inc. 2019.11
Manufacturing manufacturing
Waltech Advanced Engineering Electronic IC equipment trading and
2020.11
(Suzhou), Inc. Manufacturing manufacturing
16
1.2 History
時 間 重 大 記 事
Established “Walsin Advanced Electronic, Inc.”, and investment is 1
1995 billion NTD.
1996
1997 July
July
2002
Combined “Walton Advanced Electronic Co. Ltd.”, and the contributed
capital amount was about 4.48 billion NTD.
May
2003
2005
2006
July
2007
April
2010
October
2011 January
2013 January
2014
2015 April
2015 June
2016 May
17
1.3 Market Overview
: IC insights, 2020/1
18
19
:
Challenge
Compared to logic IC sector, the memory IC market is dominated by the top
5 players. According to the statistics of DRAMeXchange (March 2021),
South Korea’s Samsung Electronics, SK Hynix, Micron in the U.S. and
Japan’s Kioxia (former Toshiba Memory), the four companies alone, account
for more than 94% of DRAM market and 70% of NAND Flash market in 2020.
In current oligopolistic market structure, maintaining a customer base has
become the primary challenge for the survival of memory packaging and
20
testing companies.
In addition, the diversified memory IC product lines make the construction of
memory packaging and testing platform even more complicated. All the
technical challenges are testing the OSATs’ (Outsourced Semiconductor
Assembly and Testing) planning and management capabilities of memory
packaging and testing companies.
With the advancement of memory IC technology generations, the
investment required for packaging and testing technology and equipment
has grown rapidly, and there are fewer and fewer OSATs who are capable
and willing to continue investing. With nearly NT$50 billion capital
expenditures, Walton has established the complete and huge memory
packaging and testing platform to provide cost-effective solutions through
optimized operation management.
Walton’s technical team has been accumulating abundant engineering and
manufacturing know-hows, via closely working with international
semiconductor manufacturers. In the face of today's rapidly changing
industry and economic environment, Walton will continue improving its
performance in quality, cost, delivery and service, to achieve the goal of
sustainable growth.
Opportunity
In current memory IC market, the main demand is still dominated by the four
major applications of smart phones, tablets, personal computers and servers.
According to Gartner’s forecast, during the period from 2020 to 2022, the
shipments of global personal connected devices such as
desktop/laptop/tablet computers and mobile phones, declines by 14% in
2020 due to the COVID-19 epidemic, and it is expected to rebound by 15%
in 2021. As the market has matured, it is estimated that the global shipments
of personal networking devices will remain at approximately 2.1 to 2.2 billion.
21
According to the forecast of Ericsson Mobility Report (November 2020), the
biggest growth will come from the latest fifth-generation wireless
communication technology. The number of subscribers will jump from 12
million in 2019 to 3.47 billion in 2026. During this period, the
fourth-generation wireless communication technology LTE still has the
dominant position. In short, there will be 8.77 billion connected devices in
2026, including mobile phones, tablets, and computers, with specifications
that are at least equal to or better than mid-to-high-end products on the
market today. It is conceivable that the communication interface of billions of
connected devices will be upgraded from current 2G or 3G to 4G or even 5G
in the next few years, with top-level specifications sufficient to demonstrate
the high-speed communication capabilities of 4G and 5G. This is the great
opportunities all semiconductor manufacturers are looking for.
In 2020, with the spread of the COVID-19 epidemic, the "zero-touch"
demand for isolation and epidemic prevention has prompted enterprises or
governments to move on to digital transformation more actively and firmly. It
goes without saying that we collect more information through more devices
and connect to the Internet to expand more applications. This vast Internet
of Things has become an important platform for people's life, education,
entertainment and work, and the ability of artificial intelligence is really the
key engine of this platform. In the era of artificial intelligence, the challenges
of processors and memories will be more diverse, and different levels of IC
and system designs will be adopted according to different application fields.
Some applications require effective and rapid calculation of huge and
complex images, audio and various unsystematic data, and appropriate
responses in real time, such as self-driving cars; but some simple collect
data long-term tracking and analyses, and then give suggestions, such as:
smart grid; there are more different types of applications to be developed.
22
How to meet the challenges of various application fields and provide the
best combination is a major issue that will undoubtedly affect the
architecture design trend of future system products and the use of built-in
memory.
When this huge group of AIoT devices are connected to the Internet, more
cloud applications and business opportunities on the other side of the
Internet are created, prompting the establishment of more and larger data
centers. Incidentally, server-related DRAM modules, solid state drives (SSD,
Solid State Drive) etc. have also become business opportunities for memory
manufacturers to compete. Compared with the aforementioned connected
devices, although the annual shipment volume of servers is not large, the
requirement for memory capacity, performance and quality are much higher.
As a result, server segment is seen as high value-added market.
In summary, in the short to medium term, the existing three major
applications of smartphones, tablets and servers are the main pillars of the
DRAM market demand; in the medium to long term, there are also wearable
devices, smart cars, smart homes, and everything else. With the support of
the Internet of Things, the global memory market is expected to maintain
steady growth. According to IC Insights estimates (January 2021), from
2020 to 2025, the five-year compound annual growth rate of the global
memory industry is 9.9%, which is better than the overall IC market's 8.0%.
23
1.
2.
3.
24
In the past decade, Memory IC market has changed dramatically. The
applications of DRAM and NOR/NAND Flash are expanding, starting from
computers, consumer electronics, servers, and then mobile devices like
smartphones. Now there are automotive and more emerging IoT
devices come to the spotlight of the industry. These diversified
applications bring more memory product lineup to the market.
Walton began mass producing LPDDR4 in 2015, and the extension version
LPDDR4X in 2017. In early 2019, the first version of DDR5 and
LPDDR5 specification is released by JEDEC, targeting the high
performance required by AI. Although the three major DRAM players have
begun shipping LPDDR5 in 2020 and been working hard to ramp up the
outputs, the mid-end mobile phone SoC supplier MediaTek has not yet
released a processor that supports LPDDR5 so far. It is conceivable that the
shipments of LPDDR4/4X remain significant in 2021.
25
low-density volatile memory and non-volatile memory which has large
volume, such as DIP, SDIP, SOJ, PLCC, SOP330, 450 Mils, QFP, LQFP,
TSOP(Ⅱ)300.
Year 1997 to 1998, we developed products to be lighter and thinner, also
increased the product market share. Such as SOP 150/300 Mils,
TSOP(Ⅰ) 300 Mils, TSOP(Ⅱ) 300, 400 Mils.
Year 1999 to 2000, we introduced TF-BGA, MINI-BGA, and QFN. The
mass production was successfully made. Then we continuously develop
for high-pin, high-density, well-radiating and well-electricity.
In 2001, we mass produce FLIP CHIP and BARE CHIP, at same time
moving toward to IC system coordination and the development of module
products, such as RF IC.
In 2009, we mass produce MCP PACKAGE.
Walton has From wafer test to terminal test after packaging to provide most
reliable, complete and perfect service. The major service items as follows:
26
All products are majoring in application of PC, Laptop, Mobile phone, GPS,
LCD,Digital Camera, DVD…etc.
From 2018 till May 2019, Walton has spent NT$ 90 million in
research and development. We will continue to develop lighter, thinner and
smaller product. We also focus on integrating assembly, testing and
module service platform and developing SIP and wafer level
techniques to match consuming and mobile electronic product.
27
1.6 Award
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
28
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「 」
「
」
「 」
「 」
29
2. Corporate Governance
2.1 Organization Structure
Board of Directors
Audit
Salary Committee
Chairperson
General Manager
30
2.2 Board of Directors
2.2.1 Operation of Board of Directors
-
-
-
31
Walton hold the board meeting at least once every quarter, the number of
Directors present is in accordance with the Act. Walton has established
an Audit Committee in place of the Supervisors in accordance with Article 14
-4 of the Securities and Exchange Act, and the Audit Committee is
responsible for carrying out the functions and powers set forth
in the Company Act, the Securities and Exchange Act, other laws
and regulations and the Articles of Incorporation. The operation of Walton’s
Board of Directors is according to regulations of “Rules and Procedures of
Board Meeting”. A director who has personal interest which may impair the
benefit of company shall provide opinions and answer, but must not join the
discussion and vote nor exercise the on behalf of another director. Every
director shall be highly self-disciplined. If a director has conflicts of interest,
he/she shall not exercise the voting right.
32
Meeting ", that directors should uphold a high degree of self-discipline. For
any proposal in which a Director or the legal person he or she represents is
an interested party, the Director shall explain the important aspects of
his/her interest at the Board meeting. When his/her interest is likely to
compromise the interest of the Company, the Director shall not participate in
the discussion and voting on the proposal and the Director shall abstain him
or herself from discussion and voting on the proposal and cannot exercise
the voting right for and on behalf of another Director.
2.2.2
33
Job Title Name Education & Experience Concurrent Job Title
34
Job Title Name Education & Experience Concurrent Job Title
35
Job Title Name Education & Experience Concurrent Job Title
2.2.3
36
3
37
2.2.4 Compensation Committee
The term of the 4th Salary and Compensation Committee is from June 25,
2019 to June 24, 2022. As of May 6, 2021, a total of 8 meetings have been
held.
In 2020, the Salary and Compensation Committee will meet 4 times, and the
members will be present as non-voting delegates:
In 2021 the Salary and Compensation Committee will meet 3 times, and the
members will be present as non-voting delegates:
2.2.5
Walton audit committee is composed by all independent directors. The
re-election of the 9th Board of directors was held with regular shareholder
38
meeting on June 25th, and established an audit committee to replace the
supervisor in accordance with the law. Mr. Li-Cheng Lu, Mr. Hai-Yen Hao
and Mr. Wang-Cai Lin are members of the first audit committee. In addition,
in accordance with Article 3 of the Measures for the Audit Committee of
Public Offering Companies to Exercise Its Functions and Powers, the
company’s "Organizational Rules for the Audit Committee" has been
formulated to facilitate compliance.
39
Annual work focus of the audit committee:
The term of the first audit committee is from June 25, 2019 to June 24, 2022.
As of May 6, 2021, a total of 12 meetings have been held.
In 2020, the Audit Committee will meet 5 times in total, and independent
directors will be present as non-voting delegates:
40
In 2021, the Audit Committee will meet 4 times in total, and independent
directors will be present as non-voting delegates:
41
2.3 Financial Performance
Walton fully recognizes the impact of the global semiconductor industry and
the volatility of the memory industry. In 2020, the company strived to reduce
costs, and despite the decline in full-year revenue, it still managed to
maintain profitability and a stable performance for the year as a whole. In
2020, consolidated revenue for the year was NT$5.966 billion, consolidated
net income after tax was NT$255 million, and earnings per share after tax
was NT$0.51.
42
2.4 Regulatory Compliance
2.4.1 Risk Management and Evaluation
The operation of Walton’s risk assessment:
1. The effect of income due to interest rate, exchange rate and impact of
inflation.
(1)Interest rate: The interest expense was NT$ 56,428 thousand in 2020.
The ratio was 0.95% in net revenue.Because Walton is a Capital-intensive
industry, we invest funding and purchase equipments to improve our
competitive strength. We keep good relationship with banks to get favorable
cost of capital.
(2)Exchange rate: The exchange loss was NT$ 24,985 thousand in 2020,
the ratio was 0.42% in net revenue. In order to reduce the risk of exchange,
we sets-up a well communication bridge with bank to get the variation of
exchange rate at first sign as reference.
(3)Impact of inflation: The price of raw materials and products had listed in
contract in 2020. The changes of inflation did not cause any effect to Walton.
(1) Walton had defined the policies: “Guidelines for Handling Acquisition and
Disposal of Assets”, “Regulations Governin Making of Endorsements/
Guarantees” and “Regulations Governing Loaning of Funds”. These policies
were passed by resolution of shareholders' meeting.
43
(2)We did not ake any high-risk investments, high leveraged investments,
endorsements and guarantees in this case.
(4) The derivatives trading of Walton will be execute or not, depends on the
situation of market.
(1) Incoming Products: The major products of Walton are assembly and
testing of IC memory. The raw materials include lead frame, substrate, gold
wire, epoxy, tape, and glue have more than two suppliers for each. We do
not purchase with single supplier.
Walton obeys international and domestic policy, and pays full attention on
updating rule of trend developing and policy at any time. Recently, the changing
of policy and law did not affect Walton’s finance and business. Furthermore,
based on the past few years and until the due date of this report, Walton
Advanced Engineering Inc. does not have litigation or non-litigation, events, as
listed below:
44
◆ Established judgment or on-going important litigation.
2.4.3 Anti-corruption
Customer First
A stable customer relationship is the most important basis for IC assembly
&testing industry. Walton’s DRAM customer covers from the United State,
Japan and Taiwan.Our customers agree with our effort and become
stakeholders. We set up a strong strategic alliance with them to create the
power of development and growth.By this, we can develop a clear market
position and increase global customers.
46
2.6 Supplier Management
Material suppliers are the most important partners of Walton. With the best
quality of materials, we can produce the excellent products. Walton
cooperated with suppliers to use green products to protect our environment.
The major material suppliers are from Asia.
(%) (%)
** The countries of South Asia include Hong Kong, Malaysia, Philippine, and Singapore.
47
★
★
Walton's supplier audits include quality, price, delivery period, after-sales
service, and banned hazardous substances (including certifications already
obtained).And the comprehensive periodic evaluation will be conducted. The
result will be used as a supplier classification for future reference in selecting
supplier. Existing suppliers are audited annually, and the results are
classified into four levels: A, B, C and D. If the rating is C grade (70%~79%),
the supplier will be asked to reduce the purchase quantity, improve and
observe the result. If the rating is D grade (below 70%), we will consider to
stopping the procurement and discussing the matter at a procurement
meeting. In Addition, all of Walton’s suppliers are required to participate in
activities related to their CSR and to comply with relevant requirements. If
the supplier is found to have
specific evidence of a violation,
the supplier will be
investigated and handled
immediately; if so, the supplier
will be improved within a
certain period of time; if the
situation is significant, the
supplier will not be adopted.
48
2.6.2 Supplier audit and supplier conference
In order to regulate the behavior of supplier and ensure the quality of
material supply, Walton consudts on-site or written audit to our suppliers
based on annual audit plans or customer requirements. Through supplier
audit or five self-assessment questionnaire, we respond to problems and
request action plans and corrective measures in order to achieve the
purpose of quality management for our suppliers.
49
In addition, Walton recognizes the importance of business continuity.
Therefore, we must work together with our suppliers in order to reduce
operational risk in the most effective way, enhance our competitiveness and
pursue a win-win situation with our suppliers. Walton holds annual suppler
conference to implement the concept of co-existence and co-prosperity
between suppliers and supply chain management and to ensure all
suppliers fulfill their corporate social responsibilities and comply with the
RBA Code of Conduct and other relevant regulations. Walton also select the
best supplier of the year in major categories such as quality, service, CSR
management, industrial safety, green procurement, etc. to be recognized in
the supplier meeting.
- v v
- - v
- - v
- - v
- - v
50
2.8 Ethic and Integrity of Organization
Walton is dedicated to honest and transparent business operation and
management that internal and external disclosure shall be aligned. We
establish incorruption article in labor contracts and employee regulation to
require all employees shall obey the related rules. Moreover, Walton drew
up “Ethic Policy” in the RBA policy to declare the requirement of honesty and
incorruption. Aside from employees,Walton also declares this concept to all
the customers and suppliers and convey the consciousness to the public
that we are trustworthy.
In Walton, we provide various communicating channels and claim channels
to those who in need. No matter employees, suppliers, shareholders, or the
public they are able to give advice or feedback through those
communicating ways as following. There is a dedicated person for cases
handling and response.
【Walton Advanced Engineering, Inc. Communicating/Claim Channel】
*TEL:(07)811-1330 ext. 1999
*E-mail:EICC1999@walton.com.tw
*President’s mail box:Mail boxes are set up in each site
*Paper mail address:
No.18, North First Road, K.E.P.Z, Kaohsiung 806, Taiwan, ROC
Administration Department Mr. Ken Su
51
3. Environmental Sustainability
3.1 Raw Material Consumption
The major materials of Walton’s products are lead frame, substrate, solder
ball, and compound. The usage volumes in 2020 are as below.
52
3.2 Energy Consumption
3.2.1 Consumption of direct and indirect energy
53
3.3 Sewage Effluent Emissions
A1 Site
- 6~9 Yes
(℃) <38 Yes
(mg/L) <800 Yes
(mg/L) <600 Yes
: (mg/L) <3 Yes
: (mg/L) <1 Yes
: (mg/L) <5 Yes
: (mg/L) <1 Yes
: (mg/L) <10 Yes
:
:
B10 Site
- 6~9 Yes
54
B15 Site
- 6~9 Yes
A15 Site
- 6~9 Yes
55
3.4 Greenhouse Gas Emissions
56
3.5 Waste Management
57
3.6 Energy-Saving Activities
58
1,894,457 1,714,949 1,895,153
59
3.7.1
60
3.7.2 IECQ QC 080000 Certificate
3.7.4
The eastern of Democratic Republic of the Congo (DRC) has been one of
the most serious human crisis all over the world for decades. The illegal
trades on those conflict minerals become the major funds for the local armed
groups and rebel army. In 2010, Dodd-Frank Wall Street Reform and
Consumer Protection Act (the “Dodd-Frank Act”) address to publicly traded
companies to report their conflict minerals sourcing from DRC and adjacent
areas, including tin, tungsten, tantalum and gold (called the 3TG’s), to the
United States Securities and Exchange Commission (SEC). It’s essential
61
that these conflict minerals are easily adopted in consumer electronics
through global supply chain.
Walton has been committed to RBA code of conduct. We also expect our
suppliers to comply with RBA policy, as well as make efforts with Walton on
supporting human rights. By no means will we tolerate, take advantage of,
invest, facilitate, or aid the violation or abuse of human rights in any forms if
any our procurement from DRC and its adjacent areas. Besides, from OECD
Due Diligence Guidance for Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas, we carry out Due Diligence survey
and periodically provide CSFI reports on conflict minerals’ adoption and
procurement in order to enhance the transparency of Walton’s supply chain.
Walton, the social-caring enterprise, is obligated for pursuing sustainability,
fair trade, diversified and stable economy, and human rights through
transparent due diligence on conflict mineral free.
3.8 RBA 守則
Since 2014, Walton has followed the
"International Covenant on Civil and
Political Rights", "Labor Standards
Law", "Convention on the Rights of
Persons with Disabilities",
"International Conventions on Human
Rights" and other international
conventions, and implemented the
"Responsible Business Alliance
Behavior" The relevant provisions of
the “Guidelines”. Integrating the
62
concept of labor protection with international conventions, formulated the
four RBA policies and launched the RBA implementation plan accordingly.
The policy items included are:
1. Labor policy 2. Ethics policy 3. Non-use of conflict minerals policy 4.
Environmental safety and health policy. According to the above four major
policies, we implement internal management review meetings, employee
education and training, supplier (contractor) training, East China RBA
independent internal audit, supplier (contractor) questionnaire audit and
on-site audit, and external audit company Third-party audit and certification
to ensure that East China complies with the labor protection spirit of RBA. In
order to strengthen employees' awareness of business conduct and ethics,
education and training are arranged every year in Q4. The topics include:
RBA Code of Conduct (Labor, Health and Safety, Environment, Ethics and
Management System), Integrity Management, Information Security,
Business Secrets and Wisdom Property management, etc. It will report to
the board of directors on the relevant implementation status on November 6,
2020.
63
3.8.2 Human rights risk management
64
3.8.4 Information Security Guard
In order to develop and manage the information and personal data security
management system, promote and coordinate the company-wide
information security work, and lead the regular review of the management
and implementation of information security, Huadong Technology develops
information security organization management procedures to establish an
information security organization and grant related rights Responsibility for
all personnel and units to follow the basis. At least once a year or in case of
major changes (company panorama, organization, standard changes), a
management review meeting will be held to review and approve to ensure
that the information security and flood safety policies comply with laws and
regulations, customer needs and the company's core values, and report to
the board of directors on November 6, 2020 Report on the implementation of
information security.
Walton follows the law of “Labor Standards Act” and other related labor acts.
We made the policy to protect female employees and child workers who is
over sixteen and under eighteen years old to assure a friendly working
environment. By the end of 2020, Walton had 2,236 employees in Taiwan and
346 employees in Suzhou W1 site.
66
Item 2018 2019 2020
150 47 86
150 69 41
210 238 225
255 442 232
0.69% 0.26% 0.23%
0.83% 0.36% 0.16%
0 0 0
76 66 73
43 109 116
67
Item 2018 2019 2020
151 137 63
142 97 63
159 144 150
165 118 95
42.3% 43.11% 42.90%
53.4% 35.33% 39.40%
0 0 0
76 66 73
43 109 116
All employees have to sign the “Non-fixed Term Contracts”. We have hired
employees with “Non-fixed Term Contracts” since 2007 to protect fair
remuneration and promotion of each employee.
68
4.2.2 Retirement Plan
69
4.4.1 Orientation training
Walton has independent training system for every new comer. Beside the
introduction of Walton’s company culture, for different department or position,
Walton provides different job training to ensure all new comer adapt to
environment and expectance of department.
70
4.4.3 Training Hours
The total training hours from 2018 to 2020 training courses are as below. We
arrange different training course for employees.
2018 2019 2020
71
4.5.2 Emergency Assistance Program
72
4.6.1 Health Examination
4.6.2
4.6.3
73
4.7 Working Environment Safety
74
4.7.3 Training of ESH (Environment, Safety, Health)
75
4.9 Social Welfare
76
77
Disclosure Items Page Section
Organization Profile
102-1 14 1.1
102-2 24 1.5
102-3 14 1.1
102-4 14 1.1
102-5 14 1.1
102-6 17 1.3
102-9 46 2.6
102-10 -
102-11 30 2.2
58 3.7
102-12
61 3.8 RBA
2.7
102-13 49
78
Disclosure Items Page Section
2.8
102-16 50
2.8
102-17 50
2.1
102-18 29
102-22 30 2.2
102-23 30 2.2
GRI 102
102-25 30 2.2
General
2.4
102-26 42
102-28 30 2.2
2.4
102-29 42
4.3
102-35 68
4.3
102-36 68
102-40 12
4.5
102-41 70
GRI 102
General 102-42 12
102-43 12
102-44 10
79
Disclosure Items Page Section
Reporting Practice
2.3
102-45 41
102-46 10
102-47 10
102-48 3
102-49 -
GRI 102 102-50 3
General
102-51 3
102-52 3
102-53 3
102-54 3
102-55 77
102-56 -
Economic Standards
103-1 10
201-1 67 4.2
201-3 67 4.2
4.3
202-1 68
2.6
204-1 38
205-2 42 2.4
205-3 42 2.4
80
Material Topics
103-1 10
Identification
301-1 51 3.1
302-1 53 3.2
3.6
302-4 57
303-1 52 3.2
305-1 53 3.3
3.4
306-1 55
306-2 56 3.5
Social Standards
Material Topics
103-1 10
Identification
401-1 65 4.1
403-2 70 4.5
403-3 70 4.5
404-1 68 4.4
404-2 68 4.4
4.6
408-1 71
2.4
419-1 42
81