2011 guc corporate social responsibility report … · this report is guc’s first corporate...
TRANSCRIPT
2011 GUC
Corporate Social
Responsibility
Report
Table of Contents
Overview------------------------------------------------------------------------------------------1
1. Letter from the Chairman and President--------------------------------------------------2
2. Company Profile-----------------------------------------------------------------------------4
2.1 An Introduction to GUC--------------------------------------------------------------------4
2.2 Market Overview----------------------------------------------------------------------------4
2.3 Business Overview--------------------------------------------------------------------------7
2.4 Business Development--------------------------------------------------------------------10
2.5 Awards and Recognitions-----------------------------------------------------------------15
2.6 Membership in Industry Associations---------------------------------------------------16
2.7 Financial Highlights-----------------------------------------------------------------------16
3. Stakeholder Engagement------------------------------------------------------------------20
4. Corporate Governance---------------------------------------------------------------------20
4.1 Governance Structure----------------------------------------------------------------------22
4.2 Board of Directors-------------------------------------------------------------------------23
4.3 Audit Committee---------------------------------------------------------------------------31
4.4 Compensation Committee----------------------------------------------------------------31
4.5 Regulatory Compliance-------------------------------------------------------------------31
4.6 Code of Ethics and Business Conduct---------------------------------------------------32
5. Employee Care-----------------------------------------------------------------------------33
5.1 Employment Status------------------------------------------------------------------------33
5.2 Employee Development-------------------------------------------------------------------38
5.3 Total Salary Package-----------------------------------------------------------------------39
5.4 Employee Relations------------------------------------------------------------------------40
5.5 Integrated Solutions for Work and Life-------------------------------------------------41
5.6 Corporate Security and Safety Management-------------------------------------------43
5.7 Safety and Health--------------------------------------------------------------------------43
6. Social Participation------------------------------------------------------------------------44
7. Environmental Protection-----------------------------------------------------------------45
7.1 Green Procurement and Production-----------------------------------------------------45
7.2 Green Product------------------------------------------------------------------------------46
7.3 Green Life-----------------------------------------------------------------------------------48
8. Appendix------------------------------------------------------------------------------------48
GRI (Global Reporting Initiative) Index------------------------------------------------49
1
Overview
This report is GUC’s first Corporate Social Responsibility (CSR) Report. In GUC’s
2011 CSR Report, we would like to share with you our ceaseless efforts in sustainable
development of economic, environmental and social dimensions. GUC will continue
to publish annual CSR Reports in the future. By complete information disclosure and
communication of stakeholder engagement, we hope to show GUC’s management
guidelines and performance of economic, environmental and social aspects to gain
further understanding and more trust from stakeholders.
Report Timeline
This report outlines our performance and efforts in the past and full 2011 calendar
year for the most relevant CSR issues, environmental protection and social
participation, CSR management guidelines, responses and actions of key issues with
employees, customers, suppliers and shareholders.
Report Scope and Profile
The report contains CSR-related data and activities of GUC Hsinchu Headquarters
and Taipei Office in Taiwan, but excludes overseas subsidiaries and liaison offices.
Financial information of GUC’s overseas subsidiaries and liaison offices is also
included in this report.
Reference
This book is compiled based on the Global Reporting Initiative (GRI) G3 framework.
Attached is a table in appendix for reference.
Contact Information
The report is available on GUC’s corporate website. If you have any question, please
contact us.
Address: No. 10, Li-Hsin 6th Rd., Hsinchu Science Park, Taiwan, R.O.C.
Tel: +886-3-5646600
Email: [email protected]
Website: http://www.guc-asic.com
2
1. Letter from the Chairman and President
For the past few years of corporate growth, GUC has aggressively refined its business
and technology model, focusing its evolution into a flexible ASIC company. GUS has
positioned itself as The Flexible ASIC LeaderTM. GUC’s Flexible ASIC ModelTM
emphasizes on unique value for customers with integration of design expertise,
system knowledge and manufacturing resources in the most effective way to deliver
semiconductor products to customers. GUC aims to enhance effectiveness of supply
chain management from the conceptual prototype to product delivery, shorten
development time, improve product yield rate and reliability, assist IC visionary
customers to reach the next level of leadership in their markets, and capture future
outsourcing business opportunities from international system companies. The Flexible
ASIC LeaderTM has been GUC’s business reputation, which brings enormous
advantage to our shareholders and employees as more system companies tend to have
customized ASIC solutions for product differentiation, cost advantage, product
ownership and controllability purpose. It requires higher technology preciseness and
maturity, which enables GUC to increase its gross margin, investor return and
investment in employees.
In 2011, GUC was awarded the Global Semiconductor Alliance “2011 Outstanding
APAC Semiconductor Company Award” and Monte Jade Science and Technology
Association of Taiwan “2011 Innovation Award of Monte Jade in Taiwan”, which
recognized its evolution of business expansion and technology model, and its
dedication in full-spectrum services and flexible ASIC company. Moreover, GUC’s
good corporate governance and transparent corporate information have been highly
recognized, which Taiwan Stock Exchange and GreTai Securities Market rated GUC
“A+” and ranked GUC as one the Top 10 companies in the 8th Information Disclosure
Assessment and Evaluation of Listed Companies.
To pursue sustainable corporate growth and operation, it is the most important issue to
carry out corporate social responsibility. GUC believes in the following principles.
1. GUC insists on honesty and integrity.
2. GUC opposes corruption and bribery. GUC does not engage in illegal
government-business relations.
3. GUC offers its employees great and healthy environment and emphasizes the
balance between work and life.
4. GUC practices good corporate governance and transparent business disclosure.
3
GUC keeps its promise to its stakeholders.
5. GUC provides good job opportunities to the public.
6. GUC encourages innovation to create value to the society.
7. GUC actively participates in social beneficial activities by supporting educational
and cultural activities, and caring for the poor.
8. GUC obeys the law and reviews itself by the highest ethical standards and
business moral standards.
9. GUC protects the environment safe and sound, cherishes the global resources and
implements environmental protection habits in daily life.
Looking ahead, GUC will continue to execute its strategy prudently and utilize core
competence. GUC will strive to run its operation with honesty and integrity and act as
a benchmark of corporate social responsibility. GUC will bring happiness and balance
to its employees and contribute to implement educational programs in environmental
protection and conservation. GUC will embrace the era of cloud computing, focus on
digital opportunities and face the challenge of new times. GUC will persist in
strengthening its corporate governance, corporate social responsibility and sustainable
business performance to maximize the benefit of corporate value, shareholders and
stakeholders and create a brighter future for the society.
Global Unichip Corporat ion
F. C. Tseng
Chairman
Jim Lai
President
4
2. Company Profile
2.1 An Introduction to GUC
Founded in January 1988 and headquartered in Hsinchu, Taiwan, GLOBAL UNICHIP
CORP. (GUC) is the Flexible ASIC LeaderTM whose customers target IC devices to
leading edge computing, communications and consumer applications. GUC’s Flexible
ASIC ModelTM offers full-spectrum services to satisfy today’s innovative technology
companies’ unique operational and technological needs.
With close cooperation with TSMC and major IC backend service suppliers, GUC
combines advanced technology, lower-power consumption and embedded CPU design
methodology for ASIC design of advanced communication, computing and consumer
electronics. GUC pursues excellent thinking to punctually delivers products of lower
power-consumption, high speed, and great quality. GUC aims to innovate and assist
IC visionary customers to reach the next level of leadership in their markets.
Based in Hsin-chu, Taiwan GUC has developed a global reputation with a presence in
China, Europe, Japan, Korea, and North America. GUC is publicly traded on the
Taiwan Stock Exchange under the symbol 3443.
2.2 Market Overview
2.2.1 Current Status of the Industry and Future Development
GUC is the first company dedicated in developing IP and providing SoC design and
turnkey services in Taiwan. The IC design industry is characterized by the
miniaturization in size, cost and time-to-market. SoC (System on a Chip), which
encompasses multiple and powerful functions in one single tiny chip, is certainly the
future to be. The design however involves much higher complexity and difficulties,
wherein the concept of piling building blocks was introduced. SIPs are just like
building blocks. With access to verified and re-usable SIP, engineers are able to
design and develop a complete system within short timeframe.
According to industrial estimation, in the near future, more than 90% of each
ten-million gate level SoC design, excluding memory, will be formed by IP. Only the
design firms who are able to acquire a quantity of high-performance IP within short
time frame and successfully and rapidly integrate all IP into one design system will
excel. The trend has given rise to a niche division-of-work in the semiconductor
supply chain, that is, the supply of professional and commercialized IP.
5
Another industry trend is the closer than ever collaboration between foundries and
design service firms. As the logic gate counts in IC design go higher, they require
much higher precision and expertise in the wafer manufacturing process. It is
therefore critical for foundries and design service firms to tie-in Cell Library and
manufacturing process together at the beginning of product development. Furthermore,
as the process technology approaching nanometer scale, it will also enhance tie
between foundries and design service firms.
The IC design industry in Taiwan has been enjoying great opportunities. The revenue
of Taiwan’s fabless IC design firms rank second in the world, only after the US. There
are more than 200 fabless IC design houses in Taiwan, well supported by the most
advanced technologies provided from the world’s two leading foundries, TSMC and
UMC. As more and more design houses adopt high-end process technologies to
heighten the performance of their design products and the complexity increased has
brought about various challenges for design service providers in the fields of IP
synthesis and verification, and in DFT/DFM. Furthermore, the fees for their
non-recurring engineering services, companies have to focus on their core design
competence. In addition, IDM ASIC customers will adopt fabless ASIC companies
while more and more IDMs are going fab-lite and the system companies’
differentiation is becoming a trend, those are design services providers committed to
find commercial opportunities from these in the future.
2.2.2 The Supply Chain of Taiwan Semiconductor Industry
The top-down supply chain of Taiwan’s semiconductor industry is divided into design,
wafer manufacturing, packaging and testing. Since 1980s, the semiconductor industry
in Taiwan has been led by foundry business, followed by packaging and testing, then
design service. The pie was changed since 1997 when the revenues from IC design
services surpassed those from packaging and testing business, making design sector as
significant as foundries and packing/testing in Taiwan.
IC designIC
manufacturingSubstrate Lead frame
IC packaging
IC testingChemical
Materials
IC
design services
(IPs ; EDA tools)
: core industry
: related industry
Up stream Mid stream Down stream
6
2.2.3 Future market supply and demand situation
According to forecasts made by Gartner, global semiconductor industry will keep
growing in the near future and estimated worldwide semiconductor revenue may
reach US$316 billion. In 2011, the total IC industry revenue of Taiwan amounted to
NT$1,563 billion, indicating a 11.7% decline over the previous year. The IC design
alone declined about 15.2 % as well. In terms of sales growth, Asia Pacific area will
remain as the region of the fastest growth.
Figures of 2011 Taiwan IC Industry Revenue (table 1)
Unit: NT$ 100 Million
2008 2009 2010 2010
Growth
Rate
2011 2011
Growth
Rate
2012
(e)
IC Industry
Total Rev.
13,791 12,789 17,693 38.3% 15,627 -11.7% 16,644
IC Design 3,749 3,859 4,548 17.9% 3,856 -15.2% 4,126
IC Manufacturing 6,542 5,766 8,997 56.0% 7,867 -12.6% 8,321
Foundry 4,469 4,082 5,830 42.8% 5,729 -1.7% 6,173
IDM 2,073 1,684 3,167 88.1% 2,138 -32.5% 2,148
IC Package 2,437 2,198 2,870 30.6% 2,696 -6.1% 2,900
IC Test 1,063 966 1,278 32.3% 1,208 -5.5% 1,297
IC Product 5,822 5,543 7,715 39.2% 5,994 -22.3% 6,274
Global Semi
Growth Rate
-2.8% -9.0% 31.8% 31.8% 0.4%
Note： (e) means (estimate)
Source：TSIA ；IEK(2012/03)
2.2.4 Growth of the Future Market
IC design used to be a simple task without the application of complex design
methodologies. The picture has been changed along with the industry trending toward
miniaturization and the convergence of system on a chip (SoC). To cope with the
development of the technology changes, it is important for design service providers to
exercise internal Design Reuse and apply abundant external IP to develop SoC.
Along with the global IC projects migrate from 65nm to 40nm or even more advanced
process technologies, wafer foundries must place significant emphasis on design
services which have evolved from purely providing placement & routing toward
executing register transfer level (RTL) and developing synthesis. That trend signals
closer collaboration between foundries and design service providers. In the future, it
will be the service providers who have the know-how and capabilities to develop IP
platform for SoC applications and to synthesize process services, to stand out
competition and take the lead. As more and more design houses adopt high-end
process technologies to heighten the performance of their design products and the
7
complexity increased has brought about various challenges for design service
providers in the fields of IP synthesis and verification, and in DFT/DFM. Furthermore,
the fees for their non-recurring engineering services, companies have to focus on their
core design competence. In addition, international system customers will outsource
more to fabless ASIC companies while more and more IDMs are going fab-lite and
the system companies’ differentiation is becoming a trend, those are design services
providers committed to find commercial opportunities from these in the future.
2.3 Business Overview
2.3.1 Major Business
(A) Engage in research & development, production, testing and sales of: � Embedded memory, logic, and analog components for various application ICs; � Cell libraries for various application ICs; and
� EDA tools for various application ICs. (B) Provide technological support and consulting services related to the aforementioned products.
2.3.2 Main products and services:
(A) ASIC & wafers: Provide complete services from design, wafer manufacturing
to packaging and testing.
(B) NRE (Non-Recurring Engineering): Provide circuit design cell library and
various IPs required in the process of product design; provide circuit layouts
needed for mask making; subcontract mask making, wafer manufacturing,
dicing and packaging to vendors; conduct final testing to get prototype samples
for customers.
(C) MPW (Multiple-Project Wafer): MPW integrates multiple design projects of
different customers on one single mask and by one wafer engineer run. It is an
effective and fast time-to-market chip verification service with cost-sharing in
masking and wafer engineering run. Design engineers, before the phase of mass
production, are able to timely verify their prototype designs with advanced
process technologies and much lower costs.
(D) IP (Intellectual Property): These are silicon-verified reusable IC designs with
specific functions. With the rapid advancement of semiconductor processing
technologies, the design industry is trending toward multi-functional chips and
SoC (System on a Chip). Reusable IP help customers avoid redundant designs
and resources.
8
2.3.3 Revenue Breakdown by Product and Region
Turnkey
80%
NRE18%
Other2%
By Product
Asia48%
USA12%
Europe8%
Taiwan32%
By Region
9
2.3.3 Revenue Breakdown by Technology and Application
40nm
12%
65nm
44%
90nm
3%
0.13um
30%
0.18um & Above
11%
By Technology
Communication65%Computer
10%
Consumer22%
Other3%
By Application
2.3.5 Latest Technologies and New Products in 2011
� Achieved 1st silicon success in developing high technical barrier 10G KR IP in
40nm for 10G EPON and GPON market.
� Achieved key IPs- DDR2/ DDR3/LPDDR PHY and controller, SATA2/3 PHY,
USB3.0 controller, miniLVDS and LVDS. Achieved 1st silicon success and
compliance logos for SATA2/3 PHY and USB3.0 controller. Customers have
10
adopted them smoothly into HDTV and various SoC products.
� Achieved 1st silicon success in developing ADC and DAC IPs in 40nm for smart
phone. Customers have adopted them into LTE/GSM cell phone product.
� Successfully developed 40-nanometer thermal sensor IP for DVFS function
(Dynamic Voltage Frequency Scaling) of smartphone application processors.
� Successfully developed 1.2 GHz in 40LP and 28HPM high speed ARM
Cortex-A9 dual cores for smartphone and tablet PC applications.
� Successfully developed and applied advanced 40nm on-chip memory BIST
(Built-in Self Test) and repair design flow to customer’s high-end digital TV SoC
project.
� Successfully developed and offered Integrated Passive Device (IPD) service to
effectively enhance miniaturization of WiFi module in mobile application.
� Successfully completed advanced 28-nanometer technology test chip tape-out for
a customer.
2.4 Business Development
IC design used to be a simple task without the application of complex design
methodologies. The picture has been changed along with the industry trending toward
miniaturization and the convergence of system on a chip (SoC). To cope with the
development of the technology changes, it is important for design service providers to
exercise internal Design Reuse and apply abundant external IP to develop SoC.
Thanks to the semiconductor cluster in Taiwan with thorough supply chain of
booming IC design houses, foundries, and packaging and testing support, design
service providers have expanded significantly, with a current number of more than 20
in Taiwan. As most Taiwanese IC design companies have alliance either with TSMC
or with UMC, accordingly design service providers belong to either one of the two
groups. There are also some services providers choose to work with Korean wafer
foundries or with the newly arisen foundries in China.
Along with the global IC projects migrate from 65nm to 40nm or even more advanced
process technologies, wafer foundries must place significant emphasis on design
services which have evolved from purely providing placement & routing toward
executing register transfer level (RTL) and developing synthesis. That trend signals
closer collaboration between foundries and design service providers. In the future, it
will be the service providers who have the know-how and capabilities to develop IP
platform for SoC applications and to synthesize process services, to stand out
competition and take the lead.
11
2.4.2 New Product Development Plan
To develop high-end and high-in-demand Intellectual Properties (IPs): high speed
interface like SerDes、 XAUI、PCIe、eDP、sRIO etc and GPON/EPON、Burst CDR、
DDR Memory Controller、LVDS、Voltage Regulator、Power Management Solution、
ADC/DAC、Data Converter、Clock Generator, etc. To offer complete silicon IP, SOC
integration and design platform solution for applications of networking PON, mobile
devices which include smartphone and tablet PC, and digital television. Continue to
offer high-end design and turnkey services in 90nm, 65nm, 40nm, and 28nm
technologies.
2.4.3 Long Term and Short Term Business Development Plan
Short-term:
(A) Develop world-class flagship customers via GUC’s Europe, US,
China, Korea and Japan offices advantaged by geographical
proximity.
(B) Provide multiple platforms and total solutions to different
applications and markets to shorten customers’ time to market.
(C) Promote advanced technology MPW projects to lower customers’
risk.
(D) Raise entry barriers by developing advanced know-how and
product differentiation. Provide support services for the advanced
minus 90nm, 65nm, 40nm and 28nm below process technologies.
(E) Continuously provide quality service to existing customers to retain
long term collaboration.
(F) Enhance cooperation with upstream and downstream partners.
(G) Provide complete IP solutions and SoC development according to
product applications.
(H) Carry out one-stop shopping strategy and provide full services to
end customers.
Long-term:
(A) Establish offices in global market to promote brand name and
worldwide market share.
(B) Enhance new business opportunities when more and more IDMs
are going fab-lite.
(C) Differentiate ourselves from competitors by providing high
value-added IP.
(D) Develop leading-edge process flow and products via closer
cooperation with foundries.
(E) Focus on core technologies and seek technological cooperation
12
with domestic and foreign system integrators.
(F) Strengthen strategic alliance and cooperation with IP suppliers.
(G) Strengthen frontend SoC design capability and develop all kinds of
application platform structures.
(H) Continue to fortify cooperation with upstream and downstream
vendors.
2.4.4 Competitiveness, Strength, Weaknesses and Counter Strategies
(A) Competitive advantages
a. Abundant experience in IP development and integration
GUC has successfully developed a series of IP in accordance with
design reuse guidelines. GUC not only licenses its self-developed IP
to IC design houses and system houses at home and abroad, but also
provides services in integrating IP into customer projects.
b. Capability to design and develop application platform
With strong design capability, GUC can independently develop fully-verified application in multimedia, Solid State Drive, surveillance and mobile TV platform on which the number of IP can be modified according to customer demand. Customers can therefore rapidly prototype their product designs and shorten the time to market. In addition, GUC has further developed an ESL certification platform, Janus I, to speed up customers’ design flow. Such platform and accompanying design capabilities are only available in few large IDMs or design houses.
c. Mature and complete design and verification flow
GUC’s design and verification flow has been proven by numerous
customer projects. Such flow serves to shorten the time needed for
IC verification, hence reducing risks. Customers are able to complete
product design within the shortest timeframe.
d. Keep abreast of advanced process design technology
GUC has been committed in conducting advanced process
technology projects and has successfully completed many 90nm and
65nm projects. This year, we are proud of our achievement in
securing several advanced 40nm design projects and collaborating on
28nm advanced designs with our important clients and strategic
partners. Our abundant hands-on experiences will support and
13
guarantee the realization of our customers’ advanced technology
projects.
e. Technology-oriented R&D team
GUC has always been putting emphasis on developing its own
technologies. Over the past years, GUC has formed an
experience-rich R&D team with reliable design resources and
know-how. Customers are well-supported by our R&D force to
develop international-standard products.
f. Complete SIP partnership
In order to increase the quantity and types of SIP available for
customers, GUC in addition to developing home-grown SIP, also
collaborates closely with leading worldwide SIP vendors such as
ARM, MIPS, Synopsys, TCI, AnalogBits, Cadence and TSMC.
GUC guarantees to provide complete IP solutions for customers’
projects.
g. Multiple service model
GUC provides one-stop shopping service to customers with thorough
SoC solutions, and supports customers from design phase to mass
production phase. GUC has built up all the important service links in
the IC manufacturing flow. Customers are free to choose different
services and deliveries based on their technology capacity and needs.
h. Providing IP trading service through IP Mall
GUC offers a IP trading platform for our IP providers and users.
Customers therefore have accesses to information and services of
certain IP, as well as the verification information and quality
assurance of these IPs through a single contact window.
(B) Strength, weaknesses and counter strategy for long-term development
a. Strength
a-1. Specialized division of work in the semiconductor industry
Taiwan’s IC industry has a unique infrastructure of vertical
14
disintegration, characterized by a cluster of IC design, advanced IC
foundry and back-end packaging and testing firms. The infrastructure
creates an extremely favorable environment for the development of
design services. For example, newly developed SIP can be rapidly
verified by the two world-class IC foundries to minimize failures and
risks. With the closely-tied cooperation between IC foundries and
service foundries, Taiwanese design service firms are able to offer
process-verified SIP to foreign customers who are accordingly very
likely to become the clients of the two IC foundries in Taiwan.
Taiwan has a good chance to become the international ISP trading
center.
a-2. Abundant IC design companies and downstream system
companies
There are a huge number of Taiwanese system manufacturers
engaged in ICT applications and consumer electronics. Whether these
system manufacturers are OEM vendors or own brand-name
developers, their systems in line with technology trend require
multiple and powerful functions integrated on one single chip. The
cooperation between design service firms and system integrators
plays a critical role in enhancing Taiwan’s SoC industry.
a-3. Government support
The Taiwanese government has been actively implementing the
policy of building Taiwan into a Green Silicon Island. Plans and
measures have been taken to successfully develop the ICT-related
and semiconductor industries. These efforts have created a pool of
qualified talents and well-established infrastructure raising Taiwan’s
global competitiveness.
b. Weaknesses and counter measures
b-1. Shortage of design talents
The IC industry boom in Taiwan is challenged by short of design
talents. The costs for design service firms are very high to find,
recruit and retain qualified talents.
Counter measures:
15
I. Provide internal and professional external trainings to cultivate
own talents. Strengthen cooperation and exchange with leading
industrial players and the academies to sustain our technology
competitive edge.
II. Strengthen project management capability and global logistics
operation.
III. Reduce dependence on manpower by applying innovative and
automate design and production flow.
b-2. Growth prospect causes fierce competition
As design service becomes the future to be, the industry has attracted
a great deal of new entries into competition.
Counter measures:
I. Develop niche and high value-added SIP to differentiate GUC
from competitors and to avoid price-cut competition.
II. Provide special-application platform in response to
time-to-market demands.
It is foreseen that the industry will keep growth momentum. Our company has been
committed in the research and development of the design flow and technologies in the
advanced 90nm, 65nm, 40nm, and 28nm process nodes as well as in the development
and improvement of multi-media platform. Furthermore, GUC will focus on
providing more complete system application solution for networking PON,
smartphone & tablet and DTV. Besides, the company’s another focus of research lies
on the ultra-high-speed interface IP such as SerDes, XAUI, PCIe, SATA, and eDP
which are widely applied in high value-added telecommunication equipments and will
also develop 2.5D/3D/IPD design flow and assembly & testing technology. By way of
developing and launching above-mentioned new technologies and new applications,
GUC hopes to deliver revenue growth in the year of 2012.
2.5 Awards and Recognitions Received in the Reporting Period
� Awarded “one the Top 10 companies” and rated GUC “A+” in the 8th
Information Disclosure Assessment and Evaluation of Listed Companies by
Taiwan Stock Exchange and GreTai Securities Market.
� Awarded “2011 Outstanding APAC Semiconductor Company Award” by the
Global Semiconductor Alliance.
� Awarded “2011 Innovation Award of Monte Jade in Taiwan” by Monte Jade
16
Science and Technology Association of Taiwan
� Received “2011 Occupational Health Promotion Certification” from the Public
Health Bureau, Hsinchu City Government.
2.6 Membership
� The Allied Association for Science Park Industries
� Chinese Professional Management Association of Hsinchu
� Taiwan Semiconductor Industry Association
� 3DIC SIG, Special Interest Group
� Global Semiconductor Association
2.7 Financial Highlights
Unit: NT$ Thousand
6,988,940
9,282,063
8,269,806
10,271,392
9,147,243
2007 2008 2009 2010 2011
Revenue
Unit: NT$ Thousand
17
741,040
805,359
453,778
663,611 610,068
8,455 58,310 41,007 59,110 82,662
2007 2008 2009 2010 2011
Income before Taxes and Provision for Taxes
Income before Taxes Provision for Taexes
Unit: NT$ Thousand
367,228
268,585 218,419 226,221
157,440
474,229
721,758
883,774 903,244
814,985
2007 2008 2009 2010 2011
Capital and R&D Expenditures
Capital Expenditures R&D Expenditures
Unit: NT$ Thousand
18
3,630,515
4,020,773 4,074,386
4,688,777 4,895,728
1,149,360 1,246,985 1,319,749 1,335,669 1,340,119
2007 2008 2009 2010 2011
Assets and Capitalization - Year End
Total Assets Paid-in Capital
Unit: NT$ Thousand
3.28 3.42
1.99
2.99 3
0.54 0.39
2007 2008 2009 2010 2011
Dividends Distribution
Cash Dividends Stock Dividends
Unit: NT$ Thousand
19
732,585 747,049
412,771
604,501
527,406
442,504 480,089
263,950
400,701 402,036
2007 2008 2009 2010 2011
Net Income and Dividends Distribution
Net Income Dividends Distribution
20
3. Stakeholder Engagement
GUC stakeholders include stockholders, investors, employees, customers, suppliers,
governmental organization, communities and government. GUC’s CSR taskforce
includes Investor Relations Department, Legal, Sales, Human Resources Division,
Marketing Division, Operations, and Employee Facilities and Services Department.
These units compile stakeholders’ concerns through various channels; communicate
with them; and ensure implementation of appropriate initiatives and programs
responsive to those interests and concerns.
GUC Identification Procedure for Stakeholders’ Concerns:
GUC divisions most closely related to corporate social responsibility issues confirm
the direction of CSR and communicate the Company’s achievements to the public.
First, CSR related divisions follow the Company’s principles of CSR, identify
stakeholders and compile stakeholders’ concerns through various channels. Secondly,
GUC prioritizes the concerns according to their frequency and severity and integrates
stakeholders’ concerns into routine tasks and annual plans, and maintains flexibility to
incorporate ad-hoc issues into annual plans. GUC continues to promote and improve
projects related to stakeholder concerns. GUC believes that it’s imperative for the
Company to be responsible to its stakeholders and communicate with them through
various measures and channels to understand their needs and expectations from GUC,
and also take these needs and expectations into account for corporate social
responsibility policy and projects. GUC and its stakeholder communication measures
and channels are described in the following table; more detailed information can be
found in related chapters of this report.
21
Topics of Concern for GUC Stakeholders and Communication Channels
Stakeholder Stockholders & Investors Customers Employees Suppliers Community Government
Retail Investors: 1. Customer audit 1. Announcements 1. Information plat form for 1. CSR Report 1. Official docuements
1. Annual Shareholder Meeting 2. Customer meeting 2. Regular communication meetings suppliers 2. Corporate website 2. Communcation meetings or public hearings on
2. Annual Financial Report 3. Annual tech seminar 3. Employee suggst ion channels, 2. Regular meetings 3. Volunteer activities regulat ions
3. Communicate with GUC by phone and e-mail 4. Customer satisfaction survey such as HR e-mail and EFS 3. Corporate finanical reports
Institutional Investors: 5. Complied with customers' requests of service center 4. Responses to requests from government authorit ies
1. Semi-annual investor conference industry and social responsibility survey 4. Questionnaire, such as 5. Communication with government authorities through
2. non-deal roadshow or investment forum food satisfaction industry organizations
3. one-on-one and group meeting 5. Employee assistance program 6. Seminars
Economic Issues: 8. Organization and management change Social Issues: 8. Philanthropic activities Environmental Protection Issues:
1. Corporate governance 9. Employee bonus and dividend distribution 1. Labor relations 9. Communication with employees 1. Green product
2. Legal complance 10. Tax 2. Employee recognition 10.Fair recruitment 2. Wate management
3. Proprietary information protect ion 11. Product R&D 3. Occupational health improvement 11. Labor rights 3. Ecological preservat ion
4. Financial informat ion 12. Communication channels for Stakeholders 4. Salary and benefit s 12. Gender equality 4. Environmental protection expense
5. Share price 5. Training 13. Leadership 5. Cert ification of Environmentally Preferrable Products
6. Operational status 6. Partnership with customers
7. Investment plan 7. Employment
Communication Channels
Topics of Concerns
22
4. Corporate Governance
To obtain investors’ trust and secure corporate sustainability, GUC’s principles for
corporate governance include well-planned business strategy, well-supervised strategy
execution, maintenance on shareholders’ equity, and information disclosure at a
proper time. GUC’s four independent directors have established “Audit Committee”
and “Compensation Committee” to strengthen corporate governance and management
of board of directors. To ensure investors can access to latest update of GUC related
news, GUC discloses GUC’s news on operation, finance, board of directors and
annual shareholders’ meeting on GUC’s website and TWSE Market Observation Post
System .
4.1 Governance Structure
23
4.2 Board of Directors
GUC’s Board of Directors consists of nine distinguished members with a great
breadth of experience. Four of the nine members are independence directors. GUC’s
Board of Directors takes a serious and forthright approach to its duties and is a
dedicated, competent and independent Board. The Board supervises the Company’s
compliance with relevant laws and regulations; financial transparency; timely
disclosure of material information, and maintaining of highest integrity within the
Company. Secondly, the Board provides guidance to the management team of the
Company. The Board meets at least once every quarter.
The Chairman convened four regular meetings and two special meetings in 2011.
Dr. F.C. Tseng
Chairman; Vice Chairman of TSMC
Dr. F.C. Tseng is the Vice Chairman of TSMC and Chairman of Global Unichip Corp.
Prior to this post, Dr. Tseng served as Deputy Chief Executive Officer, President, and
Senior Vice President of Operations of TSMC. Dr. Tseng spent two years as President
of Vanguard International Semiconductor Corporation (VIS), which was derived from
the Industrial Technology Research Institute's (ITRI) Sub-micron Process Technology
Development Project and was Taiwan's first eight-inch IC facility.
Dr. Tseng led 110 specialists to spin off from ITRI's Electronics Research & Service
Organization (ERSO), and in 1987 he co-founded TSMC as a pioneer specializing in
the "foundry only" semiconductor manufacturing business. Dr. Tseng established a
solid technical base for TSMC's six-inch and eight-inch fabs.
From 1973 to 1986, Dr. Tseng served at ITRI-ERSO, where in 1976 he was one of the
pioneers in setting up the IC project in Taiwan. He was responsible for installing the
7.5 mm metal-gate CMOS process into the 3-inch line, which later was converted
smoothly to 4-inch under his management. In 1978, Dr. Tseng was promoted to plant
manager of the IC demonstration plant, where he was responsible for the production
24
and development of silicon-gate CMOS from 5 mm to 1.2. Under his supervision, he
established the capability to develop an advanced CMOS process.
He holds a Ph.D. in Electrical Engineering from National Cheng Kung University in
Taiwan. Dr. Tseng was named as one of the "Outstanding Alumni" by National
Cheng Kung University in 2000, and one of the "Ten Outstanding Engineers" in 1991
and "The Excellent Engineers" in 1982 respectively by the Chinese Institute of
Engineers and by Electronic Buyer's News as one of the Hot 25-Industry Executives
who made a difference in 1999.
Mr. K.C. Shih
Founder
K.C. Shih has more than 30 years of experience working in the high-tech industry. Mr.
Shih observed the emergence of the post-PC era when the demand for IC is migrating
from ASIC to SoC. In 1998, he founded Global Unichip Corp. with Dr. Nicky Lu and
Dr. Steve Lin, to be the world's first dedicated SoC Design Foundry. In recognition of
its leading market position and successful business model, TSMC invested and took
partnership with Global Unichip Corp. in 2003. Global Unichip Corp. has
successfully demonstrated its leadership in advanced SoC designs (i.e. 90nm, 65nm,
40nm and 28nm) and has listed on the Taiwan Stock Exchange in 2006.
In 1990, Mr. Shih was the President of Cadence Design Systems Inc. Mr. Shih then
founded Faraday Technology Corporation in partnership with UMC and served as the
Vice Chairman and CEO. Faraday is the first IC Design Service Company in the
world. Based on its ASIC expertise, Faraday provides ASIC technology and design
service to customers in Taiwan, the USA and other countries.
In 1983, Mr. Shih founded Suntek to develop under-$1,000 UNIX PC with NS32000,
targeting college students on the college local area network. Evaluating from revenue
figures, one may say that Suntek did not make the grade; however, it has indeed made
a profound impact on Acer.
25
While at M.I.T., Mr. Shih was an original member of the MULTICS team. MULTICS
was the first multi-processing, multi-programming, network operating system running
on ARPAnet. It was later re-written to become UNIX at Bell Labs. He then worked at
DEC involving in the design of the famous VAX computer. In 1980, he joined
National Semiconductor as Director of the MESA project, in charge of the NS32000
32bit microprocessor development.
Mr. Shih earned his Bachelor of Science degree in Physics from Chung Yuan
Christian University, Taiwan, his Master of Science degree from University of
Massachusetts, and Ph.D. studies in Electrical Engineering at M.I.T.
Mr. Jim Lai
President
Jim Lai has 27 years of experience in semiconductor and ASIC industries. Jim
currently serves as president of Global Unichip Corp.
Mr. Lai was promoted from TSMC North America to GUC in 2003 when TSMC
became the major shareholder of GUC. From 1992 to 2003, Jim served various
positions at TSMC North America, including director of emerging account, director
of design services and business manager responsible for the ASIC business unit.
Prior to TSMC, Mr. Lai co-founded ASICtronics, one of the earliest design service
companies to provide ASIC design consultation and libraries in the USA. Prior to
ASICtronics, Mr. Lai worked at Toshiba America, Knights Technology and LSI
Logic in various engineering positions in ASIC and CAD groups.
Mr. Lai received his Master of Science degree in Electrical Engineering from
University of California, Santa Barbara in 1984 and his Bachelor of Science degree in
Electrical Engineering from National Taiwan University in 1981.
26
Ms. Lora Ho
SVP, CFO, and Spokesperson of TSMC
Lora Ho is Senior Vice President of Taiwan Semiconductor Manufacturing Company
Limited (TSMC), Chief Financial Officer and Spokesperson.
Prior to joining TSMC in 1999, Ms. Ho served as Vice President of Finance and Chief
Financial Officer at Acer Semiconductor Manufacturing, Inc. (formerly known as
TI-Acer Inc.) from 1990 to 1999. Before that, Ms. Ho held various positions in the
accounting and finance fields that included Financial Controller at Thomas & Betts
Industries, Deputy Manager of Finance at Wyse Technology Taiwan Ltd., and Cost
Accounting Manager for Cyanamid Taiwan Corporation.
Ms. Ho was awarded "The Outstanding Financial Executive" in1993, in view of her
outstanding contribution to Financial Management during her service at TI- Acer Inc.
Ms. Ho received her EMBA from National Taiwan University in 2003 and her B.A.
degree from National Chengchi University in 1978.
Dr. Cliff Hou
Vice President of TSMC
Dr. Cliff Hou is TSMC’s Vice President of Research and Development. Prior to this
post, he was the Senior Director of Design Technology Division and Director of
Design Methodology Division at TSMC. Dr. Hou established TSMC’s Technology
27
Design Kits Development Teams and Reference Flow Development Teams. He also
leads Design-for-Manufacturability (DFM) task force at TSMC.
Dr. Hou received his B. S. degree in 1983 from National Chiao-Tung University, and
his Ph.D. degree in Electrical and Computer Engineering from Syracuse University in
1992.
Prior to joining TSMC in 1997, Dr. Hou was an Associate Professor at Kaohsiung
Polytechnic Institute in 1992, and prior to that, he worked at ITRI/CCL for front-end
design environment development and integration from 1993 to 1995 and at a local
consulting company for 0.5um and 0.35um physical verification methodology and
flow development from 1995 to 1997.
Dr. Hou has 15 U.S. patents and also serves as Technical Committee Member of
VLSI Symposium.
Mr. Benson W. C. Liu
Independent Director; Former Chairman and CEO of Bristol-Myers
Squibb (Taiwan) Ltd
Mr. Benson W.C. Liu, Independent Director, was the Chairman and General Manager
of Bristol-Myers Squibb Taiwan (BMST) from Jan.1999 through March 2005. Mr.
Liu joined BMST in 1978 as Accounting Manager and he progressed within the
Company through Finance Manager, Controller, Finance Director, VP Finance and
Administration and finally Chairman and General Manager.
Mr. Liu retired from BMST in March 2005 after 28 years of dedicated services to this
leading global Pharmaceutical and Health Care Company. Prior to joining BMST, Mr.
Liu was an auditor of Deloitte, Taiwan for 5 years. He holds a bachelor degree in
Accounting from Soochow University, a master degree in International Business
Administration from Northrop University, USA.
28
Mr. Liu is active in participating public services through NPO organizations like
Chinese Corporate Governance Association and Chinese Professional Manager
Association. In August 2011, He was appointed by the Board of Vanguard
International Semiconductor Corporation as a board member of Compensation
Committee during the period from September 2011 to June 2012. He was awarded
Financial Manager of the Year by the Chinese Professional Manager Association in
1985, Outstanding Alumni of the Accounting Department of Soochow University in
1986 and Financial Manager of The Year of Bristol-Myers Squibb Company
International Group in 1989.
Dr. Chein-Wei Jen
Independent Director; Former Dean of Institute of Electronics at
National Chiao Tung University, Taiwan
Dr. Chein-Wei Jen has retired from the Department of Electronics Engineering,
National Chiao Tung University, Taiwan since 2004. During his academic career he
also served as the Chairman of the Department of Electronics Engineering, from 1989
to 1991 and the Director of the Institute of Electronics from 1991 to 1994 at the same
university.
He has supervised over 25 PhD students and many Master students in the area of
System-on-Chip design, processor architecture, and multimedia signal processing.
Most of his students are now working in the academic and IC Design industry in
Taiwan. He holds seven patents and published over 50 journal papers and 100
conference papers in these areas. He has also received numerous research paper
awards and service awards from technical societies.
From 2004 to 2007 he was invited to join ITRI which is a government-sponsored
R&D organization in Taiwan and served as the Director of SoC Technology Center in
ITRI. From 2002 to 2007 he also served as one of the Coordinators of the National
SoC Program in Taiwan.
29
Dr. Jen received his B.S. degree from National Chiao Tung University in 1970, his
M.S. degree from Stanford University in 1977, and his Ph. D. degree from National
Chiao Tung University in 1983.
Dr. Wen-Yeu Wang
Independent Director; Ph. D., Stanford Law School, Professor of
College of Law at National Taiwan University
Dr. Wang is professor of law and director, Center for Corporate and Financial Law,
College of Law, National Taiwan University. He received law degrees from NTU,
Columbia (LL.M.) and Stanford (J.S.D.), respectively. During his tenure, he visited
and taught at well known law schools, including National University of Singapore and
PRC’s Peking University. In addition, he was a visiting professor of law at Stanford
from 1995-96, teaching a seminar on financial transactions; in fall 2007 he taught
“Corporate Governance in Greater China” seminar at Columbia. Principal research
subjects include business associations, financial regulations, and law and economics.
Before pursuing an academic career, professor Wang had practiced commercial law at
the international law firms of Lee and Li, Taipei (from 1985-1989), and Sullivan &
Cromwell, a Wall Street firm in New York City (1989-1991), respectively. Areas of
specialty include corporate law and business transactions.
From 2004 to 2006, professor Wang served as a commissioner at the Fair Trade
Commission. In addition, he has served in many important public and private
functions, i.e., as director or supervisor of the Taiwan Stock Exchange, Taiwan
Futures Exchange, and Taiwan Cooperative Bank. He also served as independent
director or reorganization supervisor for Taiwanese public companies; as arbitrators or
mediators in various commercial disputes. He has also participated in the drafting or
amendment of major economic and financial legislation, such as the Company Law
and the Securities and Exchange Law.
30
Dr. Chung-Yu Wu
Independent Director; Former President of National Chiao Tung
University, Taiwan
Dr. Chung-Yu Wu is Professor of Electronics Engineering Department of National
Chiao Tung University. He has served different roles at National Chiao Tung
University, including President of National Chiao Tung University, Dean of College
of Electric Engineering and Computer Science, Dean and Vice for Research and
Development, Funding Director of Division of Engineering and Applied Science,
Director of Institute of Electronics and Department of Electronics Engineering,
Chairman of Department of Electronics Engineering.
Dr. Wu received his B.S. degree from National Chiao Tung University in 1972, his
M.S. degree from National Chiao Tung University in 1976, and his Ph. D. degree
from National Chiao Tung University in 1980. He did his post-doctor research at
EECS from the University of California, Berkeley in 2002.
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4.3 Audit Committee
The Audit Committee consists of four independent directors. The Committee meets at
least once every quarter to assist the Board in carrying out its financial oversight
responsibilities and other duties as set forth in the Company Act, the Securities and
Exchange Act and other applicable laws and regulations. The Audit Committee
reviews matters which include the Company’s financial reports; auditing and
accounting policies and procedures; internal control systems; potential conflicts of
interests; material asset or derivatives transaction; offering or issuance of any
equity-type securities; hiring or dismissal of an attesting CPA or the compensation
given thereto; and appointment or discharge of financial, accounting, or internal
auditing officers.
The Committee has direct access to GUC’s internal auditors and CPA. The Committee
is authorized to retain and oversee special legal, accounting, business issues as it
deems appropriate to fulfill its mandate.
Mr. Benson W.C. Liu was Chairman of the Audit Committee, and convened for
regular meetings and two special meetings in 2011. All of them attended these
meetings in person.
4.4 Compensation Committee
The Compensation Committee consists of four independent directors. The Committee
meets at least once every year to assist GUC in mapping out GUC’s total
compensation and benefits policies, plans and programs, and in the evaluation and
compensation of GUC’s directors of the Board and executives.
Dr. Wen-Yeu Wang was Chairman of the Compensation Committee, and convened for
regular meetings and two special meetings in 2011. All of them participated in these
meetings in person.
4.5 Regulatory Compliance
GUC’s management team closely monitors both domestic and foreign government
policies and regulatory developments that could have any impact on GUC’s business
and financial operations. In 2011, GUC has not been subject to any monetary fines
and nonmonetary sanctions for noncompliance with any statutory laws and
regulations.
32
4.6 Code of Ethics and Business Conduct
To comply with any applicable laws and regulations, act ethically in all aspects of our
business, constantly and vigilantly promoting integrity and honesty, GUC’s Code of
Ethics and Business Conduct (the “Code”) applies to GUC and its subsidiaries, and
the Code requires that each employee bears a heavy personal responsibility to
preserve and to protect GUC’s ethical values and reputation. All employees, officers
and Board members must practice the Code. The principles of the Code are as
follows:
� All employees, officers and managers must understand and comply with the
Code.
� All employees should avoid any conflict of interest between themselves and the
Company.
� To maintain the highest standard of the Code, GUC does not allow any kinds and
any forms of corruption, bribery and illegal entertainment among employees,
vendors, customers and related parties.
To ensure and improve Code of Ethics and Business Conduct, GUC periodically holds
ethics compliance programs to demand all employees to abide by the Code. To
encourage an open culture of ethics compliance, GUC has implemented several
related policies that allow employees or any whistleblowers with relevant evidence to
report any ethical irregularities or a breach of the Code through “Irregular Business
Conduct Reporting”. (http://www1.guc-asic.com/guc_en/)
33
5. Employee Care
The linchpin of GUC’s success is its ability to continuously attract and develop talent.
GUC believes that talent is the most important asset for the Company’s growth.
Therefore, the Company has always been creating an innovative and multicultural
corporate culture and been devoted to providing career opportunities that offer
competitive compensation.
Based on the Company’s belief that “employees are the GUC’s most important asset”,
GUC provides reasonable and competitive compensation packages, attracting and
retaining outstanding employees who provide the synergy for GUC’s continued
growth. GUC’s total compensation includes salary, cash bonus/profit sharing, which is
based on individual expertise, job responsibility, operational performance and
achievement.
The cash bonus is distributed semi-annually, which provides timely reward and
encourages employees to contribute more. Based on governmental regulations, GUC
offers pension plan and employee group insurance plan.
GUC also offers open and transparent communication channels to strengthen
interaction between the Company and employees. Regular communication meetings
are held for various levels of managers and employees. Periodic employee satisfaction
surveys are conducted to ensure that the employees’ opinions and voices are heard,
and their issues are addressed and timely solved. GUC fosters harmonious labor
relations and creates a win-win situation for the Company and the employees.
In 2011, there was no labor dispute and loss.
5.1 Employment Status
In employees’ devotion and dedication lies GUC’s future development. GUC
periodically maps out annual corporate operational plan to decide the annual
divisional goals and workforce requirement to meet these goals. GUC’s Human
Resources division recruits talent via open and fair approaches, considering an
applicant according to his or her qualifications to the requirement of the position,
rather than race, gender, age, religion, nationality, or political affiliation. In GUC’s
recruitment policies, GUC ensures that all applicants and employees are treated
equally in aspects of hiring, talent development, evaluation and compensation.
At the end of 2011, GUC and its overseas subsidiaries had 447 employees, including
7 managers and 440 professionals.
34
5.1.1 GUC Workforce Structure
Professionals98%
Manager 2%
Employee by Job
Female25%
Male75%
Employee by Gender
35
21.7%
56.6%
19.2%
2.2%
0.2%
Employee by Age
21~30 31~40 41~50 51~60 61+
97
253
82
7 1
4
3
21~30 31~40 41~50 51~60 61+
Employee by Age
Professional Manager
36
110
1
330
6
Professional Manager
Employee by Gender
Female Male
58 62
37
78
56
1
2007 2008 2009 2010 2011
New Employee(2007-2011)
Professional Manager
37
5.1.2 Employee Retention
To increase employee retention and ensure work-life balance, GUC provides a work
environment with an avalanche of social and entertaining activities and on-job
training and career development program. In 2011, the turnover rate for all employees
was 11.5%. By gender, the turnover rate of male was 12.9% and 6.8% for female.
Turnover %
Male 12.94
Female 6.81
Total 11.5
5.1.3 Employee Recruitment
GUC recruits necessary professionals and managers of competence and high quality
via fair, open and well-designed approaches to meet the business and operational
demand in the future. Moreover, the Company strives to continuously attract young
and outstanding graduates to pursue a career with GUC.
GUC provides job opportunities for the disabled. By the end of 2011, GUC hired 6
disabled persons, more than 50% of 4-person-minimum labor regulation.
58 62
37
78
56
1
2007 2008 2009 2010 2011
New Employee(2007-2011)
Professional Manager
5.1.4 No Child Labor Policy
GUC complies with the law and never hires persons under 16 years old.
38
5.1.5 Performance Management Development and Individual
Development Program
The purpose of GUC’s “Performance Management Development” (PMD) and
“Individual Development Program”(IDP) is to develop employees’ potential and
enhance interaction and communication channels between employees and managers.
PMD and IDP include five principles:
� Individual employee should be responsible for his or her performance.
� Close cooperation of employees and managers
� Continued interaction and communication
� Performance and development are equally important.
� Performance differentiation
5.2 Employee Development
GUC is in a competitive industry and environment, and our employees’ capabilities
and knowledge have to be continually renewed to respond to our business challenges
successfully. Based on individual job function, work performance and career
development track, GUC emphasizes employee learning and development, providing
diversified and rich tailor-made learning resources and on-job plans to simultaneously
enhance our employees’ capability and fully develop employees to their maximum
potential.
2011 Training Program Headcounts Training Hours
Professional Training 1,122 2,273
Management Training 259 1,154
General Training 609 1,012
Language Training 16 141
Orientation for New Employees 71 595
Self-Inspiration Training 227 2,173
Digital Learning 2,258 2,043
Total 4,562 9,391
To provide the best learning environment and the most effective training, GUC offers
various learning platforms, including physical classrooms, virtual e-classrooms and
knowledge management system and learning feedback survey. GUC employees can
access to proper training courses via the following approaches:
39
� New Employee Orientation
� Training Roadmap
� Personal Efficiency Training
� Management Development Program
� Executive Level Forum
� Self Development
5.3 Total Salary Package
GUC believes that employees are the Company’s most important asset. GUC provides
various and competitive salary packages and profit-sharing bonus to attract and retain
excellent employees. GUC’s salary package policy includes:
� Base salary: twelve-month salary and two-month work bonus
� Employee profit-sharing: based on corporate business performance and
individual performance
� Bonus: business bonus, intellectual property bonus, referral bonus
� Welfare of GUC
40
GUC employees’ salary packages are based on their qualifications to the requirement
of the positions, rather than race, gender, age, religion, nationality, or political
affiliation. Not only does GUC proactively obey Taiwan labor regulations, but also
actively participates in salary-survey related associations to ensure GUC’s salary
packages are competitive.
GUC employees’ benefits are as below:
� GUC provides flexible leave programs which are better than the requirements of
the Taiwan Labor Standards Act. Our employees can also apply for leaves of
absence for reasons such as childcare, military service and medical treatment for
serious illness or injury.
� A Comprehensive Insurance Plan: Apart from Statutory Labor Insurance and
National Health Insurance, GUC provides group insurance plans to employees,
including life insurance, accident insurance, hospital insurance, and cancer
insurance.
� Pension Plan: GUC’s employee pension plan is set according to the Taiwan
Labor Standards Act.
� Free three-meal dining service and café.
� Free parking lots
� A library
� An outdoor basketball court
� A gym and a Wii game console
� GUC’s employees help the blind of Hsinchu Blind Welfare Association. The
blind offer their professional massage therapy to GUC’s employees at favorable
prices.
� Happy birthday parties
� GUC family day and one-day field trip
� Sponsorship of group travels and clubs
� Free uniforms
5.4 Employee Relations
GUC values harmonious employee relations and is committed to maintaining open
and transparent communication channels between the management level and
employees.
5.4.1 Open Communication Channels
To maintain open and transparent communication, regular communication meetings
41
are held for various levels of managers and employees; employees can access to
e-mails of managers and independent directors.
5.4.2 Employee Award
GUC sponsors various award programs and recognizes excellent achievements, both
as a team or on the individual level. Through these award programs, GUC aims to
encourage employees’ sustainable development that adds to the Company’s
competitive advantage. Award programs sponsored by GUC include:
� Corporate Transformation Award
� Intellectual Property Award
� Service Award
� Internal Teacher Award
5.4.3 Human Rights
GUC believes that all employees have to be fairly and equally treated. The Company
is dedicated to complying with internationally recognized human rights which include
UN Universal Declaration of Human Rights and international labor standards by the
International Labor Organization. Ceaselessly GUC strives to communicate with
customers, vendors, investors, employees and communities in terms of corporate
ethics and social value.
GUC also sets and promotes policies and measures to ensure gender quity and sexual
harassment prevention in accordance with employment laws, fostering a fair work
environment for employees of both genders. The Company provides training course
for all employees and includes related courses into the orientation training.
In 2011, there was not any case related to gender and race discrimination, and
corruption from employees.
5.4.4 Freedom of Assembly and Association
GUC complies with the law and never obstructs employees’ freedom of assembly and
association.
5.5 Integrated Solution for Work and Life
GUC believes that employees’ physical and mental well-being is the cornerstone of
efficiency and effectiveness. The Company works actively to build a healthy work
environment through health promotion activities, assistance programs, and
multi-dimensional practices.
42
5.5.1 Health Care and Health Promotion
GUC strives to address the health issues which employees care the most and plan
various programs to assist them to live a healthy life.
All new employees receive health examinations before the first work day. GUC offers
health examinations for employees every year. Moreover, the Company conducts
diverse health promotion activities, such aerobatic exercise courses, women’s health
care, massage service, lectures on physical and mental health.
5.5.2 Employee Assistance Program
To enhance employee’s physical and psychological health, GUC’s Employee
Assistance Program offers two free psychological counseling interviews and diverse
helpful activities to employees.
5.5.3 Multi-Dimensional Employee Assistance
GUC has one cafeteria and one café which provide various of dining options and
comfortable environments, including coffee, tea, bread, noodles, Taiwanese, Western,
vegetarian and specialized cuisine.
5.5.4 GUC Employee Welfare Committee
In 2011, GUC Employee Welfare Committee held the following activities that helped
employees to balance life and work:
� One-day spring field trip and one-day fall field trip
� One-day bicycle field trip
� Family movie day
� Sponsored thirteen clubs which are organized by employees, such as basketball,
table tennis and badminton games.
43
� Employee group travel
5.6 Corporate Security and Safety Management
To ensure that employees work in a safe environment and remain competitive in the
industry, GUC ceaselessly strives to proprietary information protection (PIP),
hardware safety and employee safety.
GUC periodically implements PIP training for all employees every year and improves
control flow of confidential information. If any employee breaks PIP regulations, he
or she will be penalized based on the extent of the breach.
GUC’s door access control system ensures that well-trained security guards can
perform CPR and safety related functions, such as reception courtesy, traffic control
and security check. Moreover, it allows authorized personnel to work in specific
areas.
5.7 Safety and Health
GUC strives to maintain a safety culture that ensures a safe and healthy workplace.
All GUC’s offices and facilities are designed to protect employees’ safety. All
entrances and exits are equipped with the door access control system. Major entrances
and exits are guarded around the clock by security guards. All parking lots and female
lavatories are equipped with emergency buttons. All electronic facilities and fire
equipments are examined periodically every year to comply with Taiwan related
regulations.
GUC pays considerable attention to emergency response. Every floor has its own
emergency response team. In 2011, GUC held drills for gas leaks, fire alarm, CPR and
other accident prevention.
In terms of safety and health-related activities, GUC considers environmental
protection, safety and health agenda as important corporate cornerstone. GUC
continues to enhance quality of service and product to achieve “zero accident” and
“sustainable environmental development” and to become a world-class benchmarking
company of environmental protection, safety and health. To provide a working
environment which can improve welfare of all employees, GUC complies with
Taiwan’s related regulations and is aggressively geared to international standards,
including accident prevention, safety and health improvement for employees and
corporate asset protection. We have implemented the following policies:
44
� Offer educational training programs to improve employees’ awareness of safety,
health and environmental protection issues.
� Continue to improve environment quality to reduce risks of safety and health.
� Map out every health enhancement plan to ensure employees’ physical and
psychological wellness.
� Regularly conduct safety and environment educational program to increase
employees’ awareness of safety and health issues.
� Ensure our operation and service to meet or exceed applicable regulations and
standards of environment protection, safety and health.
� Conduct our operation in an environmentally-sound way, so as to achieve green
design and provide green products and green services.
� Establish a safe working environment, prevent occupational injury and illness,
and keep employees healthy.
� Stay abreast of global issues of environment protection, safety and health,
evaluate risks and take effective risk management measures.
� Enhance employees’ awareness on issues of environment protection, safety and
health and sense of accountability for these issues, and build a friendly culture of
environment protection, safety and health.
� Establish a green supply chain and enhance performance of environment
protection, safety and health with suppliers through experience sharing and
collaboration.
� Aggressively communicate with shareholders, actively disclose and share
experience and information of safety and health, and encourage improvement in
the industry and society.
6. Social Participation
GUC’s activities of community involvement, social contribution, social work, public
welfare in 2011 were as follows:
� GUC’s employees donated NT$638,574 to Japanese people who suffered in
Tohoku earthquake and tsunami on March 11, 2011.
� Encouraged GUC’s employees to donate blood.
� Helped the blind of Hsinchu Blind Welfare Association. They offered their
professional massage therapy to GUC’s employees at favorable prices.
� Participated in the public welfare activities hosted by Accton’s Public Welfare
House to donate Christmas gifts to the children.
� Sponsored National Taiwan University Academic Development Foundation for
its IC-related or system-on-chip research.
� Sponsored Taiwan Association of Cloud Computing to host its 7th Embedded
45
System Conference.
� Sponsored Taiwan IC Design Society’s academic conferences.
� Sponsored Industrial Technology Research Institute to host 2011 International
VLSI Conference.
� Shared GUC audit committee’s experience with Taiwan Corporate Governance
Association.
7. Environmental Protection
GUC believes its environmental protection should not only comply with domestic
legal requirements, but also implement governmental plans for resource recycling,
waste disposal and garbage separation. In addition, GUC reduces the usage of paper
cups and disposable plastic tableware for environmental protection and the best use of
resources. GUC has been committed to prevent pollution, ensure efficient use of
resources, prevent accidents, improve employee safety and health and protect property.
The aim is to create a work environment that upholds the well-beings of our
employees and communities. GUC’s acknowledges responsibility for environmental
protection. Not only does GUC comply with the environmental regulations in Taiwan,
but also tracks new global environmental issues. Meanwhile, GUC shares
environmental protection knowledge and experience and offers recommendations to
suppliers to face various new challenges together.
Our commitments and implementations are as follows:
� Execute the standards of “Green Energy-saving Design” and provide
energy-saving products that comply with environmental protection regulations
and customers’ requirements.
� Use package materials that comply with environmental protection regulations for
waste reduction and resource recycling.
� Increase employees’ fundamental responsibility and awareness of environmental
protection, source recycling and energy saving through educational training and
propaganda.
� Continue to execute energy-saving management and resource recycling.
� Comply with governmental environmental protection regulations and fully assist
the authorities in carrying out environmental protection affairs.
7.1 Green Procurement and Production
Global climate change has become a major concern around the globe. GUC, while
ensuring that the quality of its products remains high, has introduced a series of
environmentally friendly, energy saving and carbon reduction policies in response to
the most significant environmental issues. GUC's environmental policies and concepts
46
have extended to its entire supply chain. GUC not only engages in environmental
protection, but also requests and assists suppliers to establish a green supply chain.
GUC requires suppliers to meet the following demands:
� Establishment of a dedicated taskforce of employees to ensure that all products
meet various national & client environmental regulations or requirements.
� Prohibit the use of environmentally harmful materials as defined in RoHS
regulations .
� It’s required for suppliers to provide the “environment material analysis report on
production material” by the third party, such as SGS.
� Suppliers are required to sign the "Conflict-Free Minerals Warranty" to certify
their minerals using in its products are not originated from the regions controlled
by non-governmental military groups or unlawful military factions.
GUC's electronics raw materials supply and waste management systems all strictly
comply with international environmental regulations and client expectations,
including:
� EU RoHS compliance
� EU PFoS Directive
� REACH (Registration, Evaluation, Authorisation and Restriction of Chemical
substances)
� WEEE (Waste Electrical and Electronic Equipment directive)
� China RoHS compliance
� JIS C 0950: 2008
� Korea RoHS compliance
In the long term, in order to protect stakeholder interests and meet EICC(Electronic
Industry Code of Conduct,EICC) standards, GUC will implement regular inspection
of its raw material supply process and strengthen its internal control mechanisms to
ensure that raw materials from areas of conflict do not enter into the production
process; thereby ensuring the continuation of safe and secure work environments; the
protection of employee rights and interests; and GUC's capability to fully leverage its
CSR capabilities and duties with regard to environmental responsibility in the
production process.
7.2 Green Product
GUC’s products take both quality and environmental impact into account. GUC
believes that green products need to consider the entire product life cycle, including
raw material mining, transportation, product manufacturing, use, and waste disposal
47
to thoroughly evaluate environmental impact. The product carbon footprint, water
footprint, or other environmental impact footprints are important indicators in the
environmental performances of products. Therefore, it’s imperative for GUC to ask
suppliers to perform good hazardous substance management, pollution prevention,
energy saving, waste reduction and other clean production measures to establish a
green supply chain.
As part of its initial product design phase, GUC uses a life-cycle thinking
management method in which environmental impact factors of a product's life
cycle—from its initial production to the final disposal stage—are included in product
design considerations. Moreover, GUC invests significantly in research and
development expense to design innovative, energy-saving technology, which is then
included in design parameters. Above all, implementation of “Reduce, Reuse, and
Recycle” design philosophy not only ensures the efficient use of resources, but also
lowers resource consumption, and reduces the amount of polluting emissions.
7.2.2 Low Power Design
To offer customers both cost and product competitive advantages competitive cost
advantage, GUC's System-on-Chip integrated technology effectively simplifies the
product structure and lowers power consumption. GUC cooperates closely with all
suppliers to enhance production technology to upgrade product performance.
Meanwhile, GUC has implemented energy-saving and carbon-reducing procedures
into the manufacturing process to help lower energy consumption and polluting
by-products. Therefore, GUC can realize an environmentally friendly and efficient
design and manufacturing process, which has created a win-win situation for both
customers and the environment.
7.2.3 Green Materials
To ensuring that all materials used its product lines meet EU ROHS compliance
standards, EU REACH policies, and other restrictions regarding prohibited industrial
materials, GUC has committed itself to the use of Halogen free materials and a
manufacturing process which emphasizes the reduced use of chemical substances as a
way to prevent environmental degradation. The Company hopes that through the
concrete application of criteria dictating the use of environmentally friendly materials,
it can effectively reduce CO2 and other greenhouse gas emissions and help mitigate
greenhouse effect on climate change.
48
7.2.4 Green Transportation
GUC requires that suppliers, both during on-site operations and transportation, use
recycled materials and make efforts to reduce the amount of consumable materials
being used. For example, the reuse of plastic trays for IC products, and the use of
anti-electric-static-damage black boxes or other reusable materials when storing and
delivering products reduce the need for paper-based containers. Furthermore, GUC
has itself reduced the use of paper-based documents by developing an electronic
documentation and file system for logistic applications.
7.3 Green Life
7.3.1 Internal Resource Reduction
As a member of the global village, GUC has internal policies regarding reducing
energy consumption and CO2 emission reduction. For instance, GUC sets interior air
con temperature at 26oC and installs water-saving faucets.
7.3.2 e-Document
GUC has reduced the use of paper-based documents by developing an electronic
documentation and file system for logistic applications.
7.3.2 Recycle
GUC has dedicated to environmental protection and green education by recycling
waste and reusing.
8. Appendix
GRI (Global Reporting Initiative) Index
49
50
Global Reporting Initiative (GRI) 3.1 Index
● Fully disclosed ◎◎◎◎ Partially disclosed ○ Not disclosed or Not Applicable
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
1 Strategy and Analysis
1.1 Statement from the most senior decision-maker of the
organization. ● 1. Letter from the Chairman and CEO 2
1.2 Description of key impacts, risks, and opportunities. ● 1. Letter from the Chairman and CEO
2.4 Business Development 2, 10-15
2 Organizational Profile
2.1 Name of the organization. ● 2.1 An Introduction to GUC 4
2.2 Primary brands, products, and/or services. ● 2.3 Business Overview 7-10
2.3 Operational structure of the organization, including main divisions,
operating companies, subsidiaries, and joint ventures. ● 2.1 An Introduction to GUC 4
2.4 Location of organization’s headquarters. ● 2.1 An Introduction to GUC 4
2.5
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.
● 2.1 An Introduction to GUC 4
2.6 Nature of ownership and legal form. ● 2.1 An Introduction to GUC 4
2.7 Markets served (including geographic breakdown, sectors served,
and types of customers/beneficiaries). ● 2.2 Market Overview 4-7
2.8 Scale of the reporting organization. ● 2.1 An Introduction to GUC 4
51
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
2.9 Significant changes during the reporting period regarding size,
structure, or ownership. ●
2.3 Business Overview
2.4 Business Development 7-10, 10
No significant changes during the
reporting period
2.10 Awards received in the reporting period. ● 2.5 Awards and Recognitions 15
3 Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information
provided. ● Overview 1
3.2 Date of most recent previous report (if any). ● Overview 1
3.3 Reporting cycle (annual, biennial, etc.) ● Overview 1
3.4 Contact point for questions regarding the report or its contents. ● Overview 1
3.5
Process for defining report content including: Determining
materiality; Prioritizing topics within the report; and Identifying
stakeholders the organization expects to use the report.
● 3. Stakeholder Engagement 20-21
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries,
leased facilities, joint ventures, suppliers). See GRI Boundary
Protocol for further guidance.
● Overview 1
3.7 State any specific limitations on the scope or boundary of the
report (see completeness principle for explanation of scope). ● Overview 1 No specific limitations
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly
affect comparability from period to period and/or between
organizations.
○ The basis for this report mainly covers
GUC Taiwan.
52
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
3.9
Data measurement techniques and the bases of calculations,
including assumptions and techniques underlying estimations
applied to the compilation of the Indicators and other information
in the report. Explain any decisions not to apply, or to substantially
diverge from, the GRI Indicator Protocols.
● Overview 1
3.10
Explanation of the effect of any re-statements of information
provided in earlier reports, and the reasons for such re-statement
(e.g. mergers/acquisitions, change of base years/periods, nature of
business, measurement methods).
● Overview 1 No such occurrence.
3.11 Significant changes from previous reporting periods in the scope,
boundary, or measurement methods applied in the report. ● Overview 1 No such occurrence.
3.12 Table identifying the location of the Standard Disclosures in the
report. ● Global Reporting Initiative Index 49-63
3.13 Policy and current practice with regard to seeking external
assurance for the report. ○
4 Governance, Commitments, and Engagement
4.1
Governance structure of the organization, including committees
under the highest governance body responsible for specific tasks,
such as setting strategy or organizational oversight.
● 4.1 Governance Structure 22
4.2 Indicate whether the Chair of the highest governance body is also
an executive officer. ● 4.2 Board of Directors 23-30
53
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
4.3
For organizations that have a unitary board structure, state the
number of members of the highest governance body that are
independent and/or non-executive members.
● 4.2 Board of Directors 23-30
4.4 Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body. ●
3. Stakeholder Engagement
4.3 Audit Committee 20-21, 31
4.5
Linkage between compensation for members of the highest
governance body, senior managers, and executives (including
departure arrangements), and the organization’s performance
(including social and environmental
performance).
● 4.4 Compensation Committee 31
4.6 Processes in place for the highest governance body to ensure
conflicts of interest are avoided. ● 4.3 Audit Committee 31
4.7
Process for determining the composition, qualifications, and
expertise of the members of the highest governance body and its
committees, including any consideration of gender and other
indicators of diversity.
● 4.2 Board of Directors 23-30
4.8
Internally developed statements of mission or values, codes of
conduct, and principles relevant to economic, environmental, and
social performance and the status of their implementation.
● 4.3 Audit Committee
4.5 Regulatory Compliance 31
4.9 Procedures of the highest governance body for overseeing the
organization’s identification and management of economic, ● 4.3 Audit Committee 31
54
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
environmental, and social performance, including relevant risks
and opportunities, and adherence or compliance with
internationally agreed standards, codes of conduct, and principles.
4.10
Processes for evaluating the highest governance body’s own
performance, particularly with respect to economic, environmental,
and social performance.
● 4.4 Compensation Committee 31
4.11 Explanation of whether and how the precautionary approach or
principle is addressed by the organization. ● 4.3 Audit Committee 31
4.12
Externally developed economic, environmental, and social
charters, principles, or other initiatives to which the organization
subscribes or endorses.
● 3. Stakeholder Engagement 20-21
4.13
Memberships in associations (such as industry associations) and/or
national/international advocacy organizations in which the
organization: * Has positions in governance bodies; * Participates
in projects or committees; * Provides substantive funding beyond
routine membership dues; or * Views membership as strategic.
● 2.6 Membership in Industry Associations 16
4.14 List of stakeholder groups engaged by the organization. ● 3. Stakeholder Engagement 20-21
4.15 Basis for identification and selection of stakeholders with whom to
engage. ● 3. Stakeholder Engagement 20-21
4.16 Approaches to stakeholder engagement, including frequency of
engagement by type and by stakeholder group. ● 3. Stakeholder Engagement 20-21
55
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
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.
● 3. Stakeholder Engagement 20-21
Management Approach and Performance Indicators
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 and governments.
● 2.7 Financial Highlights
6. Social Participation 16-19, 44
EC2 Financial implications and other risks and opportunities for the
organization’s activities due to climate change. ○
EC3 Coverage of the organization’s defined benefit plan obligations. ● 5.3 Total Salary Package 39-40
EC4 Significant financial assistance received from government. ● 2.7 Financial Highlights 16-19
EC5 Range of ratios of standard entry level wage by gender compared
to local minimum wage at significant locations of operation. ◎◎◎◎ 5.3 Total Salary Package 39-40
EC6 Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation. ● 7.1 Green Procurement and Production 45-46
EC7
Procedures for local hiring and proportion of senior management
hired from the local community at significant locations of
operation
● 5.1 Employment Status 33-38
EC8 Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, ● 6. Social Participation 44-45
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GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
or pro bono engagement.
EC9 Understanding and describing significant indirect economic
impacts, including the extent of impacts. ○
GUC does not evaluate indirect economic
impacts.
Environmental
EN1 Materials used by weight or volume. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN2 Percentage of materials used that are recycled input materials. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN3 Direct energy consumption by primary energy source. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN4 Indirect energy consumption by primary source. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN5 Energy saved due to conservation and efficiency improvements. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN6
Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements as a
result of these initiatives.
○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN7 Initiatives to reduce indirect energy consumption and reductions
achieved. ○
Not applicable because GUC outsources
all manufacturing to suppliers.
EN8 Total water withdrawal by source. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
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GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
EN9 Water sources significantly affected by withdrawal of water. ○ No significant impact
EN10 Percentage and total volume of water recycled and reused. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN11
Location and size of land owned, leased, managed in, or adjacent
to, protected areas and areas of high biodiversity value outside
protected areas.
○ No such occurrence
EN12
Description of significant impacts of activities, products, and
services on biodiversity in protected areas and areas of high
biodiversity value outside protected areas.
○ No such occurrence
EN13 Habitats protected or restored. ○ No such occurrence
EN14 Strategies, current actions, and future plans for managing impacts
on biodiversity. ○ No such occurrence
EN15
Number of IUCN Red List species and national conservation list
species with habitats in areas affected by operations, by level of
extinction risk.
○ No such occurrence
EN16 Total direct and indirect greenhouse gas emissions by weight. ○
EN17 Other relevant indirect greenhouse gas emissions by weight. ○
EN18 Initiatives to reduce greenhouse gas emissions and reductions
achieved. ○
EN19 Emissions of ozone-depleting substances by weight. ○ GUC does not use ozone-depleting
substances.
58
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
EN20 NOx, SOx, and other significant air emissions by type and weight. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN21 Total water discharge by quality and destination. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN22 Total weight of waste by type and disposal method. ○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN23 Total number and volume of significant spills. ○ No such occurrence
EN24
Weight of transported, imported, exported, or treated waste
deemed hazardous under the terms of the Basel Convention Annex
I, II, III, and VIII, and percentage of transported waste shipped
internationally
○ Not applicable because GUC outsources
all manufacturing to suppliers.
EN25
Identity, size, protected status, and biodiversity value of water
bodies and related habitats significantly affected by the reporting
organization’s discharges of water and runoff.
○ No such occurrence
EN26 Initiatives to mitigate environmental impacts of products and
services, and extent of impact mitigation. ● 7.2 Green Product 46-47
EN27 Percentage of products sold and their packaging materials that are
reclaimed by category. ○ Not applicable
EN28
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with environmental
laws and regulations.
○ No such occurrence
59
GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
EN29
Significant environmental impacts of transporting products and
other goods and materials used for the organization’s operations,
and transporting members of the workforce.
◎◎◎◎ 7.2 Green Product 46-47 No significant environmental impact
EN30 Total environmental protection expenditures and investments by
type. ○
Social: Labor Practices and Decent Work
LA1 Total workforce by employment type, employment contract, and
region broken down by gender. ◎◎◎◎ 5.1 Employment Status 33-38
LA2 Total number and rate of new employee hires and employee
turnover by age group, gender, and region. ◎◎◎◎ 5.1 Employment Status 33-38
LA3
Benefits provided to full-time employees that are not provided to
temporary or part-time employees, by significant locations of
operation.
● 5.3 Total Salary Package 39-40
LA4 Percentage of employees covered by collective bargaining
agreements. ● 5.4 Employee Relations 40
LA5 Minimum notice period(s) regarding significant operational
changes, including whether it is specified in collective agreements. ○
GUC complies with notification process
regulations.
LA6
Percentage of total workforce represented in formal joint
management worker health and safety committees that help
monitor and advise on occupational health and safety programs.
○
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, ○
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GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
and number of work-related fatalities by region and by gender.
LA8
Education, training, counseling, prevention, and risk-control
programs in place to assist workforce members, their families, or
community members regarding serious diseases.
● 5.5 Integrated Solutions for Work and Life 41-43
LA9 Health and safety topics covered in formal agreements with trade
unions. ○ GUC does not have unions.
LA10 Average hours of training per year per employee by gender and by
employee category. ● 5.2 Employee Development 38-39
LA11
Programs for skills management and lifelong learning that support
the continued employability of employees and assist them in
managing career endings.
● 5.2 Employee Development 38-39
LA12 Percentage of employees receiving regular performance and career
development reviews by gender. ●
5.1.5 Performance Management Development and
Individual Development Program
5.2 Employee Development
38, 38-39
LA13
Composition of governance bodies and breakdown of employees
per category according to gender, age group, minority group
membership, and other indicators of diversity.
● 5.1 Employment Status 33-38
LA14 Ratio of basic salary of women to men by employee category, by
significant locations of operation. ● 5.3 Total Salary Package 39-40
Social: Human Rights
HR1 Percentage and total number of significant investment agreements ○ No significant investment in 2011.
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GRI Guidelines Disclosures Related GUC CSR Report Section Page Note
and contracts that include clauses incorporating human rights
concerns or that have undergone human rights screening.
HR2
Percentage of significant suppliers, contractors and other business
partners that have undergone screening on human rights and
actions taken.
○
HR3
Total hours of employee training on policies and procedures
concerning aspects of human rights that are relevant to operations,
including the percentage of employees trained.
○
HR4 Total number of incidents of discrimination and corrective actions
taken. ● 5.4.3 Human Rights 41
HR5
Operations and significant suppliers identified in which the right to
exercise freedom of association and collective bargaining may be
violated or at significant risk, and actions taken to support these
rights.
● 5.4.4 Freedom of Assembly and Association 41
HR6
Operations and significant suppliers identified as having
significant risk for incidents of child labor, and measures taken to
contribute to the elimination of child labor.
● 5.1.4 No Child Labor Policy 37
HR7
Operations and significant suppliers identified as having
significant risk for incidents of forced or compulsory labor, and
measures to contribute to the elimination of all forms of forced or
compulsory labor.
○
GUC complies with governmental
regulations and effectively manages work
risks. No such occurrence
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HR8
Percentage of security personnel trained in the organization’s
policies or procedures concerning aspects of human rights that are
relevant to operations.
● 5.6 Corporate Security and Safety Management 43
All GUC security personnel are required
to complete training regarding reception
courtesy.
HR9 Total number of incidents of violations involving rights of
indigenous people and actions taken. ○ No such occurrence.
Social: Society
SO1 Percentage of operations with implemented local community
engagement, impact assessments, and development programs. ● 6. Social Participation 44-45
SO2 Percentage and total number of business units analyzed for risks
related to corruption. ● 4.6 Code of Ethics and Business Conduct 32
Business units of risks related to
corruption are defined and all of them
have completed 2011 annual declaration
of conflicts of interest.
SO3 Percentage of employees trained in organization’s anti-corruption
policies and procedures. ● 4.6 Code of Ethics and Business Conduct 32
SO4 Actions taken in response to incidents of corruption. ● 4.6 Code of Ethics and Business Conduct 32 No corruption in 2011
SO5 Public policy positions and participation in public policy
development and lobbying. ○
SO6 Total value of financial and in-kind contributions to political
parties, politicians, and related institutions by country. ○
SO7 Total number of legal actions for anti-competitive behavior,
anti-trust, and monopoly practices and their outcomes. ● 4.5 Regulatory Compliance 31
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SO8
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws and
regulations.
● 4.5 Regulatory Compliance 31
Social: Product Responsibility
PR1
Life cycle stages in which health and safety impacts of products
and services are assessed for improvement, and percentage of
significant products and services categories subject to such
procedures.
● 7.2 Green Product 46-48
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.
○
There were no non-compliance cases with
regulations and voluntary codes
concerning health and safety impacts of
products and services in 2011.
PR3
Type of product and service information required by procedures,
and percentage of significant products and services subject to such
information requirements.
● 7.2 Green Product 46-48
PR4
Total number of incidents of non-compliance with regulations and
voluntary codes concerning product and service information and
labeling, by type of outcomes.
○
There were no non-compliance cases with
regulations and voluntary codes
concerning product and service
information and labeling in 2011.
PR5 Practices related to customer satisfaction, including results of
surveys measuring customer satisfaction. ○
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PR6
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising,
promotion, and sponsorship.
○ Not applicable
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.
○
There were no non-compliance cases with
regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship in 2011.
PR8 Total number of substantiated complaints regarding breaches of
customer privacy and losses of customer data. ○
There were no substantiated complaints
regarding breaches of customer privacy
and losses of customer data in 2011.
PR9
Monetary value of significant fines for non-compliance with laws
and regulations concerning the provision and use of products and
services.
○ No such occurrence