contents · 2019. 8. 2. · offer improvement proposal cash reward, qcc quality control circle cash...

1 2018 CSR Report

Co

nte

nts

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

目錄 CONTENTS

Editing Guidelines

Words from Business Operator

About Us

Stakeholder Management

Chapter 1 Corporate Governance

Chapter 2 Envrionment Sustainable Management

1.1 Senior Level Operation Management

1.2 Economic Performance

1.3 Supply Partner

2.1 Material's Volume and Weight

2.2 Reduction of Energy Consumption

Water Resource Consumption Statistics

2.4 Waste Management

2.5 Lower Product and Service's Demands on Environment Resources

2.6 Supplier Assessment & Review

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2 2018 CSR Report

Co

nte

nts

Chapter 3 Employee Caring

Chapter 4 Society Participation

Appendix 、 GRI Sustainability Reporting Standards 2016 Disclosure Item Comparison Table 3.1 Employee Structure

3.2 Compensation Benefits & Retirement Plan

3.3 Employee Rights & Communication

3.4 Employee Training

3.5 Occupation Health & Safety

3 2018 CSR Report

Ed

iting

Gu

ide

line

s C

orp

ora

te S

oc

ial R

esp

on

sibility

Re

po

rt

Editing Guidelines

This is the 4nd Corporate Social Responsibi l i ty report issued by EZconn Corporat ion. With long term in-depth cultivation and interaction with local communities and through communications with various stakeholders, we regularly disclose management measures and execution results for sustainable operations with respect to corporate governance and integr ity , environmental -f r iendliness and employees caring to stakeholders concerned about EZconn Corporation, and present future continuous improvement goal for the purpose of becoming a sustainable cit izen with actual actions.

Compilation Guidelines This report is compiled in accordance with Sustainabi l i ty Report ing Standards issued by Global Report ing Ini t iative (GRI) . In addition to GRI Standards core options, this report also takes references f rom ※Governing Rules for Preparation and Fi l ing of Corporate Social Responsibi l i ty Reports by TWSE Listed Companies§ dur ing its compilat ion. For major issues concerned by stakeholders, Ezconn Corporation discloses response to this year 's sustainable issues in re lated chapters . A GRI guidel ine indicator disclosure i tem comparison table has been presented in appendix for references on contents of respective chapters .

Disclosure Measures & External assurance

EZconn Corporation compiles this report through the fol lowing steps:

1.Al l f inancial statistics have been calculated in NTD and consolidated statements have al ready been audited by Deloitte & Touche i n accordance with International F inancial Reporting Standards (“IFRS”) (For the purpose of consistency between f inancial statist ics and f inancial statements, materials herei n encompass EZconn Corporation, EZconn Europe GmbH, EC-Link Technology Inc. , Light-Master Technology Inc. , EZconn Czech a.s . , EZconn technologies CZ s. r .o. and EZconn Corporation (Ningbo)) . Environmental safety management systems of ISO 14001: 2015 environmental management system, OHSAS 18001: 2007 Occupational Health and Safety Assessment System and TOSHMS Taiwan Occupational Safety & Health Management System have al l been veri f ied by Br it ish Standards Insti tut ion (“BSI”) Taiwan Branch Off ice. Additional ly, performance statistics on environment and society have been compi led and provided by internal units of EZconn Corporation and are presented in international ly adopted measures of indicator calculation.

2.Contents of this report have been provided by respective responsible units, and have been init ial ly confi rmed by supervisors of compliance with completeness, material i ty and response for information disclosure before being f inal ized and published after General Manager 's approval .

Period Covered January 1st, 2018 to December 31st, 2018

Time of Report Previously Issued

September, 2018

Time for This Report Issued

June, 2019

Interval for Issuance

Once Yearly

Scope Encompassed

EZconn Corporation's Respective Business Locations in Taiwan

Territory and Disclosure Period for Report

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

4 2018 CSR Report

Ed

iting

Gu

ide

line

s

Contact Window

You're most welcome to contact us should you have any comments or recommendations to the contents of this report.

EZconn Corporation

Address: No. 10 and 12, Lane 121, Lide Rd., Taipei

Telephone: +886-2-2895-9777

Spokesperson: FA & IT Division. Director

Spokesperson Telephone No.:

+886-2-2895-9777#8668

Spokesperson E-mail:

[email protected]

Responsibility Zone:

http://www.ezconn.com/chinese/about/detail.php?pid=7

The organization„s current corporate social responsibil i ty operation has been included in regular communications with management. Going forward, Ezconn Corporation shall continue to fulfi l l and enhance its perform in accordance with corporate social responsibil ity policy.

5 2018 CSR Report

Wo

rds fro

m B

usin

ess O

pe

rato

r C

orp

ora

te S

oc

ial R

esp

on

sibility

Re

po

rt

Words from Business Operator

Every single drop of good deed will eventually become a raging torrent which shall contribute to sustainable operation.

This is the 4nd Corporate Social Responsibil ity book released by EZconn Corporation. It discloses to its finance-excluded operation performances, which includes corporate governance, green production process and environmental friendly management measures, update of employee occupational safety hardware equipment, employee education and training, welfare policy and social public benefit execution result, to stakeholders for the purpose of presenting corporate vision and mission in sustainable operation.

Chairman e-Signature

General Manager e-Signature

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

6 2018 CSR Report

Wo

rds fro

m B

usin

ess O

pe

rato

r

Trust, diligence, steadiness, practicality

Quality without compromise

No customer complaints

Environmental friendly and pollution free

Operation Performance and Integrity Governance On July 14, 2015, we became a publicly l isted company (ticker symbol 6442). The annual consolidated revenue in 2018 reached NT$ 2,805,106,000, which represents a decline of 3% (NT$ 2,899,950,000) compared to 2017. The gross profit margin in 2018 from17.07%, which represents a decline of 0.45% compared to 2017.

To ensure related organizations are in line with individual responsibilities and duties, we're deeply aware of the importance in Corporate Governance and transparency in the forming of an organization. To fulfi ll corporate governance ultimate goal of guarantee to maximize shareholder's benefits, we've reasonably defined and allocated rights and obligation relationship between shareholders as a whole and the operation team through super vision and balance system over the operation team. Our operation concepts are integrity, hard-working and thrif ty, stable and sound, practical, no compromise in quality, no customer complaints and no pollution to environment. The ultimate governance institute for corporate governance is Board of Directors' Meeting. Shareholders' Meetings are held regularly in accordance with the “Company Act” for the purpose of complying with “Corporate Governance Best-Practice Principles for TSEC/TPEx Listed Companies” requirements. We have also drafted integrity operation policy in accordance with “ The 5rd Corporate Governance Assessment Self-Assessment Indicator ” published by the Corporate Governance Center of the Taiwan Stock Exchange Corporation in order to fulfill integrity operation.

7

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Wo

rds fro

m B

usin

ess O

pe

rato

r

Reduction of power consumption

EZconn installed 410 9-28W LED lamps in 2018. Projected energy savings amount to 103,284 kWh. The 50HP in the Shangda Plant were replaced with high-efficiency air compressors, which is expected to generate annual energy savings of 258,813 kWh.

Pollution prevention

The environmental awareness of employees is raised to motivate them to implement waste sorting and cherish resources. Environmental education encompassing sorting and recycling concepts helps reduce waste and pollution, stimulates the reuse of waste, prevents the depletion of global resources, enhances resource recycling rates, and raises the environmental awareness of employees.

Process improvements

For instance, the company‟s BOSA PIGTAIL product highlights the company‟s commitment to sustainable development through process optimization. An ameliorated two-subunit design was substituted for the original three-subunit design to reduce the use of raw materials through compact car part methods. This not only results in cost and material savings (NT$4/PC), but also reduces product assembly and welding times (18 sec/PC).

Green Sustainability Faced with high standard procurement thresholds on product quality and green production process from top

clients around the world, we work hard to enhance our supplier's compliance with global environmental regulations and requirements, including EU's environmental requirements of RoHS, WEEE and HSF. For local suppliers, they must enhance their skil ls and knowledge continuously, improve labor's traditional skil ls and cultivate department's abili ty in selecting environmental and non-hazardous materials . We try to build a sustainable industry growth S curve for Taiwan's high frequency connector and optical communication products. Taiwan's green manufacturing power will be enhanced if connector industry chain can be integrated through EZconn Corporation.

EZconn continues its firm commitment to measures in the field of hard- and software and equipment improvements. Energy-saving

concepts are adopted for newly purchased equipment or newly established offices. We also aim to reduce greenhouse gas emissions generated during manufacturing, delivery, and waste treatment processes through dedicated efforts in the fields of R&D and process improvements as well as proper waste treatment. Environmental impacts generated by waste are minimized through material control at the source and back-end waste recycling and reuse. The following three examples illustrate our concrete achievements in the minimization of impacts on natural resources and pollution of the environment.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

8 2018 CSR Report

Wo

rds fro

m B

usin

ess O

pe

rato

r

In 2018, the Company continued to adopt the

pedestr ian underpass in

Zhongyi , Bei tou Dist r ic t . I t maintains the

surrounding environment

and l ight ing equipment on a regular basis and

assists the Social

W elfare Service Center in the placement of

homeless persons with

the goal of providing pedestr ians with a c lean

and safe passageway environment.

The Company was also entrusted by the Sk i l l

Evaluat ion Center of

the W orkforce Development Agency of

the Minist ry of Labor to

dispatch professional managers as sk i l l test

inv igi lators for Class C

Technic ians in the machining category at

Taipei Ci ty Univers i ty

of Science & Technology and

Munic ipa l Taishan Junior High School.

El i te talent of the Company organizes lectures at Nat ional Taiwan Normal Universi ty and Chinese Cul ture Universi ty to cul t ivate outstanding talent in sync wi th the needs of our age and thereby make a contr ibut ion to strengthening Taiwan’s core competi t iveness.

The Company offers two days of “public welfare” leave per year to each employee. The goal is to encourage each employee to uphold a spirit of service, actively participate in community and social welfare activities, give back to society, show concern for local communities, and thereby create a social cl imate characterized by benevolence and virtuous manners.

Employee Caring and Charity Participation

We're fully dedicated to caring and taking caring of our employees. The Company offers various programs of group insurance, health check, on-job education subsidy, employee pension, annual travel, emergency assistance, family day, subsidy in wedding, funeral or other events, scholarship as well as contracted vendors to our employees. We also offer business trip insurance and subsidy in business fl ight to staffs on business trip in order to offer more convenience to their business trip. Furthermore, to encourage company employee's active improvement activities on operation process, we offer improvement proposal cash reward, QCC quality control circle cash reward and project cash reward to activate employee's passion in conducting innovation and improvement over their job contents and related operation process. Annual employee bonus program is also offered to allow employees to share the joy of growth in the Company's performance with the Company! Looking back to the initial establishment of EZconn Corporation, our members have evolved from grass-root technicians to a R&D team with high education background. We work extremely hard to come up with a different path and we're very honored to add another invisible champion for Taiwan. Going forward, we shall uphold strong persistence and belief in continuing our in-depth cultivation on the rich soil by the side of Tamsui River. We shall work hard to push the Company's performance to the top and to the global market and achieve perfection on sustainable brand reputation. More importantly, we shall also launch numerous fulfi l lment activities on our corporate social responsibil it ies and continue to feed back to the society.

9 2018 CSR Report

Ab

ou

t Us

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

About Us EZconn Enterprise Inc. was established in 1996 and in 2003 merged with Jian-Sheng Co., Ltd., which was

established in 1971, and changed the name to EZconn Corporation. It has become optical communication industr y's next shining star through the combination of the two companies' experience and innovative advantages.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

10 2018 CSR Report

Ab

ou

t Us

Main operation locations are in Taiwan, Czech Republic in Europe and Ningbo, China. Taiwan plants are mainly responsible for R&D, manufacturing of Radio Frequency Connector and small amount trial production of Optical f iber component.

We established New Taipei City Tamsui District Hong

Shu Lin Plant in December 2014. Serves as a base for optical communication product R&D and small amount tr ial production. As for offshore business locations, Czech Republic in Europe is mainly engaged in optical communication product R&D, while Ningbo Plant in China is mainly for optical communication product mass production.

Ezconn Corporation went public on July 14th, 2015

with stock code of 6442. Operation performance was officially disclosed to investors in a pre-l isting performance presentation held in June of the same year. Our main products are categorized into two types, one is Radio Frequency Connector which is mainly used in consumer electronic communication, computer and peripherals, and cars. ； First, the product optical fiber component (Optical fiber component), mainly used in fiber-optic network equipment, telecommunications optical transmission equipment and cable TV optical transmission equipment, etc.

In 2018, high-frequency connectors and optical communication products accounted for 53% and 47% of the total revenue, respectively. Our high-frequency connectors are mostly sold to cable TV providers in Europe and America. The company has established long-term, stable partnerships with its clients and minimized the risk of order loss by relying on its excellent mold and jig manufacturing capabilit ies and outstanding delivery times and quality. Optical communication products are mostly sold to renowned equipment manufacturers worldwide. Following integration trends in the optical communication industry in recent years, downstream equipment providers have maintained stable cooperative relationships with system providers. EZconn continues to strengthen the vertical integration of its suppliers, provision of comprehensive product l ine services, and active expansion into European and American markets to increase core customer numbers. The company is also actively committed to developing new products and services to satisfy customer demands in the fields of quality, costs, and delivery times.

Company Name

EZconn Corporation

Headquarters‟ Location

No. 10 and No. 12, Lane 121, Lide Rd., Taipei

Capital Amount

NTD 660,000K

Current Year Revenue

NTD2,805,106K

Main Products

Radio frequency connector, optical communication component

Number of Employees

411 in Taiwan, 910 in Ningbo, China, 26 in Czech Republic

Total Number of Business Locations

Taiwan (Taipei operation headquarters and Beitou Plant, Tamsui Shang-Dar Plant,Tamsui Hong Shu Lin Plant)

Ningbo, China

Czech Republic

11

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Ab

ou

t Us

Reputed Worldwide

Invisible Pioneer and Champions ,

and Found in the Nearby Tamsui River.

Connector is Well-known in the World!

Ningbo, China Professional Production Line

910persons

Taiwan R&D/Product Engineering/High-End Production /Professional Production Line

411persons

Czech Republic R&D/Product Engineering/ High-End Production

26persons

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

12 2018 CSR Report

Ab

ou

t Us

In recent years, national and international third-party verifications have been adopted successively. Constant improvements of product

quality and implementation of green processes have been achieved through external audits. We have acquired and continue to maintain the

following third-party accreditation certificates: ISO 9001: 2015 Quality Management System, ISO 14001: 2015 Environmental Management

System, OHSAS 18001: 2007 Occupational Safety and Health Management System, TOSHMS (Taiwan Occupational Safety and Health

Management System), and the Talent Quality Management System (TTQS) certificate issued by the Workforce Development Agency of the

Ministry of Labor (Silver medal rating). In 2018, the company also underwent an RBA (Responsible Business Alliance) evaluation to ensure

compliance with relevant requirements in the dimensions of labor, health and safety, environment, ethical norms, and management systems

and guarantee work environment safety, respect for employees, and fulfillment of environmental responsibility during manufacturing

processes.

EZconn

OHSAS

18001

ISO 9001

ISO 14001 TOSHMS

RBA

Honored with a Sustainability Excellence Award presented by the British Standards Institution.

The third verification certificate : ISO 9001(left), ISO 14001(middle), OHSAS 18001(right).

13

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Ab

ou

t Us

Products and Service Radio Frequency Coaxial Connector During initial stage of EZconn Corporation's

founding, domestic and offshore cable TV businesses enjoyed prosperous development. With its excellent and sol id technologies in metal stamping and lathe cutting processing, the Company produced high quality Radio Frequency Coaxial Connector (RF Connector) serial products which meet with cable TV transmission tool market demands. Back then in the mold design workshop, a group of technicians with education background of only vocational high school came up with mold design graphs one by one in short t ime only with stationeries of ruler, compass and accumulated experience instead of computer graphics. This i l lustrated profound expert skil ls . Under years of efforts in continuous manufacturing process improvement, processing error for metal parts completed through the lathe machining processing process has been lowered from plus or minus 0.05 mm to 0.02 mm or less, with 1.5 times of enhanced precision and error value generated is thinner than one sheet of A4 paper. This indicates that radio frequency connector precision manufacturing process is obviously enhanced. As of today, radio frequency coaxial connector application field has expanded to consumer electronics, communication, computer, peripherals and cars. Ezconn Corporation's radio frequency connectors products include:

• 5G / Mobile Communication • Microwave Cable Assembly • RF Optical Module • CATV FILTER/ Attenuator / ISOLATOR • CATV / Head end / Satell ite TV • STB / Cable Modem • Wireless Lan • Infrastructure / Base station • Instrument / Test Equipment • Automotive Connection System

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

14 2018 CSR Report

Ab

ou

t Us

Products and Service

Optical Communication Product After radio frequency connector product established a stable operation foundation for EZconn Corporation, we're aggressive in innovating and exploring market new trend. The Company acquisitioned German company Infineon's f iber optical communication department in August, 2005. During that t ime, we had not only smoothly obtained Infineon's 10 optical communication patents, which had been developed for over 15 years, but also continued to offer services to its crit ical cl ients of European major manufacturers of Siemens and Alcatel . Since then, market competitive edge for EZconn Corporation's Optical communication products has made a giant leap into the international stage.We embrace a philosophy of continuous improvements and constant enhancement of our R&R capabilities in the field of f iber-optic communication products. We are firmly committed to cultivating our abil ity to develop molds and equipment independently . Due to the fact that optical f iber is only one third the diameter of a human hair, micron-grade precision is often required for the assembly of components, which is extremely difficult to achieve. EZconn has the technological capabilities to dri l l an inner hole with a diameter of only 3 Micron into the fiber which is thinner than a human hair . This hole is only visible to the naked eye largely magnified under a microscope. These high-precision technologies are crucial for the manufacture of high-quality f iber-optic communication components. We provide the following products and services: Passive and active components (optical transceiver modules and optical sub-assembly) and professional optoelectronic component packaging and integration services for various optoelectronic applications.

The main functions of these components which are not capable of generating photoelectric conversion include continuation, splitting, f i ltering, attenuation, or isolation of optical signals. Our product offerings encompass: Connectors, adaptors, and jumpers Wavelength division multiplexing , WDM :CWDM

MUX/DeMUX , LAN-WDM MUX/DeMUX can be util ized for wavelength division multiplexing for CATV systems and wireless access point f iber-optic transmissions to reduce the number of required optical f ibers.

Active components: These components convert electro -optical or opto-electronic signals, transmit signals to optical f ibers, or retrieve signals from optical f ibers. Optical Transceiver

Main application areas include Fiber to the Home (FTTH), Radio Access Networks (RAN), and data communication. Main product applications of FTTH include different transceiver modules for GPON (Gigabit Passive Optical Network) OLT (Optical Line Terminal)/ONU (Optical Network Unit) and next generation 10G PON transceiver modules. GPON SFP ONU Transceiver (FTTH, end user's side) GPON SFP OLT transceiver (FTTH, end user's side, local side) GPON ONU Mini stick (FTTX, incl. MAC control) XGS-PON ONU transceiver (FTTH, end user's side) XGS-PON OLT transceiver (FTTH, end user's side) 100G QSFP AOC/transceiver (data communication, data center) SFP28 SR/LR (data communication, RAN)

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

15 2018 CSR Report

Ab

ou

t Us

These devices allow the direct integration of components into modules,systems, or

Customer Premise Equipment (CPE):

Transmitter optical sub-assembly , TOSA

Receiver optical sub-assembly , ROSA

Bi-directional OSA , BOSA

1.25G EPON BOSA

2.5G GPON BOSA

10G EPON BOSA

Customized optoelectronic component packaging

Transistor-outline metal coating packaging

FP/DFB TO-CAN

TO-BiDi is a technology that utilizes micro modules and integrates TX and RX

into the same TO-can packaging technology. Microminiaturization represents

the biggest competitive edge of this product which employs an exclusive

patented technology developed by EZCONN. It can be applied to optical

communications or industrial control systems that require module

miniaturization.

Laser TO-CAN packaging with integrated thermoelectric cooler (TEC); the stable

TEC wavelength allows laser operations at high speeds (10G/S and above) and

long-distance transmission in conformity to DWDM specifications or with

reduced laser chromatic dispersion.

Other: Design and manufacture of optical testing and measurement equipment -

Tunable Laser DWDM; EZCONN is one of the few manufacturers in Asia that is

capable of producing DWDM full waveband (C+L) tunable lasers.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

16 2018 CSR Report

EZconn extends its core competitiveness in the field of optical communication and RF products to other industries and applications. Team formation and supply chain deployment was completed in 2016. The main focus lies on MEMS laser scanning model properties and development and applications characterized by complete vertical integration from components and modules to systems. Product applications include light detection and ranging (LiDAR), Head Up Display (HUD), 3D depth measurement, and medical imaging systems. Wide application of Advanced Driver Assistance Systems in recent years have stimulated the commercial use of LiDAR. The demand of the Indian market for high-speed networking creates business

opportunities for different technologies and optical products. In view of the rising visibility of these market demands facilitates the rapid transition of other EZconn optical products to the mass production stage.

Ab

ou

t Us

-

Laser Scanning Module

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

17 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Stakeholder Management For the purpose of due-t ime communication with

stakeholders in order to master issues concerned by stakeholders, integrate these issues into corporate sustainable development strategies and establ ish smooth communication and response mechanisms, EZconn Corporat ion responded to corporate social responsibi l i t ies ' concerns in three major aspects of economy, environment and society, which encompass corporate governance, customer relationship, environment protect ion, society participation and employee caring, and establ ished CSR Committee in 2015. Committee members are composed of EZconn Corporation's f i rst level management staff in headquarters and respective plants in Taiwan, with Chairman being the Committee Director and HR head as the Secretary General . In addit ion to promoting compi lat ion of re lated corporate social responsibi l i ty reports, related corporate social responsibi l i ty matters have also been l isted as long term operation goals and regular tracking and review of performance is conducted for the purpose of presenting EZconn Corporation's sustainable operation performance .

For the purpose of EZconn Corporation's fulf i l lment corporate social responsibi l i t ies and comply with requirements from related government laws and regulations, General Manager released EZconn Corporation's corporate social responsibi l i ty pol icy and commitment. The fol lowing behavior shal l be compl ied with during processes of related products ' design, manufactur ing and sel l ing and provision of after-sale service to customers, and the Company is wi l l ing to accept supervision by corporate employees and related competent authorit ies . Also to enhance supplier 's corporate social responsibi l i ty sense, supply partners have been requested to conduct self- inspection in accordance with this principle for the purpose of jointly establ ishing a good, healthy and sustainable supply chain:

With EZCONN

Related

Stakeholder

client

bank

shareholde

r

/Investors

Insurance company

(group insurance, property

insurance,)

Media

landlord

Public

association

(industrial

union)

Supplier/

contractor/

outsourcer

Public

business

(water/elec

tricity/oil)

Governmet

agencies

Neighborh

ood

community

Office

Employee

Non-governmental organizations

(non-profit organizations, social welfare

groups)

18

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Significance of main stakeholders

Customers

EZconn’s responsibility

is to provide its

customers with

innovative products

and stable quality. This

also represents the

company’s main

revenue source.

Employees

This is one of the key

assets of the company

and excellent labor-

management relations

are the driving force for

productivity.

Suppliers/Contractors/

Subcontractors

Up- and midstream

suppliers are

indispensable

production partners of

EZconn in the field of

raw material supply and

outsourcing.

Shareholders/Investors

Profit sharing

principles, stable

revenues, and

sustainable

development are the

main prerequisites for

continued investments

and trust of investors

and shareholders.

Government agencies

Legal compliance is a

minimum requirement

for enterprise

operations.

Government agencies

supervise legal

compliance of the

company in various

fields.

Stakeholder identification

Stakeholders are internal or external groups or individuals that affect organizational decisions, business activities,

production, or services or are affected by the aforementioned activities of the organization. EZconn has identified

stakeholders in accordance with operation and business characteristics to fulfill the pledge of the company to its stakeholders

and safeguard their respective rights and interests. 14 stakeholder groups that affect or are affected by EZconn have been

identified in accordance with the Stakeholder Engagement Standards (AA1000 SES: 2015). 23 EZconn supervisors were then

asked to fill out Stakeholder Identification Questionnaires to identify the main EZconn stakeholders in accordance with 5 key

principles (responsibility, influence, dependence, tension, and multiple perspectives). The five main groups include Customers,

Employees, Suppliers/Contractors/Subcontractors, Shareholders/Investors, Government Agencies.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

19 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Stakeholder communication and attention issues

Communication channels and issues Maintenance of positive communications and interactions with stakeholders represents a key link of sustainable corporate operations.

EZconn has established an excellent communication platform for all stakeholders. The goal is to gain a firm grasp of precious stakeholder opinions through diverse communication channels as a reference for responses by the company. Communication methods vary for different shareholder groups. The company utilizes routine response methods and non-routine communication channels. Issues of concern also vary for different categories. A summary of communication channels and issues of concern to major stakeholders is provided below. Appropriate responses to issues of concern are offered in the report to maintain excellent relations.

Communication and Response

Through routine and non-routine engagement with internal/external stakeholders, EZconn Corporation aggressively responds to issues and matters concerned by stakeholders. For external stakeholders, shareholders' regular meeting is held once every year. As for competent authority's various information disclosure requirements, we have announced messages regularly on Taiwan Stock Exchange's Market Observation Post System. We're also fully committed to working with corporate governance assessment system proposed by government and actively present one “Corporate Governance Assessment Report” each year. With respect to customer retention, business and quality control colleagues respond to product quotation request and deliver product quality test report requested by customers in a real-time way. As for operation performance concerned by financial and economic media, our spokesman will officially respond to media's questions after receiving official interview notification, and public relations press release will be universally posted on Taiwan Stock Exchange's Market Observation Post System and the Company's official website. In the meantime, close communication with internal stakeholders will also be conducted aggressively. This includes quarterly holding of at least one Board of Directors' Meeting, labor-management meeting, labor pension reserve supervision committee meeting, occupational safety & health committee meeting as well as communications conducted through the Company's internal website. Please refer to the following explanation on communication forms and frequency with major stakeholders during the period of this report.

Institutional Investor Conference

On Nov. 30th, 2018, EZconn Corporation held an institutional investor conference at Taiwan Stock Exchange's Information Display Center. With message delivered through institutional investor conference, the Company's management team explained operation performance, business development status and market trend, and unequivocally disclosed EZconn Corporation's operation performance and future prospect to investors. Financial performance report annual finance report: it will be published prior to March 31st each year. In accordance with Article 36 of “Securities and Exchange Law,” financial statement verified by certified public accountant will be released and reported within 3 months after the end of accounting year. Media for such release will be official website and Taiwan Stock Exchange's Market Observation Post System. Both shareholders and stakeholders will be able to obtain transparent financial information in a speedy and convenient way. Quarterly financial statement: 1st quarter financial statement will be released prior to May 15th of each year; 2nd quarter financial statement will be released prior to August 15th of each year and 3rd quarter financial statement will be released prior to November 15th of each year.

As per Article 36 of “Securities and Exchange Law,” accountant verified financial statements which have been submitted to the Board Meeting will be released and reported within 45 days after the end of the 1st, 2nd and 3rd quarters of each accounting year. Media for such release will be official website and Taiwan Stock Exchange's Market Observation Post System.

Monthly revenue report: It will be release once each month, and consolidated financial statements will be released prior to 10th of each month. Media for such release will be official website and Taiwan Stock Exchange's Market Observation Post System. Both shareholders and stakeholders will be able to obtain transparent financial information in a convenient way.

20

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

21 2018 CSR Report

Product Year Product Quality

Satisfaction

Delivery Quantity

Satisfaction

HSF Control Satisfaction

Delivery Date

Satisfaction

Service Quality

Satisfaction

Complaint Handling

Satisfaction Average

Radio Frequency Connector

2016 6.43 6.4 6.23 6.3 6.4 6.11 89.76

2017 9.1 9.19 N/A 8.77 9.35 8.92 90.38

2018 8.96 8.93 N/A 8.35 8.92 8.91 88.56

Optical Communicati

on Product

2016 6.24 6.41 6.22 6.06 6.47 6.19 93

2017 9.07 9.07 N/A 8.7 9.6 9.09 91.33

2018 8.96 9.46 N/A 8.71 9.17 8.71 90.52

Note: Customer satisfaction questionnaire scoring methods: In 2018 from 0

(extremely dissatisfied) to 10 (extremely satisfied)。

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Non-Financial Performance Report “Corporate Social Responsibility Report” will be released each year starting 2016. There will be 4nd release of “EZconn Corporation 2018

Corporate Social Responsibility Report” this year for the purpose of disclosing non-financial operation performance to stakeholders. That includes execution results from corporate governance, green manufacturing process and environmental friendly management measures, employee occupational safety soft/hardware equipment update, employee education and training, benefit policy and society charity. This will present our corporate vision and mission for sustainable operation. Media for such release will be official website and Taiwan Stock Exchange's Market Observation Post System. Both shareholders and stakeholders will be able to obtain transparent non-financial performance information in a speedy and convenient way.

Customer satisfaction surveys EZconn is fully aware of the fact that the continued purchase of our products by customers is a key prerequisite for stable revenue growth. We therefore aim to provide high-quality, relevant products to satisfy the demands of customers. We also conduct regular satisfaction surveys to gain a better understanding of inadequacies as a basis for future advances and build a rapport with customer. Customer satisfaction is one of the indicators of annual quality goals. Our target is a score of 90 or above. A score of 10 (extremely satisfied) to 0 (extremely dissatisfied) is awarded for each question on the customer satisfaction questionnaire. Upon collection of the filled out surveys by operating personnel, the score for each question is entered in the customer satisfaction survey summary form for calculation. If the calculated average customer satisfaction score fails to reach 90, business units will carry out project improvements and contact competent units for the joint implementation of improvement activities in accordance with project issue contents. Reports are submitted in Quality and Environmental Committee meetings. The customer satisfaction survey conducted in 2018 shows a high customer approval rating for the company‟s optical communications products (awarded scores exceed the target value of 90). HF Connectors, on the other hand, failed to meet the required standards. Relevant units therefore conducted an analysis of customer opinions. Required improvements were completed in the 2nd quarter. Ezconn corporation is firmly committed to constant refinements of its product quality and services to build a solid reputation as a trustworthy provider of technologies and manufacturing services.

80

90

100

2016 2017 2018

Customer satisfaction in the past three years


Optical Communication Product

22

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

List of Related Issues

Customer Relationship Corporate Governance Environment Protection Society Participation Employee Caring Product & Service

Responsibilities Integrity Management

Sustainable Environment Management

Community Participation Occupational Safety &

Health Customer Information

Confidentiality Compliance Carbon Reduction

Management Society Caring Occupational Skill

Management Consumer Rights

Protection Organization Strategy Green Procurement Charity Activities Employee Benefits

Customer Relationship Maintenance

Risk Management Supplier Management Corporate Image Employee Compensation

Green Design Shareholder‟s Equity Sustainable Environment

Promotion Education & Training

Green Product Information Transparency Labor Management

Relationship

Economic Performance Employee Diversity

Internal Control Employment Environment

Anti-Corruption

Brand Reputation

Sta

ke

ho

lde

r Ma

na

ge

me

nt.

Analysis of Material Issues

During the 1st step of identification process, a l ist of issues, which is also called Relevant Issues, worthy of being included in this report has been organized through internal meetings held by corporate social responsibil ity responsible units following GRI Standards: 2016 Topics and Standard Disclosures of selection for related issues.

The next is to implement step 2. EZconn Corporation invited various stakeholders to fill-in “Sustainable Development Material Issue Impact Assessment Questionnaire” and stakeholders will evaluate extent of assessment and decision-making being impacted by various issues. A total of 138 questionnaires have been retrieved accordingly. EZconn top executives assessed the level of economic, environmental, and social impact of material issues. Based on the scoring results, 3 material issues (“Ethical Corporate Management” and “Legal Compliance” in the corporate governance dimension and “Occupational Safety and Health” in the employee care dimension) were identified from a total of 33 issues. These issues meet the criteria of a score of 4 or above in the fields of stakeholder impact assessment, decision-making, and economic, environmental, and social impact level or a product of 15 or above. To balance disclosures on economy, environment and society information, EZconn Corporation further selects one issue with the highest degree of influence by stakeholders from each perspective as a supplementary disclosure issue. These supplementary issues include 4 supplementary issues of , “Product & Service Responsibilities” in Customer Relationship , “Sustainable Environment Management ” in environment protection perspective, “corporate image” in society participation perspective and “Employment Environment” in employee caring perspective.The aforementioned 7 material issues represent the foundation for compilation of this report.

Identification Prioritization Validation Review

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

23 2018 CSR Report

Level of concern of stakeholders for identified issues

Imp

ac

t o

n d

ec

isio

n m

ak

ing

● Education and Training ※Employment Environment ※Ethical Corporate Management

※Product and Service Responsibility

※Occupational Health and Safety

※Legal Compliance

●Competency Management ※Environmental Sustainability ●Customer Information

Confidentiality

●Employee diversity ●Economic Performance

●Green Design ●Brand Reputation

●Shareholder Right and Interests ●Anti-Corruption

●Employee Benefits ●Labor-Management Relations

●Green Products

●Organizational Strategy

●Safeguarding of Consumer

Rights

●Community Engagement ※Corporate Image ●Information Transparency

●Charity Activities ●Social Concern ●Carbon Reduction Management

●Employee Compensation ●Risk Management

●Supplier Management

● Environmental Sustainability Education ●Internal Control

●Customer Relation Maintenance ●Green Procurement

Lo

w

M

ed

ium

Hig

h

Low Medium High

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Material Issues & Disclosure Topic Boundaries

During step 3 validation process, we utilized four major principles, which include Stakeholder Inclusiveness, Materiality, Sustainability Context and Completeness, in the contents of GRI Standards: 2016 definition report to assess validated material issue subjects. Principle 1: Clarify stakeholders based on Stakeholder Inclusiveness and explain how to respond to their reasonable expectation and benefits in this report. Principle 2: With materiality as the basis, issues selected in this report are re-verified if they cause obvious impact to economy, environment and society. Principle 3: Sustainability Context. Disclose how EZconn Corporation completes improvement or mitigates destruction to local or global economy, environment and society development trends. Principle 4: Scope with Completeness principle. This report encompasses all subjects such as economic performance, emission and occupational health and safety. With respect to Topic Boundaries, each Topic has been defined of its impact boundaries as well as information completeness during the report period.

24

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Ultimately, for prioritized material issues and material subject l ist in this report approved by senior management decision maker, compilation and disclosure of issue related management directions and performance achievement will be launched in accordance with 6 major principles, which include principles of Accuracy, Balance, Clarity, Comparability, Reliability and Timeliness, prescribed in GRI Standards: 2016 definition report quality.

In the last phase of validating materials issue topic and boundary, i .e., step 4 review, stakeholder's feedback information collection wil l be launched after this report is released for the purpose of preparing for the next report cycle. This is because respective stakeholder's opinion sur vey result comes with significant meaning and reference value. They will assist in the validation step for the next report cycle. Material issue related material topic and impact may occur in EZconn Corporation's internal or external boundaries :

Material Issue GRI Topic Disclosure / Description

EZconn Corporation’s

Internal Boundary

EZconn Corporation’s Internal Boundary

All staff Shareholder

/Investor Customer

Supplier /Proprietary /Contractor

Government Agency

Local Communities

Integrity Management

102 General Disclosure – Integrity Management 102-16 Values, principles, standards, and norms of behavior. ● ● ● ● ●

Occupational Health and Safety

403 Occupational Health and Safety

403-1 Workers representation in formal joint management–worker health and safety committees.

403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities.

403-3 Workers with high incidence or high risk of diseases related to their occupation.

● ● ● ● ● ●

Compliance

307 Environmental Compliance

419 Socioeconomic Compliance

307-1 Non-compliance with environmental laws and regulations. 419-1 Non-compliance with laws and regulations in the social and

economic area. ● ● ● ● ● ●

Product and Service Responsibility

102 General Disclosure – Integrity Management

416 Customer Health and Safety

102-2 Activities, brands, products, and services. 102-44 Key topics and concerns raised. 416-1 Assessment of the health and safety impacts of product and service categories.

● ● ●


306 Effluents and Waste 306-2 Waste by type and disposal method. ● ● ●

Corporate Image

202 Market Presence

202-1 Ratios of standard entry level wage by gender compared to local minimum wage.

202-2 Proportion of senior management hired from the local community.

● ●

Employment Environment

405 Diversity and Equal Opportunity 406 Non-discrimination

405-1 Diversity of governance bodies and employees. 406-1 Incidents of discrimination and corrective actions taken. ● ● ● ● ●

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

25 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Material Issue Comparison Table

Year 2018 Year 2017

Material Issue Material Issue

Integrity Management 102 General Disclosure – Integrity

Management Integrity Management






Compliance 307 Environmental Compliance 419 Socioeconomic Compliance

Compliance 307 Environmental Compliance 419 Socioeconomic Compliance

Material Issues adopted by CSR Committee resolution Supplementary Disclosure


306 Effluents and Waste Sustainable Environment Management

306 Effluents and Waste







Corporate Image 202 Market Presence Competency management

404 Training and Education

Employment Environment

405 Diversity and Equal Opportunity

406 Non-discrimination Social Engagement 203 Indirect Economic Impacts

註：■Same issues-2017、2018 ■Supplementary issues in 2018

26

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Material Issues

•Integrity Management •Compliance

•Economic Performance

Meanings to

EZconn

Corporation

•Integrity is the fundamental of a corporate's operation. It is also EZconn Corporation's core value. Based on integrity spirit in interacting with our business partners, we maintain good supply and demand relationship.

•To comply with laws and to create synergy that binds EZconn Corporation's staff as a whole, we have imposed upon ourselves requirements higher than the ones prescribed by laws in the fields of corporate governance, green environment and employee caring.

•EZconn Corporation enjoys continuous and stable profits and is responsible to its shareholders. It builds up a good and stable work environment for colleagues and works hard towards sustainable corporate operation in a bid to create tri-win situation for company, shareholder and employee.

Management

Mechanism

•Being engaged in business activities in integrity and transparent spirit, senior management aggressively promotes transparent governance and requests colleagues as a whole to fulfill regulation compliance and perform various risk controls without fail. It is also dedicated to stable revenue and profit growth for the purpose of pursuing maximized business profits as well as creating benefits for all shareholders and related stakeholders.

•Production costs are lowered and product yield rates are enhanced through resource integration. Solid competitive edge is established via technology R&D.

•Regulation compliance dual insurance has been constituted through establishment of internal complete complaint and consulting channels as well as fulfillment of internal audit mechanism.

•Financial statement information released has been verified by independent accountant's audit to ensure accuracy.

Major

Achievements

•With the launch of annual operation plan, respective department drafts their Key Performance Indicators (KPI) which are connected with the Company's operation goal and individual performance.

•Cross-department meetings are held regularly to review target achievement status as well as to present responding improvement strategy. •Proposals to enhance rewarding system have been submitted for the dedication to manufacturing process research and product quality improvement.

•Respective departments validate their potential risk factors and research appropriate and feasible control measures accordingly. •Risks of violation in regulation compliance has been minimized through legal personnel and internal audit office's control mechanisms.

Future Plan

•Short Term Goal: Continuous dedication to innovative technology development and product quality enhancement, full-strength satisfaction of customer's needs, maintenance of stable profit growth and sharing of operation achievements with shareholders, customers and employees.

•Mid and Long Term Goal: 1.Aggressive searching for collaboration with up/down stream vendors and optimal business models for the purpose of expanding operation scale. 2.Establishment of global strategic planning to ensure the Company's operation profit and stable growth. In addition to profit, the Company shall work hard to ensure balance between green sustainable environment and employee benefit caring. 3. Corporate culture of Integrity Management has been deepened into colleague's business execution process, and complete corporate governance system has been established in order to achieve the goal of sustainable operation growth.

Chapter 1 Corporate Governance

27

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

EZconn Corporation Organization Structure

EZconn Corporation understands the importance of corporate governance and transparency in organization decision-making. In the meantime, being a legal person seeking profits, our business goal is to pursue maximization of shareholder's benefits. Through senior management team's strategy and planning, the Company has reasonably defined and allocated responsibilities and rights for shareholders and operation team.

Note: The Organization Chart Reveals that the Deadline is the Same as the Annual Finance Report.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

28 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Goal of Corporate

Governance

1.1 Senior Level Operation Management EZconn Corporation's operation concepts are integrity, frugality, stabili ty, practical ity , non-compromise in quality ,

no customer complaint and no environmental pollution. Shareholders' Meeting are held regularly in accordance with “Company Act” in order to comply with “Corporate Governance Best-Practice Principles for TSEC/TPEx Listed Companies .” The Board of Directors' Meeting appoints and authorizes Chairman and General Manager to execute the Company's daily operation. The Compensation Committee drafts and supervises salary compensation system for director, supervisor and manager. Meanwhile, supervisors have been established to exercise supervision rights and facil i tate even more smooth internal supervision and internal audit system operation based on concepts of fair, transparent and division of duties. Furthermore, part time corporate social responsibil ity organization is established inside the Company with General Manager as the convener. This organization will submit recommendation reports regarding impact to environment and society to the most senior management and Chairman under non-regular basis.

Economic issues wil l be reported to the most senior management and Chairman by business departments under regular basis. Additionally, we have commissioned professional accounting firm to conduct audit in accordance with “Regulations Governing Auditing & Attestation of Financial Statement by Certif ied Public Accountants” and Generally Accepted Auditing Principles, and verify contents of consolidated financial statements accordingly. An Occupational Safety and Health Office has been established under General Manager. This office wil l be responsible for handling employee occupational health and safety issues. Meanwhile, radio frequency connector business group and optical communication business groups have been established to jointly accept and report economy and environment issues.

Establishment of Preeminent Senior

Management Governance

Structure

Protection of

Shareholder‟s

Equity

Enhancement of

Board of Director’s

Meeting Functions

Development of

Supervisor’s

Functions

Respect for

Stakeholder’s

Rights

Increase of

Information

Transparency

29

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Operation

Judgment

Capability

Accounting &

Finance Analytical

Capability

Leadership

Capability &

Decision-Making

Capability

Operation

Management

Capability

Risk Handling

Capability

Industry Knowledge &

International Market

Perspective

Title Name

Number of presence

(attendance) (B)

Number of meetings presented by proxy

Actual presence

(attendance) rate (%) [B/A]

Remarks

Chairman SHC Consolidated Investors LLC Representative: Chen, Steve

4 0 100% Inaugurated on June 22, 2017

Director

Jia Jiu Investment Co., Ltd. Representative: Chang Ying-Hua


Director Transnational Investment Limited Representative: Chen Han-Feng (Note 1)

2 0 50% Inaugurated on June 22, 2017 and resigned on August 8, 2018

Director Transnational Investment Limited Representative: Chou Wan-Shun (Note 2)

2 0 50% Inaugurated on August 8, 2018

Director Chen Hsiao-Yun 4 0 100% Inaugurated on June 22, 2017

Director Dural Holdings Limited Representative: Li Shih-Chen


Independent Director

Hsiao Chung-Chiang (Note 3) 3 0 75% Inaugurated on June 22, 2017 and resigned on August 10, 2018


Li Chien-Ping 4 0 100% Inaugurated on June 22, 2017

Supervisor Ko Yuan-Yu 4 0 100% Inaugurated on June 22, 2017

Supervisor Lai Wen-Hsien 4 0 100% Inaugurated on June 22, 2017

Supervisor eGtran Corporation Representative: Chien Chih-Cheng


Note 1: Resigned the legal representative of the corporate director, Transnational Investment Limited, on August 8, 2018. Note 2 : Inaugurated the legal representative of the corporate director, Transnational Investment Limited, on August 8, 2018. Note 3 : Resigned the Independent Director and on August 10, 2018.

In 2018, the Board of Director's Meeting held 4 meetings, with directors and supervisors' attendance as follows:

Enhancement of Board of Director's Meeting Functions

1.1.1 Operation of Board of Directors' Meeting

With integrity principles, EZconn Corporation emphasizes shareholder 's equity and is convinced that an eff icient Board of Director 's Meeting is the foundation for a preeminent corporate sustainable governance. Persons with integri ty and professional capabi l i ty are selected by shareholders ' meeting to const itute the supreme governance insti tute. In addition to considering composing member's diversi ty, selection by the Board of Director 's Meeting also consider i ts own operation, business types and basic conditions needed for development, integri ty bel ief matching EZconn Corporation's core value, and professional knowledge and ski l ls such as seasoned pract ical exper iences needed for business, legal , f inance, accounting or company's business in order to provide the Board of Director 's Meeting a comprehensive consideration over perspectives of legal r isks, green environment, labor and society when faced with crit ical decision-making. This is to ensure sustainable operation for EZconn Corporation's operation.

In recent years, we have gradual ly establ ished comprehensive corporate governance structure. Given considerations that independent di rectors do not have conf l icting interest with the Company, and with their professional ism and independence, they're able to provide objective and neutral opinions for diversi f icat ion consideration during the Board of Director 's Meeting decision-making in order to avoid the disadvantage of making decision behind closed doors, and establ ishment of independent directors wi l l also assist in supervising the Company's operat ion governance and protection of shareholder 's equit ies, therefore, there are 2 independent di rectors out of a total of 7 directors in the Board of Director 's Meeting. Also, 3 superv isors have been establ ished accordingly . The Board of Director 's Meeting authorizes establ ishment of salary and compensation committee under the Board to assist in performance of duties and report i ts meeting resolutions to the Board of Director's Meeting under regular basis .

30

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Title Name Educational background and experience

Concurrent posts in the Company or other companies

Chairman

SHC Consolidated Investors LLC －－

Representative: Chen, Steve J.D. of Harvard Law School, the United States

Chairman of eGtran Corp., Chairman of Gtran Inc., Director of FlipChip International Inc., Director of Spatial Digital Systems Inc., Director of SHC Consolidated Investors LLC, Chairman of TriMax & Companies, LLC, Chairman of DNA Asset Management LLC, Director of StemBios Tech, Director of Sercomm Corp. Independent

Director Jia Jiu Investment Co., Ltd. －－ Representative: Chang Ying-Hua (Note 1)

Department of Accounting, Hsing Wu University

President of EZconn , Director and Executive Vice President of Light Master Technology (Ningbo) Inc.

Director

Transnational Investment Limited －－

Transnational Investment Limited Representative: Chen Han-Feng (Note 2)

V-Land Land Administration Agent Office Director of Transnational Investment Limited

Transnational Investment Limited Representative: Chou Wan-Shun (Note 3)

Ph.D. in Business Administration, Pacific Western University, the United States

Chairman of I-Chiun Precision, Chairman of I-Zou HI-Tech. (Shenzhen), Chairman of I-Chiun Precision (Nanjing), Chairman of I-Chiun Precision (China), Chairman of I-Chiun Technology(China) Co., Ltd., Chairman of ECOCERA Optronics, Director of AimCore Technology , Chairman of Jiangmen KuoChuan

Director Chen Hsiao-Yun M.B.A., University of Southern California

Chairman of Zhongchuan Plastic Co., Ltd., Director of Yung Hsing Security Co., Ltd., Director of Sunsino Venture Group, Director of IQ Technology Inc., Director of Telelynx Inc., Supervisor of FICTA Technology Inc., Director of Best Radio Co., Ltd., Director and Investment Manager of General Management Division, Tahsiao Investment Fund Co., Ltd.

Director

Dural Holdings Limited －－

Representative: Li Shih-Cheng (Note 4 and 5)

Ph.D. in Electrical Engineering, Southern Methodist University, the United States GTRAN Inc., President

Vice Chairman of EZconn, Director of CabTel Corp., Director of Light Master Technology (Ningbo) Inc.


Hsiao Chung-Chiang (Note 6) Ph.D. in Consumer Sciences & Retailing, Purdue University

Chief Operating Officer of EZconn, Associate Professor of National Taiwan Normal University


Li Chien-Ping Ph.D. in Applied Physics, California Institute of Technology, the United States

Member of EZconn Remuneration Committee, Director of Center for Nano Science & Technology, NCTU, Professor, Chair Professor and Lifetime Chair Professor of Department of Electronics Engineering, NCTU

Supervisor Ko Yuan-Yu Department of Accounting, National Cheng Kung University Founder of Ernst & Young Global Limited

Accountant of Diwan & Company, Director of eGtran Corp., Supervisor of TUNG HO STEEL Enterprise Corp., Independent Director of AVerMedia Technologies, Inc., Supervisor of First Life Insurance Co., Ltd.

Supervisor Lai Wen-Hsien M.B.A., Department of Economics, NTU Director of Yuanta-Polaris Research Institute, Independent Director of Audix Corporation and Member of Remuneration Committee

Supervisor eGtran Corporation －－

Representative: Chien Chih-Cheng Chairman of EZconn Enterprise Inc. Chairman of Optoway Technology Inc., Director of eGtran Corp.,

Note 1: Inaugurated EZconn’s President on April 1, 2019. Note 2: Resigned the legal representative of the corporate director, Transnational Investment Limited, on August 8, 2018. Note 3: Inaugurated the legal representative of the corporate director, Transnational Investment Limited, on August 8, 2018. Note 4: Inaugurated the Vice Chairman on March 21, 2019. Note 5: Retired and resigned EZconn’s President on March 31, 2019. Note 6: Resigned the Independent Director and the member of the Remuneration Committee on August 10, 2018 and inaugurated as the Chief Operating Officer on the same day.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

31 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

In 2018, the Compensation Committee held 2 meetings, with attendance as follows:

Job Title Name

Number of actual

attendance (B)

Number of meetings

presented by proxy

Actual Attendance

rate (%)(B/A)

Remarks

Convener

Li,

Chien-

Pin

2 0 100%

Member of the 3rd committee. Appointed by Board of the Directors on August 10, 2017 and inaugurated the convener on August 10, 2018

Convener

Hsiao,

Zhong

-Qiang

1 0 50%

Convener of the 3rd committee. Appointed by Board of the Directors on August 10, 2017 and resigned on August 10, 2018

Commissioner

Tsai Hsing-Chuan

0 0 0%

Member of the 3rd committee. Appointed by Board of the Directors through the by-selection on November 13, 2018

Commissioner Peng,

Xie-Ru 2 0 100%

Member of the 3rd committee. Appointed by Board of the Directors on August 10, 2017

Compensation Committee

regularly assesses director and manager’s

performance in the Company’s

perspectives of operation and

economy.

It is to ensure that there are

appropriate percentages

between director and manager’s

performance and personal

compensation.

Submit rectification proposal and assist

the Board of Director’s Meeting in executing and

assessing the Company’s overall compensation and benefit policy as

well as director and manager’s

compensation.

Future research and review shall

connect corporate sustainable

performance with senior

management’s compensation.

1.1.2 Salary & Compensation Committee Operation In order to assess senior management's operation performance and if their compensation received is fair and

reasonable, EZconn Corporation established a Salary & Compensation Committee (hereinafter referred to as “Compensation Committee”) which is under the Board of Director's Meeting, and retained 3 independent persons to serve as compensation commissioner.

Upon assessment, the Compensation Committee will consider director and supervisor's performance assessment, references from normal payment offered by the industry, rationality in connections among individual performance, the Company's operation performance and future risks, while at the same time ensure that there are no circumstances of director and manager being lured to conduct of behaviors beyond the Company's r isk appetite for the purpose of pursuing compensation.

Furthermore, with respect to bonus percentages for director and senior manager's short term performance as well as payment time for some changed compensation, the Compensation Committee will also determine accordingly under consideration of industry characteristics and the Company's business nature. The Compensation Committee shall stick to and comply with its due care obligation of a good administrator in its loyal executing of duties in drafting and regular reviewing of director, supervisor and manager's performance assessment as well as compensation policy, system, standard and structure, and regular assessment and drafting of director, supervisor and manager's compensation, and submit its proposal to the Board of Director's Meeting for discussion.

32

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

1.1.3 Operation of Corporate Social Responsibility

Against the backdrop of government or private sector's increased call for corporate to truly fulfi l l i ts social responsibi l i ty in recent years, EZconn Corporation, being a part of the society, has felt deeply the need to feedback to society after getting something from the society. As such, for the purpose of promoting corporate sustainable operation as well as fulfi l l ing our own social responsibi l i ty, we have established goals in the realms of promoting corporate governance, boosting economic growth, fulfi l l ing green environment and aggressive participation in social activit ies and we're dedicated to fulfi l l ing these goals gradually.

Corporate

Social

Responsibility

Principles

Society

Participation

Fultillment

Promotion

of

Corporate

Governance

Development

of Sustainable

Environment

Enhanceme

nt in CSR

information

Disclosure

Promotion of Corporate Governance

•The Board of Director's Meeting shall exercise due care obligation of a good administrator in supervising the corporate to

•he Board of Director's Meeting shall fulfill corporate social responsibility in the following fields: •（1）Proposing corporate social responsibility mission or vision and drafting corporate social responsibility policy statement;

•（2）Integrating corporate social responsibility into the Company's operation activity and development direction;

•（3）Ensuring timeliness and accuracy on corporate social responsibility related information disclosure; •（4）Regular holding of education and training on fulfilling corporate social responsibility and promoting matters prescribed in the preceding paragraph.

•To respect stakeholder's rights, the Company's stakeholders are identified and a designated zone has been established on the Company's website. Stakeholder's reasonable expectation and needs are understood through appropriate communication measures, and their concern in material corporate social responsibility issues have been responded appropriately.

Development of Sustainable Environment

•Comply with environment related laws and related international guidelines and requirements. Protect natural environment properly and is dedicated to environment sustainable goals during execution of business activities. Promote increase in respective resource utilization efficiencies and use renewable materials with low impact to environment to ensure sustainable utilization of resources on earth. Appropriate environment management systems have been established based on industry characteristics. Unit or personnel responsible for environment management shall promote and maintain environment management related systems, and hold environment education lessons to management and employees.

•To increase water resource utilization efficiency, water resource utilization will be improved in a sustainable way and related management measures will be established accordingly. Meanwhile, building and enhancing related environment protection and handling facilities are being planned to avoid polluting water, air and land. Best effort will be made to reduce negative influence to human health and environment, and optimal feasible pollution prevention and

•control technology measures will be adopted accordingly.

Society Participation Fulfillment

•Compliance with Related Labor Laws, Protection of Employee's Legitimate Rights; No differential treatments from discrimination of gender, race, age, marriage or family condition on human resource retainment in order to fulfill equality in compensation, employment condition, training and promotion opportunity.

•The Company provides a safe and health work environment to employees, including providing necessary health and first aid facilities, and is dedicated to lowering risk factors to employee's safety and health in order to prevent occupation disaster. Safety and health education and training will be implemented to employees on a regular basis.

•Procurement behavior's influence to environment and society of supply source community will be assessed and collaboration with suppliers will be conducted to jointly enhance corporate social responsibility.

•The Company participates in civil organization, charity group and local government institute's related activities on community development and community education for the purpose of facilitating community development.

CSR Goals

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

33 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

With the Board of Director's Meeting resolution approving “corporate social responsibility practice guidelines,” EZconn Corporation has established “Corporate Social Responsibil ity Committee (hereinafter referred to as “CSR Committee”)” accordingly. The Board of Director's Meeting authorized CSR Committee to take charge of corporate governance, economy, environment and society issues. With Chairman being the chairperson, five teams of corporate governance, environment protection, employee caring, society participation and customer relationship have been established under the committee for the purpose of facil itating improvements in the fields of economy, environment and society as well as achieving the goal of sustainable development.

Chairman

General Manager

Executive Secretary General Department of Human Resource

Corporate Governance Team

General Manager office

Audit office

FA & IT Division

Human Resources Dept.

Customer Relationship Team

Department of Business

Department of R&D

Business Development Dept.

Optical Component

Development Dept.

Key Customer Operations

Dept.

Optical Module Development

Dept.

Components Testing Dept.

Packaging Process Dept.

Environment Protection Team

Department of Plant Matters

Occupational Safety Guard

Office

Department of Procurement

Department of Production

Management

Department of Fixture

Department of Machining

Department of Processing

Department of Finished Product

Department of Quality Control

Supply Chain Management Dept.

Process Integration Dept.

Society Participation Team

General Manager Office

Company Spokesman

Department of Human

Resources

Department of Procurement

Department of Production

Management

Supply Chain Management

Dept.

Process Integration Dept.

Employee Caring Team

Human Resources

Dept.

CSR Committee Organization Structure Chart for EZconn Corporation

34

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Su

mm

ar

y o

f C

SR

St

at

em

en

t

an

d C

om

mit

me

nt

Prohibition of Child Labor, Prohibition of Forced Labor

Provision of Excellent Work Environment and Emphasis of Occupational Safety

Enhancement of Labor Management Harmony,

Respect for Employee‟s Opinion and Offering of Reasonable Compensation and Benefits

Compliance with Related Laws of the Nation where Operation is Located and Prohibition of Conflict Minerals

Any forms of bribery, corruption or other illegal benefits with business partners are strictly prohibited.

Discussion of Corporate

Operation Issues, Review of

Implementation Results an

Establishment of Future Goals in

Cross-Department Meeting

Going forward, engagement with

various stakeholders shall

be enhanced in order to

understand and respond to their

reasonable demands and expectation.

Reports of implementation

results will be submitted to the

Board of Director‟s

Meeting on a regular basis.

Additionally, we have further released 「Corporate Social Responsibility Policy Statement and Commitment

Report」to declare EZconn Corporation„s commitment to becoming a corporate sustainable citizen

Currently, EZconn Corporation already operated routine cross-department meetings to discuss various material issues on corporate sustainable operation, establish goals for respective departments and review implementation status.

Going forward, the Company plans to bring corporate social responsibility implementation spirit into routine cross-department meetings. Respective departments shall work with corresponding various stakeholders, regardless if they are competent authorities, shareholders, employees, suppliers or customers, in discussing their reasonable demand and expectation on EZconn Corporation. Engagement shall be conducted through diversif ied channels. Comprehensive discussion wil l be conducted and resolutions wil l be made during such meetings in order to form EZconn Corporation and stakeholder's consensus in the f ields of corporate governance, economy, environment and society. Meanwhile, respective departments' reports during cross-department meetings regarding their implementation results in the fields of economy, environment and society for current year wil l be assessed and feasibility for future goals wil l be established accordingly. Ultimately, reports to the Board of Director's Meeting wil l be submitted on a regular basis to allow the supreme governance institute to understand the Company's achievements in the fields of economic growth, green environment and society caring.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

35 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

1.1.4 Regulation Compliance Regulation compliance is the basic requirement for corporate operation. It 's l ike the foundation of a building which wil l only

be able to develop upwards with a stable foundation. Furthermore, there are cases of news report which ruin corporate's hard-earned reputation because of senior management's insider trading, factory's mal icious discharge of wastewater or abuse of employees. Huge amount of penalty or compensation has eroded the Company's profit and even shareholder's equities . Employee's l ivelihood is even more affected in the event of suspension of business or operation. Customers wil l also be affected and this has created exponential damage to corporate.

Based on its core belief of integrity, EZconn Corporation has implemented related necessary measures in regulat ion compliance. Internal ly, al l colleagues as a whole have been requested to comply with laws and regulat ions, and responsible compliance units are tracking and reviewing contents of exist ing laws on a regular basis . In the event of modification of laws, related responsible units wil l also be notified at the same time, and report of law modification's impact to the Company wi l l be submitted to senior management if necessary.

Addit ionally, the Company a llows colleagues to familiarize with business related laws and regulations through internal education, training and promotion. Meanwhile, in the event that colleagues are not familiarized with their business related laws or regulat ions, the Company also provides a legal personnel consulting channel to prevent colleague's violation of laws by mistake.

Furthermore, Internal Audit wil l comply with “Regulations Governing Establishment of Internal Control System by Public Companies” requirements and include laws and regulation compliance matters in one of the items for annual audit plan. Through aforementioned dual-control mechanisms, EZconn Corporation manages to keep an excel lent record in corporate governance regulation compliance, with no records of f ines imposed by competent authority . Additional ly, EZconn Corporation's business locations across the world al l insist on complying with laws and regulations from where their operation is located. As such, there is no violation of regulations, or prohibition of sa les in specif ic markets on our products imposed by local competent authority, or question or controversy raised by respective stakeholders .

With respect to environment protection laws, EZconn Corporation headquarters and respective branch offices al l comply with our nation's environmental protection laws and regulations, which include Air Pol lution Control Act, Water Pollution Control Act, Noise Control Act and Drinking Water Management Act. They also include regular report, c leaning, disposal and test operations. During the period of this report, there are no cases of f ines imposed by environmental protec competent authority.

As for impacts of laws and regulat ions on employee r ights and interests , dedicated uni ts are responsible for tracking of updates. Amendments of OHS and Labor related laws and regulations are reviewed by the OHS Office and HR Department on a regular basis . Management pol icies are updated in accordance with the latest legal amendments . Updated pol icies are made public to the whole company. The goal is to ensure that working conditions conform to relevant laws and safeguard employee r ights and interests . An occupational accident requiring hospitalization of an injured worker occurred in 2018. Said worker suffered a crush injury caused by the gap between the spindle and a square bar due to lack of caution during manual clearing of machine blockage while operating crosscutting machinery for material production. The Labor Inspection Office imposed a fine of NT$ 60,000 for violations of regulations set forth in Article 57, Paragraph 1 of the Enforcement Rules for Occupational Safety and Health Facilities and Article 6, Paragraph 1, Clause 1 of the Occupational Safety and Health Act. To prevent recurrence of the aforementioned incident, training has been provided for relevant operators. During troubleshooting and clearing of blockages, it must be ensured that equipment has been shut down and suitable tools are used. Equipment and instruments with high accident incidence rates are observed regularly and safety operation standards have been formulated. Operators receive guidance in their implementation.

Last but not least, we're deeply aware that regulation compliance is merely a basis to operate a business. For the purpose of becoming a corporate of sustainable operation, we need to conduct business more cautiously in the fields of corporate governance, ethics & integrity, environment protection and employee caring.

36

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

1.1.5 Internal Audit & Risk Control

Internal Audit Ezconn Corporation's Internal Audit Office reports directly to the Board of Director's Meeting. It operates

independently, objectively and in a bias-free way and it verif ies if the Company's internal control system works effectively by reviewing and auditing. In addition to reports in the Board's routine meetings, reports to independent director or to senior management meetings will also be conducted if necessary. Audit tasks are mainly executed in accordance with audit plan which is drafted based on identified risks. Project audit is executed regularly or upon necessity in order to verify if the Company's various internal operations comply with laws and internal control system. Project audit wil l also be executed depending on actual situations and the Board of Director's Meeting will be provided detai ls in order to understand operation potential risks. Also, the Board of Director's Meeting and senior management will be assisted to conduct independent and objective assessment over internal control system's completeness, effectiveness and fulfi l lment. Improvement recommendations will be provided in due time to reasonably ensure that internal control system can be implemented continuously while at the same time providing related investigation, assessment or consulting services for the purpose of assisting the Board of Director's Meeting fulfi l l i ts corporate governance duty.

Internal Audit Process Flow

In 2018, 397 processes were

audited from audits conducted on

52 items.

5 irregularities or deficiencies had been presented

Internal Audit Office shall

continue to track them and request

rectifications within deadlines.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

37 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Risk Control

Risk Perspective Responding Strategy

Finance

Change of Interest

Rate

This is mainly interest expense incurred from loans extended by respective financial institutes. Changes in interest rate do not have material impact to EZconn Corporation and its subsidiaries because interest expense only accounts for a very small percentage of business revenue. We shall pay close attention to changes in interest rates while working for more preferential interest rate terms with transacting banks in order to lower interest costs.

Change of Exchange

Rate

• Ezconn Corporation and its subsidiaries‟ product sales is mainly for export with US dollars being the main currency for product sales income. Purchase of materials involves both offshore and domestic vendors. However, USD denominated account receivables is still larger than USD denominated account payables. Therefore, changes in exchange rates has potential influence over the Company‟s profit/loss.

• We mainly adopt natural hedging method which adopts offsets between foreign currency denominated payment and income, and pay attention at all times to exchange rate change information as well as foreign currency capital needs. Foreign currency position and exchange timing will be adjusted in due time, and appropriate hedging tools will also be selected in due time upon necessity for the purpose of lowering risks from exchange rate changes.

Inflation

• Main production material for EZconn Corporation and its subsidiary„s radio frequency connector is bar copper. Product costs and sales prices will appropriately reflect international Material price changes. Therefore, it does not pose material influence to us.

• As for other main materials, we all pay close attention to fluctuations in Material prices and inflation hoping to reflect cost price changes on sales price in due time and avoid incurring material impact to profits.

• We shall continue to enhance production process in a bid to increase production efficiency and lower costs. This will ensure maintenance of excellent competitiveness when faced with price competition in the market.

Overly Concentrated

Purchase and Product

Sales

Purchase

Most of EZconn Corporation and its subsidiaries' supplier vendors are companies with long term business relationship. Supplier vendor for some specific materials have all maintained good collaboration relationship and this ensures stable supply source of materials. Due to specific industry features, our procurement of Laser Diode materials is overly concentrated on specific vendors. As such, we will pay close attention to supply/demand changes in Material supply market. Additionally, we're also aggressively developing new supplier in order to diversify our procurement risks.

Product Sales

• or EZconn corporation and its subsidiaries‟ radio frequency connectors, we mainly strive for Europe and US top line manufacturers‟ orders. This is because end customers for radio frequency connector are mainly cable TV system providers. This industry is already maturely developed and major players will continue to remain the major players in the market. Therefore, our products are mainly delivered to Europe and US cable TV system and this has resulted in concentrated sales. However, with our excellent mold and fixture manufacturing capability, we‟re able to obtain customer‟s long term stable collaboration. We‟re still able to lower the risk of losing orders by obtaining other customers‟ orders even if sales to respective end customer increases or decreases at times.

• Sales of optical communication products are mainly to global renowned equipment manufacturers. With consolidation of optical communication industry in recent years, there is also a trend that major players will continue to remain major players in the market. Optical communication downstream equipment vendors have all maintained stable collaboration relationship with system vendors while also routinely working with upstream supply chain. Once certification is received, suppliers will not be replaced easily unless there are major concerns over quality or delivery. We have overly concentrated sales because we‟ve become supplier for terminal system major manufacturers such as Huawei Group. We‟ve aggressively enhanced vertical integration on equipment suppliers and provided comprehensive product line service. In the meantime, we also aggressively develop Europe and US telecommunication system vendor customers in order to increase the number of our core customers. We will also continue to work hard in developing new products and technologies to satisfy customer‟s demand on quality, cost and delivery. Meanwhile, we‟re able to accept customer‟s specific manufacturing needs and lower the risk of overly concentrated sales with our excellent technological capability.

Impact to the Company from

Modification of Labor Laws

Modification of some of Labor Standard Act have been officially implemented after being promulgated by the President. Various industries have experienced different levels of impact since its promulgation. EZconn Corporation always complies with labor laws and even provides labor conditions better than those prescribed in laws. Our actual responding measures as follows: • Work Hour: One fixed day off and one flexible rest day is the one specifically prescribe by law. After considering our colleague‟s work/life balance, we‟ve already

fully implemented 2-day off per work system for years. Therefore, operation will not be affected by this modification. • Shift of Work: EZconn Corporation adopts 2 shifts per day system. This modification will not affect the Company‟s operation. • Wage: For overtime on rest days, rest day overtime fee has always been distributed in accordance with standards prescribed in existing laws for long time except for

wage starting from the 9th hour. This modification has minor impact on us. Responding measure will be to control overtime hours on rest day in case overtime work is needed out of operation needs. Calculation units will be 4 hours and 8 hours of overwork is to be avoided in order to maintain colleague‟s physical and mental health.

• Annual Leave: This modification increases the number of days for annual leave. Under consideration that purposes of annual leave are to ensure colleague‟s full rest for the purpose of balanced physical/mental state, enhanced work efficiency and taking care of both family and work, EZconn Corporation responded this by offering annual leave days more than the ones prescribed in laws. Colleagues are given 3 days of annual leave from the day of their onboarding. After that, days of annual leave will be given as required by laws and in accordance with “service year + 1 year” standard. Colleagues are requested to automatically arrange their annual leave schedule. Days of annual leave not used will be settled in accordance with laws.

38

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Summary of Integrity Management Principles Parties Applied: All Colleagues

•During the process of conducting business activities, all colleagues are prohibited to be engaged in behaviors of directly or indirectly providing, committing, requesting or receiving illegitimate benefits or any behavior that are not integrity.

•Compliance with corporate governance related laws of the Republic of China serves as a foundation to fulfill Integrity Management.

•To fulfill clean, transparent and responsible operation concepts, the Company has established prevention measures to prevent behavior which are not integrity. They include prevention of the following behaviors: 1. Offering and accepting bribe; 2. Provision of illegal political cash contribution; 3. Inappropriate charity donation or sponsorship; 4. Offering or accepting unreasonable gift, entertainment or other illegitimate benefits.

•Prior to business relationship, consider if supplier, customer or other transaction party is involved in records that are not integrity, and avoid having transaction with parties with records of not being integrity.

•Agreement contents with transaction party shall include terms of compliance with Integrity Management policy, and agreement may be terminated or cancelled in the event that the counter party is involved in behavior which is not integrity.

•Drafting of Conflict of Interest Prevention Policy and providing appropriate channels to stakeholders for active explanation if there is potential conflict of interest with the Company.

•Education and training to all colleagues are held regularly. Integrity Management policy is connected with employee's performance and definite and effective disciplinary system is established accordingly.

•Report system has been planned. Responsible person will accept report and launch subsequent investigation accordingly. The reporting person will be treated in an anonymous way for the purpose of protection.

Summary of Ethical Behavior Guidelines Parties Applied: Director and Manager

•Prevention of Conflict of Interest •Avoidance of Opportunity to Gain Personal Profit

•Confidentiality Duty

•Fair Transaction

•Protection and Appropriate Utilization of Company's Assets

•Regulation Compliance

•Encouragement Reporting of Any Illegal Behavior

•Establishment of Disciplinary Measures

1.1.6 Ethics & Integrity Ezconn Corporation's core value is integrity. To establish an Integrity

Management environment, EZconn Corporation has drafted related guidelines for director, manager and colleagues as a whole to comply accordingly. Risks of violating Integrity Management are minimized through rigorous management mechanism and effective control. The Board of Director's Meeting approved related internal rules of “Integrity Management Principle” and “Ethical Behavior Guidelines” drafted by the Shareholder's Meeting and announced them on internal website for colleague's reference from time to time. Meanwhile, colleagues are ensured to fully understand and comply with these requirements during their daily work through education, training and Integrity Management policy promotion.

Establishment of

Excellent

Corporate

Governance

Ethical

Behavior

Guidelines

Ethics and

integrity

Principle

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

39 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

1.1.7 Participation in External Association

External Initiatives

Ezconn provides the following Certificates/Declarations to different

interested parties in accordance with customer commitments and

emphasis on environmental protection.

(1) Certificate of Non-Use of Restricted Substances

(2) Certificate of RoHS(EU)2015/863

(3) Reach SVHC-free (174 Substances of very high concern) Declaration

(4) RoHS Declaration of Conformity

(5) RoHS Exemption Clause Declaration

(6) Declaration of Non-Use of Conflict Minerals

(7) Certificate of Non-Use of PFOs

(8) Environmental policy guarantee

(9) Certificate of Non-Use of ODS

(10) ISO 9001:2015 Quality Management System Certificate

(11) ISO 14001:2015 Environmental Management System Certificate

(12) OHSAS 18001:2007 Occupational Health and Safety

Management System Certificate

(13) TOSHMS Taiwan Occupational Safety and Health

Management System Certificate

Ezconn Corporation knows for sure that

participating in industry association or academic

institute is a good interaction channel if it wants

to excel its capability in communication network

industry and develop its influence in corporate

social responsibility. As such, we've aggressively

participated in related industry associations in

recent years and serve as association members

in a hope to utilize its influence in the industry to

promote emphasis on sustainable operation to

members of the industry.

Participation in External Association

Roles Assumed

Taiwan Electrical and Electronic Manufacturer's Association

Member

40

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

2018 Economic Performance

Direct Economic Values Generated

Report Year – Income NTD 2,805,106 K

Allocated Economic Values

Cost of Operation NTD 2,062,338 K

Employee Salary & Benefit NTD 677,982 K

Payment Paid to Capital Contributor (Bank Loan, Shareholder’s Dividend)

NTD 132,000 K

Payment to Government (Tax, Fine)

NTD 1,781 K 72%

23% 5%

0%

Distributed Economic Values

營運成本

員工薪資與福利

支付出資人的款項

支付政府的款項

Cost of Operation Employee Salary & Benefit Payment Paid to Capital Contributor

Payment to Government

1.2 Economic Performance Direct economic impact assesses transaction value between a corporate and stakeholders and is presented in

the form of currency. Specifically, for EZconn Corporation Taipei headquarters, Beitou plant, Tamsui Shang-Dar Plant, Tamsui Hong Shu Lin Plant and Chiayi Dalin Plant, the number of employees having household registration in the neighboring areas accounts for 65% of employees as a whole. This represents that our operation activities have imposed positive influence on the prosperity of local economy. They have also prompted employment for local residents.

Meanwhile, under the context of sustainable development, indirect economic impact has also been generated in addition to direct economic impact positive result from capital flowing among stakeholders . In other words, for impact result to local society generated from EZconn Corporation's operation activities, more potential , not so obvious or immediate long term effects have also been triggered in addition to economic numbers which can be quantified.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

41 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Product Revenues for the Last 3 Years (Unit: NTD1,000)

Types of Department Product

2016 2017 2018

Operation Revenue

Operation Percentage

Operation Revenue


Operation Revenue



1,427,034 33% 1,617,069 56% 1,477,012 53%

Optical Communication Products

2,923,536 67% 1,282,881 44% 1,328,094 47%

Total 4,350,570 100% 2,899,950 100% 2,805,106 100%

Sales Territory Comparison in the Last 3 Years (Unit: NTD1,000)

2016 2017 2018

Sales Amount Sales

Percentage Sales Amount Sales Percentage Sales Amount

Sales Percentage

Domestic 263,558 6% 311,145 11% 211,630 8%

Export 4,087,012 94% 2,588,805 89% 2,593,476 92%

Total 4,350,570 100% 2,899,950 100% 2,805,106 100%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2016 2017 2018

Product Revenues for the Last 3 Years

Radio

Frequency

Connector

Optical

Communication

Product

11%

89%

Year 2017

Domestic Export

8%

92%

Year 2018

Domestic Export

6%

94%

Year 2016

Domestic Export

42

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

1.3 Supply Partner

Cultivation of Green Manufacturing Process Soft Power, Taiwan Supply Chain Benefited Gradually

Faced with customer's high standard procurement threshold on product quality and green manufacturing process, EZconn Corporation has implemented requirements in l ine with global environmental regulations on local suppliers. Therefore, for local suppliers, they also continue to enhance skil ls and knowledge, improve labor's traditional ski l ls and cultivate procurement department's selection of environmental friendly and hazard-free materials . All these have indirectly faci l i tated the forming of a whole new learning cycle.

We continue to conduct internal and external education and training, cultivate our own procurement and quality control departments' human resource soft power and build up supply chains in neighboring areas for the purpose of trying to build an industry growth S curve for Taiwan's radio frequency connector and optical communication product. Taiwan's manufacturing power wil l be enhanced if the connector industry chain is able to integrate through EZconn Corporation.

Therefore, we're not only responsible for our own company's sustainable development. We also hope that we can contribute to Taiwan's connector industry as well as to generate more production capabil ity . Looking forwards to subsequent development, with Chinese government's promotion of delivering fiber optics to 80 mil l ion famil ies as well as powerful demands from US telecommunication industry's broad band upgrade, we can span across our footprint to auto and smart family industries. This is because connector is the key component to integrate various appliances in smart families. This ful ly indicates EZconn Corporation product's growth trend presented from the changes in global market.

1.3.1 Radio Frequency Connector Ezconn Corporation is a professional connector

manufacturer . Upstream main materials are copper and plastic while its end products expand into industries of electronics, communication, consumer electronics and transportation. Up/Middle/Downstream connections are i l lustrated as follows:

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

43 2018 CSR Report

Sta

ke

ho

lde

r Ma

na

ge

me

nt

Source of Information: Taiwan Optical Communication Industry Alliance, TOCIA

Upstream materials for connector industry are suppliers of metal, electron-plating, plastics and other materials . For middle-stream, they are connector design, assembly and manufacturing vendors. As for downstream, they are suppliers of various types of electronic products. With respect to upstream materials, they are mainly metal materials, electro-plating materials and plastic materials . Main consideration for metal material l ies in its mechanical strength, good conductivity features and heat resistance. Therefore, copper alloy plat uti l ized by domestic connector manufacturers are mainly brass and phosphor bronze. Although international laws do not have specific requirements on “green product,” certificate of non-util ization of prohibited materials has already become a trend. Unreliable documents wil l not only result in connector products being returned by customers, they wil l also create customer's mistrust to connector manufacturer . Given the fact that downstream customers are reducing the number of connector suppliers, the chance of being replaced is extremely high. As such, long term trust and collaboration relationship with upstream suppliers have become the best protection for a good Material supply and reliabil ity for documents of non-util ization of prohibited materials . As for downstream industry application, Taiwan connector downstream application fields are mainly for computer and computer peripherals . EZconn Connector's radio frequency connector is mainly used in cable TV system establishment as well as cable broad band infrastructure building.

1.3.2 Optical Communication Product Fiber optical transmission equipment can be

categorized into three types of Material (fiber optics, cable), photoelectric active component and photoelectric passive component. Among them, active components are photoelectric components that use electrical energy for photoelectric or electronic-optical signal conversion as well as optical signal amplification, while passive components are components responsible for transmission and tuning of optical signal and are irrelevant to photoelectric energy conversion. Connections among up/middle/downstream is i l lustrated as follows:

Up

stre

am:

mat

eria

l/co

mp

onent

Mid

-str

eam

: m

od

ule

/ass

emb

ly

Do

wn-s

tream

:

syst

em e

quip

men

t

Fiber Optical

Regional

Internet Equipment

Telecommunicat

ion Optical

Transmission Equipment

Cable TV

Optical

Transmission Equipment

Optical

Communication

Measurement Equipment

Other Optical

Communication Equipment

Fiber Material

44

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

Chapter 2 Environment Sustainable Management

Ezconn Corporation is an optical communication industry component manufacturer. With respect to life cycle of products which are produced from environment and then dumped into environment afterwards, impact to environment mainly comes from respective manufacturer's energy consumption during production and discharge of wastes. Starting from 2002, EZconn Corporation has complied with ISO14001 released by the International Organization for Standardization in establishing an environment management system suitable for EZconn Corporation. This system includes headquarters, Shang-Dar Plant and Hong Shu Lin Plant. Environment management policy is signed and announced by General Manager. Impact to environment is dealt with accordingly through green design and source control.

45

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

Environment Management Policy and Commitment With the global environmental view that there is only one

earth, EZconn Corporation encourages employees as a whole to actively participate in environmental protection system, follows operation of environment management system, commits to comply with various laws and environmental spirit in manufacturing process and products, educates employees and communicates with customers, cares and fulfi l ls environmental issues and assumes social responsibil ity of being an excellent global company. EZconn Corporation establishes the following environment policies which wil l be fulfi l led by employees as a whole:

1. Comply and meet with environmental protection regulations requirements;

2. Fulfi l l operation of environment management system; 3. All-employee participation and pursuit of low pollution

environment; 4. Promote environment management cycle and continue

to improve accordingly . Environment Target and Subject Product Perspective：

1. New products comply with HSF requirements: RF& optical communication monthly achievement rate of 100%;

2. HSF D level supplier no order rate:RF& optical communication monthly achievement rate of 100%.(Note: 1.RF Group D level suppliers do not include “bar copper” vendors.)

Operation Activity Perspective： 1.Waste Reduction: Control monthly industry waste

(excluding recycled and renewable resource wastes) average mount per person to 0.07kg/man-hour for Beitou Plant and 0.06kg/man-hour (excluding sawdust) for Shang-Dar Plant;

2.CO2 Discharge Amount: Control average CO2 discharge amount per person converted from monthly power consumption to 1.9~2.8kg-CO2-e/man-hour for Beitou Plannt, 2.9~3.7kg-CO2-e /man-hour for Shang-Dar Plant and 2.9~3.9kg-CO2-e/man-hour for Hong Shu Lin Plant. Ezconn holds “Quality and Environment Committee Meeting” each quarter to review if subject's monthly performance meets with target requirements. In the event of fai lure to meet with target requirements,

Quality & Environment Committee To continue to improve environment management, Ezconn

Corporation establishes 「 Quality & Environment Committee 」 to take charge of the following environment management businesses:

1. Review environment management manual, procedure documents and company standard documents of related plans and guidelines

2. Coordinate and solve environment management problems (e.g., cross department environment problems)

3. Review environment operation implementation and performance, and report implementation results to General Manager on a regular basis

4. Review prevention and rectification measure effectiveness

5. Direct promotion and fulfi l lment of various projects related to environment continuous improvement

6. Operate and execute respective department's various environment systems

7. Review implementation and performance of respective department's environment systems

8. 8.Review effectiveness of respective department's prevention and rectification measures

9. Promote and fulfi l l respective department's various projects related to continuous improvement.

Grievance Mechanism： Ezconn Corporation has yet to establish an open

complaint platform. In the event that related stakeholders are affected during the process from the generation of wastes in plant to shipping out and outsourced handling of wastes, complaints can be fi led to local environment protection bureau and EZconn Corporation's Plant Matter Department of which the complaint channel is: 02-28959777.

“Meeting Resolution Implementation Form” wil l be issued after the meeting and wil l be delivered to responsible units for irregularity analysis and improvement operations. Re-verification wil l be conducted for management representative's determination to close the case.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

46 2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

2.1Raw Material Volume And Weight

2.1.1High-frequency Connectors We demonstrate our contributions to global resource protection and commitment to reduction of raw material consumption intensity and increased economic benefits through disclosure of raw material consumption indicators. Raw materials utilized for the manufacture of high-frequency connectors include plastic, plating nickel, plating tin, rubber, and copper. We select recyclable brass which can be reused and converted into copper alloy rods at the end of product life cycles and after processing. These materials are purchased from external suppliers and are not extracted through internal operations. Pursuant to the Restriction of Hazardous Substance Directive (RoHS) of the EU which took effect in 2006, the aforementioned raw materials are non-hazardous substances. During the reporting period, recyclable materials utilized for high-frequency connectors included plastic, copper, plating nickel, and plating tin. Total consumption amounted to 257,121kg, which accounts for 100% of all utilized materials. The greatly increased consumption of raw materials was mainly caused by a large-scale increase of make-to-order production by 54.6% compared to 2017.

Material Consumption Statistics for Radio Frequency Connector

Year 2016 2017 2018

Raw If hazardous

materials are included

Consumption (kg)

Percentage Consumption

(kg) Percentage

Consumption

(kg) Percentage

Renewable

Plastics NO 15,101 10.39% 17,276 10.39% 26,719 10.39%

Copper NO 129,070 88.82% 147,660 88.82% 228,370 88.82%

Electroplated Nickel

NO 414 0.29% 474 0.29% 733 0.29%

Electroplated Tin

NO 734 0.51% 840 0.51% 1,299 0.51%

Material Consumption Statistics for Optical Transceiver

Raw If hazardous

materials are included

2016 2017 2018

Consumption (kg)

Percentage Consumption

(kg) Percentage

Consumption (kg)

Percentage

Renewable

Zinc Alloy NO 1,279.6 35% 1,699.7 46% 540.6 63%

SUS Stainless

Steel NO 524.9 14% 460.4 29% 146.2 17%

Plastics NO 859.9 24% 316.1 7% 61.1 7% Compound

Material NO 224.3 6% 194.6 2% 35.7 4%

Nickel-Platted Copper

NO 289.2 8% 147.6 11% 41.7 5%

NO-Renewable

Plastics NO 468.6 13% 100.1 6% 33.3 4%

Note1. According to EU RoHS (2011/65/EU) and EU REACH (Registration, Evaluation, Authorization and Restriction of Chemicals), we impose restrictions on hazardous substance (RoHS) as well as Substance of Very High Concern (SVHC) test.

2.1.2 Optical Communication Product With respect to disclosed Material

consumption statistics for optical communication products, materials utilized include zinc alloy, SUS stainless steel, plastics and 2 compound materials. According to EU RoHS (2011/65/EU) and EU REACH (Registration, Evaluation, Authorization and Restriction of Chemicals), we impose restrictions on hazardous substance (RoHS) as well as Substance of Very High Concern (SVHC) test. Results showed that all of aforementioned materials do not include hazardous substances. This illustrates the result of EZconn Corporation's commitment to control hazard-free substances. During the period of this report, renewable materials for optical communication products include plastics, copper and electroplated nickel, with a total consumption of 822.8kg and accounting for 96%, while non-renewable Material of rubber consumed a total of 35.7kg and accounted for 4%. The greatly dropped consumption of raw materials was mainly caused by a large-scale dropped of make-to-order production by 77% compared to 2018.

47

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

2.2Reduction of energy consumption Ezconn‟s sole main energy source is electricity. With regard to internal energy consumption, we disclose electricity calculated in kWh which is purchased and consumed during the reporting period. The statistical boundaries for the reporting period include the head office and plant in Beitou, and the Shangda and Hongshulin Plants in Tamsui, Taipei. The Ningbo Plant, which is the Company‟s subsidiary in China, and the operating areas of Ezconn technologies CZ s.r.o are excluded. The boundaries for energy consumption statistics will be expanded in future reporting periods, while consistent calculation methods will be maintained. Ezconn is firmly committed to the adoption of energy conservation measures to reduce its electricity consumption. During the reporting period, a total of 410 9~28W LED lamps were installed. Projected energy savings amount to 103,284 kWh. The 50HP in the Shangda Plant were replaced with high-efficiency air compressors, which is expected to generate annual energy savings of 258,813 kWh. In 2018, electricity consumption totaled 4,861,778 kWh, which represents an increase by 139,473 kWh compared to 2017. This increase has mainly been caused by the addition of offices and assembly lines and expansion of production capacities in the Shangda Plant in July 2018. If the aforementioned facilities were excluded, actual savings would amount to a minimum of 362,097 kWh as a result of the replacement of lighting equipment and compressors and the energy conservation achievements of individual units. In 2019, the Company will continue its efforts in enhancing energy conservation effects of its air compressor systems and improving its soft- and hardware facilities.

Electricity Consumption Statistics

YEAR 2016 2017 2018

Power Consumption

(Unit: KwH) 4,668,773 4,722,305 4,861,778

Energy

Consumption

(Unit: Megajoule)

16,807,582.8 17,000,298 17,502,401

Carbon Emission (kg) 2,465,112 2,766,309 2,854,664

Announcement from the Bureau of Energy, Ministry of Economic

Affairs：

Conversion Formula: 1 KwH is equal to 3.6 Megajoule.

Power Carbon Emission Coefficient:2016year:0.529kg - CO2-

e/KwH;2017year:0.554kg- CO2-e/KwH;

2018 year:This was not released when the report was compiled.

Therefore, principle for calculation shall be mainly in l ine with the

latest version (2017 Power Carbon Emission Coefficient).

4,500,000

4,600,000

4,700,000

4,800,000

4,900,000

5,000,000

2016 2017 2018

4,668,773

4,722,305

4,861,778


Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

48 2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

The results of reviews of the electricity emission factor

made public by the Bureau of Energy of the Ministry of

Economic Affairs in 2017 reveal that average CO2 emissions

per kWh of electricity generated amount to 0.554 kg CO2e.

Statistical results indicate that Scope 2 indirect emissions

amounted to 2,856 metric tons of CO2 during the reporting

period. The average emission amount per working hour in

the Beitou, Shangda, and Hongshulin Plants reached 2.7kg,

3.4kg, and 3.4kg CO2e, respectively. The Beitou Plant added

CNC processing machinery and CNC lathes, while the

Shangda Plant relocated equipment and assembly lines and

expanded its production capacities. As a result, both plants

missed their targets. Only the Hongshulin Plant achieved its

projected target.


2.3Water consumption statistics

Water consumption can be broken down by source.

Ezconn product processes do not consume any water.

Machine operations solely require lubricating oil which is

fully recyclable and reusable. Water consumption is

therefore confined to domestic water which is supplied by

Taiwan Water Corporation. In 2018, total consumption

reached 24,533 m³, which represents an increase by 21.05％

compared to the same period of the previous year. This

increase can be explained by addition of personnel and

overtime work.

0

5,000

10,000

15,000

20,000

25,000

2016 2017 2018

18,080

20,267

24,533

◆ Average emission amount per working hour - targets

and actual performance

Plant

2018 Targets 2018 Performance Target

(kg-CO2-e/ working hour)

(kg-CO2-e/ working hour)

Achievement Status

Beitou <2.4 2.7 Not achieved

Shangda <3.3 3.4 Not achieved

Hongshulin <3.6 3.4 Achieved

49

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

2.4Waste management Waste can be divided into process waste and domestic waste.

Generated domestic waste is sorted in accordance with relevant principles, managed separately, and stored in designated areas by assigned personnel. Upon sorting, recyclable waste such as paper and PET bottles are donated to NPOs and the Tzu Chi Foundation in the vicinity. Resource recycling amounted to a total of 15,514 kg (4,337 kg and 11,177 kg in the head office and plant in Beitou and Shanda Plant in Tamsui, respectively). Non-recyclable waste is removed and disposed of by selected waste treatment businesses approved by the Environmental Protection Administration of the Executive Yuan in accordance with waste disposal plan. During the reporting period, a total of 63,834kg of general and industrial waste were generated. This waste was transported to the Beitou and Bali Refuse Incineration Plant for incineration treatment. No hazardous industrial waste was generated in production processes. Ezconn also sets per capita discharge targets for industrial waste generated monthly (excluding recyclable resource waste). During the reporting period, the values for the Beitou and Shangda Plant (0.06/ working hour excluding sawdust) met the projected targets. No serious waste or chemical leakages were detected during the storage, disposal, and treatment process, and no massive fines were imposed for violations of environmental laws and regulations. All production and manufacturing activities conform to local environmental laws.

Plant Target for 2018

(kg-CO2-e/working

hour)

2018 Actual

performance (kg-CO2-

e/working hour)

Target

achievement

status

Beitou <0.07 0.06 Achieved

Shangda <0.06 0.06 Achieved

Category of Wastes

Categorization Principle Storage/Clearing

Measure Disposal Principle

Average

Wastes

This refers to average wastes excluding resource garbage.

Installment of Dust Box

Daily cleaning and removal will be done by legal

vendors.

Manure, Sewage Contact vendors

to do cleaning and removal.

This is disposed by vendors on a regular basis.

Re

sou

rce

Re

cy

clin

g

Drink Cans and Bottles Made of Paper (including Tetra Pak, Paper Container), Aluminum, Glass and Plastics (PET,PE,PVC,PP, PS, excluding Plastic Bag)

Installment of Recycle Tank

This is recycled by Tsu Chi on a regular

basis.

Waste Fluorescent Tube, Waste Dry Battery

Installment of Recycle Tank

This is recycled by Tsu Chi on a regular

basis.

Electronic Appliances & Information Items

Contact vendors to do cleaning and recycling.

Vendors will do cleaning and removal on a regular basis.

Average

Industry

Wastes

Scrap Metal, Leftovers Installment of

Collection Location

This will be scrapped by vendors on a regular basis

Waste Chemical Liquid or Container

Installment of Collection Tank

Recycling and disposal will be conducted by

qualified vendors on a regular basis.

Oil Stain Clothes for Wiping Machine

Installment of Collection Tank

Cleaning and removal will be

conducted by legal vendors

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

50 2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

2.5Lowering the demand for environmental resources In its business plans, the Company stresses its ultimate goal of green product life cycles. Work tasks that pose environmental

threats or potential impacts are eliminated. The Company is firmly committed to new-generation product development and constant enhancement of green processes to realize its eco-friendly early warning policy. EZconn’s HF connectors are characterized by lower power consumption and heat generation. No electric shocks are received during touching or regular operations. Our constant efforts in lowering the demand for environmental resources generated by our products and services are illustrated below through the description of energy-saving designs.

Green product design一Optimized design and reduced use of materials For instance, the company‟s BOSA PIGTAIL product employs an ameliorated two-subunit design in place of the original three-

subunit design to reduce the use of raw materials through compact car part methods. This not only results in cost and material savings (decreased use of automotive parts) but also reduces product assembly and welding times.

1 2 3 1 2 3

Three-subunit Two-subunit

51

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

Product material chart

two-subunit One-subunit design

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

52 2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

1. Cost and material savings (NT$4/PC).

2. Reduced product assembly and welding times (18

sec/PC).

3. Decreased wear and tear of laser welder lamps

through reduction of the number of required laser

pulses by four (three pulses per item).

Before improvement

After improvement

Three-subunit design

Two-subunit design

Impact on material usage

53

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

2.6 Supplier Assessment & Review

Each review is an opportunity for improvement EZconn has formulated Supplier Management

Guidelines and Incoming Material Control Management Guidelines. Production Management, Procurement and QA conduct supplier evaluations and appraisals of all suppliers. Evaluation items include Quality, Cost, Delivery, Service, and EU HSF (Hazardous Substance Free) regulations. This audit mechanism is utilized to enhance supplier QCDS capabilities. Audit procedures for all stages have therefore been developed to facilitate conformity of suppliers to EZconn Quality Standards. Since HSF evaluations are conducted in writing and on-site, evaluation results are divided into four levels (A, B, C, D). Vendors with a D rating are not listed as qualified suppliers unless they monopolize the market or have been designated by customers. We also approve and sign up for various external environmental initiatives and require our suppliers to make a firm commitment to abiding by these rules and regulations. A total of four new suppliers have met the criteria of written, HSF, and on-site evaluations during the reporting report and have therefore been listed as qualified suppliers. The Procurement Department conducted an annual appraisal of suppliers the company has had business dealings with or whose transaction volume is ranked in the top 90% of the respective year. HSF appraisals are conducted in accordance with customer requirements or for suppliers with abnormalities in the field of HSF. A total of 23 and 222 suppliers underwent HSF appraisals and annual supplier evaluations to determine qualifications, respectively.

Down Stream

Cable TV Service &

Equipment Vendor

Telecommunication Service

& Equipment Vendor

Electronic Appliance

Equipment Vendor

Middle Stream

Ezconn

Corporation

Radio Frequency Connector and

Optical Communication Product

Design, Research

and Manufacturing

Upstream

Material Supplier Outsource Supplier

EZconn Corporation Up/Middle/

Down Stream Supply Chain Process Chart

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

54 2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

Radio Frequency Connector：

Name of Indicator

Target

(Annual

Target)

Review

Cycle 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06 2018/07 2018/08 2018/09 2018/10 2018/11 2018/12

New Product's Compliance with

HSF Requirements

100% Each

Month 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

HSF C Level Supplier's Non-

Order Rate 100%

Each Month

99.43% 99.34% 99.43% 99.43% 99.41% 100% 100% 100% 100% 100% 100% 100%

Optical Communication Product：

Name of Indicator

Target

(Annual

Target)

Review

Cycle 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06 2018/07 2018/08 2018/09 2018/10 2018/11 2018/12

New Product's Compliance with

HSF Requirements

100% Each

Month 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

HSF C Level Supplier's Non-

Order Rate 100%

Each Month

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

In 2018, EZconn Corporation established product management and procurement targets on product HSF requirements and supplier management. New product targets for radio frequency connector and optical communication products can 100% meet with HSF requirements, and non-order rate reaches 100% for HSF D level suppliers except for “brass bar ” suppliers. The followings disclose target achievements for product's compliance with HSF and D level supplier's non-order rate during report period. Through super vision and measurement and analysis on monthly performance, all new products for radio frequency connector and optical communication product comply with HSF requirements 100%. With respect to suppliers for radio frequency connectors, D level optical communication product and radio frequency connector suppliers have all achieved 100% non-order rate with the exception of vendors designated by customers.

55

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

Suppliers must conform to EU RoHS, WEEE, HSF environmental norms In addition to conformity to Hazardous Substance Free (HSF) regulations, suppliers must sign a letter of commitment to Restriction of Hazardous Substances Directive 2011/65/EU,RoHS and Waste Electrical and Electronic Equipment Directive (WEEE). RoHS rigorously regulates hazardous substance contents in raw materials provided by suppliers . The following 6 chemical substances are strictly prohibited: lead, mercury, cadmium (the permissible l imit is 100ppm), hexavalent chromium (CrVI), polybrominated biphenyl (PBB), and polybrominated diphenyl ether (PBDE). Suppliers are also required to provide a Material Safety Data Sheet (MSDS) for chemical substances uti l ized for item processing and manufacturing and inspection reports issued by third-party accreditation units.

Localization of Radio Frequency Connector Supplier Take serial number RF CSR Sample radio frequency

connector main product which accounts for high revenue percentage for example, locations for R&D and delivery are all in Taipei operation headquarters and Beitou Plant and Taipei Tamsui Shang-Dar Plant. Percentage of the product's procurement expenditure from local suppliers is 100%. From economics perspective, economic impact generated from EZconn Corporation's operation activity reaches far beyond creating employment opportunities, distributing salary and paying taxes. It also integrates local small and medium satell ite factories into supply chain to energize positive influence over economic development in Taipei Tamsui areas. Our selection to purchase from local suppliers has, to a certain degree, proven more effective than remote management. On the other hand, we've also considered supplier's sustainable development. For instance, uti l ization of hazard-free materials and enhancement of environmental manufacturing process are all directions for EZconn Corporation and collaborating vendors' joint efforts.

Optical Communication Product Offshore Supplier Management

Optical communication product 's supplier management policy is same as the one for radio frequency connector . This i l lustrates EZconn Corporation's consistency in management measures. With respect to the most upstream materials of Die and Chip for fiber optical active component, EZconn Corporation has maintained a very fr iendly relationship with Japanese major suppliers . In recent years, EZconn Corporation has gradually expanded its optical communication product pilot production in Taiwan and China and mass production bases. Result from this is increase in offshore supplier's cross-border logistics transportation distance. This has generated certain degree of carbon emission during transportation process as well as increase in transportation costs. Optical Communication Department has made cross-border transportation patch reduction as one of the goals to fulfi l l corporate social responsibil ity and wil l continue to work hard towards low carbon emission.

Furthermore, global warming in recent years has resulted in weather change and irregularities which include aggravated wind disaster, f lood, drought or even extreme weather. Through establishing long term stable collaboration relationship with offshore suppliers, wastes generated from transportation wil l be reduced and carbon emission wil l be lowered effectively, and the goal of reducing greenhouse gas emission wil l be achieved.

In 2018, the company signed agreements for relevant environmental regulations and carried out simultaneous updates of supplier evaluation items. 1. Supplier Restricted Hazardous Substance(HSF) certificates

(180706) – 15 copies 2. Version of Supplier Restricted Substance Certificates (No.

C35) – 37 copies 3. 8th version of Supplier 3rd Grade Hazardous Substance

Check List (No. C01) – 13 copies 4. New version of the Supplier SVHC (Substance of very high

concern) Check l ist (7 newly added items) 20180119 – 95 copies signed

5. Hazardous Substance Declaration certificates of REACH – 15 copies

6. Conflict Minerals(Co) Questionnaire and Declaration 2018A，55份

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

56 2018 CSR Report

En

viro

nm

en

t Su

stain

ab

le M

an

ag

em

en

t

Request to Sign EU REACH Commitment EU's regulation of Registration, Evaluation, and

Authorization of Chemicals is also called EU REACH regulation. Compared to RoHS directive which imposes control over electronic and electrical products, control subjects for REACH regulation are chemical materials . EU has come the sense that chemical products, such as plastics, rubber, organic or non-organic chemical materials , have been used during electronic and electrical product manufacturing process and for source of materials . Therefore, international chemical product prevention management regulations were passed in 2008. Starting from 2009, EZconn Corporation introduced EU REACH regulations into supplier management system and requested supplier to commit and guarantee their products comply with EU REACH requirements. In the event that supplier's products contain Substances of Very High Concern (“SVHC”), suppliers must then fulfi l l their Duty to Communicate.

Metal Conflict-Free In accordance with “Act of Conflict Minerals,”

EZconn Corporation requests supplier not to purchase or use conflict minerals. Suppliers must commit to adopt responsible mineral source to ensure minerals used in EZconn Corporation's products, such as metals of zinc, tantalum, tungsten and gold, will not bring profits for arm confl icts . This policy has already been integrated into necessary items for supplier purchase management provision and product design. In the event of supplier's use of confl ict minerals, forced disclosure of smelting factory information must be made accordingly.

57

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Em

plo

ye

e C

arin

g

3.1Employee Structure

EZconn Corporation's measures for human resource arrangement and organization business models for overall strategy can be understood through employee number statistics and disclosure. Employee Job stability and level of benefits given by organization to employees can also presented. Gender distribution within organization can be illustrated through detail categorization based on gender. Comprehensive human resource planning and arrangement on existing labor power and talents have already been conducted.

In 2018, total number of EZconn Corporation's employees in Taiwan area is 411. 100% of employees are full-time employees with contracts of unspecified term (interns are equivalent to full-time employees), and they enjoy all labor benefits mandated by the government. This indicates employee structure is stable and it is helpful in the Company's operation development. There are 200 male employees which account for 49%, and there are 211 female employees which account for 51%. Percentages between male and female employees are balanced and there is no obvious change in employee numbers. The employee resignation rate increased from 12% in 2017 to 20% in 2018. This was caused by redundancy of 27 employees due to manpower adjustment and streamlining and 13 employees reaching retirement age.

3.1.1 Employee Statistics

During the report period, the following illustrates total numbers and percentages for new and terminated employees based on their age group, genders and regions.

Major Category

Sub-Category

Male -200Persons Female -211 Persons Subtotal – 411 Persons

Number of Persons

Number of Persons

Number of Persons

Number of Persons

Number of Persons Percentage

New Employee

Under 30 Years Old

11 6% 7 3% 18 4%

31-50 Years Old

8 4% 6 3% 14 3%

Over 51 Years Old

0 0% 0 0% 0 0%

Subtotal 19 10% 13 6% 32 8%

Terminated Employee

Under 30 Years Old

11 6% 10 5% 21 5%

31-50 Years Old

17 9% 34 16% 51 12%

Over 51 Years Old

7 4% 4 2% 11 3%

Subtotal 35 18% 48 23% 83 20%

Note 1: There are no temporary employees at the end of December 2018.

Note 2: Regions for statistics include operation headquarters Beitou Plant Shang-Dar Plant, Hong Shu Lin Plant and Dalin Plant. Regions for China subsidiary and Czech sub-subsidiary are not included, and numbers of labors in supply chain are not included either.

Chapter 3 Employee Caring

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

58 2018 CSR Report

Em

plo

ye

e C

arin

g

Percentages of male-female employees based on duty, age, education, aboriginal people, physical disability and nationality are as follows

Major Category

(This is calculated based on percentage of total employees.)

Sub-Category

Male Female Subtotal

Number of

Persons Percentage

Number of

Persons Percentage

Number of

Persons Percentage

Based on Duty

Management Duty 42 21% 25 12% 67 16%

Technology Duty 148 74% 130 62% 278 68%

Administration Duty 10 5% 56 27% 66 16%

Subtotal 200 100% 211 100% 411 100%

Based on Age

Under 30 Years Old 43 22% 68 32% 111 27%

31-50 Years Old 126 63% 115 55% 241 59%

Over 51 Years Old 31 16% 28 13% 59 14%

Subtotal 200 100% 211 100% 411 100%

Based on Education

Master, Doctor 26 13% 6 3% 32 8%

University (College) 105 53% 80 38% 185 45%

Under Senior High School/

Occupational School (included) 69 35% 125 59% 194 47%

Subtotal 200 100% 211 100% 411 100%

Based on Aboriginal

People

Aboriginal People 0 0.0% 1 0.5% 1 0%

Non-Aboriginal People 200 100.0% 210 99.5% 410 100%

Subtotal 200 100% 211 100.0% 411 100%

Based on Physical

Disability

Physical Disability 2 1.0% 2 0.9% 4 1%

Non-Physical Disability 198 99.0% 209 99.1% 407 99%

Subtotal 200 100.0% 211 100.0% 411 100%

Based on Nationality

Domestic 175 88% 156 74% 331 81%

Vietnam 18 9% 55 26% 73 18%

Thailand 7 4% 0 0% 7 2%

Subtotal 200 100% 211 100% 411 100%

Note1: To respond to new GRI guidelines, indicators of physical disability and minority ethnic group have been reduced. Instead, this is presented in education level.

Note2: Category is based on duties Management Duty: Duties of (Deputy)Team Leader, (Deputy) Section Chief, (Assistant) Manager, (Vice)Director, Associate Director, Business Group General Manager, Executive Assistant General Manager. Technology Duty: Duties of Operator, Technician, Level I Engineer, Level II Engineer, Level III Engineer, Senior Engineer, Project (Assistant) Manager, Chief of technology.

Administration Duty: Duties of Assistant, Level I Administrator/Sales Specialist, Level II Administrator/Sales Specialist, Level III administrator/Sales Specialist, Senior Administrator/Sales Specialist, Project (Assistant) Manager, Special Assistant.

59

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Em

plo

ye

e C

arin

g

Critical Operation

Locations

Address

Number of employees

in the factory

Number and percentage of

neighbors in the neighborhood

Define neighborhoods

Operation Headquarters beitou plant

No.10 and 12, Lane 121, Li Deh Rd., Beitou District, Taipei 170 92 54%

Employees with household

registration in Shilin/ Tatung/Beitou of Taipei

Shang-Dar Plant

No. 380, Sec. 3, Tam Jin Rd., Tamsui District, New Taipei City 167 135 81%


registration in Beitou/

Tamsui/Bali/ Sanji of Taipei

Hong Shu Lin Plant

26F, No. 27-3 and 2F, No. 27, Sec. 2, Jung Zheng E. Rd., Tamsui District, New Taipei City

74 39 53%


registration in Beitou/Tamsui/Bali/

Sanji of Taipei

Total 411 266 65%

Note 1: In 2017, foreign employees living in Taiwan area are excluded (20 employees in Beitou Plant and 68 employees in Shang-Dar Plant). Only local employees with household registration in plant areas are counted.

Note 2: Geographical definition for “local community” shall refer to Taiwan area.

Note 3: “Critical Operation Locations” shall refer to operation headquarters, Beitou Plant, Shang-Dar Plant, Hong Shu Lin Plant which are all located in Taiwan area。

3.2 Compensation Benefits & Retirement Plan Preferential compensation assists in enhancing employee's loyalty and aggressiveness in their work. It is also

effective in keeping professional talents a company needs in the labor-intensive manufacturing industry. EZconn Corporation's compensation differs in accordance with an individual's education and experience, job duty and performance result . However, there are no differences based on different genders. Employee's compensation is higher than Taiwan's regulations on minimum compensation, and compensation policy is executed in accordance with government laws and regulations.

In 2018, mandatory minimum basic wage was NTD23,100. Minimum salaries for male and female employees in respective plants in Taiwan have all exceeded this requirement. However, there are differences in job duties for male and female employees with minimum salaries. Male employees enjoy higher minimum salaries because of the heavy-labor nature of their work.

Male's Minimum Salary Exceeding

Mandatory Salary 13%

Female's Minimum Salary Exceeding

Mandatory Salary 4%

3.1.2 Facilitation of Local Community Employment Ezconn Corporation has a total of 266 employees with household registration in neighboring communities. That

accounts for 65% of all employees and average service year is 9.32 years. This indicates that EZconn Corporation's operation activities have truly facil itated economic prosperity and employment opportunities for local communities . Additionally, percentage of senior management's (General Manager and Chairman) being Taiwan local residents is 100%. EZconn Corporation's selection of senior management personnel complies with local hiring principles . Localization of management team ensures enhanced human resources and improves local talent quality.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

60 2018 CSR Report

Em

plo

ye

e C

arin

g

•Group insurance, employee health checks, business travel

insurance, year-end banquet, employee bonuses and stock

options, year-end bonus, charity leaves, paternity and maternity

leaves, pensions, referral bonus, breastfeeding room, health

station, health check allowance, labor and health insurance

allowance, additional days of special leave, allowance for internal

instructors, allowance for private vehicles and smartphones used

for business, QCC bonus, LEAN bonus, improvement proposal

bonus, bonus for reporting of near-miss incidents, parking lot,

preferential rates for salary deposit accounts, and meal

allowances

Benefits and allowances

•Staff trips, festival bonus and coupons, birthday bonus, year-end

activities, marriage/funeral/celebration allowance, company

dinner allowance, signing of contracts with businesses offering

special discounts, scholarships, emergency allowance, club

allowance, family days, special T-shirts

Employee Welfare Committee benefits

3.2.2 On-Job-Training Subsidy

To cultivate talents, enhance occupational skil ls and combine occupation with career development, the Company encourages its employees to have on-job-training in order to learn professional knowledge and skil ls systematically and continuously. In 2018, “On-Job-Training Management Approach” has been established to provide 70 percent tuition fee subsidy and one day paid business leave each week in order to support employee's on-job-training with actual actions.

3.2.1 Employee Benefits Employee benefits for EZconn Corporation's full-time employees in Taiwan are divided into company benefits and

employee benefit committee benefits. In addition to offering basic protection of special leave, birth leave, maternity leave without pay, labor insurance and health insurance, employees are also entitled to charity leave, birth examination leave, preferential payroll transfer, group meal subsidy, employee bonus, on-job-training, employee pension, business tr ip travel insurance, year-end party and year-end bonus. Furthermore, “Employee Benefit Committee” has been established for the purpose of managing employee related benefit systems, regular holding of employee activities, distributing cash gift , various subsidies and scholarship. Preferential matters have also been discussed with contracted vendors. Total expenditure for benefit expenses in 2018 is NTD57,404K.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

61 2018 CSR Report

Em

plo

ye

e C

arin

g

Ezconn considers its employees its most important asset. Employee health and work-life balance are key prerequisites for high-quality work performance characterized by high efficiency. In 2018, three different itineraries were planned to encourage employees to participate in outdoor activities. Employees and their whole families are invited to these trips with the goal of increasing mutual affection in a relaxed and joyful atmosphere. This also helps alleviate work pressure and strengthen the emotional bond and identification of employees and their family members with the Company.

3.2.3Family days and staff trips In appreciation of the dedicated efforts and contributions of its employees, the Company commissions professional PR companies to organize activities suited for the whole family such as family days and staff trips on an annual basis. Activity contents include exciting performances, hand-made booths, challenge games for the whole family, culinary delicacies, and raffles. The goal of these activities is to show concern for employee families, increase the mutual affection and cohesion between employees, and give employee family members a better understanding of the Ezconn community.

In 2018, a BBQ Fiesta for the whole family was organized at Wen Sun Farm. The event was centered around BBQs and picnics in groups. It also featured various performances and an emcee who created an exciting atmosphere that kept the participants engaged. Fun activities and delicious snacks such as fishing, marble games, tea picking activities, old street tours, cotton candy, and popcorn were also available for the entertainment and amusement of all participants. This event attracted a total of 352 participants (209 employees and 143 family members). It helped build a rapport and intensify exchanges between employees and gave participants an opportunity to get to know and interact with the family members of their colleagues.

62

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Em

plo

ye

e C

arin

g

Preferential Retirement Guidelines: Years of Service + Age ≧60

Statistics for Parental Leave

Parental Leave Gender total/proportion

2017 2018

Total number of employees that were entitled to Parental Leave (within 3 years)

Male 19 18

Female 18 14

Total number of employees that took parental Leave

Male 0 0

Female 2 2

Total number of employees due to return to work after taking parental leave

Male 0 0

Female 2 2

Total number of employees that did return to work after parental leave

Male 0 0

Female 1 2

Percentage of employees who returned to work after parental leave ended (Return to work rate)

Male 0% 0

Female 50% 100%

(Note)

Total number of employees that returned to work after parental leave ended that were still employed 12 months after their return to work

Male 0 0

Female 1 1

Percentage of employees that returned to work after parental leave ended that were still employed 12 months after their return to work (Retention Rate)

Male 0% 0

Female 50% 100%

Note: 2 employees who were scheduled to be reinstated after parental leaves in 2018, applied for a second unpaid parental leave due to subsequent pregnancy.

3.2.4Retirement Plan Employees are provided with definite retirement plan

which assists in attracting talents and maintaining employee team stabil i ty . This has exerted positive support function to the Company's long term operat ion strategy planning. EZconn Corporation was establ ished in 1971 with years of operation up unti l now. Years of service for some employees have reached their retirement threshold . To manage employee retirement related matters, EZconn Corporation has established “Retirement Management Approach” to clearly prescribe retirement term. Meanwhile, under considerations of employee's self career planning, physical conditions and family factors, preferential retirement guidelines better than Labor Standard Act were added in 2016. Application of retirement is available as long as years of service plus age reach the threshold of 60 years.

In 2018, a total of 12 employees applied retirement

when they reached retirement age. Retirement benefits provided by EZconn Corporation include pension, post-retirement benefit fee, insurance fee as well as fees for other , the total amount spent was NTD12,636,355. Processing of employee's pension is conducted in accordance with requirements prescribed in “Labor Standard Act” and “Labor Pension Act .” Labor retirement reserve has been appropriated on a regular basis . This reserve is deposited in a designated Labor Pension Account in the Bank of Taiwan. Review to verify i f reserve deposited in this designated account is suffic ient is conducted each year. At the end of 2018, this designated account has a deposit totaling NTD53,091,074 which is sufficient to pay for next year's expected retirement expense.

3.2.5Non-Paid Parental Leave According to requirements prescribed in the “Act of Gender

Equal ity in Employment,” EZconn Corporation's employees are entit led to apply for Non-Paid Parental Leave in accordance with requirements as long as employment period reaches 6 months and the age of chi ld is under 3 years old. Based on different genders , related statistics during the report period as follows:

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

63 2018 CSR Report

Em

plo

ye

e C

arin

g

3.3 Employee Rights & Communication EZconn Corporation emphasizes on labor's rights. Employees shall be treated equally with

dignity to ensure work conditions and payment comply with spirit and rules of labor related regulations regardless of their domestic or foreign nationality, male or female or in different duties. To truly comply with basic human rights, various labor rules and Management Approach al l meet with human rights justice principles . During the period of this report, there was no occurrence of crit ical human rights infringement, which includes discrimination events, violation or seriously endangering of freedom of association and group negotiation, use of child labor or sexual harassment events, in respective operation locations. Meanwhile, there was no occurrence of risk of serious forced or compulsory labor events.

3.4Employee Training The Company„s operation relies on employee‟s efforts. Employees with good quality is the key factor to a company's

future development. As such, EZconn Corporation invests resources and the Department of Human Resource is taking the lead in planning employee training and establishing systematic education & training. Employee's knowledge basis and work skil ls are enhanced through planned training courses. EZconn Corporation provides diversified training lessons and on-job-training which include new staff training and departmental work skil l training, internal and external training lessons with high quality training effectiveness.

Labor-Management Meeting EZconn Corporation established labor-management meeting to promote employee caring business and strengthen the

Company's good employee relationship. Labor representatives are selected by employees in an open and fair way. Each quarter, representatives from labor and

management will hold meetings for discussions on a regular basis. Main purposes are to col lect issues, draft up solutions, reflect employee concerned issues, coordinate labor management relationship, communicate and explain the Company's major policies, and so on. Collaboration is promoted and communication is enhanced through util ization of such labor management negotiation measures. For resolution matters made by labor management meeting, EZconn Corporation has conducted execution in accordance with resolution. EZconn Corporation's Department of Human Resource is responsible for maintaining related meeting records appropriately .

Major negotiation conducted through labor management meeting in 2018 was modification of work rules. This has been reported to the Department of Labor of Taipei City Government and has been approved via return mail dated 2018/05/25.

Supervisor Negotiate

Suggestion box

complaint phone

E-mail Fax Pipeline

Employee Reviews

Non- discrimination

Forbidden using of

child labor

Non-harassment

Personal protection

Additionally, Employee Benefit Committee and employee report channels have been established in accordance with rules. As for Labor-Management Meeting, Labor Pension Reserve Supervision Committee and Occupation Safety & Health Committee, EZconn Corporation conducts operations in accordance with laws and regulations. Employee's rights can be reported through aforementioned various channels and can be handled equally and fairly . Smooth and diversified report channels help employees safeguard their rights. Provision of an equal and worry-free work environment has always been the direction of our efforts. EZconn Corporation aims at the goal of zero labor management disputes. There was no occurrence of complaint during the report year.

64

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Em

plo

ye

e C

arin

g

◆Employee's Average Training Hours Based on Gender and Employee Types

Item Total Training

Hours Number of Employees

Average Training Hours

Item

Gender Male 3,666 200 18

Female 3,026 211 14

Duty

Management Duty 1,226 67 18

Technology Duty 4,570 278 16

Administration Duty 896 66 14

Subtotal 6,692 411 16

Competency management The investment climate in Taiwan has seen significant changes in recent years. In addition to arduous challenges

posed by the external business environment, the whole industry faces a crisis caused by the shortage of available talent. This poses a major problem for traditional industries that strongly rely on human-based technologies. The company which was established over four decades ago has entered a stage of sturdy transformations. In the face of a volatile environment, the adoption of accurate business strategies to boost business goal achievement is the key to corporate success. In recent years, we have been firmly committed to the adoption of competency building programs to achieve corporate sustainabil ity and strengthen our manpower resources.The development of core and professional competencies of the organization was continued in 2018 based on achievements in previous years to increase the reliability and validity of established competency models . HR units and related executives jointly verify and revise the job descriptions for every position. The 38 job descriptions that were released upon verification set a solid foundation for the Company‟s talent cultivation plans.

With categories based on gender and employee types, annual average training hours per person are 18 hours for male and 14 hours for female in 2018. Given the fact that there are more training hours for professional trainings of R&D and technology and that male accounts for the major part of trained supervisors, the average training hour for male is therefore higher than the one for female.

Performance Review The Company has drafted performance review Management Approach in order to assess employee's work performance and

establish occupational career planning. Based on the Company and department's annual targets, department heads will discuss with his/her employees on setting personal KPI. Feedback improvement projects will be presented in response to target achievement status in each quarter. Department heads will review his/her employee's target achievement status, work capability and feature behavioral performance, and must discuss with the person and conduct performance review interview as well as provide suggestions, expectations and improvement directions. Based on performance interview result, a concrete improvement action plan shall be jointly

drafted. This includes supervisor's expectation of employee's fulfillment of improvement and subordinate's expectation of assistance from supervisor. Action plan will be drafted and turned into the direction for personal annual training planning. During report period, percentage of employees taking official performance assessment and occupational development review is 100%.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

65 2018 CSR Report

Em

plo

ye

e C

arin

g

Environment Safety Policy: 1. Comply and meet with environmental safety and

health regulation requirements. 2. Fulfill operation of environment safety & health

system. 3. All personnel participate in the pursuit of a low-

pollution environment.

4. Promote environment safety & health management cycle and continuous improvement.

5. Prevent accident, disease and injuries and promote health.

2018 Ber of Cases on Work Injury Categories

Male Female Total

Traffic Accidents Occurred On Commuting Roads 0 0 0

clamped injury 2 0 2

Cut Injury、Slash lnjury、Friction lnjury 2 0 2

fall down 1 0 1

Kick injury 0 0 0

object tumbling, collapsing 1 0 1

Note : False alarms are not included.

As a result of constant improvements and supervision by the OSH Committee, the number of work injuries in 2018 decreased by eight compared to 2017. Injuries sustained in five of the six work accidents were treated on-site through first aid and bandaging or professional medical care on the same day. Only one case required hospitalization due to a sustained crush injury.

3.5 Occupation Health & Safety There are frequent numerous occurrences of occupation disasters in

recent years. Domestic related laws and regulations have thus become more comprehensive gradually. Therefore, EZconn Corporation established an Occupation Safety & Health Committee. As high as 37% of committee members are labor representatives (11 commissioners and 4 labor representatives) selected by respective plants. This committee is responsible for establishing annual occupation safety goal, drafting improvement projects and supervising execution accordingly, designating related matters to occupation safety and health office responsible personnel to promote operation safety improvement, conducting regular audits for the purpose of ensuring protection of employee's physical life and safety as well as implanting safety first core target deep inside work culture.

3 3

4

1 1

2

0

2 2

1

0

1

Traffic AccidentsOccurred OnCommuting

Roads

clamped injury Cut Injury、

Slash lnjury、

Friction lnjury

fall down Kick injury object tumbling,collapsing

Ber of Cases on Work Injury Categories

2017 2018

66

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Em

plo

ye

e C

arin

g

3.5.1 Occupational Safety & Health Management System

It is the Company's basic responsibi l ity to ensure employee's health and safety during working. Introduction of management system can assist the Company to plan and draft comprehensive policy, procedures and improvement projects for the purpose of smooth promotion of internal occupational safety and health operations. As such, EZconn Corporation passes OHSAS 18001 and Taiwan Occupational Safety & Health Management System (TOSHMS) audit verif ications each year. Through comprehensive management cycle mechanisms, hazard identification and risk assessment are conducted each year in order to detect high risk operation behavior in early stage, establish improvement measures and instal l prevention mechanism, ensure compliance with occupational safety and health regulations, lower the risk of accident occurrence, reduce occupational injuries and build up a healthy and safe working environment. In 2018, male workers were involved in six work accidents (no female workers were affected by such incidents). One machine operator suffered a crush injury caused by the gap between the spindle and a square bar due to lack of caution during manual clearing of unexpected machine blockage and failure to use suitable tools. The OSH Office has implemented improvements and tracking with regard to said accident. Relevant units are required to observe equipment and instruments with high accident incidence rates and formulate safety operation standards. Operating personnel receive relevant education and training. The goal is to reduce the incidence of unsafe work behavior.

2017~2018Occupational Safety & Health Statistics for Taiwan

Occupational Safety Items 2017 2018

Annual Number of People from Occupational Accident

14 6

Disabling Frequency Rate (FR) 14.7 5.41

Disabling Severity Rate (SR) (Including traffic accidents during

commuting) 167 10

Note 1: False alarms are not included. Note 2: Basis for Calculation: Disabling Frequency Rate (FR)＝Number of Disabling People × 106 † Total Enduring Work-Hours Disabling Severity Rate (SR)＝Total Number of Days for Disabling Injury Loss × 106 † Total Enduring Work-Hours Occupational Disease Rate (ODR)= Annual Number of People with Occupational Disease/Employee Current Year Total Work-Hours*106

2018 New Occupational Safety & Health Targets

Existing Management Indicators Management Indicators

Target Value The annual

total

Number of Occupational Accidents -False Alarm ≧ 10 0

Number of Occupational Accidents –No Hospitalization Needed ≦ 2 0

Number of Occupational Accidents –Hospitalization ≦ 8 1

Number of Days for Work-Hour Loss from Occupational Accidents ≦ 24天 33

ESH & abnormal processing units do not meet the billing number ≧ 5 3

Disabling Frequency Rate (F.R.) ≦ 2.55 1.08

Disabling Severity Rate (S.R.) ≦ 222 36

Frequency Severity Indicator (FSI) ≦ 0.75 0.20

Occupational Safety and Health Management Plan Implementation Rate ≧ 80% 90%

Number of Deficiencies to be Rectified from Labor Inspection ≦ 5 3

Number of Staff for Special Health Check Irregularity Management ≦ 39 8

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

67 2018 CSR Report

Em

plo

ye

e C

arin

g

CNS 15506:2011 Beitou Plant

CNS 15506:2011 Shang-Dar Plant

CNS 15506:2011 Hong Shu Lin Plant

OHSAS 18001:2007 Beitou Plant、Shang-Dar Plant、Hong Shu Lin Plant

2018 OSH Improvement Program 3.5.2 Occupational Safety Management System Certificates

•Regular observation of equipment and instruments with

high accident incidence rates, formulation of safety

operation standards, and implementation guidance for

operating personnel

•Implementation of special health exams for specific

target groups (long-term night shift personnel)

•Installation of detectors in kerosene storage areas to

prevent explosions

•Improvements for water towers without protective

railings

Beitou Plant

•Regular observation of equipment and instruments with high accident incidence rates, formulation of safety operation standards, and implementation guidance for operating personnel •Implementation of special health exams for specific target groups (long-term night shift personnel) •Installation of detectors in kerosene storage areas to prevent explosions •Safety improvements for electric presses on the 3F •Improvements for electric boxes without protective railing on the 3F •Safety improvements for large ceiling fans on the 1F

Shangda Plant

•Improvements for high-precision work stations

Hongshulin Plant

68

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Em

plo

ye

e C

arin

g

3.5.3Health Checks

The company provides general checkups once every three years for employees between 40 and 65 years of age and once a year for employees above 65 to safeguard employee health. Health check items include physical exams, blood tests, X-rays, hearing tests, and health counseling. In addition, working environment testing organizations which have been approved by the Council of Labor Affairs are commissioned to carry out chemical substance and noise level testing in working environments and assess actual exposure levels twice a year. Environmental improvements are carried out in accordance with test results and efficient protective gear is provided in sufficient amounts. Health checks for special operations are provided for operating personnel engaged in operations that pose special health hazards on an annual basis. The company also shows regular concern and constantly tracks the health status of its employees.

In 2018, it was detected in health checks for operations associated with special health hazards that 8 employees have suffered hearing loss (4th level management) determined as abnormal by the physician upon comprehensive judgment. The OHS office has reported this incident to the OHS commission for discussion and it was listed as an item requiring major improvements in 2018. The company plans to strengthen noise protection for relevant machinery and equipment and provide appropriate earmuffs for employees involved in such operations. In addition, the company provides a 3-hour training course on known hazards for its employees every year. We will also continue to administer special health exams for personnel engaged in operations associated with special hazards and dangers to safeguard employee health.

Hearing Protection Plan

Check List

Noise Improvement Measures

Evaluation Report

Management of Personnel with Abnormal Results in Hearing Tests

Tracking Chart

ESH Abnormalities & Non-conformities

Processing form

Hearing

protection

plan

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

69 2018 CSR Report

Em

plo

ye

e C

arin

g

3.5.4 Emergency Responding Drill

When disaster strikes, remaining calm helps employees escape from danger. The Company simulates different disasters and holds all-employee emergency responding dril l twice each year. Through watching emergency responding promotion video clip, s imulation of escape routes and emergency responding team fire fighting dril l , employees are able to have a thorough understanding of personal duty upon occurrence of disaster, and will be able to calmly protect him/herself and assist col leagues to leave disaster zone in order to reduce possibil i ty of injury to personnel .

Year 2018

Emergency

Responding Drill

Beitou Plant

first half year:171人

second half year:140人

Hong Shu Lin Plant



Shang-Dar Plant



70

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

So

cie

ty P

artic

ipa

tion


Every single drop of good deed will eventually become a raging torrent Ezconn Corporation is convinced that a good enterprise l ies not only in its good operation performance but also in the

society's recognition of the enterprise. Since its founding in Taiwan in 1971, EZconn Corporation feels appreciated of Taiwan society's support over the years and is will ing to assume more social responsibil it ies . Each year, EZconn Corporation continues to invest resources to feedback to local community . We care about neighbor's safety and we donate to help the disadvantaged. We also work with neighboring schools for industry-academia col laboration to provide employment opportunities for the purpose of enhancing the Company's corporate social responsibility image and wishing Taiwan society's getting better and better.

Participation in welfare activities Ezconn offers two days of “public welfare” leave per year to each employee. The goal is to encourage each employee

to actively participate in social welfare activities by upholding a spirit of service. During this reporting period, our employees for 30 hours of “public welfare” leave to participate in relevant activities organized by associations and government agencies with the goal of setting an example in giving back to society.

Adoption of a pedestrian underpass

In 2018, the Company continued to adopt the pedestrian underpass in Zhongyi , Beitou District. It is responsible for the maintenance of the facil i ties and cleanliness in the underpass and the area surrounding the exits. It also ensures the proper functioning of relevant l ighting equipment. In addition, it assists the Social Welfare Service Center in the placement of homeless persons with the goal of providing pedestrians with a clean and safe passageway environment.

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

71 2018 CSR Report

So

cie

ty P

artic

ipa

tion

Vegetarian diets Global warming causes climate change and natural disasters with an increasing severity. We can all make a contribution to stopping rising temperatures and reducing carbon emissions by changing our diets. Vegetarian diets are the most direct and effective way to slow down climate change. The Company offers a vegetarian buffet for its employees in its cafeteria on a daily basis in line with the promotion of vegetarianism. This allows employees to choose their own diets and thereby make a direct contribution to energy conservation and carbon reduction.

Resource recycling The Company has made a long-term commitment to implementing digitized operations and resource recycling to prevent waste of resources with a potential usage value. Those resources are donated to charity organizations such as Tzu Chi to achieve the goals of waste reduction and resource reuse and thereby realize the vision of low carbon, ecological conservation, and a sustainable planet.

Municipal counseling Senior managers of the Company are passionate about public welfare and deeply committed to promoting the well-being of local communities. They therefore accepted an invitation by Taipei City Councilor Chong-Wen Chen to serve as municipal consultants for councilors. They provide excellent suggestions and advice to boost municipal development and improve local life quality by relying on their professional experience.

Technological guidance In support of the Program to Promote Occupational Competency Standards through Non-Governmental Vocational Training Alliances, the Company accepted a request by the Skill Evaluation Center of the Workforce Development Agency of the Ministry of Labor to dispatch professional managers as skill test invigilators for Class C Technicians in the machining category at Taipei City University of Science & Technology and Municipal Taishan Junior High School. This initiative gives schools, training organizations, and enterprises (the “application” side) a chance to adjust and coordinate their needs and thereby bridge the gap between education, training, and application and achieve greater consistency.

72

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

So

cie

ty P

artic

ipa

tion

Free lectures In 2018, elite talent of the Company organized lectures in cooperation with National Taiwan Normal University, Chinese Culture University, and Taiwan Federation of Industry to promote the linkage between talent cultivation and industry needs and effectively bridge the gap between education, training, and application.

Industry-academia collaboration In 2018, the Company provided internship opportunities for students of the Department of Business Administration, Shih Chien

University. Interns received 200 hours of guidance and training provided by dedicated Ezconn personnel and actively participated in work practices and staff dinners organized by their respective departments. The goal is to improve the word processing abilities of students, reinforce their workplace ethics concepts, and strengthen their coping and communication skills. All participants pointed out that they gained valuable insights and experience in the course of their internships. They also gained an opportunity to discover their interests which is greatly beneficial to their future careers. These interns also bring a breath of fresh air, new stimuli, and substantial benefits to the Company, thereby generating win-win outcomes for industry and academics.

73

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

GR

I Su

stain

ab

ility R

ep

ortin

g S

tan

da

rds 2

01

6 D

isclo

sure

Item

Co

mp

ariso

n T

ab

le

Appendix 、 GRI Sustainability Reporting Standards 2016 Disclosure Item Comparison Table

Topic Code of

Indicator Explanation of Indicator Chapter

Note(Including summarized explanation)

Page No

GRI 101: Basic 2016 (GRI 101 excludes any disclosure.)

Analysis of Material Issues Editing Guidelines

22

3

GRI 102: General Disclosure 2016

Organization Profile

102-1 Name of the organization About Us 9

102-2 Activities, brands, products, and services Product & Service 1.1.4 Regulation Compliance

1335

102-3 Location of headquarters About Us 9

102-4 Location of Operations About Us 9

102-5 Ownership and legal form About Us 9

102-6 Markets served 1.2 Economy Performance 40

102-7 Scale of the organization About Us 9

102-8 Information on employees and other workers 3.1 Employee Structure 57

102-9 Supply chain 1.3 Supply Partner 42

102-10 Significant changes to the organization and its supply chain

N/A

No Material Changes

to Organization or Supply Chain

102-11 Precautionary Principle or approach 1.1.5 Internal Audit & Risk Control

36

102-12 1.1.7 Participation in External Association

1.1.7 Participation in External Association

39

102-13 Membership of associations 1.1.7 Participation in External Association

39

Strategy 102-14 Statement from senior decision-maker Words from Operator 5

Ethics & Integrity 102-16 Values, principles, standards, and norms of behavior

1.1.6 Ethics & Integrity 38

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

74 2018 CSR Report

Topic Code of



Page

No

Governance

102-18 Governance structure 1.1 Senior Operation Management

28

102-19 Delegating authority 1.1.3 Operation of Corporate Social Responsibility

32

102-20 Executive-level responsibility for economic, environmental, and social topics


32

102-21 Consulting stakeholders on economic, environmental, and social topics


32

102-36 Process for determining remuneration 1.1.2 Operation of Compensation Committee

31

Stakeholder Engagement

102-40 List of stakeholder groups Identification of Stakeholder 17

102-41 Collective bargaining agreements N/A

Ezconn Corporation does not establish a labor union.

102-42 Identifying and selecting stakeholders Identification of Stakeholder 18

102-43 Approach to stakeholder engagement Communication Channels and Issues

20

102-44 Key topics and concerns raised Communication & Response 19

Practices in Reporting

102-45 All entities included or excluded in organization consolidated financial statements or equivalent documents.

Editing Guidelines 3

102-46 Process of defining report contents and topic boundaries, and how to comply with 「Principles of Defining Report Contents.」

Stakeholder Management 17

102-47 Make a list of all material topics identified during the process of defining report contents.


102-48 Influence & Causes to Restatement Any Information Provided by Previous Reports.


102-49 Compared with previous reports, there are obvious changes over the list of material topics and topic boundaries.


102-50 Reporting period Editing Guidelines 3 102-51 Date of most recent report Editing Guidelines 3 102-52 Reporting cycle Editing Guidelines 3 102-53 Contact point for questions regarding the report Editing Guidelines 4 102-54 Claims of reporting in accordance with the GRI Standards Editing Guidelines 3 102-55 GRI content index Editing Guidelines 3 102-56 External Assurance Editing Guidelines 4

GR

I Su

stain

ab

ility R

ep

ortin

g S

tan

da

rds 2

01

6 D

isclo

sure

Item

Co

mp

ariso

n T

ab

le

75

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

Topic Code of



Page No.

Economic Performance

GRI 201: Economic Performance 2016

201-1 Direct economic value generated and distributed

1.2EconomyPerformance 40

※GRI 202: Market Presence 2016

202-1 Ratios of standard entry level wage by gender compared to local minimum wage

3.2Compensation Benefits & Retirement Plan

59

202-2 Proportion of senior management hired from the local community

3.1Employee Structure 57

GRI 103:Managemen

103-1 Explanation of the material topic and its Boundary

Analysis of Material Issues 22

103-2 The management approach and its components

1.1.3Operation of Corporate Social Responsibility Chapter 4 Society Participation

32 70

103-3 Evaluation of the management approach 1.1.3Operation of Corporate Social Responsibility

32

GRI 203：INDIRECT ECONOMIC IMPACTS 2016

203-1 Proportion of senior management hired from the local community


70

GR

I Su

stain

ab

ility R

ep

ortin

g S

tan

da

rds 2

01

6 D

isclo

sure

Item

Co

mp

ariso

n T

ab

le

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

76 2018 CSR Report

GRI Specific Topics Code of Indicator Explanation of Indicator Chapter Note(Including

summarized explanation)

Page

No

Environmental Topics

GRI 301：MATERIALS 2016

301-1 Materials used by weight or volume 2.1 Material Volume & Weight

46

301-2 Recycled input materials used Recycled input materials used

46

GRI 103:Managemen


Analysis of Material Issues Chapter 2 Environment Sustainable Management

22

44



44

103-3 Evaluation of the management approach


44

※GRI 306：Effluents and Waste 2016

306-2 Waste by type and disposal method 2.42.4Waste management 49

GRI 103:Managemen


Analysis of Material Issues Chapter 1 Corporate Governance 1.1.4Regulation Compliance

22 26

35


Chapter 1 Corporate Governance 1.1.4Regulation Compliance 2.4Waste management

26 35

49


1.4Regulation Compliance 35

※GRI 307: Environmental Compliance 2016

307-1 Non-compliance with environmental laws and regulations

2.4Waste management 49

GR

I Su

stain

ab

ility R

ep

ortin

g S

tan

da

rds 2

01

6 D

isclo

sure

Item

Co

mp

ariso

n T

ab

le

77

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

2018 CSR Report

GRI Specific Topics Code of Indicator Explanation of Indicator Chapter Note(Including

summarized explanation)

Page

No

Society Perspective

GRI 401：Employment 2016

401-1 Total number and rate of new employee hires and employee turnover by age group, gender and region

3.1Employee Structure 57

401-2 Benefits only to Full-Time Employees Based on Critical Business Operation Locations 3.2.1Employee Benefits 60

401-3 Percentages for Duty Resumption and Retention After Parental Leave Based on Genders

3.2.5Non-Paid Parental Leave 62

GRI 103:Managemen


Analysis of Material Issues 3.5 Occupation Health & Safety

22

65


3.5.1 Occupational Safety & Health Management System

66

103-3 Evaluation of the management approach 3.5.1 Occupational Safety & Health Management System

66

※GRI 403 : Occupational Safety & Health 2016

403-1

Percentage of workers whose work, or workplace, is controlled by the organization, that are represented by formal joint management-worker health and safety committees.

3.5 Occupation Health & Safety 65

403-3 Workers with high incidence or high risk of diseases related to their occupation.

3.5.1Occupational Safety & Health Management System

66

GRI 103:Managemen


Analysis of Material Issues 3.4Employee Training

22

63

103-2 The management approach and its components 3.4Employee Training 63

103-3 Evaluation of the management approach 3.4Employee Training 63

GRI 404: Training &

Education 2016

404-1

Average hours of training that the organization's employees have undertaken during the reporting period, by gender and employee category.

3.4Employee Training 63

404-2 Programs implemented and assistance provided to upgrade employee skills 3.4Employee Training 63

404-3 Percentage of total employees by gender and by employee category who received a regular performance and career development review.

3.4Employee Training 63

GR

I Su

stain

ab

ility R

ep

ortin

g S

tan

da

rds 2

01

6 D

isclo

sure

Item

Co

mp

ariso

n T

ab

le

Co

rpo

rate

So

cia

l Re

spo

nsib

ility R

ep

ort

78 2018 CSR Report

GRI Specific Topics Code of



Page

No

Society Perspective

※GRI 405：DIVERSITY AND EQUAL OPPORTUNITY 2016

405-1

Percentage of individuals within the organization's governance bodies and percentage of employees per employee category in each of the following diversity categories: gender, age group, minority and other indicators of diversity where relevant.

3.1.1Employee Statistics 57

※GRI 406：不歧視 2016

406-1 Incidents of discrimination and corrective actions taken

3.3Employee Rights & Communication

63

GRI 103:Managemen


Analysis of Material Issues Chapter 2 Environment Sustainable Management

22

44


2.1Raw material volume and weight 46

103-3 Evaluation of the management approach 2.1Raw material volume and weight 46

※GRI 416：Customer Health And Safety 2016 416-1

Assessment of the health and safety impacts of product and service categories

2.1Raw material volume and weight 2.6 Supplier Assessment & Review

46

53

GRI 103: Management Approach 2016


Analysis of Material Issues Chapter 1 Corporate Governance 1.1.4Regulation Compliance

22

26

35


Chapter 1 Corporate Governance 1.1.4Regulation Compliance

26

35


1.1.4Regulation Compliance 3.5.1 Occupational Safety & Health Management System

35

66

※GRI 419: Socioeconomic Compliance 2016 419-1

Non-compliance with laws and regulations in the social and economic area

1.1.4Regulation Compliance 35

GR

I Su

stain

ab

ility R

ep

ortin

g S

tan

da

rds 2

01

6 D

isclo

sure

Item

Co

mp

ariso

n T

ab

le

Contact Window

You're most welcome to contact us should you have any comments or recommendations to the contents of this report.

EZconn Corporation

Address: No. 10 and 12, Lane 121, Lide Rd., Taipei

Telephone: +886-2-2895-9777

Spokesperson: FA & IT Division. Director

Spokesperson Telephone No.:

+886-2-2895-9777#8668

Spokesperson E-mail:

[email protected]

Responsibility Zone:

http://www.ezconn.com/chinese/about/detail.php?pid=7

contents · 2019. 8. 2. · offer improvement proposal cash reward, qcc quality control circle cash...

Documents