2008 BenQ Corporation. Corporate Social Responsibility Report

Transcription

1 2008 BenQ Corporation Corporate Social Responsibility Report 1

2 Index 1 Message from the President 4 Everlasting Responsibility and Steadfast Commitment 2 BenQ Introduction Company Overview 2.2 The Essence of BenQ Culture Integrity Passion & Professionalism Execution & Excellence Caring & Contribution 2.3 BenQ s Achievements 3 BenQ Social Responsibility Corporate Sustainable Development 3.2 Communication with Interested Parties 4 Environment, Safety and Hygiene ESH Management SA and ESH Policy ESH Organization and Responsibility ESH Certification and Monitoring ESH Training Biodiversity 4.2 Legal Compliance 4.3 Green Office Management Energy Water Recycling Other Resource Management 5 Investor Relations Corporate Governance 5.2 Product Lines 5.3 The Countermeasures of the Finance Risk 5.4 Risk Management on Supply Chain 5.5 Anti-corruption 6 Product and Service Marketing Approach 6.2 Product Management 6.3 Green Product Design Energy Saving Reducing Packing Volume and Increasing Pallet Loading Rate Page 2

3 6.3.3 Hazardous Substances Management Recycles & Re-use Green Eco labels 6.4 Quality Management BenQ Quality Policy BenQ Quality Management System 6.5 Customer Care Quality 7 Vendor and LSP Selection Management principles 7.2 Vendor selection 7.3 LSP Selection 8 Human Resource Employee Profile High Quality Workforce Age and Gender Distribution 8.2 Our Commitment 8.3 Workplace Safety Workplace Safety Occupational Health Working Environment 8.4 Employee Relations 8.5 Training and Talent Development 9 Human and Social Care BenQ Foundation Protecting Yushan s Hiking Trails The BenQ Award Creative Writing Competition Digital experiential zone of Smangus ecological system and culture 9.2 Public Welfare Activities National Taiwan University Ming-Da Hall Public Art National Palace Museum Sponsorship Korea Disabled Students IT Event Sponsorship Donations for Sichuan Post-earthquake Reconstruction 3

4 Message from the President Everlasting Responsibility and Steadfast Commitment 4

5 Everlasting Responsibility and Steadfast Commitment Since its inception, BenQ has embraced Bring Enjoyment N Quality to Life as its corporate vision, aspiring to realize the ideal of helping people to enjoy the pleasure brought by science and technology via the provision of the branded quality products and services of BenQ. We are fully aware that the in addition to the pursuit of profits and growth, the most important significance for the formation of any enterprise is to fulfill its social responsibility by creating unique values, which can last for a long time, transcending time and space, and produce positive influence on society and people. Consequently, BenQ has spared no effort in the two major tasks of environmental protection and talent cultivation. We have resorted to various channels to promote the concepts of energy conservation, environmental protection, and preservation of resources and have strived to materialize the concepts in our daily life and works via institutionalized requirement and dedicated monitoring. We adhere to rigorous demands of our own for every link of our operation, from product design and R&D, supplier selection and management, materials, manufacturing, to customer service, thereby meeting international quality and management standards and the Restriction of Hazardous Substances Directive (RoHS) of the European Union. We have also passed ISO 9001 for the certification of quality management, ISO pertaining to environmental management, and SA8000 regarding social responsibility, which testify to our dedication to the corporate social responsibility. Staff is BenQ s most cherished asset. Therefore, in addition to the provision of a safe and comfortable working environment to our staffers, as evidenced by the passage of the OHSAS certification regarding vocational safety and hygienic management, we also care their physical and mental health, which won us the affirmation of Taipei City excellent award for promoting healthy working environment in 2005 and Taipei City piloting award for promoting healthy working environment in We have been assisting our staffers in achieving growth in expertise and spirit via the organization of various lectures, courses, and events. As a company of international brand, BenQ owns excellent talents with different nationalities and cultures. The cross-culture communications and exchanges have 5

6 broadened our vision and enhanced our understanding of the world. We expect that every staffer can find a stage in the company for the demonstration of their talent and play the role of a preacher in spreading our steadfast value of integrity, thereby injecting a positive and upward force into the society. BenQ is a brand of both technology and humanity. Along with our effort to closely follow the pulse of times and pursue technological innovation, we also believe that the sustainable development of life is rooted in land, nature, humanity, and emotion. Via the products and services of BenQ, as well as personal commitment of BenQ staffers, we will leave our descendants the legacy of a good environment and pleasant lives. Conway Lee President & CEO of BenQ Corporation 6

7 BenQ Introduction 7

8 2.1 Company Overview Company name BenQ Corporation Headquarters Taipei, Taiwan Total number of employees 1,399 as of February 28, 2009 Chairman KY Lee Vice Chairman Jerry Wang President/CEO Conway Lee BenQ Corporation (now Qisda Corporation) is founded in 1984 with the research, development and manufacturing of computer peripherals as its business focus while later on expanding to optronics, communication and digital multimedia sectors on a strategic investment. In Dec. 5, 2001, BenQ Corporation has launched its own branded business to market and sell its products using the BenQ brand name. BenQ Asia Pacific Corporation was founded in March 13, 2000 and there hence was involved in the creation of BenQ branded business and its management as well as the sales and marketing of BenQ branded products in the Asian Pacific region. BenQ Asia acific Corporation was renamed BenQ Corporation and BenQ succeeded BenQ global branded business spun off from Qisda Corporation in year BenQ Corporation, a leading provider of networked digital lifestyle devices, is a multi-faceted company with strengths in product design, visual technology, mobile technology and 3C convergence technology. BenQ offers unrivalled breadth and depth of products and integrated technologies across platforms through the brand promise of Bringing Enjoyment and Quality to Life, including LCD monitors, LCD TVs, digital projector, digital still cameras, mobile communication products, Personal Computers(Joybook laptop PCs, Joybook Lite Netbooks, nscreen All-in-One PCs) storage devices, storage media and human interface devices such as mice and keyboards. The long-cultivated R&D prowess, comprehensive global sales and marketing infrastructure and the unique brand positioning and design philosophy have all contributed to BenQ s success shortly after the brand launch in 2001: In 2008, BenQ s ranked top 4 in projector sales worldwide while top 6 in non-pc-bundled LCD monitor sales. BenQ s total design award number received has exceeded 200 within a 8

9 short span of 7 years; outstanding market performances of BenQ products are recorded worldwide. 2.2 The Essence of BenQ Culture Integrity Integrity is the invariable essence of BenQ culture that every colleague adheres to. It is also the foundation of our corporate vision: to Bringing Enjoyment N Quality to life through passionate pursuit for BenQ s values: Passion & Professionalism, Execution & Excellence, and Caring & Contribution Passion & Professionalism BenQ has accumulated years of research and development excellence along with global marketing experience since our brand inauguration in We want to provide products and service beyond the needs of our customers. We want to move our customers with services that show our passion and innovations. The customers must feel unique and impressive when they received a BenQ product. We believe that it is priceless when customers are truly touched by the quality of our products and services. In order to have the quality we desire and customers appreciate, we not only need to focus but also seek resolution in fundamentals. Back to basic is the key. Every colleague, regardless of job function or position, must be detail oriented in every step of the way Execution & Excellence Facing a constant evolving market, continuously innovation to meet market 9

10 requirements has become the first law of survival in technology industry. However, innovation has gone beyond the mean of survival at BenQ. Now, it flows in the blood of every BenQers and is in the deep root of our corporate culture. The goal of innovation is to improve, grow, and finally to excellence. We can never be satisfied with current achievements. We must continuously challenge and excel ourselves. We don t want to just follow the trend; we want to be the exemplary innovator to lead the trend Caring & Contribution K.Y. Lee, Chairman of BenQ, once said: the mission of an enterprise is not only to build up a highly efficient workforce, but also to create and enhance social value. Our team should play a role of responsible society citizen and be the driving force to improve quality of life for everyone. BenQ treats our colleague and partners with philosophy of humanism and care. We provide a humane and enjoyable working environment as well as extensive career trainings to our talented employees. Colleagues are empowered with full authorization and given unlimited growth factors. We want everyone at BenQ to be the influential factor in delivering the spirit of harmonious and caring society. 2.3 BenQ s Achievements 2001/12/5 The BenQ brand is born 2001/12/6 BenQ reveals its first brand advertisement The Birth of the BenQ brand: Bringing Enjoyment N' Quality to life has been the corporate vision of BenQ for over 10 years. Enjoyment Matters is a slogan that proclaims BenQ's goal of providing customers with joyful experiences when using our products. technology + enjoyment=(fun) 2 This formula represents the goal of providing the technology that consumers 10

11 2002/4/6 BenQ's first television commercial (S620/630 handsets) is released want along with the added value of enjoyment when using BenQ products. The idea behind this television commercial came from the product's ability to fold like a castanet that Spanish dancers use. 2002/8/1 BenQ releases its first brand television commercial He has been BenQed! 2003/2/3 Forbes Magazine interviews K.Y. Lee on BenQ branding 2003/6/25 BenQ announces the use of organic shapes in the new brand visual identity 2003/7/16 The grand opening of BenQ s first Display Center This early commercial expressed the joyfulness of BenQ spreading from one person to another. It also set the tone for future BenQ branding commercials. Through a continuous branding campaign, BenQ strengthened its brand position and gained international recognition. Forbes Global magazine honored BenQ's ability to establish independent brand name from Acer and complimented Mr. K.Y. Lee on his effort to built an international brand. BenQ's organic shape projects product identity through brand visual identity. Consumers can easily pick out BenQ products from these organic shapes without even looking at the logo. The first display center in the world to implement VI display. This method differentiated BenQ from its competitors by 11

12 2003/9/23 BenQ ranks 7 th in Interbrand s Taiwan Top Global Brands Report 2003/11/20 BenQ announces the sponsorship of UEFA /12/18 BenQ wins 7 if Product Design Awards in 2004 allowing consumers to enjoy the latest technology in a friendly and comfortable environment. BenQ ranked 7 th in Interbrand s Taiwan Top Global Brands in its first eligible year. Through sponsorship of international sporting events, BenQ's brand recognition and support from retailers and distributors grew globally. After receiving 7 if Product Design Awards in 2004, BenQ's design prowess began to make its mark around the globe. 2003/12/23 Far Eastern Economic Magazine name BenQ one of BenQ maintains its status as the few company in Taiwan the most innovative that aggressively pursued the corporation in Taiwan in the international market with 2003 Far Eastern Economic many great accomplishment. Survey 2004/6/1 BenQ FP783 attracted intentional awareness with its BenQ FP783 wins Business butterfly wing design and won Week s IDEA (Industrial Business Week s IDEA Design Excellence Awards) (Industrial Design Excellence 2004 Bronze Award Awards) 2004 Bronze Award. 2004/6/24 With the sponsorship of UEFA 2004, BenQ's logo can be seen 2004UEFA begins in Europe in every major area of the event. BenQ's brand name spread began to spread through Europe. 12

13 2004/10/1 The G-mark is one of the most renowned design awards in BenQ receives 9 awards from Asia. It focuses on product G-Mark Japan (Good innovation, functionality, and Design Award) craftsmanship. It was a great accomplishment for BenQ to receive 9 awards in its first participation in this competition. 2005/5/16 Business Week highlights the important role of Taiwanese BenQ's Digital Lifestyle companies' in the hi-tech Design Center graces the industry. Among these cover of Business Week companies, BenQ contribute by directing the world's focus to Taiwan with its extraordinary design ability. 2005/10/3 BenQ wins 11 awards from G-Mark Japan 2005 (Good Design Award) BenQ leads the competition with the most awards received for a Taiwanese company. 2005/10/4 BenQ once again receive a nomination for Interbrand s BenQ ranks 4 th in Taiwan Top Global Brands Interbrand s Taiwan Top Report. With 27% growth in Global Brands Report brand value, BenQ rank 4th in this report and lead the competition with the highest growth rate. 2005/10/20 BenQ is the only Taiwanese Forrester Research ranks brand that made the top 30 BenQ 29th among all brands ranking and is also the in Europe youngest brand name in the top 30 contestants. 13

14 2005/11/8 BenQ announces its sponsorship of Real Madrid 2005/11/23 BenQ contributes to the National Palace Museum in Taiwan 2006/3/3 BenQ wins its 100th award for product design 2006/7/3 BenQ wins 11 awards for Superior Product Design for 2006 Red Dot Awards 2006/7/30 Based on the DTC survey, BenQ projectors rank 2nd worldwide and 1st in Europe BenQ Mobile announced its sponsorship of Real Madrid in a continuation of its global branding campaign. Design Philosophy-Meeting of Opposite beautifully played out when BenQ joins Humanity with Technology in its coordination with the National Palace Museum. BenQ's design continued to gain international recognition, leading the industry with third most awards around the globe Red Dot Awards certify BenQ's effort in product design and innovation. Outstanding BenQ projector growth: BenQ went from a world market share of 6.99% to 8.1% and 115% in sales growth. 2006/8/4 According to Corporate Brand Value Research BenQ ranks 11th in China 2006/9/17 BenQ wins if Design Awards Including China 1 if China Top Selection Award BenQ is the only Taiwanese brand name that qualifies for the competition, which reaffirms BenQ's strong position in China. BenQ product design, ability, and quality have increased sharply over the past few years. In 2006, the number of BenQ products honored for their innovation and design by if has reached

15 2006/9/27 BenQ ranks 5 th in Interbrand s Taiwan Top Global Brands Report 2006/10 BenQ is named an "Innovated Corporation" by The Wall Street Journal 2006/10/8 FP785+ adds art and history to technology 2006/ CT scanner wins the Design for Asia award s DFA Best Design from Greater China 2007/3 8 if Design Awards 2007 (including 1 much-coveted Gold Award for PMW1000) 2007/3 BenQ wins 6 Red Dot Design Award 2007 From 2003 to 2005, BenQ brand value growth rate ranked number one in Taiwan. The Wall Street Journal ranked BenQ 14th in the top 200 companies in Asia and 1st in innovation. The first product that features BenQ cooperation with National Palace Museum to combine ancient art with technology. BenQ s unique design philosophy Meeting of Opposites was recognized by the prestigious jury of the Design for Asia award, winning praise from the region where half of the world's population lives in BenQ s second consecutive year winning if Design Award s top honor, the if Gold Award. The recognition once again demonstrates BenQ s design prowess and our strength in bringing innovative design to our consumers. Having received the prestigious red dot design awards, BenQ has once again proven itself of reaching the global design podium. 15

16 2007/7 BenQ s recognized as Interbrand s Top 10 Global Taiwan Brands 2007/8 BenQ wins 7 if Design Award China /10 BenQ wins 5 Good Design Awards /11 BenQ receives the piloting award from the Bureau of Health Promotion of the Executive Yuan for promoting healthy working environment 2008/3 BenQ wins 4 if Design Awards 2008 BenQ s brand value has been recognized by the award for a 4 th consecutive year. This recognition demonstrates that BenQ has won praise from this growing and increasingly important market in Greater China The awarded products are recognized for their functionality and design originality, which is a proud brand distinction for BenQ The award s aimed to recognize companies that put an effort in encouraging smoking-free workplace and proactively promote healthcare as part of their operating principle. The recognition show s BenQ s a leader in health promotion among other Taiwanese companies. BenQ s composite if award results from 2006 to 2008 s ranked 15 th worldwide and top in Taiwan 2008/3 BenQ wins 6 Red Dot Design Award 2008 BenQ s total award number has exceeded 200: a proven track of BenQ s world-class design capability. 16

17 2008/7 BenQ s Mobile Internet BenQ s MID features unique Free Surf User Interface highly Device (MID) has won the praised by the jury. The Bronze Award under the Interactive Product Experience category of the 2008 Industrial Design Excellence Awards (IDEAs) award recognizes BenQ s devotion to achieving its brand commitment, Enjoyment Matters, by offering end-consumers a most intuitive mobile Internet surfing experience. 2008/9 This recognition demonstrates BenQ wins 2 if design award that BenQ has won praise from China 2008 this growing and increasingly important market in Greater China 2008/10 BenQ wins 3 Good Design (G-Mark) design awards BenQ wins praises from the Good Design Award jury for the 5 th consecutive year 2009/1 BenQ s unique design BenQ wins 1 if design award philosophy that aims to 2009 transcend Western and Eastern cultures and marry rationality and sensibility to create user-friendly experience s once again won praises from the if design award committee. 17

18 BenQ Social Responsibility 18

19 3.1 Corporate Sustainable Development Sustainable development for the society and the environment is always a key issue from the viewpoint of a global citizen BenQ and it s a foundation stone and corporate spirit for BenQ to create a sustainable development business. We merged the CSR requirement to corporate business strategy which covered but not limited to corporate policy, interior management mode, procedures and training. Besides, we continuously take effective actions in fields of corporate governance, R&D, green product, personnel training and social care, to and make the most profit to customers, the environment and interested parties. We initiated schemes on social and environmental responsibility and internally advocated and built the job culture relevant to corporate social responsibility. In order to meet the targets, BenQ actively take the following action base on corporate social responsibility policy, To comply with legal requirements To advocate employment freedom To perform humanity care To prohibit discrimination To establish communication mechanism To enhance employment welfare To cultivate employee capability To enforce To protect intellectual property rights To implement information disclosure To promote social culture and to care disadvantaged minority To popularize social responsibility 3.2 Communication with Interested Parties As a global leading OBM enterprise, we believe that it s very crucial to be sufficiently aware of the demands and recommendations from interested parties by all possible communication channels. BenQ would like to be informed all issues and questions commented from interest parties by various channels. The interested party 19

20 may mainly involve five groups, which are investor, customer, supplier, employee and the community. As an active citizen of sustainable development industries, BenQ will continue to listen to response to the voice of interest parties and will do our best to reach the multi-win goal. 20

21 Environment, Safety and Hygiene 21

22 4.1 ESH Management SA and ESH Policy BenQ Corporation has strived to not only fulfill its commitment by providing better products and services but also devoted itself to the practice and promotion of social accountability, environmental, safety and health management to care and contribute to the society and improve quality of life. From now on, BenQ Corporation will integrate social accountability, environmental, safety and health management and business philosophy into the efficient process to execute the SA and ESH Policy. BenQ Corporation executes the SA and ESH Policy with the following guiding principles: Continual improvement to the protection of labor rights. Green design concept and reducing the use of environmental pollutant. Continual improvement on pollution prevention, energy conservation, safety, and health assurance. Compliance with standards of social responsibility, regulations, and customer requests ESH Organization and Responsibility To reach the goals of ESH, BenQ has established a SA and ESH Management Committee with the CEO and head of all departments as the committee members. The A management representative has been assigned by the CEO to be in charge of implementation of Committee of SA and ESH Management and task assignments of Committee of SA and ESH Management based on the company property. The ESH policy was authorized and approved by the CEO. The management representative and his/her task force team will be responsible for the formulation and implementation to 22

23 corporate ESH strategies. Period reviews of ESH performance will be carried out. BenQ committee of SA and ESH management BenQ SA and ESH Task Force Team ESH Certification and Monitoring BenQ headquarters has been introduced ISO14001 for an environment management system, OHSAS18001 for an occupational health and safety management system (ESH) and SA8000 for social responsibility management system and the implementation of required actions by the regulations have also been certified by respective director organizations. To optimize the effectiveness of ESH system, we have arranged internal audit once a year to improve and adjust non-conformities promptly. Accredited certificated organization- will also invite to do external audits. From 23

24 professional and objective viewpoints of a certificated organization, we can revise goals and strategies of ESH system to correspond to our continuous development policy. BenQ is a brand company without manufacturing. However, we know that environmental protection is key to the continuous development of a company and realize that employees are our greatest asset. Therefore, we not only follow the ESH system, but also request our suppliers to respect it and work under the ESH system as well ESH Training Building awareness and concept of ESH is critical to in the promotion and implementation of ESH policies. The first step is to foster knowledge. In order to communicate the information effectively, we formulate the ESH training courses which combine the requirements of regulatory and the characters of company and industrial environment. This course includes different subjects such as health and safety, management system, emergency response, green products, environmental protection, and social responsibility. Besides that we update and communicate the important news or the trend of future through internal E-news or seminars Biodiversity BenQ headquarters is located at Nuihu Technology Park in Taipei City, Taiwan. It engages product research and design. We have never engaged in any activity, production or service which has significant impacts on biodiversity. Moreover, we do not own, lease, or manage any factory or office which is located at the protected or with the high biodiversity value areas. 24

25 4.2 Legal Compliance Building an excellent working environment and taking Corporate Social Responsibility seriously are always the main objectives of BenQ. In the year of 2008, we did not incur any non-compliance incident. 4.3 Green Office Management Besides focusing on green product research and development, BenQ also commits itself to green office. In order to create a working environment that is friendly to the nature, we not only conserve electricity, water, and recycling in the workplace, but also commit to plant in our office., Although our efforts may not look as significant as other industries,, we believe Many a little makes a mickle.. By doing this little by little, we not only provide comfortable environment to our employees, but also implant invisible environmental conservation concepts to all BenQers Energy To save energy and maximize energy efficiency, in BenQ headquarters, we use T8 LED lamps. Those lamps provide illuminant efficiency that reaches 80~95 (1m/W) with average life 12,000~20,000 hours. In comparison to an incandescent lamp, T8 LED lamps illuminant efficiency is 6~10 times better, with average life extends 12~20 times longer, providing with the benefits of reducing replacing frequencies and also improvement of lighting efficiency. For regulatory requirements and employee s comfort, we reduce lamps from 3 to 2 in each area to lower excessive lighting and electricity. By doing so, we conserved 20% of lighting electricity usage. Moreover, we requested employees to turn off lights after meetings and work. We invite employees to use their creativity to beautify the stairways, and encourage them to use stairs instead of elevators. By trying and carrying out energy reducing policies, the electricity is 1,614KWH in headquarters in It s 6.28% lower than electricity usage in Water Water in Taiwan is extremely precious, so we have to show our concern over water conservation and waste management. In order to conserve water, we installed assemble water-conserving faucets throughout the building. By doing so, we conserved 20%~50% of water usage. In 2008, BenQ used approximately 11.5 thousand tons of 25

26 water. In addition, we asked testing organization to measure wastewater quality to ensure environmental soundness. Waste water is properly treated before it is released back to the environment to meet relevant discharge standards Recycling Waste material is a resource placed in the wrong place. Waste classification and recycling is our main focus. To better facilitate classifying waste materials properly, we distinguished recycling areas in our office to recycle glass, aluminum foil packs, metal containers, plastic water bottles. We also recycle wastepaper, used disks and used batteries. In 2008, BenQ reclaimed recyclable materials reached 19% of all waste produced Other Resource Management Wastepaper is always one of main waste resources in the office. In 2008, BenQ reduced paper consumption progressively by varies new resource management. We encouraged employees to bring their own cups, to cut down paper towel usage, to eliminate disposable tableware, to replace files to hardcopy, and to replace one-side prints to two-side prints. 26

27 Investor Relations 27

28 5.1 Corporate Governance It is the fundamental belief of the Company to devote itself to creating profits for shareholders and feedback the society. The Company supports and promotes the transparency of operation and the fairness of information transmission so as to make the business and financial information available for shareholders, customers and interested parties of the Company via unified source. The Board of Directors deems the interests of the Company and shareholders as top priority to conduct operation evaluations and material resolutions. Supervisors and accountants also play the monitoring role to review the implementation of business of the Company and Board of Directors. In the future, the Company will maintain sounder decision-making and enforcement organizations to increase the operation efficiency and implement the corporate governance. 5.2 Product Lines The company, a leading provider of networked digital lifestyle devices, is a multi-faceted company with strengths in mobile communications, visual display and network convergence technologies. The product lines are as follows: Digital Projector: Commuter, Home Entertainment, Home Cinema, Mainstream, Stationary LCD Monitor: 15, 17, 19, 18.5, 19 W, 20 W, 21.5 W, 22 W, 23 W, 23.6 W, 24 W, 27 W Joybook: 13.3, 14.1, 15.4, 15.6 wide screen series laptop PC Joybook Lite: 10.1, 11.6, 13.3" nscreen All-in-on PC: 18.5 W, 21.5 W Digital camera: 10 ~12 Mega pixels digital cameras LCD TV: 21.5, 23.6, 32, 37, 42, 46, 52 LCD TV Mobile Internet Devices Others * Optical storage product: CD-ROM, CD-RW, DVD-ROM, DVD+RW, Combi, Blu-Ray RW * Human interface device: mouse, keyboard * Computing peripherals: digital media 28

29 The following is the Company s global Sales Offices Europe (Regional HQ: Eindhoven, The Netherlands) Austria, France, Germany, Italy, Russia, Spain, Sweden, Switzerland, The Netherlands, UK North America (Regional HQ: Irvine, California, U.S.A.) Canada, USA Latin America (Regional HQ: Miami, Florida, U.S.A.) Brazil, Mexico China (Regional HQ: Suzhou, China) China AMEA (Asia Pacific, Middle East, Africa) (Regional HQ: Taipei, Taiwan) Australia, India, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, Turkey, UAE 5.5 The Countermeasures of the Finance Risk The Company upholds the policy of not engaging in the high risk and high leverage investment, lending capital to non-related parties, and guaranteeing for non-related parties. Derivatives are transacted for hedge and not for speculation. Under the Year 2008 derivatives principal of the Company for hedging, there is no occurrence of relevant operation risk. In the future, the Company will avoid the fluctuation of exchange rate and interest to conduct the derivatives transaction and continue to evaluate the foreign currency positions and risks so as to reduce the operation risk. Moreover, the goal and method of the hedge transaction are indicated as follows: The hedge transaction category of financial products 1. Forward Contract 2. Interest Rate Swap Contract 3. Currency Swap Contract The goal of the hedge transaction of financial products The derivatives transaction of the Company is solely for hedging so as to reduce the operation risk, assure the stability of making profits, and avoid the risk of the fluctuation caused by exchange rate, interest rate or the price of assets. 29

30 The method of the hedge transaction of financial products 1. Intercept the market information, determine the trend and risk, and being familiar with financial products and relevant laws and regulations and operation skills. Transact by following the instructions of the authority and authorized positions so as to avoid the risk of the market price fluctuation. 2. Evaluate periodically. 3. Provide the information of the risk exposure position. The accounting principal of the hedge transaction of financial products To avoid the risk caused by the assets or liability denominated by foreign currency, the Company has executed forward contracts with financial institutions. However, such arrangement does not conform to the hedging accounting principals of Accounting Standard Statement No. 34. As a result, when conducting the original recognition, the Company measures it by fair value, whose variation is recognized as the financial assets or liability of the gain or loss. 5.6 Risk Management on Supply Chain In order to reduce the impact on business operation as supply chain discontinued, BenQ s risk management strategy is shown as below listed: Except for monopoly and unique technique vendors, BenQ maintains at least two qualified vendors for supply chain operation. In case one of current cooperating vendors suspends the supply and services, another vendor will immediately to offer the supply and service in the shortest time. Keep searching, qualifying and establishing potential vendors, on condition that all current cooperating vendors suspends their supply and services to BenQ, the qualified potential vendors will immediately to offer the supply and service in the shortest time. 6.5 Anti-corruption BenQ stipulated a code of conduct for employment and took actions to avoid any corruption as possible. No legally corruptive case found in recent years. 30

31 Product and Service 31

32 6.1 Marketing Approach BenQ Corp. markets and sells products under the BenQ brand name. Our marketing approaches are executed based on requirements from the market and retail partners, and we do product and brand promotion through marketing communications activities such as exhibitions, sponsorship or press conference, retail promotions and business advertising. When such activities are conducted, BenQ not only seeks to obey the requests by the organizers when participating in events but also to fully comply with relevant regulations. In addition, we respect all intellectual property rights of any creativity and contents, including still images, multimedia and films that BenQ uses in marketing communications at all levels. These images are all authorized from the image banks or film owners prior be played in public. As for sponsorship, in all cases BenQ makes sure that the sponsored events and event initiators themselves are all adherence to law. Only under these circumstances, BenQ would provide our corporate logo to the organizers to be placed on their promotional materials such as website, posters or flyers. 6.2 Product Management To meet customer demand is BenQ s consistent commitment. BenQ stipulated and continuously improve the product development process to ensure the quality and assurance of product design and production. Brief of product development: Function Product Management Responsibility 1. Conduct market survey, brand positioning and competition analysis. 2. Initiate product pricing strategy and coordinate all branding business related issues. 3. Owner of the entire process. Keep track of the product development progress, assist in abnormal situation handling, and secure product launch schedule. 32

33 Technical Management Strategic Procurement Supply Chain Management Business Management Customer Care Quality Management Product regulatory management 1. Out sourcing product engineering specifications define, confirm and technical window. 2. B3/B4 stages product test plan define. 3. To validate design samples, test reports and solutions for bugs from Vendors to ensure design quality. 1. Assist in introducing System Integrators, finalize purchasing agreements and evaluate Vendors. 2. Handle price, production, delivery, service condition and all other issues related to System Integrators. 3. Key Component Sourcing 1. Coordinate sales order flow and sales & production management for new System Integrators, as well as to assist in shipment arrangements in the early stage of business engagement. 2. Coordinate sales& production to ensure each manufacturer s continuity of supply. Quick decision making & Action taking, for all the business activities between Regional Offices and PD. 1. Develop and promote global service and supporting programs. 2. Coordinate various after-sales service and supporting tasks. 3. Collect and handle feedbacks from the market & customers, and request related departments for quality improvements. 1. New Vendor s quality system survey and qualification. 2. New model B5 stage management, generate Vendor PVT test plan and PVT test report review. New model green light release management. 3. Product mass production quality verification and management. 4. Product engineering change control in mass production stage. 5. Product field quality tracking and improvement. 6. Product shipment on-hold \ shipment release judgment. 1. Responsible for regulatory application for new models; EMC (Electro Magnetic Compatible), and green product compliance management. 2. To audit and to give approval for the regulatory and the testing Lab of new Vendor. 33

34 There are seven stages conducted in product development process. Proposal Phase Planning Phase Design Phase Engineering Verification Phase Design Verification Phase Production Verification Phase Mass Production & Termination Phase Proposal Phase Planning Phase Design Phase Engineering Verification Phase Design Verification Phase Production Verification Phase Mass Production & termination phase 34

35 6.3 Green Product Design Energy Saving EuP (Energy-using Products) requirement for design Table1: EuP Power consumption requirements Base on the EuP directive of 2010, now the design of BenQ s LCD TV, LCD Monitor, Projector, Notebook, All-in-Pne PC products will meet below Standby/Off mode power consumption requirement Effective Date Off Mode Criteria Standby Mode 2010 (phase one) 1.00W 1.00W (a) 2.00W (b) 2013 (phase two) 0.50W 0.50W (a) 1.00W (b) Note: (a) The power consumption of equipment in any condition providing only a reactivation function, or providing only a reactivation function and a mere indication of enabled reactivation function. (b) The power consumption of equipment in any condition providing only information or status display, or providing only a combination of reactivation function and information or status display. Energy Star requirement for design Except for EuP energy saving, BenQ s LCD Monitor, Joybook, All-in-one PC also design for Energy Star 5.0 to meet the over year Typical Energy Consumption (TEC) requirement. 35

36 Table 2: Energy Star computer products power consumption requirements TEC (kwh) : (Typical Energy Consumption) Desktop and All-in-One PC (kwh) Category A: 148 Category B: 175 Category C: 209 Category D: 234 Notebook (kwh) Category A: 40 Category B: 53 Category C: 88.5 Note: Category A~D are base on the different hardware configuration of the Energy Star 5.0 specification Sleep and Off Mode Power Consumption Requirements for all Displays. The Table is the requirement of Energy star and BenQ internal requirement of display product. Our display product can meet the Tier 2 requirement. Table 3: Energy Star display products power consumption requirements Mode Tier 1 Tier 2 BenQ requirement Maximum Sleep Mode Power Consumption (W) Maximum Off Mode Power Consumption (W)

37 Except for system energy saving requirement, BenQ s external power supply (Power adapter) also request design to meet Energy Star EPS 2.0 (External Power Supply) Level V for best power efficiency. 37

38 6.3.2 Reducing Packing Volume and Increasing Pallet Loading Rate Now BenQ review all of the product packing design, and phase in new design to have best efficiency of packing, thus reduce waste space in the carton, then increase the loading rate when shipping, which also reduce the transportation energy usage Hazardous Substances Management BenQ s product design, whether it s done internally or from an outer source, including design of products, packing and accessories, is fully compliant with requirements of RoHS Directives, especially on the prohibition of the use of any of 14 hazardous substances below: Category Kinds Item Hazardous Substances 1 Sum of heavy metals in packing material (Cd+Pb+Cd+Cr(VI)) Essential items Declarati on items Heavy Metals Brominated organic compounds Chlorinated organic compounds 2 Cadmium and its compounds 3 Lead and its compounds 4 Mercury and its compounds 5 Hexavalent Chromium and its compounds 6 PBBs 7 PBDEs 8 PCBs and PCTs 9 Chlorinated Paraffins (10-13 carbon) 10 PVC 11 Asbestos 12 Azo colorant 13 Ozone Depleting Substance Other metal 14 Nickel & its compounds Meanwhile, BenQ also ask supplier to sign back the Declaration of Compliance with RoHS Directive and BenQ GP Requirement to guarantee the product design could meet all of the requirements of RoHS. 38

39 6.3.4 Recycles & Re-use To reduce the impact of waste electronic products to the environment, EU WEEE directives have management rules for recycles & re-use of waste electronic products. On the trend, when in the planning of product design, BenQ also consider to reduce 39

40 the packing, painting, easy dis-assembly to achieve the recycles & re-use rate when product end of life Green Eco labels To meet worldwide eco & energy saving design requirements, as of now, many of BenQ s products have got the eco label certification, including LCD monitors, projectors, Joybook & All-in-One PC (details listed below): Eco Label LCD Monitor Project or Taiwan Eco label MP623, E2200HD, E2200HDA, E900HD, MP724, E900HDA MP727, MP735 Joybook AIO PC Taiwan Energy Label SE2231 China CEPT label Energy Star Japan PC 3R T2200HD, T2200HDA, G2200W, G700, G2200WA, T92W, T92WA, T261W, E900, E900HD, M2200HD, G700A, E2200HD, E2200HDA, E900HDA, G900HD, E900A, G90HDA, E900W, E900WA, G900W, G900WA, E900WN, W1508, X2200W, X2000W, G2110W, G2200W, G2110W,G2200W, T92WA, T G2010W, M2200HD, E2400HD, G900HD, E900HD, M2400HD, G700, T2200HD, T900HD, G610HD, G2220HD, G2411HD, G920HD, G2410HD, G2020HD, G920HD, E2200HD, G2020HD M2400HD, E2400HD, G920HD, E900HD, M2200HD, E2200HD, G2220HD, G920HD, G610HDA S32, S33, R58, R47, DHU100 nscreen i91, nscreen i221 nscreen i91, nscreen i221 40

41 It is our goal to get more eco label certification in year 2009 for products across product lines: Eco Label LCD LCD TV Projector Joybook DSC Monitor AIO PC Taiwan Eco label V V V V V China Eco labl Energy Star V V V V V V V USA EPEAT V V TCO Japan PC 3R V V V V 6.6 Quality Management BenQ s Quality System Management can be divided into three stages as the company expands its business scale: : Building infrastructure of quality management system Enabling to manufacture quality products Winning customer s trust to support the company s business. 41

42 : Apply International Licenses. Establishing Standard Operation Procedures, and stating to apply ISO. Certified ISO-9002 in Certified ISO-9001 in Certified ISO-9001:2000 in now Establishing Quality Culture Branding Business Quality is the core competition. Provide competitive product & service to customer Certified QS-9000 Display Factory in Taoyuan in 2005 Since the separation with manufacturing business, Quality is considered the foundation to the success of branded business BenQ Quality Policy To Deliver Defect-Free, Competitive Product & Services to Our Customer on time Quality is the guiding belief of each BenQ employee. BenQ brand s core competence lies in advanced and reliable product quality BenQ Quality Management System The structure of BenQ Quality Management system is built based on ISO 9001:2008 & ISO 14000:2004. Beside ISO 9001, the BenQ has implemented additional quality control measures since separation with manufacturing business 2007: Assigned high level management to oversee quality system management in all product lines, and send BenQ s Quality Engineer to each vendor s manufacture site for quality inspection before shipment released. Each product line s Quality Manager review quality index with each vendor, and quality issues from global quality database regularly. The Senior Management holds quality review meeting monthly. Review and benchmark each vendor s quality status to ensure continue improvement. Any personnel may have influence quality has own quality KPI, and reviewed monthly. 42

43 6.7 Customer Care Quality BenQ s customer care is provided through the establishment of service centers and service network built by authorized service provider worldwide. BenQ s Web site has also published information listed below: 1. Corporation Information 2. Product Information 3. Promotions 4. Online Shop (Depends on Regions) 5. Product Warranty 6. Product Support Information 7. Software Updates. 8. Contact Information for Service Center, Authorized Service Provider. Customer satisfaction surveys are conducted by BenQ s five regional sales offices worldwide regularly. Survey results are used for benchmarking and auditing of each service center & authorized service provider. Displacement of or request for quality improvements will be sent to those service center or provides that fail to meet the requirements of BenQ s stand service quality. All authorize service provider are asked to provide service records by uploading them to a online database for all regional sales office to review. BenQ s headquarters in Taiwan also does service data analysis on a daily basis for service quality assurance and ensuring continuing improvements. 43

44 Vendor and LSP Selection 44

45 7.1 Management principles Since transforming to a branded business operation, BenQ has outsourced partial R&D, and product manufacturing to ODM manufacturers and logistics to LSP (Logistics Service Provider) while focusing on brand management, marketing, differentiation, global logistics and after service. BenQ aims to effectively integrate resources from contracted manufacturers and LSPs to enhance the brand s competitiveness. As the booming development of information technology thanks to the introduction of PC and the Internet, rapid growth is seen in global economy and impacts to the environment are increasing. For sustainable development of an enterprise, BenQ strictly requests that all contracted vendors and LSP to get the certification of ISO9001 & ISO14001 to collaboratively fulfill corporate social responsibilities. 7.2 Vendor selection It is BenQ s goal to provide customers with the best service quality and the most environment-friendly products. We have a standard procedure to execute the selection on vendors; with the process of qualification review and auditing on vendors, we wish to build up lasting relationship with qualified vendors and this to fulfill BenQ s social responsibility and accountability. Since 2008, BenQ reinforced our requirements and managements on vendors, to make sure their execution level of social accountability; also, we advocated the ideas and communicated our requirement on social responsibility-related issues with potential vendors and existing vendors. In internal management system and related flow chart, BenQ lists criteria to make our potential vendors qualified and entering into QVL (Qualified Vendor List) our vendors have to cooperate actively with auditing and documents review on issues regarding environment caring and social 45

46 Start Acquire Basic Corporate Information Making Contact with Related Vendors Failed QVL Review Passed Ask to offer Certificates of ISO14001 and OHSAS 18001, and SA8000-related evidences) For vendors that cannot offer copies of SA8000 certificates, we also ask them to give us the improvement plan or the commitment that they understand and promise to follow the standards of SA8000; BenQ also tracks the process of their phase-in plan. For Vendors that cannot offer copies of ISO or OHSAS 18001, BenQ will ask their phase-in or improvement plan. We may also activate related auditing activities if necessary. Regarding operation procedure above, among the cooperating BenQ partners, 100% of current vendors have passed related documents review and tracks. In the meantime, for those QVL vendors to become a supplier of our products, BenQ also holds a RFQ (Request for Quotation) process to guarantee that their production and products conform to environment assessment and safety requirements. In the phase of RFQ stage, except for Product related specs, BenQ Quality Department and Safety Regulations related Departments also regulate the offering of 46

47 products/services from vendors with formal documents; by wording and actual auditing activities, we asked vendors to conform to ROHS and other environmental regulations. If our vendors failed to commit or failed at auditing, they could not even pass to the next stage of Award or getting project into mass production. Via such process, BenQ assures that we offer the most safe and environment-friendly products to our customers. Furthermore, by means of such strict procedure, we wish to build up the lasting relationship with qualified vendors, altogether to make commitment to the healthiness of customers, to preserve the ecology circle from harm and to protect the planet we live on. 7.3 LSP Selection Via LSP selection process, BenQ reviews not only LSP s logistics service proposal whether meet BenQ s requirement, but also request them to offer the certificates of ISO9001 & ISO If the LSP can offer both certificates and the logistics service as BenQ requested, they will be qualified as BenQ s potential LSP. Moreover, because carrying capacity of cargo ship is much bigger than airplane, the CO2 emission of sea transportation is lower than air transportation counted by grams per tonne-kilometers. Sea transportation is BenQ s major arrangement for global logistics. The transportation ratio of sea to air is 6: 4 in To protect ecological and environment, BenQ continually decreases the air transportation so as to reduce CO2 emission caused by transportation. The transportation ratio of sea to air is 8:2 in Emissions S-Type Boeing g/tkm Container CO g/tkm=grams per tonne-kilometers * Source: Network for Transport and the Environment (NTM) 47

48 Human Resource 48

49 8.1 Employee Profile As of Feb. 28, 2009, BenQ employ 1,399 employees worldwide in Asia, Australia, Europe, and the Americas. There are over 47 various nationalities among employees; 28.7% of employees are in Taiwan headquarters, and the other 71.3% employees are in other overseas offices. Global Headcount Trend High Quality Workforce BenQ employs high quality workforce. 94% of our employees have Bachelor degree or higher, 55% employees have Masters degree. Education Background 49

50 8.1.2 Age and Gender Distribution BenQ believes in equal opportunity for both sexes and for people of all ages and especially so when in recruiting and talent developing policies. Average age of staffers is 35 years old, with 72% of staff in their 30s. Gender distribution of the workforce is approximately equal while males contributing to 61%. Age Distribution Gender Distribution 8.2 Our Commitment BenQ believes that compensation and benefits are important aspects to our employees, and therefore have developed a competitive compensation policy. The employee s compensation is decided by employee s professional experience, personal performance, and educational background. Gender difference does not affect the salary structure in BenQ. Candidates with identical background, no matter of race, religion, political affiliation, gender, marital status, and member of labor union, their starting salary in BenQ will be identical. Every full-time employee in Taiwan is guaranteed to have monthly salary, Dragon-Boat Festival bonus, Mid-Autumn Festival bonus, and Year-End bonus. Performance bonuses are granted according to individual performance and company achievement every year. Employee bonuses from BenQ s profits are also allocated to our employees. Subject to local statutory requirement, on the first day when joining BenQ, all employees are provided with Labor Insurance, National Health Insurance, Engagement/Volunteer Leave, and other required leaves. All employees are also covered by group insurance which is additional to the local regulations, such as life insurance, health insurance, cancer medical expense insurance, accidental death and 50

51 dismemberment insurance, accident insurance aviation clause, and so on. The retirement plan offered to our employees follows the requirements defined by local regulations. In Taiwan, the structure of retirement plan is based on either defined benefit or defined contribution plan; and such pension is paid each month directly by BenQ to either the legal pension account or the personal pension account under the Labor Standards Act and the Labor Pension Act. 8.3 Workplace Safety Workplace Safety BenQ headquarters has been introduced with certificate under OHSAS18001 for an occupational health and safety management system. Inspired by the concept of happy company, we integrated the global standards and government regulatory to establish our ESH management system. We not only work to prevent the happening of traditional environment-related events and work-related accidents, but also establish entrance control mechanism and employee opinion system to maximize employee personal and property safety. We implement safety maintenance from the entrance of the building. All staffs and visitors are checked to confirm the identity by security guard once step into the building. We set up entrance control system in our office building where everyone should scan the entrance identity card to enter working areas. In order to complete the safety, we provide a system named 1234 to collect opinions from staffs. By continuous improve cycle, BenQ formulates a series of regular inspections in accordance of regulatory for environmental soundness. ESH task force team identifies and evaluates risk, provides task assistance, implements improvement and actions as part of management system. Above mentioned boundary includes environment issues, noise exposure, chemical spills, toxic gas leaks, improper use of machinery, facility maintenance, and emergency preparedness. Committee of ESH management should review these key issues to ensure addressed property. Comments from the members of committee of ESH management and staff are used to tailor our safety training as well as the frequency of safety inspections. Although the office working style is simple, it especially highlights the importance of emergency responses. To avoid major accidents, such as fire accidents, 51

52 food poisoning, or natural disasters, an emergency response procedure consisting of a reporting system, emergency response center, communication information, and emergency equipments is established. Periodically courses of evacuation drill, emergency response trainings, and equipments trainings aimed to effectively and efficiently minimize the impact of occupational hazards. With systematic safety management, in 2008 both of our injury frequency rate and senior injury rate are zero. Inspired by this accomplishment, we seek on-going improvement of our performance to ensure a more comfortable and safe environment for all employees. Examination Results in 2008 Item Schedule Result January, April, Under the standards Drinking water July, October of regulatory noise exposure Under the standards October (Surrounding) of regulatory Under the standards noise exposure of regulatory Under June, December (Workplace) the standards of regulatory Under the standards illumination June, December Concentration of carbon dioxide June, December of regulatory Under the standards of regulatory Evacuation drill 52

53 8.3.2 Occupational Health BenQ has dedicated itself to the creation of a healthy and vigorous workplace for our employees for years. In this workplace our employees can fully commit themselves to their works without any distractions. We ve been taking the occupational health examination conducted by Taipei City Government since 2005, and won the best workplace crown in 2005 and In addition, we were certified as the accredited healthy workplace by Bureau of Health Promotion, Department of Health, Taiwan, in Awarded the best prize of Taipei Occupational Health, 2007 Awarded the Eden Prize,

54 Awarded the Legacy Prize of Taipei City Occupational Health, 2006 Awarded Piloting Health Award in 2007 Health Promotion Certificate in 2007 We take a strategic approach to creating a healthy workplace for our employees. This includes regular health examination programs and the provision of health-promoting activities and medical facilities to our staffs. For instance, we work with Eden Social Welfare Foundation, and provide an in-house massage room to support the massage professionals from the Foundation and to help relieve our employees tensions and stress. We also have a well-equipped lactation room, which is scored 5 Star rating by two Parenting magazines. 54

55 In additional to offering all employees the opportunities of trainings and development, we do our best to make BenQ a blissful enterprise by conducting the Happy Mall program. This program tends to encourage our employees to pursue personal health and fulfillment, while they devote themselves to the company. Weight control activity In-house massage service during work hours collaborated with the Eden Social Welfare Foundation 55

56 Breastfeeding-Friendly Workplace Regular healthy examination Working Environment BenQ cares about staffers daily life by providing a comfortable working environment, various services and facilities. These services and facilities include a canteen to supply meals during lunch and dinner outs, a coffee shop, a fitness center, a gymnasium, massage service, wellness center, a mailroom, and etc to create a pleasant workplace for all the staffers to spend their working hours in. 56

57 8.3.4 Human Right BenQ headquarters has adopted certificate undersa8000 for a social accountability management system since April We has started ESH plan based on the standards of the management system to ensure the right of staffs. External qualified auditor implement once a half year to ensure the management system is effective. BenQ SA and ESH policy is compliant with standards of social responsibility, meaning that BenQ does not employ child or forced labor, but provides a health and safe workplace and ensures the communication convenience. There s no discrimination against race, gender, marital status, age, political affiliation or religion. We care for staffers and ensure remuneration shall meet at least legal or industry standards. No harsh or inhumane treatment is allowed. From the recruiting process, BenQ complies with the standards for the policy. No incidence of discrimination, forced labor or child labor was identified in To be a responsible business citizen, we also request our suppliers to comply with our insistence of human right. 8.4 Employee Relations BenQ constructs a variety of internal communication channels, including 1234 mailbox, staff meeting, management meeting, welfare committee meeting and food committee meeting, etc. Through these channels, the employees can deliver their opinions and get the instant and effective feedback to their questions. Employee rights to freedom of collective bargaining are discussed in quarterly labor-capital meeting. The employee representatives are elected directly by all employees in each department. These representatives are responsible for expressing issues raised by all employees. The conclusions to every addressed issue are recorded in quarterly labor-capital meeting minutes, which will be sent to all relevant departments for reviews and implementations. 57

58 Staff Meeting Department meeting Interview Management of all levels BenQ Employee 1234 mailbox Director discussionmeeting Welfare Committee Food Committee Labor-capital meeting Human Resources Structure Top Management Sex harass Complaint channel Responsible person at the complaint channel 58

59 8.5 Training and Talent Development Talent is the cornerstone of BenQ's competitive advantage. Supporting and developing BenQ talent has always been a key management principle. Based on the needs of the company, employee-targeted skill courses and management-focused leadership programs have continued to reinforce BenQ's competitive abilities via continuous learning scheme. Additionally, increasing knowledge and implementation of corporate culture into daily work behavior has become an indispensable tool in the development of talent and the progressive growth of the company. In 2006, per individual, that amounts to at least 45 hours of training in topics related to corporate culture, professional skill enhancement, and leadership development. In total, 300 courses were offered internally, which generated a head count of over 2,700 participants. Further, BenQ promoted organizational enthusiasm toward learning by supporting the sharing and transfer of new knowledge and skills between teams, departments, and business divisions. 59

60 BenQ learning system includes new employee training, Leadership and managerial training and Competency training. Our employee can participate in these training according to individual and department needs via BenQ internal training system. BenQ also enable our employees to apply for external training programs, and grants are available to support them. Long-term success as an organization depends on more than product innovation and system and process improvements. To have an organization that is like an organism, able to effortlessly adjust to challenges brought on by the environment that we compete in, is even more essential. BenQ supports this concept and will continue to strengthen organizational learning capabilities and employee training and development. Cultivating our competitive strength now will determine our ability to face the challenges of the future. 60

61 Human and Social Care 61

62 Bringing enjoyable technology to the stage of the world, walking step by step with global vision, BenQ always believes that the goal of an enterprise is not only making profit and being on the stage of the world but also a firm commitment to the world and human being. 9.1 BenQ Foundation The establishment of BenQ Foundation had reflected BenQ s commitment to bring humanistic outreach to the community. Founded in 2003, the Foundation acts as a catalyst to disseminate the spirit of Bringing Enjoyment and Quality to Life through educational programs, charitable donations, awards and scholarships. The Foundation believes this will result in the long-term development of beauty and truth in the arts and literature as well as future concrete innovations for society. Protecting Yushan s Hiking Trails Mountain-climbing is a common practice by BenQ Group companies to stimulate employee morale. In the process, the overwhelming beauty and the incomparable greatness of the Mother Earth will especially refresh one s perspective and are great for inspirational thinking. The BenQ Foundation has dedicated to the preservation of the hiking trails on Yushan for three years as part of its environmental commitment. 62

63 The BenQ Award Creative Writing Competition As it s officially the digital era, the BenQ Foundation, recognized the importance to digitally record this wave of digital revolution, has organized the BenQ Award to promote the value of creative writing and to encourage writing on the subject of how technologies have brought to us a beautiful new world. The BenQ Award awarded devotees to create literary works based on their daily experiences and to present them digitally in a new digital aesthetics and literary style. 63

64 Digital experiential zone of Smangus ecological system and culture The BenQ Foundation has helped set up a digital experience zone in Smangus to exhibit the local cultural and ecological systems. With few clicks at the finger tips, Smangus beauty are vividly brought before viewers eyes by BenQ s networked digital devices. 9.2 Public Welfare Activities National Taiwan University Ming-Da Hall Public Art BenQ Corporation and AUO Corporation donated Ming-Da Hall to National Taiwan University for the academic development demand of College of Electrical Engineering and Computer Science. Meanwhile, for the sake of fostering students art appreciation ability, BenQ and AUO also donated a public art work which created and designed by famous artist from Hualien, Mr. Hsu Li-Hsien. Providing a platform for artist and promote the value of original culture. 64

65 National Palace Museum Sponsorship BenQ sponsored National Palace Museum s "Grand View" exhibition that marks the 80th anniversary of the National Palace Museum. Utilizing its technological expertise and capability, BenQ Corporation helped National Palace Museum to present history, art and culture through the lens of modern technology. Through the 65

66 sponsorship, BenQ successfully injected modernism and lifestyle-orientation into the museum. Korea Disabled Students IT Event Sponsorship Since 2004, BenQ has participated annually in the Korea Disabled Students IT Event, providing projectors for use at the event venue. The event included online games and speed typing competitions. Through long-term sponsorship of the event, BenQ not only helped establish BenQ as a leading brand for projectors, but also won recognition from various quarters for showing concern for the disadvantaged. 66

67 Donations for Sichuan Post-earthquake Reconstruction On May 12, 2008, an earthquake measuring 7.9 on the Richter scale hit Sichuan Province. Death toll and the damage to the property caused by this catastrophe was beyond estimation. BenQ Corporation, along with some other BenQ Group companies have donated 10 million RMB for the post-earthquake reconstruction as well as appealed to BenQ has appealed to its employees to aid the victims and survivors of the earthquake through donation programs run by worthy relief organizations. 67