2012 Corporate Social Responsibility Report - UMC

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Corporate Core Competitiveness and Corporate Social Responsibility equally emphasize Based on the four competitive advantages of “Independent R&D capability”, “Excellent manufacturing capability”, “Capable employees “and “Sound financial structure”, as well as the five business cultures of “customer orientation”, “integrity”, “innovation”, “accountability” and “efficiency” that have been deeply rooted in the company’s operations, UMC is able to maintain its position as an industry leader. Combining its competitive advantages, UMC also defines its corporate social responsibility and the three major directions based on its business culture: n Economic: Continue to improve corporate governance n Environment: Dedicate itself to manufacturing green wafers n Social: Fulfill corporate social responsibilities 1.2.3 Sustainable Organization UMC’s sustainable organization consists of the board of directors, headed by the chairman. The board directs the “Business Operations Organization” and “Corporate Social Responsibility (CSR) Committee”, both of which are headed by the CEO. The execution of sustainable policies is carried out in a top-down manner, while an audit committee is in place to oversee the execution. To be viewed horizontally, the “Audit Committee” and the “Remuneration Committee” enhance the capabilities of the board and strengthens corporate governance. “Business Operations Organization” and “Corporate Social Responsibility Committee” also set up sub-committees to meet their respective needs and to jointly execute and practice sustainable commitments. The Organization and operations of the CSR Committee Consultant CSR Committee Chairman:CEO Commissioners (6 Members) Fulfill Our Responsibility as A Corporate Citizen Green Foundry Manufacturing Director Public Interests CSR Roadmap Environmental protection ESH Sub-committee Energy saving Sub-committee Green Production Sub-committee Social Participation Sub-committee Corporate Govemance Sub-committee Corporate Governance UMC Science and Culture Foundation UMC Candle Light Society UMC LOHAS and Culture Foundation Improve the Performance of Corporate Governance UMC 2012 Corporate Social Responsibility Report P.10
1.3 Communication with Stakeholders 1.3.1 Identifying Stakeholders’ Concerns Stakeholder Communication is the most important part of corporate social responsibility, as we need to understand relevant stakeholders’ concerns on UMC’s policies and business performance. UMC, through disclosure of the 2012 CSR report, communicates with relevant stakeholders about our 2012 investment and performance in corporate social responsibility. Based on UMC’s operational attributes and 2011 survey experience, 10 categories of stakeholders, and 23 issues of concern were identified. Ten Types of Major Stakeholders Employees, customers, investors, suppliers, contractors, local communities, government agencies, civic groups and communities, the media, business partners were identified. Stakeholder Identification Process and Issues of Concern n Step 1. Collection: Each committees is responsible for collecting data of important stakeholders identified by relevant departments based on their respective business, issues of concern and channels of interaction. n Step 2. Compilation: Compile the aforementioned data collected from different departments and identify major stakeholders. n Step 3. Survey: Every three years an stakeholder concern issue’s questionnaire. Conduct a survey regarding issues of the stakeholders’ concern through a questionnaire every three years, and compile the results. n Step 4. Analysis: Analyze issues of concern and conduct a business impact analysis, so as to identify the level of priority for the issues of concern. n Step 5. Submission: Submit the results to the CSR Committee for approval. Each year, five sub-committees under the CSR committee conduct surveys to collect concerns from ten categories of stakeholders. UMC uses the analysis to strengthen areas in question and perform continuous improvement through PDCA. 2012 issues of concern are at the same level as the 2011 annual survey results, based on the investigation through the CSR subcommittees. Collection Submission Compliation Analysis Survey 23 Issues of Concern Aspects Issues Description Corporate Sustainability and Planning Sustainable Development - Environment Sustainable Development – Society Sustainability strategy Communication with the stakeholders Operational performance Corporate governance Innovation management Customer Service Risk management Supply chain management Regulatory compliance Environmental protection expenditure Environmental management Greenhouse gas emissions Use of energy resources Use of water resources Ecological conservation Product management Use of chemicals Compensation and benefits Talent cultivation Vision and strategy for the long-term development of the company Channels of communication with stakeholders and their effects Financial performance of the business as well as profit and loss of the investment Issues such as protecting the rights of the shareholders and strengthening the functions of the board of directors and defining code of conduct New products, new techniques and innovative operation strategies Quality management of products and services, customer-partner relations Business continuity risk management and control Demands of the suppliers and standards for procurement The company’s compliance with laws and regulations Overall expenditure and investment in environmental management Control, prevention and management of pollution Emission and reduction efforts of greenhouse gases Use of energy resources, waste management and reduction efforts Management of water resources and drainage system and reduction efforts Impact of corporate activities to the environment, conservation efforts and plans Product design, environmental impact and Environmental Product Declaration Management of hazardous substances and reduction efforts Employee performance evaluation, salary, benefits and reward scheme Employee training, organizational learning and development Labor relations Type of employment, staff communication, identification and cohesion Human rights Occupational safety and health Social commitment Issues such as sexual or racial discrimination, and employment of child labor Prevention and management of accidents and occupational diseases The company’s involvement in charitable events and community participation UMC 2012 Corporate Social Responsibility Report P.11
Page 1 and 2: 2012 Corporate Social Responsibilit
Page 3 and 4: Letter from CEO To all our friends
Page 5 and 6: Honors and Awards n Became a compon
Page 7 and 8: 1.1 Company Profile 1.1.1 About UMC
Page 9: 1.2 Sustainability Strategy 1.2.1 S
Page 13 and 14: 1.3.3 Communication Methods and Cha
Page 15 and 16: 2012 key performance compendium and
Page 17 and 18: BCMS Enhancement To implement the b
Page 19 and 20: 2.2 Operational Performance Due to
Page 21 and 22: 2.3 Corporate Governance UMC is com
Page 23 and 24: Communication and Complaint Channel
Page 25 and 26: 2.5 Competitive Customer Service UM
Page 27 and 28: Earthquake Precautions Earthquakes
Page 29 and 30: New supplier selection Suppliers th
Page 31 and 32: The supplier risk control mechanism
Page 33 and 34: Environmental Accounting UMC implem
Page 37 and 38: Cleaner Production assessment syste
Page 39 and 40: 2012 Results In 2012, UMC completed
Page 41 and 42: Stable operation and Remote monitor
Page 43 and 44: Implemented Reuse Measures in UMC
Page 45 and 46: “369 + Energy and Resource Produc
Page 47 and 48: 3.3.5 Inventory and Verification of
Page 49 and 50: 3.4 Energy efficiency 3.4.1 Energy
Page 51 and 52: 3.5 Enhance Water efficiency 3.5.1
Page 53 and 54: 3.6 Promotion of Environmental Awar
Page 55 and 56: Hazardous Substances Restrictions a
Page 57 and 58: Environmental Management Statistics
Page 61 and 62:
4.1 Social and common prosperity Fe
Page 63 and 64:
4.2 Healthy Work Environment 4.2.1
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Element 3 - A Warm UMC Employee Ass
Page 67 and 68:
4.2.2 Industrial Safety and Health
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4.3 Human Resource Management 4.3.1
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Reference competency models to plan
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4.3.4 2012 Human Resource Statistic
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4.4.2 UMC Public Welfare Investment
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Appendix Global Reporting Initiativ
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GRI Guidelines Location Page Disclo
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Assurance Statement UMC 2012 Corpor
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