台灣科技公司的CSR行動與台灣社會需求之落差 - 政大學術集成

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(1)國立政治大學企業管理學(系)研究所碩(博)士學位論文. 台灣科技公司的 CSR 行動與台灣社會需求之落差. 政治大 The Gap between Taiwanese Technology Company’s CSR 立 ‧. ‧ 國. 學. Actions and Taiwan’s Social Needs. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 指導教授：黃秉德博士研究生：江佳翰撰. 中華民國 105 年 11 月.

(2) Abstract 中文摘要 CSR（企業社會責任）是一個企業管理理念，創造更好的環境，經濟和社會。由於現今全球暖化以及氣候變化的問題，改變了原本人類的生活。企業社會責任，已經被世界許多上市公司認真看待。本論文的研究目的，是了解台灣科技公司的 CSR 行為，跟台灣社會需求的落差有多大差異。涵蓋台灣環境、經濟，和社會目前遭遇的重要問題。運用創新 G4. 政治大. 模型與台灣證劵交易所公司治理模型，來審視台灣科技公司的 CSR 表現。. 立. 五家科技公司為鴻海，和碩，廣達，仁寶，和台積電。. 學. ‧ 國. 研究使用案例研究方法。透過五家台灣科技公司的企業社會責任報告收集數據。. ‧. 結果顯示，這五家台灣科技公司大多集中於內部企業社會責任。他們需要更多. sit. y. Nat. 的外部 CSR 貢獻。然而，仁寶和台積電在某部分成功回答了台灣的一些關鍵問. al. n. 是慈善捐款。. er. io. 題。此外，研究希望更多的台灣企業能對真正重要的問題執行 CSR 行動，而不. Ch. engchi. 關鍵詞: 企業社會責任 (CSR)、台灣科技公司、台灣問題. i. i n U. v.

(3) English Abstract CSR (Corporate social responsibility) is a business management concept which gives contemporary enterprises greater awareness in making a better environment, economy, and society for living. Since global warming and climate changes have caused apparent unfavorable result to human beings. The recognition of CSR has raised up to many listed companies in the world. The aim of the research is to enhance the understanding of how relevant do the designed CSRs by Taiwan’s technology companies and Taiwan’s environmental, economic, and. 政治大. social problems. The research therefore analyzes CSR from the perspective of unsolved critical issues in Taiwan.. 立. ‧ 國. 學. The research used a qualitative case study research methodology. Data was collected through five Taiwanese technology companies’ CSR reports. These five companies. ‧. were listed under 2015 Global 500 respectively are Hon Hai, Pegatron, Quanta, Compal,. io. sit. y. Nat. and TSMC.. n. al. er. The results have shown that these five Taiwanese technology companies were mostly. Ch. i n U. v. focusing on internal CSR. They need more external CSR contributions. However,. engchi. Compal and TSMC had successfully answered some critical problems in Taiwan. Moreover, the research is hoping more companies can perform CSR actions on what the true significant issues rather than doing charity contributions.. Keywords: Corporate social responsibility (CSR), Taiwanese technology companies, Problems in Taiwan. ii.

(4) Table of Contents Abstract ........................................................................................................................... i Table of Contents ......................................................................................................... iii List of Figures ................................................................................................................ 1 List of Tables .................................................................................................................. 2 Chapter 1 ........................................................................................................................ 3 Overview of the research ............................................................................................... 3 1.1 Research objectives .............................................................................................. 3 1.2 Background to the research .................................................................................. 3. 政治大. 1.3 Research limitations ............................................................................................. 4. 立. Chapter 2 ........................................................................................................................ 5. ‧ 國. 學. Literature Review........................................................................................................... 5 2.1 Defining CSR ....................................................................................................... 5. ‧. 2.1.1 History of CSR .............................................................................................. 6. sit. y. Nat. 2.1.2 Evolution of CSR .......................................................................................... 6. io. er. 2.1.3 CSR in the 21st century ................................................................................. 6 2.1.4 Stakeholder Theory ....................................................................................... 7. al. n. v i n 2.1.5 What is a CSR strategy 8 C ................................................................................. hengchi U 2.1.6 Develop CSR strategies ................................................................................ 9 2.1.7 Branding CSR and Communicating CSR ..................................................... 9 2.2 G4 Sustainability Reporting Framework ........................................................... 10 2.2.1 G4 Specific Standard Disclosures Overview .............................................. 10 2.2.2 A New Advanced Framework ..................................................................... 11 2.3 Global 500 .......................................................................................................... 11 2.4 The Background of Taiwan Technology Industry .............................................. 12 2.4.1 The background of Hon Hai ....................................................................... 13 2.4.2 The background of Pegatron ....................................................................... 23 iii.

(5) 2.4.3 The background of Quanta .......................................................................... 25 2.4.4 The background of Compal ........................................................................ 30 2.4.5 The background of TSMC .......................................................................... 32 2.5 Problems in Taiwan ............................................................................................ 35 2.5.1 Taiwan’s Environmental Problems ............................................................. 36 2.5.2 Taiwan’s Economic Problems ..................................................................... 43 2.5.3 Taiwan’s Social Problems ........................................................................... 48 Chapter 3 ...................................................................................................................... 56 The Research Design ................................................................................................... 56. 治政大 3.2 Research Framework ......................................................................................... 57 立 3.3 Defining the research objectives ........................................................................ 58 3.1 Introduction ........................................................................................................ 56. ‧ 國. 學. 3.4 Developing the Research Design ....................................................................... 58 3.5 Data cross-comparison and Data analysis.......................................................... 59. ‧. Chapter 4 ...................................................................................................................... 60. sit. y. Nat. Data Analysis ............................................................................................................... 60. er. io. 4.1 Introduction ........................................................................................................ 60. al. 4.2 Analyze Hon Hai’s CSR Strategy to Taiwan’s Problems .................................. 61. n. v i n C................................................................................ 61 4.2.1 Environmental Degree hengchi U 4.2.2 Economic Degree ........................................................................................ 61 4.2.3 Social Degree .............................................................................................. 61. 4.3 Analyze Pegatron’s CSR Strategy to Taiwan’s Problems .................................. 62 4.3.1 Environmental Degree ................................................................................ 62 4.3.2 Economic Degree ........................................................................................ 62 4.3.3 Social Degree .............................................................................................. 63 4.4 Analyze Quanta’s CSR Strategy to Taiwan’s Problems .................................... 63 4.4.1 Environmental Degree ................................................................................ 63 4.4.2 Economic Degree ........................................................................................ 64 iv.

(6) 4.4.3 Social Degree .............................................................................................. 64 4.5 Analyze Compal’s CSR Strategy to Taiwan’s Problems ................................... 65 4.5.1 Environmental Degree ................................................................................ 65 4.5.2 Economic Degree ........................................................................................ 66 4.5.3 Social Degree .............................................................................................. 66 4.6 Analyze TSMC’s CSR Strategy to Taiwan’s Problems ..................................... 67 4.6.1 Environmental Degree ................................................................................ 67 4.6.2 Economic Degree ........................................................................................ 68 4.6.3 Social Degree .............................................................................................. 69. 治政大 Scoring Methodology................................................................................................... 70 立 5.1 Introduction ........................................................................................................ 70 Chapter 5 ...................................................................................................................... 70. ‧ 國. 學. 5.1.1 Wording of indicators.................................................................................. 70 5.1.2 Type of indicators........................................................................................ 70. ‧. 5.2 Scoring Method .................................................................................................. 72. sit. y. Nat. 5.2.1 Weighting of indicator categories ............................................................... 72. er. io. 5.2.2 Calculation of scores ................................................................................... 72. al. 5.2.3 Example of Corporate Governance Evaluation .......................................... 73. n. v i n 5.3 Modification on TWSE’sC evaluation ..................................................... 73 h e n gsystem chi U 5.4 Calculating the result of each companies........................................................... 75 Chapter 6 ...................................................................................................................... 77 Conclusion ................................................................................................................... 77 Bibliography ................................................................................................................ 80 Appendices ................................................................................................................... 84 Appendix 1. G4 Specific Standard Disclosures ....................................................... 84 Appendix 2. TWSE 2016 Corporate Governance Evaluation System (Part 5) ....... 85. v.

(7) List of Figures Figure 2-1: Foxconn’s eCMMS Model Figure 2-2: Foxconn’s Business Roadmap Figure 2-3: Pegatron CSR Organization Chart Figure 2-4: Quanta CSR Committee Figure 2-5: Quanta’s Flowchart of Green Procurement. 政治大. Figure 2-6: Compal CSR Steering Committee. 立. Figure 2-7: Foxconn’s Factories Map. ‧ 國. 學. Figure 2-8: Pegatron’s Factories Map. ‧. Figure 2-9: Quanta’s Factories Map. Nat. sit. y. Figure 2-10: Compal’s Factories Map. er. io. Figure 2-11: Taiwan Unemployment Rate (July 2015~April 2016). n. al. C h Rate (2006~2016)U n i Figure 2-12: Taiwan Unemployment engchi Figure 2-13: Taiwan Marriage Ratio Figure 2-14: Taiwan Birth Rate Figure 3-1: Research Framework Figure 4-1: Quanta’s Factories Locations Figure 4-2: TSMC Unit Water Consumption. 1. v.

(8) List of Tables Table 2-1: PM2.5 Concentration Table 2-2: Factories in Production Table 2-3: Taiwan’s economy performance Table 2-4: Taiwan’s Wealth Gap Table 2-5: Migrant Workers in Taiwan. 政治大. Table 2-6: Migrant Workers in Taiwan. 立. Table 4-1: Numbers of employees by regions. ‧ 國. 學. Table 4-2: Compal’s Environmental Expenditure. ‧. Table 4-3: Energy Consumption of Plants. n. al. Ch. er. io. Table 5-1: Categories of Indicators and Weight. sit. y. Nat. Table 4-4: Compal’s CSR Donations. i n U. v. Table 5-2: Scorings of Companies in Putting CSR into Practice. engchi. Table 5-3: Result of Scoring Methodology. 2.

(9) Chapter 1 Overview of the research 1.1 Research objectives The research was trying to give everyone an understanding of what have these Taiwanese technology companies done to contribute Taiwan’s economy, environment, and society. While CSR has become a popular topic for contemporary society, many. 政治大 fulfill CSR. However, in Taiwan, the government does not execute strong laws to push 立 countries have started to set up policies and regulations in order to make companies. companies to fulfill CSR. The Taiwanese law only “encourage” listed companies to. ‧ 國. 學. respond CSR. There are no laws specifically state what, who, or how companies should. ‧. react to CSR. Therefore, many companies in Taiwan have no sense or recognitions on. y. Nat. sustainability matters. Another purpose of the research is to make Taiwanese companies’. er. io. sit. stakeholders seeing what problems do Taiwan is facing. The responsibility is not just for the government or for the companies. Taiwanese companies need sustainability. al. n. v i n crisis awareness in all economy,C environment, and society h e n g c h i U degree. 1.2 Background to the research. In recent decades, the impacts of business activities on society are no longer negligible. Increased numbers of citizens report businesses’ actions to the news. Many corporations recognize the significance of reputation capital which help them to sustain markets. Hence, doing CSR activities are actually another new business strategy to reduce risks and maximize profits. The advocators of the perspective usually include CSR in their social marketing initiatives and advertising. 3.

(10) In 2015, Taiwan government had compelled food industry, finance and insurance, chemical industry companies which has capitals over 10 billion NT dollars to obligate in making CSR reports. However, Taiwan government does not have clear regulations and laws on CSR. Taiwanese companies do not have great responsibilities to fulfill the sustainability of economy, environment, and society. The law states listed Taiwanese companies are “better” to implement corporate governance, develop sustainability environment, maintain social welfare, and enhance CSR information disclosure. Many companies’ CSR actions are charity works. Thus, to these companies, the law is neither strict nor important.. 立 1.3 Research limitations. 政治大. ‧ 國. 學. The research was limited to five Taiwanese technology companies. These five samples. ‧. were selected based on the report in Global 500. Although there could be many other Taiwanese technology companies which participate in CSR activities, companies. y. Nat. io. sit. selected in Global 500 are ranked by sales and revenues. Therefore, in this research, the. n. al. er. study only take large-scale enterprises into account and under analysis. In addition, the. Ch. i n U. v. suggestions toward the topic relied on the researcher’s independent judgement.. engchi. 4.

(11) Chapter 2 Literature Review. 2.1 Defining CSR The quickest definition for corporate social responsibility (CSR) would be business practices which aim to benefit society, and using the power of business to create a better. 政治大. world. That is a management concept whereby companies integrate social and. 立. environmental concerns in their business operations and interactions with their. ‧ 國. 學. stakeholders. Businesses participate in internal CSR and external CSR activities which activities are society beneficial and company profitable. However, McElhaney (2009),. ‧. the adjunct associate professor of University of California Berkeley, believes CSR is a. y. Nat. sit. business strategy that is integrated with core business objectives and core competencies. n. al. er. io. of the firm. In addition, a company’s CSR is designed to create a business value and. i n U. v. positive social change, and is embedded in day-to-day business culture and operations.. Ch. engchi. Standing from a company’s mind, defining CSR might be different. Some companies give CSR another label which is “spiritual capitalism.” In contemporary, CSR has many names including corporate responsibility, sustainable development, global citizenship, corporate citizenship, values-dive business, natural capitalism, spiritual capitalism, and many more.. 5.

(12) 2.1.1 History of CSR Corporate Social Responsibility’s (CSR) preliminary idea started in 19 century when entrepreneurs rethink what they can do for society. According to Madrakhimova’s paper (2013), Global Conference on Business and Finance Proceedings, CSR focuses on the responsibility of business to society in 1950. People and ideas have played an important role in characterizing the social changes in 1960. Moreover, in the 1970s, business leaders function management in matters of corporate social responsibility, while in 1980, the business and social interests of the company came closer and become more responsive to shareholders. In the 1990s, the idea of CSR has stood its importance, and. 政治大. become almost universally accepted. Finally, in the 2000s, CSR has finally become an important strategic issue.. 立. ‧ 國. 學 ‧. 2.1.2 Evolution of CSR. y. Nat. In 1970s, there was no CSR this name. Companies call these actions, pollution control,. er. io. sit. which aimed to hold pollution at an optimal condition. In 1980s, the name was pollution prevention which supports an idea to limit and restrict any pollution happen. Start from. al. n. v i n 1990s to 2000s, sustainability C is finally come into U h e n g c h i play. Names are environmental. sustainability, social sustainability, business sustainability, and corporate social responsibility.. 2.1.3 CSR in the 21st century The 21st century is a key century of business in the history. A wide-ranging activities are dominated including international trade, procurement and logistics, global warming issues, and social issues. A group of researchers (Whilst Orlitzky 2005) found that by 6.

(13) performing CSR actions could reduce the financial risk of businesses. Nonetheless, Hopkins (2003) found the result to be false after studied top ten UK companies. Undertaking CSR activities have low correlation to financial risk. Several studies (Grayson 2004; Spence 2000; Spence and Rutherford 2003; Tilley 2000) in the recent decade criticized the phrase, CSR, as misleading term. Many smaller organizations have no real commitment in fulfilling socially responsible actions. Francesso Perrini (2006) suggested large firms are responsible to run CSR under stakeholder theory while small and medium entrepreneurships should run CSR under social capital theory. In. 政治大 theory are regarded as alternative ways to explain CSR in bigger firms and SMEs. 立. 2009, Russo and Perrini restated the idea that social capital theory and stakeholder. ‧ 國. 學. 2.1.4 Stakeholder Theory. ‧. Stakeholder was defined as groups in which the organization depends on for survival. sit. y. Nat. (Stanford Research Institute 1963). Thinking stakeholder theory in this logic is based. al. er. io. on the traditional view of the firm; shareholders are the real owners of a company. This. v. n. concept has been assimilated into the organization, and is impossible to discount in any. Ch. engchi. i n U. management literature. The stymie has finally seen solutions when Freeman (1984) defined stakeholders as “any group or individual who can affect or is affected by the achievement of the firm’s objectives” (p.47). The pivot of the statement is that organizations are responsible for stakeholders’ expectations. Jones and Wicks (1999) summarize the basic tenets of stakeholder theory as follows: (i). The corporation has relationships with many constituent groups (stakeholders) that affect and are affected aby its decisions.. 7.

(14) (ii). The theory is concerned with the nature of these relationships in terms of both processes and outcomes for the firm and its stakeholders.. (iii). The interest of all (legitimate) stakeholders has intrinsic value, and no set of interests is assumed to dominate the others, and. (iv). The theory focuses on managerial decision making.. These tenets conclude two premises. First, company managers have to be aware of all stakeholders such as environmental lobbyists, local communities, and competitors. Second, managers have obligations to stakeholders and extend beyond shareholders. Creating a CSR Strategy:. 立. 政治大. ‧ 國. 學 ‧. 2.1.5 What is a CSR strategy?. sit. y. Nat. CSR strategies should give substantial benefit to organizations and society. In many. io. er. organizations, a clear scope of CSR needs to be embedded and reflect the core values of the firm. Moreover, the strategy has to link with the mission, vision, and values of. al. n. v i n the organization. CSR should beC treated like creating aU core business strategy. CSR has hen i h gc. to report to top-management leader, and the board of the company should engage CSR as well. They should take CSR as serious as other business strategies on accounting, finance, and marketing. Some well managed CSR companies such as Timberland states by McElhaney (2009) have board committees which responsible in directing corporate responsibility.. 8.

(15) 2.1.6 Develop CSR strategies Before a CSR strategy is being made, leaders of companies must first determine what specific business objectives do they want to achieve. CSR can benefit directly to companies who apply it. For instance, CSR can be used as a strategy to create new markets for low energy consumed products. Over here, the strategy of selling low energy consumed products becomes a company’s competitive advantage. Customers who buy these products benefit themselves as well. In addition, the new products attract customers who care about environment friendly. McElhaney (2009) claims CSR has to fully integrate with the culture, governance, company-development, existing. 政治大. management and performance systems. Developing clear performance metrics or key. 立. performance indicators can help to measure the impact of CSR strategies. CSR. ‧ 國. 學. performance metrics should be both internal and external. Some internal metrics are reputation improvements, gains in market share, brand perception, increased sales,. ‧. decreased operational costs, and employee satisfaction. Other external metrics are. y. Nat. sit. society and environment. CSR performance metrics are extremely important. If there. n. al. er. io. are no such metrics, there will be evidence showing how effective the strategies are.. Ch. engchi. i n U. v. 2.1.7 Branding CSR and Communicating CSR After CSR is truly developed, executed, and integrated into the organization, the company should start branding the CSR. Branding CSR can be an innovative and valuable business strategy to acquire important constituencies inside and outside the corporation which are employees, suppliers, business partners, investors, peers, and consumers. On the other side, communicating CSR to customers is important when CSR has started to play the role. In contemporary, consumers are looking for a relationship between themselves and corporations. They do not want just a transaction. 9.

(16) CSR can be another component of strategic communication and messaging management (McElhaney, 2009). Corporations have to integrate CSR messages with the core branding strategy externally to consumers, potential employees, suppliers, retailers, governments and, communities; in addition, communicating a clear CSR message internally to employees.. 2.2 G4 Sustainability Reporting Framework. 政治大 society, and the economy no matter they are positive or negative. G4 is a reliable and 立. GRI guidelines make companies disclose the most critical impacts on the environment,. ‧ 國. 學. standardized information which enable greater decision-making for both the businesses themselves and among their stakeholders.. ‧. There are two types of standard disclosures which are General Standard Disclosures. Nat. er. io. sit. y. and Specific Standard Disclosures.. al. n. v i n 2.2.1 G4 Specific StandardC Disclosures Overview hengchi U Specific Standard Disclosures contain two criteria which. are Disclosure on. Management Approach and indicators by aspects. Under the Indicators, there are three categories that are economic aspects, environmental aspects, and social aspects. These aspects from Specific Standard Disclosures are a much suitable framework to answer Taiwan’s problems under the scope of CSR.. 10.

(17) 2.2.2 A New Advanced Framework The new framework for this research was formed on the basis of G4 Specific Standard Disclosures (Appendix 1.). G4 Specific Standard Disclosures provides good reference for this new framework. G4 framework has covered the common criteria which companies should cover to be considered good CSR contributors. However, many of the criteria do not apply directly to the research; many of the criteria are for the companies internally. Therefore, a new advanced framework was formed with modifications. Still, the framework was developed on the basis of G4 Specific Standard Disclosures with more advance elements to suit Taiwan’s environmental, economic, and social problems.. 立. 政治大. ‧ 國. 學. 2.3 Global 500. ‧. The Global 500 is a milestone for all the corporations in the global world. It is an annual. y. Nat. io. sit. ranking of the top 500 corporations worldwide which measured by revenue. The list of. er. top global 500 companies is compiled and published annually by Fortune magazine.. al. n. v i n On the other hand, The Fortune 500 but ranked the largest U.S. C his not ranked worldwide engchi U. corporations. The concept was created by Edgar P. Smith, a Fortune editor, and first published in 1955. In 2015, 25.6% of Global 500 is taken up by US firms. China has taken 21.2% which is the second place. Followed up are Japan, Germany, and England. In 2015, Taiwan has 8 enterprises got ranked under Global 500. The enterprises are as followed chart. This thesis will later focus on five technology companies which are Hon Hai, Pegatron, Quanta, Compal, and TSMC. 11.

(18) Enterprises Hon Hai (Foxconn). Ranking 31. Tech Company YES. Chinese Petroleum Corporation (CPC). 316. NO. Pegatron. 355. YES. Quanta. 389. YES. Formosa Plastic Group (FPG). 393. NO. Compal. 423. YES. Cathay Life Insurance. 471. NO. TSMC. 472. YES. 政治大. 2.4 The Background立 of Taiwan Technology Industry. ‧ 國. 學. In the field of high technology industry around the world, Taiwan has taken a significant. ‧. position. Taiwan is well famous for its information and communication technology.. sit. y. Nat. Taiwan’s information and communication technology (ICT) companies play an. io. er. important role in the global supply chain for electronics products. Many data has shown that Taiwanese technology companies in charge of about three-quarters of the world’s. al. n. v i n production in PCS and half of C theh worlds’ LCDs (liquid-crystal displays). Moreover, engchi U. Taiwan’s tech companies make a quarter of the world’s semiconductors and one fifth of the worlds’ mobile phones. Hence, the importance of Taiwan in ICT cannot be underestimated. A result announcement by the Economist Intelligence Unit (EIU) of a global study of IT industry competitiveness. Taiwan was now placed in second place out of 1 total of 66 nations in the IT industry. The good performance in ranking was due to Taiwan’s strong R&D and particularly its patented technology. 12.

(19) 2.4.1 The background of Hon Hai Hon Hai Precision industry Co., Ltd., is an electronic enterprise who focuses on electronics manufacturing services. Hon Hai was founded by Terry Guo in 1974. Terry Guo is both of the chairman and the president. The headquarters locates in New Taipei city of Taiwan. Hon Hai has a trade name which is Foxconn Technology Group. Foxconn is its brand name. It is the world’s largest electronics contractor manufacturer (Venture Outsource, 2014). Contract clients include American, European, Japanese, and. 政治大 than 200 subsidiaries and branch offices in global. Well-known products which made 立 Canadian electronics and information technology companies. To date, Foxconn more. by Hon Hai are BlackBerry, iPad, iPhone, Kindle, PlayStation 4, Xbox One, and Wii.. ‧ 國. 學. According to the financial report, Hon Hai earned US$131.8 billion of Revenue in 2013.. ‧. The net income is US$3.55 billion in 2013. There are 1.09 million of employees. n. al. er. io. sit. y. Nat. worldwide in 2013.. i n U. v. Information processing technology is a foundation of Foxconn’s corporate sustainable. Ch. engchi. business strategy. A model named eCMMS which represents industry-leading e-enabled Components, Modules, Moves, and Services. The model enables the company to deliver innovative, efficient, cost-effective and flexible solutions as illustrated in Figure 2-1.. 13.

(20) Figure 2-1. Foxconn’s eCMMS Model. 政治大 Intelligent Manufacturing. It guides Foxconn to expand horizontally with integration in 立 Foxconn’s business roadmap is established from the foundation of Industry 4.0. all degrees. Expanding into content creation, cloud data management, internet of things,. ‧ 國. 學. big data, wireless 4G-LTE, broadband network transmission services, and intelligent. ‧. electric vehicles. Moreover, the company continuously invests in the research and. al. er. io. sit. y. Nat. development. The roadmap is featured in Figure 2-2.. n. Figure 2-2. Foxconn’s Business Roadmap. Ch. engchi. 14. i n U. v.

(21) 2.4.1.1 Foxconn’s CSR Commitment Foxconn is an active member of EICC (Electronic Industry Citizenship Coalition). The company continues to fulfill the EICC and EICC-GeSI (Global e-Sustainability Initiative) code of conducts.. Foxconn believes that corporate social and environmental responsibility and sustainability are significant elements to count as a successful enterprise. The company is committed to investing in employees and the communities.. 立. 政治大. 2.4.1.2 What is Foxconn’s CSR?. ‧ 國. 學. CSR is adopted in many degrees in Foxconn. Foxconn divided CSR into 4 main sections.. ‧. Section 1: Supporting and enabling employees. y. Nat. io. sit. Foxconn takes good care of its employees and believes that are the most important asset. n. al. er. of all. A total over one million employees in global include 1,500 persons with. Ch. i n U. v. disabilities and 57,000 employees from minorities. The merit-based remuneration. engchi. system allows employees to reward for good performance and productivity. Foxconn gives entry-level employees at least 10% higher than the minimum wage. After a threemonth probation period, employees will have wages increased and that are 20% higher than the minimum wage. Foxconn also commits to provide salaries increment no less than 3% on employees who have served at least one year and meet specific requirements.. 15.

(22) Foxconn prioritizes placement for manufacturing operations in China. Building campuses in provinces where most employees live in. The company also works with China government to build off-campus residential accommodation.. In addition, Foxconn University was founded in China which to provide employees with continuing education and training opportunities. Foxconn University offers various fields of courses such as management, general education, technology, on-thejob training, and industrial engineering. 12 million RMB dollars are funded for. 政治大. scholarship to support employees’ great efforts in continuing education.. Section 2: Improving healthcare and occupational safety. 學. ‧ 國. 立. ‧. Foxconn cares employees just like a big family. One of the commitments of Foxconn. Nat. sit. y. is to ensure the health and safety of all employees in all Foxconn operations. Employees’. n. al. er. io. healthcare and wellness is imperative for Foxconn to function effectively and efficiently.. Ch. engchi. i n U. v. Foxconn has followed health and safety policies and standards; they all meet international and local laws regulations. These include OHSAS 18000 and SA8000. Foxconn’s health and safety measures were confirmed by the Fair Labor Association. Foxconn had obtained certification from the Occupational Safety and Health Administration through the Ministry of Labor in Taiwan in 2014. Foxconn provides many different kinds of facilities for employees such as breast screenings and health advisory services. Maternity and baby bonus packages are also available for pregnant 16.

(23) employees. One to mention is that Foxconn uses Big Data Technology to consolidate latest healthcare information to provide employees health notices.. In order to achieve a goal of 100% safety at work and zero accidents, Foxconn has monitored the workplace for potential hazards. Daily screening and a monitoring process are practiced in every manufacturing plant.. 政治大. Section 3: Driving sustainable product design and supply chain management. 立. As the world’s largest EMS (electronic manufacturing services) provider, Foxconn. ‧ 國. 學. commits sustainability in the entire supply chain. A department is created for studying the environmental requirements, customers, industries, and other stakeholders.. ‧. Foxconn also has to ensure the suppliers in the downstream meet the sustainability. Nat. sit. y. requirements for the purpose of avoiding toxic and hazardous substances, reducing. al. n. friendly.. er. io. carbon emission, and many other practices in fulfilling the idea of environmental-. Ch. engchi. i n U. v. In Foxconn, there are four key principles in designing a sustainable supply chain which are energy efficiency, carbon reduction, eco-friendliness, and recyclability. Several evaluation goals are listed for Foxconn’s suppliers. Greenhouse gas reduction is monitored in systematic approach for suppliers. Foxconn requires suppliers to cooperate in fulfilling social and environmental responsibilities. In the Supplier Code. 17.

(24) of Conduct, suppliers need to have their products to be certified by a third-party to make sure the products’ greenness.. Foxconn has collaborated with IPE (the Institute of Public and Environmental Affairs) to publish environmental data. IPE recognized Foxconn and ranked Foxconn at the ninth position of 36 global IT companies.. 政治大. Section 4: Protecting the environment. 立. Foxconn is focusing on giving applications of green technologies. The company greatly. ‧ 國. 學. inputs efforts in enhancing environmental protection, boosting energy efficiency and savings, and sustaining a healthy ecosystem. The final goal is to build an eco-friendly. Nat. er. io. sit. y. ‧. culture through Foxconn’s innovation in technologies.. Environmental sustainability is a top priority for Foxconn. The company has integrated. al. n. v i n C hgreen and sustainable a systematic approach towards the e n g c h i U practices. Carbon emission is. measured for reduction reference. Supply chain management is planned for minimizing the negative impact of Foxconn’s operations on the environment. Foxconn confirms its respect to the environment and takes necessary responsibility to any damages. At the meantime, Foxconn tries to link technology with sustainable economic growth in a way that also protects the environment.. 18.

(25) Foxconn also participates in global initiatives such as the CDP (Carbon Disclosure Project) as the commitment for contribution in sustainable business development.. Section 5: Contributing to the local community Foxconn actively participates in social and community programs such as sponsoring and hosting philanthropic activities and taking part in volunteer programs. Moreover, Foxconn encourages employees to support social causes actively. Looking forward to have the contribution in communities becomes part of Foxconn’s corporate culture.. 治政大In Taiwan, the company also Foxconn facilitates teacher training in rural institutions. 立 supports Taichung Girls’ High School and Hsinchu Science Park High School by ‧ 國. 學. contributing software and hardware equipment. In August 2014, there was a gas. ‧. explosion in the city of Kaoshiung. Immediately, Foxconn donated NT$10 million to help the reconstruction and the victim’s families. Besides the money donation, Foxconn. y. Nat. io. sit. assisted in the rescue process of Kaoshiung gas explosion incident. Foxconn provided. n. al. er. 5000 portable power sources which use for assisting workers and victims. The Foxconn. Ch. i n U. v. CEO, Terry Gou, had also made a fundraising at the Ice Bucket Challenge which he. engchi. donated US$200,000 to the Taiwan Amyotrophic Lateral Sclerosis Association.. 2.4.1.3 Controversies of Foxconn In early 2010, China, Guangdong Shenzhen city, 14 suicide accidents were repetitive committed at Foxconn. The suicides drew media attention, and employment practices at Foxconn were investigated by several of its customers, including Apple, and HP. Many of these accidents are still under investigation; however, some reports 19.

(26) have shown that they can be led by over-work hours. After June 2010, China government had blockaded all news about Foxconn suicide incidents.. 2.4.1.4 Foxconn’s Stakeholders In total, for Foxconn, there are six primary stakeholders which are employees, customers, suppliers, community, investors, and NGOs. Stakeholders. Focused Issues Working environment. . Living environment. . Labor relations. . Physical and mental health. 學. io. Inspections on reduction of greenhouse gas emission.. . Suppliers’ CoC and standards. . Legal compliance. . Protection on environment. . Healthy lifestyle. n. al  . i n U. Education. CAssist h ethen underprivileged gchi Updates. on. y. er. Nat. . ‧. ‧ 國. on suppliers and their downstream. suppliers.. Suppliers. Investors. 政治大 Code of Conduct implementation. 立 Inspections. Customers. Community. . sit. Employees. v. monthly. quarterly financial statement. NGOs. . One-on-one investor meetings. . Telephone conference. . Annual general meeting (AGM). . Green products. . Environmental protection. . Employee care. 20. report. and.

(27) 2.4.1.5 Efforts on Foxconn’s Stakeholders Efforts of CSR actions on employees Employees have been provided communication channels. Foxconn established support systems such as a 24-hour hotline and on-campus counseling services. The system is to assist employees dealing any personal or work related problems. Thus, employees are able to work mentally and physically healthy. Efforts of CSR actions on Customers Foxconn has non-stop CSR efforts on customers. The company maintains. 政治大. communication with customers effectively. Foxconn also facilitates on-site inspections,. 立. and prepares the brief of Foxconn and related suppliers’ SER (Social and. ‧ 國. 學. Environmental Responsibility) compliance. The goal is to assist customers with innovative technology and services. Moreover, bringing these customers ideas of. ‧. knowing Foxconn pays strong attention and efforts in reducing carbon emissions in the. Nat. Efforts of CSR actions on Suppliers. al. er. io. sit. y. manufacturing process.. n. v i n C h meeting to helpU suppliers understand the SER Foxconn conducts an annual suppliers’ engchi compliance. In addition, the company has set up online SER learning platform where use for familiarizing Foxconn’s standards and understanding EICC requirements. Efforts of CSR actions on Community Employees of Foxconn are responsible to fulfill the goal of energy saving, emission reduction, going green, and recycling. Foxconn encourages the recruitment of people with physically impaired and promotes education for underprivileged groups.. 21.

(28) Efforts of CSR actions on Investors Foxconn keeps transparent and open communications with shareholders and investors. The SER Report and the company annual report are available online for them to review. Efforts of CSR actions on NGOs Foxconn attends SER forums and conferences with NGOs. Moreover, Foxconn participates some activities such as community development programs and environmental projects.. 立. 政治大. Internal CSR actions taken by Foxconn. ‧ 國. 學. Foxconn based its own CSR Code of Conduct on the industry norms set by the. ‧. Electronic Industry Citizenship Coalition (EICC). Internally, the Company carries out regular trainings and information sessions on corporate business ethnics for its. y. Nat. io. sit. employees every year. For its new employees, trainings on personnel rules,. n. al. er. management system, business ethnics and morals are carried out on their first working. i n U. day to clarify their due responsibilities and obligations.. Ch. engchi. v. All employees need to attend at least two hours per year of CSR Code of Conduct training; holding the suppliers conference and performing occasional supplier SER audits each year, communicate to the supply chain partners of which the Company requirements.. 22.

(29) 2.4.2 The background of Pegatron Pegatron was founded in June 27, 2007 which specializes in DMS (Design, Manufacturing, and Services). It is a Taiwanese electronics manufacturing company. Its parent company is ASUS which also known as Taiwanese technology company. Pegatron develops computing, communications and consumer electronics to branded vendors. The primary products are notebooks, desktop computers, video cards, LCD TVs, smartphones, and cable modems. Pegatron has also inputted efforts in developing total solutions and high value-added services. According to the 2010 financial report, Pegatron has revenue of US$ 18.4 billion and profit of US$ 215.6 million. The CSR. 政治大. organization chart is illustrated in Figure 2-3.. 立. Figure 2-3. Pegatron CSR Organization Chart. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 2.4.2.1 Pegatron’s CSR Commitment and Participation Pegatron is a member of EICC (Electronic Industry Citizenship Coalition) since 2008. The company has attended the annual meeting every year to discuss the sustainability 23.

(30) matters with other companies. Moreover, Pegatron has actively participate in many corporate responsibility projects launched by EICC. In the purpose of reducing carbon emission and preserving natural resources, Pegatron invites its major suppliers to join projects; in addition, these projects improve suppliers’ sustainability awareness. Pegatron plays a significant role in the electronic products supply chain. According to the regulations and the requirements of customers, Pegatron has run an internal procedures for the purpose of monitoring the performance of suppliers. From this view of perspective, Pegatron has managed to bring the vertical integration affiliates and. 政治大. subsidiaries to the responsibility of reacting CSR matters.. 立. ‧ 國. 學. 2.4.2.2 Pegatron’s Stakeholders. In total, for Pegatron, there are nine stakeholders which are customers, employees,. . Local hiring and wage level. al. n Employees. Investors. Suppliers. y. Prevent child labor and young worker. sit. io. . er. Customers. Focused Issues. Nat. Stakeholders. ‧. investors, suppliers, communities, competitors, government, media, and NGOs.. i n U. v. Compliance in environment and labor regulations. . Ch. . Compliance in labor regulations. . Wage, benefit, and performance review. . Issues of non-compliance with regulations. . Operational and Financial Performance. . Environment performance. . Negative impacts on local communities. . Health and Safety impact of product’s life cycle. . Operational and financial performance. . Supplier management in labor condition. engchi. Local hiring and wage level. 24.

(31) Communities. Competitors. Government. . Supplier management in environment. . Use of recycled packing materials. . Environment protection. . Negative impacts on local communities. . Violated actions on indigenous people and actions. . Environmental impacts when transporting products.. . External communication through mailbox.. . Business integrity and business enthics. . Customer complaints on invasion of privacy. . Overall environmental performance. . Wage level and local hiring. . Compliance in environmental regulations. . Business ethics and business integrity. . Wage level and local hiring. . Conservation of natural resources. . Compliance in environmental regulations. . Overall environmental performance. 政治大. n. a. er. io. sit. Nat. y. ‧. NGO. 學. Media. ‧ 國. 立 Compliance in labor condition regulations. 2.4.3 The background of lQuanta. Ch. engchi. i n U. v. Quanta Computer was established in 1988. It is a computer hardware electronics manufacturer. It is the largest professional notebook manufacturer in the world. The global headquarters locates in Taoyuan, Taiwan. Right now, Quanta has over 5000 R&D employees in the headquarters. Other manufacturing campuses are located at Shanghai, Changshu and Chongqing of China. Its customers include Dell, HP, Alienware, Apple, Amazon, Fujitsu, Lenovo, Sony, LG, Sharp, Toshiba, and etc. Other than manufacturing computers, Quanta has extended business in home entertainment, mobile phones, automotive electronics, and digital home. The business strategy of Quanta is to 25.

(32) “Designed in Taiwan, manufactured in China and marketed globally” (2013 Quanta CSR Annual Report). By implementing a vertical integration of upstream resources and downstream resources, Quanta is capable to achieve a competitive advantage on cost. Moreover, Quanta lead the world market with over 27% of global market share. In 1999, the firm became public on the Taiwanese stock exchange. Speaking about the revenue, in 2014, Quanta earns around US$ 27.8 million.. 2.4.3.1 Quanta’s CSR Commitment. 政治大 First of all, Quanta is an official 立 EICC full member which brings Quanta to comply the In the CSR report, Quanta has mentioned many things to commit for its stakeholders.. ‧ 國. 學. code of conduct issues by EICC in the process of design, manufacture, sales, and the after-sales service to customers.. ‧. 1. Care about the rights and interests of stakeholders.. y. Nat. al. er. io. sit. 2. Assure good corporate governance. Follow the laws and regulations.. n. 3. Encourage employees to take part in the public welfare activities.. Ch. engchi. i n U. v. 4. Ensure products are green and does not impact the environment. 5. Dedicate in green research and development. Have a mission in protecting global environment. 6. Anti-child labor. Scrutinize suppliers do not employ any child labors. 7. Do not use forced labor. Respect employees’ freedoms. 8. Work environment has to be safe, healthy, and good for living.. 26.

(33) 9. Have a good evaluation scheme for employees’ development. And also respect to employees’ opinions. 10. Prohibit discrimination from any forms. Quanta examines the work environments are equal and fair. 11. Respect every employees, and disallow any insulting behaviors. 12. Have a clear working schedule which have the working time and the rest time well balanced.. 政治大. 13. Salaries are given in a reasonable manner. Salaries can satisfy employees’ basic. 立. needs.. ‧ 國. 學. 14. Respect employees’ rights to discuss any issues freely.. ‧. 15. Quanta has complied with the universal enterprise ethical standards.. n. er. io. sit. y. Nat. al. Ch. engchi. 27. i n U. v.

(34) See Quanta CSR committee as illustrated in Figure 2-4. Figure 2-4. Quanta CSR Committee. 政治大. 立. ‧. ‧ 國. 學 y. Nat. io. sit. 2.4.3.2 Quanta’s Stakeholders. n. al. er. In total, for Pegatron, there are five stakeholders which are shareholders and investors,. Ch. i n U. customers, suppliers, employees, community and others. Stakeholders. engchi. v. Focused Issues. Shareholders and. . Provide real-time and accurate information.. Investors. . Maintain company creditability and performance.. . Provide long-term dividend payout.. . Quick response towards new regulations and policies.. . Hold annual shareholders meetings.. . Publish newsletters and announcements, or hold press conferences.. 28.

(35) . Hold face-to-face meetings with domestic and overseas investors.. Customers. . Provide high quality products to customers.. . Provide a total solution which involves service of design, production, and logistics.. Suppliers. . Create a long-term business partnership.. . Help protecting customers’ privacy.. . Customer satisfaction survey.. . Promote fair trade.. . Take concern environmental safety and health.. . 治政 Provide assistance 大for. . Annual audit of suppliers.. . Attend green supply chain annual convention.. . Ensure suppliers’ products have passed several tests.. . Inspections are sampled and tested by Quanta.. . Schedule regular meetings with supervisor and. fulfilling. colleagues to conduct communications.. er. io. sit. y. ‧. Nat. Employees. 學. ‧ 國. 立 responsibilities.. social. . v i n care person to give employees with CHave U h emedical i h n c g medical services and consultation.. . Promote employee development such as personal. n. a l. Ensure employees have good workplace.. training and Quanta Elite School. . Give fair evaluation and treatment.. Community and. . Prevent accidents and give support when needed.. others. . Participate in the relevant seminars.. . Exchange ideas and opinions with MIT experts.. . Participate in external welfare activities.. 29.

(36) Figure 2-5. Quanta’s Flowchart of Green Procurement. 立. 政治大. ‧ 國. 學 ‧. 2.4.4 The background of Compal. Compal Electronics was founded in 1984. It is a Taiwanese ODM company focuses on. y. Nat. io. sit. the production of notebook computers, televisions, monitors, and etc. Compal’s clients. er. include Acer, Lenovo, Toshiba, HP, Dell, and Fujitsu. Compal is the second largest. al. n. v i n laptop manufacturer in the worldCwhere Quanta Computer is the first. In 2015, Compal hengchi U Electronics earns revenue of US$ 26.34 billion.. 2.4.4.1 Compal’s CSR Commitment Compal is an EICC member since 2011. Compal helps EICC in sustaining the vision, goals, and the commitment to the CSR. Compal does not think CSR is simply just act on emergency relief or charity. A new CSR scheme to Compal is a blue sea strategy which is for corporate sustainable development. The head must make a proper decision 30.

(37) to world changes such as climate change or the needs from different stakeholders. By acting so, the company is capable of accomplishing sustainable development.. 2.4.4.2 CSR Steering Committee CSR plans are implemented by Compal’s executive VP. The executive VP advocates the CSR goals, reviews action plans, and monitors the result effectiveness. Other high level managers make suggestions toward environmental impact and protection, human rights, corporate governance, enterprise value chain, and social issues. This distribution. 政治大 organization. The figure 立 2-6 below is the structure of Compal’s CSR Steering of tasks allow the company to reach consensus, and gradually influence the whole. ‧ 國. 學. Committee.. Figure 2-6. Compal CSR Steering Committee. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 2.4.4.3 Compal’s Stakeholders Compal’s stakeholders are selected based on the influence in their own or other people. The primary stakeholders are customers, employees, investors, suppliers, local residents, and government, and NGOs. 31.

(38) Stakeholders. Focused Issues. Customers. Employees. Investors. . Responsibilities on social and environmental issues.. . Product Quality.. . Product Design.. . Product Services.. . Employees’ personal health.. . The quality and safety of work environment.. . Employee remuneration and welfares.. . Career development opportunity.. . Employee educations and trainings.. . Business development.. . Hold investor conference quarterly.. 政治大. Suppliers. . Regular evaluation on suppliers’ products.. . Ensure materials accord to green product-related. ‧. . Use MIS System – SDCP. n. al  . y. Use MIS system – GPMS. sit. . er. io. Residents. Participate in investment forums.. requirements.. Nat Community. . 學. ‧ 國. 立 Annual dividend issuing.. Sponsor ecology preservation in long-term.. Ch. i n U. v. Adopt community parks in long-term.. engchi. Donation for disaster and public welfare when needed. Support for social charities.. . Community feedback.. Government Non-. . Publish CSR report, and Carbon Disclosure Project.. profit Organizations. . Focuses on EICC conflict minerals.. 2.4.5 The background of TSMC TSMC was founded on February 21, 1987, in Hsinchu, Taiwan. In the beginning of the business, the company solely focuses on manufacturing semiconductor which is 32.

(39) designed by customers. For the mutual benefit of both customers and TSMC, TSMC does not design, manufacture, or market semiconductor products by its own brand name. This prevents TSMC and its customers compete in any manners. Nowadays, TSMC is the largest semiconductor foundry in the world. The company manufactures 8,876 different products which use 210 different technologies for 453 customers. Based on the 2013 annual report, TSMC earned US$20 billion of revenue. The company has a total assets of US$42 billion and a total equity of US$28 billion. TSMC has around 37 thousands employees worldwide.. 立. 政治大. 2.4.5.1 TSMC’s CSR commitment. ‧ 國. 學. TSMC has a clear goal in focusing corporate governance and balancing the interest of stakeholders, employees, society, and all stakeholders. TSMC works with their. ‧. customers and suppliers to achieve unceasing innovation and create more products for. sit. y. Nat. the purpose of helping everyone possesses a quality life.. n. al. er. io. Being the top leader in green product manufacturing, TSMC actively encourages green. i n U. v. supply chain. In 2014, TSMC had joined EICC (Electronic Industry Citizenship. Ch. engchi. Coalition). TSMC applies the EICC code of conduct to the entire management and the compliance in environmental protection, safety, risk management, health, labor rights, and ethics. TSMC commits to procure manufacturing materials from conflict free sources.. 33.

(40) 2.4.5.2 TSMC’s Stakeholders In total, for TSMC, there are six stakeholders which are customers, employees, investors, suppliers, communities, competitors, government, media, and NGOs.. Stakeholders. Focused Issues . Employees. A two-way communication channels removes any obstructed flow of information between employees and managers.. . Ensure employees’ opinions are heard, and issues are. 治政 labor-management 大. addressed. . 立. ‧ 國. Focus on win-win situation for the company and the. . Customer business review meeting in each quarter.. . Inviting customers to give feedbacks to TSMC.. . Through frequent interactions, TSMC is able to. n. al. . y. sit. er. io. Annual customer satisfaction survey.. ‧. Nat. . . Suppliers. provide. timely support. employees.. Customers. meetings. 學. . Quarterly. understand customers’ level of satisfaction.. Ch. i n U. v. Make improvements based on customers’ voice.. engchi. Hold a supplier business review meeting in each quarter.. . Supplier questionnaire survey.. . Supplier on-site audit.. . Annual supply chain management forum.. . Improve product quality, delivery, environmental protection, ESH enhancement, labor rights, and sustainability management with suppliers.. 34.

(41) Shareholders &. . Hold annual shareholder meeting.. Investors. . Hold quarterly earnings conference.. . Take part in investor conferences.. . Collect feedback and answer investors’ questions.. . Issue annual reports, CSR reports, 20-F filings to US SEC, and material announcements to Taiwan stock exchange.. . Government. Communication with government through industry organizations which include the Association of Science Park Industries, Taiwan Semiconductor Industry Association, World Semiconductor Council,. 政治大 Running Arts Events in communities.. and Chinese National Federation of Industries.. 立. Community/Nonprofit, Nongovernmental. . Running literary and arts activities for youth.. Organizations. . Holding volunteer event with schools.. . Giving TSMC graduation award for students.. . Donating goods to NGO or institutions.. . TSMC division held annual volunteer activities with. y. n. Ch. engchi. sit. io. cooperation units.. er. Nat. al. ‧. ‧ 國. Sponsoring NGO to hold education programs.. 學. . i n U. v. 2.5 Problems in Taiwan This chapter of research focuses on problems in Taiwan. G4 Specific Standard Disclosures focuses environmental, economic, and social CSR contributions. Hence, the topic is later divided into three sub-topics which are Taiwan’s environmental problems, Taiwan’s economic problems, and Taiwan’s social problems. 35.

(42) 2.5.1 Taiwan’s Environmental Problems From the sky to the ground, environmental and ecological problems grew in Taiwan. Some of the problems are natural disasters such as a historical earthquake which had made great damages throughout the entire continent, the 921 earthquake. This earthquake took away many lives and people’s homes. However, most of the environmental problems come from human factors such as resource depletion and environment contamination.. 政治大 aspects which are materials,立 energy, water, biodiversity, emissions, waste, products and Under the category of environment in G4 Specific Standard Disclosures, there are 11. ‧ 國. 學. services, compliance, transport, supplier environmental assessment, and environmental grievance mechanisms. Most of the aspects are for the company internally or are for. ‧. stakeholders. In this chapter, we focus on the direct influence to Taiwan’s environment.. sit. y. Nat. In this chapter, the study will discuss three matters.. n. al. er. io.  Water Problem.  PM 2.5 (Emissions). Ch. engchi. i n U. v.  Taiwan’s Waste Problem. 2.5.1.1 Water Problem Water issues is essential. Of all the social and natural crises in humanity, water crisis is the most devastating problem. It affects every aspect of life especially to human health and it plays the most important role in food supply. As a result, the water issues in the environmental and ecological problems can cause the most attention.. 36.

(43) Currently, the water problem is a global crisis, there is no region can immune from the shock. According to a UNESCO report, rapid population growth, pollution and climate change has claimed a large number of mankind's most precious natural resources. So, in the future decade, the world will be facing water crisis. The Secretary General of UNESCO, Koichiro Matsuura said, “The demand of water is overloaded, and the supply is gradually declining.". In Taiwan there are several problems in protecting water resources. These problems. 政治大. include rapid population growth, rapid increase in domestic and industrial water,. 立. inadequate water storage facilities drought resistance, reservoir sedimentation and other. ‧ 國. 學. serious problems. Furthermore, the cause of all this problems are not only the inherent limitations of nature, but also the mentality of people and the political environment in. ‧. Taiwan.. er. io. sit. y. Nat 2.5.1.2 PM2.5 Problem. n. al. Ch. i n U. v. Currently, the most critical emission problem in Taiwan is PM2.5. The physician of. engchi. National Taiwan University Hospital, Department of Medicine and the Cardiovascular Center, Su-Da Cheng said, for every 5 units increase in PM2.5, it will cause 55% of cardiovascular disease increases risk on a human body. A study which involved 689 people with average 46 in age has found that living in a higher black carbon concentration area creates thicker carotid arteries. It means higher chance to have atherosclerosis.. 37.

(44) Professor Jeng from National Taiwan University School of Public Health found an observation in an animal experiment. Under an environment of PM2.5 with 13μg/m3 for three months, the particulate matters are deep into the lungs, and can cause cardiovascular or coronary artery disease.. PM2.5 harms to human health, there is no use wearing a mask? Su-Da Cheng, the cardiovascular physician of National Taiwan University Hospital said, N95 masks are not effective against gaseous pollutants. Moreover, after wearing N95 masks for an hour,. 政治大. human cannot stand the feeling of hypoxia. Thus, it is impossible to wear all day.. 立. ‧ 國. 學. Vice President Zhan, National Taiwan University School of Public Health showed that. ‧. Taiwan’s PM2.5 standard is set at 15μg/m3. Standards set by the United States is. sit. y. Nat. 12μg/m3. But the World Health Organization has set at 10μg/m3. Many countries are. io. er. tightening standards, Zhan appealed Taiwan revise the standards quickly. Currently,. al. Taiwan’s annual average PM2.5 is nearly 30, Taipei is a double of international standard.. n. v i n Central and southern Taiwan areCexceeding If Taiwan does not act anything, h e n g40ctimes. hi U. the air will never good for living. The table (Table 2-1) below shows Taiwan’s PM2.5 concentration in every county in recent 3 years.. 38.

(45) Table 2-1. PM2.5 Concentration. 2013. 2014. 2015. 3 years average. Yunlin County. 34. 34.1. 31.9. 33.3. Chiayi City. 33.5. 34.7. 30. 32.7. Kinmen County. 33.1. 32.8. 28.5. 31.5. Tainan City. 31.2. 30.2. 27.6. 29.7. Nantou County. 30.2. 29.8. 27.6. 29.2. Kaohsiung City. 30.7. 29.5. 27. 29.1. Chiayi County. 29.4. 29.6. 26.7. 28.6. Changhua County. 28.2. Lianjiang County. 立 27.3. 24.2. 24.1. 25.2. 25.7. 25.4. 24.4. 25.2. 23.1. 23.1. 21.6. 22.6. 23.8. 22.5. 21. 22.4. 23.3. 23.1. 20.2. 22.2. ‧. 21.7. 21. 20.1. 20.9. y. 21.7. 20.7. 19.6. 20.7. 20.1. 20.8. 18.5. er. Particulate Matters 2.5 in yearly average concentration. Ch. 18.1. 17.6. 政 27.6 治26.1 大27.3. Hsinchu City. Pingtung County. Penghu County. al. n. Keelung City. io. Hsinchu County. Nat. New Taipei City. 18.7 20.2. 19.8. iv 18.1 n U. i e n16.8g c h16.8. 17.9. Taipei City. 17. 17.6. 16.5. 17.0. Taitung County. 10.9. 11.3. 10.4. 10.9. Hualien County. 13.1. 13.7. 12.5. 13.1. Ilan County. 15.3. 15.2. 15.1. 15.2. Taiwan in average. 24. 23.5. 21.9. 23.1. 39. exceed standard 15 μg/m3. sit. Taoyuan City. 學. Miali County. ‧ 國. Taichung City. exceed.

(46) 2.5.1.3 Taiwan’s Waste Problem There are 12 million tons of industrial waste is produced each year in Taiwan. It has become a major pollution. According to EPA data, there is only 9% of annual waste has dumped the waste under the supervision of Waste Processing Mechanism. This means that many industrial waste disposal facility has no waste treatment facilities. The dumping of waste can be secretly mixed with general township garbage pit. However, currently companies, Hon Hai, Pegatron, Quanta, Compal, have production factories in China except TSMC still has factories in Hsinchu Science Park, Taiwan.. 政治大 about companies’ production waste is meaningless in further discussion. 立. Dumping waste in China cannot count as a CSR contribution in Taiwan. This aspect The table. 學. ‧ 國. (Table 2-2) below shows the locations of companies’ factories. Table 2-2. Factories in Production. ‧. Taiwan. China. y. Nat. sit. Shenzhen, Henan Shanghai, Suzhou, Congqing, Kunshan Shanghai, Congqing Kuanshan, Nanjing, Chengdu, Congqing Start operation in 2018. n. al. er. io. Foxconn Pegatron Quanta Compal TSMC. Factories in Production. Ch. Hsinchu Science Park. engchi. i n U. v. The numbers of Foxconn production bases are shown in Figure 2-7.. 40.

(47) Figure 2-7. Foxconn’s Factories Map. 政治大 Pegatron’s factories locations 立illustrate in Figure 2-8.. ‧ 國. 學. Figure 2-8. Pegatron’s Factories Map. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 41. i n U. v.

(48) Quanta’s factories locations illustrate in Figure 2-9. Figure 2-9. Quanta’s Factories Map. 立. 政治大. ‧. ‧ 國. 學 sit. n. er. io. Figure 2-10. Compal’s Factories Map. al. Ch. y. Nat. Compal’s factories locations present in Figure 2-10.. engchi. 42. i n U. v.

(49) TSMC has fab 2,3,5,8, and 12 locate in the Hsinchu Science Park. Fab 6 and 14 are located in the Tainan Science Park. Fab 15 is located in Central Taiwan Science Park.. 2.5.2 Taiwan’s Economic Problems According to G4 Specific Standard Disclosures, there are four aspects which are economic performance, market presence, indirect economic impacts, and procurement practices under the economic category. A company’s economic performance and indirect economic impacts have stronger relations to Taiwan’s economic problems. Therefore, economic performance and two matters of indirect economic impacts will be discussed in the study.. 立. 政治大. Under globalization, Taiwan is incapable to develop closer economic and trade relations. ‧ 國. 學. with advanced countries. High-level goods production or technology cannot be imported to Taiwan. Jobs created in Taiwan cannot fulfill the high investment on. ‧. developing countries. Therefore, it causes increase of unemployment in Taiwan. Data. y. Nat. n. al. er. io. household income differences bring great impacts to Taiwan.. sit. collected in 2016 April, the unemployment rate is 3.97%. A stop-growing income and. Ch. In this chapter, we will discuss three matters.. engchi. i n U. v.  Economic Performance in Taiwan  The unemployment problem  Taiwan’s wealth gap problem.. 2.5.2.1 Economic Performance in Taiwan Taiwan’s economic growth continues to weaken. The tension with China has grown after President Tsai’s inaugurate in 2016. The tension even causes a downside risk to growth. Economic panelists expect GDP will grow 1.3% in 2016 which is 0.2% points 43.

(50) lower than last month’s forecast. Moreover, the panel expects GDP growth will accelerate to 2.2% in 2017. The table (Table 2-3) presents Taiwan’s economy performance from 2011 to 2015.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 44. i n U. v.

(51) Table 2-3. Taiwan’s economy performance. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 45. i n U. v.

(52) 2.5.2.2 The Unemployment Problem The unemployment rate in Taiwan was recorded at 3.97% in 2016 April, and it reached 3.92% in March. It is the highest unemployment rate since 2014 June. Without adjustment, unemployment rate stood at 3.86% while it is 3.89% in a month earlier. 451,000 people were unemployed in April. In addition, 455,000 people are unemployed in March. Youth Unemployment Rate has decreased 5% from 11.85% in March to 11.78% in April. There were 11 million employed in April and March. Unemployment Rate in Taiwan is 3.01% in average calculated from 1978 to 2016. The highest rate was 6.02% in 2009 July, and the lowest rate was 1.04% in 1979 February. According to the. 政治大. forecast graph retrieved from Trading Economics, Taiwan’s unemployment rate has a. 立. tendency to go up (Figure 2-11 and Figure 2-12).. ‧ 國. 學. Figure 2-11. Taiwan Unemployment Rate (July 2015~April 2016). ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 46. i n U. v.

(53) Figure 2-12. Taiwan Unemployment Rate (2006~2016). 立. 政治大. ‧ 國. 學. 2.5.2.3 Taiwan’s Wealth Gap Problem. According to the data retrieved from the Taiwan Financial Data Center in 2013, 5% of. ‧. the richest people have an average yearly income of NT$4.37 million while 5% of the lowest income people earn only NT$40 thousands per year. The gap between rich and. y. Nat. n. al. er. io. wider.. sit. poor is 99.39 times difference. In the past 16 years, the gap does not become slower but. Ch. engchi. i n U. v. According to the survey taken by Directorate General of Budget, Accounting and Statistics (DGBAS), the disposable income for Taiwanese households has increased by 4.6%. Nonetheless, when reviewing the data separately, the disposable income in top 20% earnings increased by 7% while the lowest 20% decreased by 2%.. 47.

(54) In Taiwan, there are around 8500 people earn more than NT$10 million a year, and 4700 people live in Taipei. This represents that more than 50% of the rich live in Taipei City. This clearly portray the gap between the rich and poor is huge. Many experts have forecasted the domestic wealth gap problem will continue to worsen. The table (Table 2-4) below shows an increased wealth gap every year.. Taiwan’s Wealth Gap (Table 2-4) Gap between top 20% and low 20% Gap between top 20% and low per household 6.04. 2006. 6.01. 4.16. 6.05. 4.23. 6.34. 4.35. 6.19. 4.25. 6.17. 2012. 6.13. 2013. 6.08. 4.08. 2014. 6.05. 3.98. y. 2011. 4.29. n. al. er. io. 2010. Nat. 2009. 5.98. ‧. 2008. 4.18. 學. 2007. 立. ‧ 國. 2005. 20% per person 政治大 4.24. sit. Year. Ch. engchi. i n 4.14 U. v. 2.5.3 Taiwan’s Social Problems In modern society, Taiwanese are feeling the existence of social problems. Social problems can be easily informed on the news. People has understood the severity of these issues. However, the recognitions or the interpretation on social problems are 48.

(55) mostly bias or impressionistic. Due to the social problems relate to populace’s lives, government is usually the responsible side. Nonetheless, solving social problems are not one man’s thing, and they are difficult. Whether it is public, government, or civil society groups, there is need for all sorts of social problems in-depth and objective understanding, we have sought to improve the motivation to maintain social fairness and justice. The sub-categories in social category under G4 Specific Standard Disclosures are labor practices, human rights, society, and product responsibility. There are many aspects. 政治大 modified the aspects to fit Taiwan’s 立 social problems.. under these sub-categories. In order to suit these aspects to the research. This paper has. ‧ 國. 學. Aspects to bring into the discussion are as follows. Population problem. . Low marriage rate and birth rate problem. . Poverty problem. . Migrant workers and migrant marriage problem. ‧. . n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 2.5.3.1 Population problem During Taiwan’s early recovery, population grew rapidly. Population issue focused on reducing the fertility. Actively pursuing a low fertility rate in the process, but gradually planted aging population factor. Thus, the demographic problem was gradually emerged.. 49.

(56) The myth of increasing population density affects the quality of lives. "The population density is too high harmful quality of life," but this discussion has not been supported by empirical data. There are two important reasons why this "myth" is produced: First, Malthus "Principle of Population" is far-reaching. Secondly, to reduce the government's implementation of family planning and strong resistance harm "civilize" the growth of the population. Many countries also continue to show that reducing the population density is more effective to improve the quality of life, to maintain political stability, to promote economic development, to develop public construction, and to protect. 政治大 2.5.3.2 Low marriage rate and birth rate 立 environment.. In 1989, population aged 15 and above have only 59.27% have companions.. ‧ 國. 學. Nonetheless, the ratio of having companion had reduced tendency, and in 2009, the. ‧. ration of having companion was lower than 52.34%. In addition, the ratio of having. y. Nat. companion does not include widows, widowers, or singles. The decrease of ratio has. er. io. sit. two reasons. First of all, according to a research based on the attitude of fertility of 1033 people between 25 to 44 years old. There is about 26% of sample does not intend to get. al. n. v i n C h of BrookingsUInstitution in Washington, says, married. Secondly, Fred, the demographer engchi many females are now being independent. These females believe marriages do not acquire their expected lives. The data retrieved from National Statistics illustrates Taiwan marriage rate in the graph below (Figure 2-13).. 50.

(57) Taiwan Marriage Ratio (Figure 2-13) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00. 治政大 the lowest country of all Taiwan’s birth rate has continuously declining. It has become 立 in the world. The graph (Figure 2-14) portrays the decreased of Taiwan birth rate. ‧ 國. 學. However, take TSMC as an example, since TSMC accomplishes high revenue,. ‧. employee benefit and welfare are relatively better; thus, employees are much happier. sit. y. Nat. to have kids. According to the data in 2014, there are 2360 new babies in 40,000 TSMC. io. n. al. er. employees in 2013. The birth rate is a double of Taiwan’s entire birth rate.. Ch. engchi. 51. i n U. v.