Corporate social responsibility covers three main aspects: economic, social and environmental. In this era of changing economies and environment, We have come to realize that: by fulfilling corporate social responsibilities, an organization not only builds up competitiveness and mitigates/eliminates risks, but also creates sustainable values for the mutual benefit of its stakeholders. To ensure sustainable growth, a business has to do more than just maximizing revenues, profits and shareholder returns but must do so in ways that do not compromise the future of later generations while taking responsibility for economic, social and environmental impacts. Matching stakeholders' sustainability values is the only way to ensure sustainable growth of our society.

Business Integrity and Sound Corporate Governance
        Since inception, Compal has been constantly refining its products and services, and adopting more efficient internal policies, more robust internal controls, risk management, internal audit, etc to perfect its corporate governance practice, and thereby ensure that all operations are compliant with government regulations. In 2016, Compal was ranked among the top 6%-20% of all publicly-listed companies in the Taiwan Stock Exchange Corporation's (TWSE) "Second Corporate Governance Evaluation."

Core Strength and Diversity
        In 2017, our extensive experience in the business had earned it the 5th place in CommonWealth Magazine's "Top-2000 Manufacturers," one of Forbes' "Global Top 2000,". 10 awards during "iF Design Awards," and world's 15th position in terms of innovative ability in 2016. While we continue to focus on our core competitiveness, we have also been diversifying into other non-notebook PC businesses such automobile electronics, industrial computers, smart healthcare, smart devices and the Internet of Things (IoT). In 2017, these new, non-notebook PC businesses should grow to account for 30% of Compal's revenues.

Environmental Protection and International Connection
        It is inevitable for businesses to produce a negative impact on the environment over the course of operation. To achieve the right balance between business development and environmental sustainability, Compal has taken steps to ensure that its production sites are certified for ISO 14001, ISO 14064-1, OHSAS 18001, and IECQ QC080000. By implementing systematic management, we are able to keep track and control our environmental performance. We have also invested extensive resources into the management of greenhouse gases. Not only did we achieve an overall rating of B - Management in CDP, we have also taken the initiative to participate in the 2050 Pathways Platform of the United Nations Framework Convention on Climate Change and devoted significant attention to environmental issues.

 Care for Employees and Rights
         Employees are the most critical capital for Compal. Only a healthy and growing workforce may contribute to the Company's sustainability. This is why we recruit employees and assign them to duties based solely on talents, regardless of their ethnicity, religion, gender or nationality. We provide employees with a safe and healthy working environment, comprehensive career plans, and competitive salaries and benefits so that they may devote themselves to work free of worry. In the meantime, the Company uses a variety of communication channels to care for employees and understand their needs. Through efforts such as health promotion events, birth incentives, and child care services, we offer our employees the right balance between work and life and live up to our promise to care for our employees. 

Contribution to Society and Care for Children in Remote Areas
        Contribution to the society is both the duty and mission of Compal as a corporate citizen. In an attempt to eliminate the urban-suburban gap, We have resolved to the promotion of digital and mobile learning by donating 503 tablet PCs to remotely located junior high schools and elementary schools in Hualien, Taitung  and central and southern Taiwan; in addition, 60 tablet PCs were donated to Chang Shing Elementary School (Pingtung) while 21 AIO PCs were donated to Wen Huah Elementary School (Taoyuan) in 2016. We have a Compal Volunteer Club assembled voluntarily by employees. In 2016, the volunteers were mobilized to provide service for 100 children at Bali Ai-Hsin Home and assist the Hsu Chauing Social Welfare and Charity Foundation in the counseling of 315 disadvantaged children and children of new immigrants at Nan Sing Elementary School (Taoyuan) and Te Lung Elementary School (Taoyuan).
        In an attempt to encourage college students to do volunteer work in remote areas, Compal provides a budget of NT$600,000 each year to subsidize the volunteer work of college students. This year, Compal sponsored a total of 18 colleges and 382 college volunteers in performing charity work. The Dream Come True program, launched by Hsu Chauing Social Welfare and Charity Foundation of Kinpo and Compal Group, and its after-school tuition and extra-curricular courses benefited a total of 7,253 students in 2016.

 Setting Goals for A Sustainable Future
        In order to enforce our commitment to the economy, society, and environment while at the same time responding to the UN's sustainable development goals, we have set our 2017 CSR goals as follows:

1. Provide digital education in remote areas to support the UN's sustainable development goal towards "Quality Education."
        Fulfilling civic duties and giving back to the society have long been our corporate mission. In the era of digital innovations, using electronic products and accessing the cloud have become the basic skills of the next generation. But what about children who lack the necessary resources? How can we promote digital learning when they lack the means to acquire even the most basic equipment? This is why for many years, Compal has been associating its strength - as a designer and manufacturer of 5C products - with Hsu Chauing Social Welfare and Charity Foundation and Fu Jen Catholic University to donate its products and support the digital education of children in remote areas. In doing so, we hope to contribute to the UN's sustainable development goals (SDGs) of quality education.

2. Enhance training of CSR officers at all sites, and develop consistent supplier management standards.
         "Responsible Consumption and Production" is one of the UN's SDGs. As an electronics manufacturer, our actions have a significant impact on economies, societies and environments around the world. As part of our commitment to sustainability, we have taken the initiative to participate in the Responsible Business Alliance (RBA) and establish systematic management and self-management standards based on RBA's rules. This year, we have expanded the size of our supply chain sustainability management officers and enhanced their training, hoping to convey a common understanding and consistent management standards that would improve the efficiency of supply chain management and contribute to sustainable development.

3. Mitigate and adapt to climate change; continue green product design; improve energy management and response to extreme weather conditions.
        In response to COP 21 and the UN's SDG on Climate Action, we have directed our attention to finding ways to adapt to climate change. We first began by reviewing the life cycles of all our products and incorporating energy-saving and environmental ideas into the initial design. By addressing problems at their roots, we can prevent our products from causing the excessive environmental impact at the later stages of their lives. In addition, we require all production sites to make annual plans on how they expect to contribute to energy conservation and keep track of how extreme weathers have affected our operations so that solutions can be developed to keep our plants operational at all times.

4. Care for the natural environment, local community, sustainability education and employees' healthy, green life
         Our employees have voluntarily formed a Green Lifestyle Club to promote green experiences and activities. The club organizes courses on a variety of topics from a healthy diet to office gardens and activities such as coastal cleanup, ecological tour and Kenting crab preservation. These activities have helped promote environmental awareness among employees and contributed to the UN's SDGs on Life on Land and Life Below Water.

        Driven by our mission towards "constant improvements," we shall continue to live up to our promises in 2017 and take every step towards making the society sustainable. Ultimately, we envision ourselves becoming a socially influential corporate citizen and providing a better future for our children.