Contents Foreword P.2 Methodology P.6
Key Findings
01
Over 100 Taiwanese companies responding to SDGs; Goal 8 - Decent Work and Economic Growth – as priority P.8
02
All time high of 515 CSR reports issued in Taiwan P.12
03
Transition to the GRI Standards made by 38 companies P.13
04
With 49% of all reports assured by third-party certificate authorities, quality and reliability of disclosed information strengthens P.14
05
Higher EPS and ROE values than the average listed company for companies that issued a CSR report P.17
06
Carbon emissions trading is imperative, but only 10% of the companies in Taiwan recognize its value and potential impact. P.18
07
Companies invested an average of 0.7% of their net income before taxes in social programs P.22
08
In terms of corporate governance, 90% of the companies in the top 5% are already producing CSR Reports. P.24
09
Responsible sustainability communication begins with actively disclosing negative issues. P.26
1
Foreword Gennie Yen Founder of CSRone Reporting
Cohering Sustainable Energy to transform Business Opportunities This is the sixth year since the establishment of the CSRone Reporting platform, and we continue to observe global sustainable trends and movements. It has been six consecutive years since we endeavoured to interpret the latest sustainable developments in Taiwan, through analyzing CSR reports published by Taiwanese companies, and at the same time integrating the advice from sustainability experts and scholars, in hopes of converging growth momentum for sustainability in Taiwan. To help domestic companies quickly adapt to international CSR trends and meet the expectations and practical values of the platform members, CSRone Reporting platform launched a comprehensive upgrade in 2017. For CSR practitioners in Taiwan, we added features including rapid and practical classified search for locating reports, a benchmark learning section, a consulting section, offline CSR courses, report review service, and knowledge management for members. All of the new features can be used with the latest CSRone’s smile coins to enhance interactions and is convenient for the members. At the same time, we expanded the sustainability editorial team to integrate the effects of propagating sustainability information and empowering sustainability expertise for the readers' best reading experience. The methodology used to complete this year analysis report also underwent major changes, which we wish to share with our readers. In view of the commitment that CSRone Reporting made on continuous observation of the status quo and trends in Taiwan, we established the CSRone analysis platform in 2017 based on the focus of long-term research needs. In addition to enhancing the judgement of the students in the research team through physical CSR training courses, researchers are able to also conduct analysis, communication and debugging online, which drastically shortens data processing time and increases the value of data analysis. We meticulously established and continue to maintain the platform in hopes of becoming the most recognized sustainability news platform in Taiwan. Easier said than done. According to this year’s analysis, we discovered that through the vigorous promotion from both the private sector and the government, Taiwanese companies have shown improvements in sections including the increase of report publications, the sustainability vision, the linkage to the United Nations Sustainable Development Goals (SDGs), the formulation of CSR policies, the number of thirdparty assurances, and the disclosure of negative issues. Moreover, the companies also received international recognition in the evaluation of ESG reporting. However, when we further compared what is said versus what is done,Taiwanese companies still have a long way to go. For example, although 82% of the companies set sustainability policies for their suppliers, only 40% implemented a form of supplier’s risk assessments and/ or audits and only 24% have direct guidance on suppliers' CSR practices. Additionally, although 28% of the companies disclosed the company's linkage with SDGs, only 14% of the companies project the SDG’s to their corporation developments and only a few of the companies made business objectives based on SDGs after evaluations from external to internal. It is obvious that many Taiwanese companies have matured in terms of knowledge and policies; what they need to implement is the mechanism and execution, integrating innovative elements, so that they can truly exert their influence and meet the expectations of international stakeholders. I would like to take this opportunity to extend our gratitude to the Taiwan Institute for Sustainable Energy, Sinyi School of National Chengchi University, PwC Taiwan and academic experts for their continuous support to us over the past few years. The analysis reports over the years have successfully consolidated everyone’s wisdom and continuously diversely enlightening those who care about sustainable development in Taiwan with creative ideas. The CSRone team upholds the original intention of communicating the influence and fulfilling the corporate social responsibilit and has made it to this day by taking one step at a time. Last but not least, we sincerely invite all to give us comments and suggestions to enable everyone's sustainability platform to continuously progress, be sustainable, and seek the common good with you all.
2
Lien-Ti Bei, Chief Executive Officer Sinyi School, National Chengchi University
Creating More Value with CSR Reports It is the third consecutive year that Sinyi School of National Chengchi University and CSRone worked together to establish a comprehensive database of Taiwan's CSR reports. The number of reports collected has grown from 384 in 2015, to 458 in 2016 and 515 reports in 2017. With the efforts of all parties, CSR report is not unfamiliar to large- and medium-sized Taiwanese companies. Many companies regard compiling and developing the report as an important annual task and strive to create more value through the report. According to research conducted internationally (Searcy and Buslovich, 2014; Sethi et al., 2017), proper use of reports will bring many benefits for companies, such as efficiently identifying material issues on sustainability, systematically managing non-financial information, creating corporate culture, boosting employee morale, conducting education and training, and attracting sustainability investors. We have only one earth, and many companies have therefore started to reflect on the ways of achieving the Sustainable Development Goals (SDGs) proposed by the United Nations. This means that in the process of developing the report companies should first integrate corporate strategy with SDGs, match SDGs in the value chain, identify the connection between major issues and SDGs, take actions to respond to the SDGs, and assess the value and action benefits created. The issues related to SDGs will be explored in detail in this year's analysis report. During the survey this year, the research team was pleased to see companies that have published reports continue to move forward. Take the CSR management for example, many companies have set up CSR committees and formulated CSR policies, guidelines and long-term goals for future CSR. A few the corporate even began linking CSR performance with remuneration and actively promoting the corporate culture of taking social responsibility. It was also discovered in this report that companies’ social contributions became more diverse. In addition to emergency relief, disabled welfare and all aspects of environmental engineering commonly seen in the past, companies spare no efforts in agricultural promotion and sports competitions. There are companies measuring social contribution performance through Social Return on Investment (SROI). Furthermore, to increase the credibility of the report, a considerable proportion of companies entrusted the accounting firms and British Standards Institution to assure the information so the stakeholders would be more convinced of the value of the information in the report. Sinyi School was founded in College of Commerce, National Chengchi University in 2013. The purposes of the establishment include to promote the concept of business ethics and corporate social responsibility to the public, to develop education in sustainable development for higher education and business, and to demonstrate the responsible role in business education. Besides hosting seminars and workshops for students, professors, and business managers, Sinyi School started to work with CSRone to code and analyze published CSR reports. The profiles of these companies with CSR reports and their CSR performances can enhance the sustainability awareness of the society. The statistical results are also a foundation for the future improvement and international comparison. Hopefully, our efforts will urge the industry, government agencies, and academia in Taiwan to put more emphasis on the importance of corporate sustainability and cooperate to build a better future. References
Searcy, C. & Buslovich, R, 2014. Corporate Perspectives on the Development and Use of Sustainability Reports. Journal of Business Ethics, 121: 149-169. Sethi, SP, Martell, TF & Demir, M, 2017. Enhancing the Role and Effectiveness of Corporate Social Responsibility (CSR) Reports: The Missing Element of Content Verification and Integrity Assurance. Journal of Business Ethics, 144: 59-82.
Shih-Ching Liu, Research Director Sinyi School, National Chengchi University
3
Joseph Chou Chairman and CEO, PwC Taiwan
Moving Towards a New Economy of SDGs and Welcoming New Business Opportunities of Sustainability PwC Taiwan has worked with CSRone and Sinyi School in National Chengchi University for three consecutive years to conduct the in-depth survey on the preparation of Taiwanese companies' CSR reports and to publish Taiwan CSR Overview and Trends to help companies have a better picture of domestic developments and trends of CSR issues. The sustainable issue that drew the most attention globally in 2017 was the launch of the United Nations' 17 Sustainable Development Goals. Excluding Taiwan, as many as 67 countries have presented voluntary national reviews (VNR). In the corporate segment, according to the PwC's survey, SDG Reporting Challenge 2017, although SDGs have been officially implemented for only two short years, 62% of the companies already started to respond to the SDGs in their CSR reports, higher than expected. This indicates that a sustainability era of developing corporate competitiveness through executing SDGs has begun. We saw some exciting statistics in this survey, including that the number of CSR reports in Taiwan reached a new high record, officially breaking the 500 mark (515 reports) and achieving double-digit growth for four consecutive years. In addition to the growth of the quantity, the quality of the CSR report has also improved. The percentage of obtaining third-party assurances has also grown from 48% to 49% and the assurance standard has also gradually upgraded from AA1000 to ISAE3000. This indicates that companies have long recognized and valued the disclosure and credibility of CSR information even when the law enforcement has not been extended. With regard to SDGs, more than 100 companies have responded to the SDGs in their CSR reports. The top three topics that companies are most concerned with are consistent with PwC's global survey: Goal 8 Decent Work and Economic Growth, Goal 13 Climate Action, and Goal 12 Responsible Consumption and Production, only slightly different in order. However, as PwC observed, most of the companies that have disclosed CSR information only made it to the connection between CSR performance and SDGs. They have not shown how the company's sustainability strategy would respond to the SDGs and the constructive results of developing CSR/SDGs that shall follow. In light of the aforementioned, PwC has developed a series of assessment tools (e.g., PwC SDG Selector and PwC SDG Navigator) to assist companies to minimize the gaps among the 169 targets, helping companies to build a complete, transparent, and traceable reporting system and truly moving towards the new economy of SDGs! PwC believes that sustainable development is the key new competitiveness for current companies. Companies should focus on their own core competitiveness, sustainable development goals related to the company's operations, and the SDGs given the highest priority by the country. There are many important key findings in this survey, such as measuring social investment, supply chain and talent management, which are all important issues that companies can not ignore when planning CSR strategies.
4
Key Findings
5
Methodology This report is jointly published by CSRone Reporting, Sinyi School of National Chengchi University and PwC Taiwan (hereinafter referred to as the research team). It regularly collects corporate sustainable development, corporate social responsibility, or environment and safety reports (herein after referred to as CSR reports) published in Taiwan each year. More than 2,000 CSR reports have been accumulated within the CSRone website to provide stakeholders in various fields a complete and plentiful CSR reporting platform.
Focus of Analysis
Scope of Analysis
The research team integrated academic views, counseling experience, and long-term observation of CSR development trends in Taiwan and developed a comprehensive survey to review 515 CSR reports individually. The research team further analyzed the current situation and developed trends based on data cross-analysis and information correlation study from all the CSR reports in Taiwan. The research team also invited experts and scholars from various fields to provide their insights on the trends discussed in each section in hopes of presenting readers with more diverse and comprehensive sustainable views.
-Analysis sample:CSR reports published before January 2018; total research sample of 515 CSR reports
From September 2014, it has been mandatory for certain industries to compile CSR reports. Three years later, the influence of CSR gradually expanded and embedded in the companies. Therefore, the research team collated the survey statistics of the past three years (2015, 2016, and 2017) and identified the degree of change on information disclosure in Taiwan,s CSR reports, to analyze the transformation and influence CSR delivered to the company and the business opportunities CSR brought.
Number of CSR Reports analyzed by the research team per year 458
-Reporting year:CSR reports published in 2017 disclosing contents from January 1, 2016 to December 31, 2016. -Areas of disclosure:Taiwan-funded enterprises, foreign-invested companies, and other organizations based in Taiwan. -Information source:CSR reports published by various companies were obtained from their official company websites or the Market Observation Post System (MOPS).The financial data of all publicly traded companies were obtained from MOPS and Taiwan Economic Journal (TEJ). -The scope of information:The survey list included publicly traded companies in Taiwan, enterprises and organizations awarded with the Taiwan Corporate Sustainability Award, Excellence in Corporate Social Responsibility, and Corporate Social Responsibility Award presented by Global Views Monthly.
Number of CSR Reports by installments 188
515
384
215 149
2013
46
2014
Unit:Number of reports
6
75
68
2015
2016
2017
1
2
34 34
3
4
5
Unit:Number of reports
6
22 18 16 7
8
5
4
4
1
9 10 11 12 16
Sustainable Development to Drive New Business Opportunities Influence and Impact Research Period
7 months
Reports Researched
Items Analyzed
515
Number of Data Collected
505
600,000
Distribution of CSR reports by industry 49 48
Finance and Insurance 43
Chemical Industry 31
Electronic Parts / Components Industry
34
Others 32
Semiconductor Industry Computer and Peripheral Equipment Industry 29 29
Food Industry 22
Optoelectronic Industry 16
Biotechnology and Medical Care 12
Building Materials and Construction
14
Iron and Steel Industry
13
Tourism Industry
13 11
Plastics Industry
10
Shipping and Transportation Industry 7
Textile Industry
9
Trading and Consumer Goods Information Services Industry
6
Automobile Industry
6 4
Cement Industry 3
Rubber Industry Oil, Gas and Electricity Industry Pulp and Paper Industry
3 3 3 3
Electrical and Cable Electronic Products Distribution Government Agencies Cultural and Creative Industries Hospitals Nonprofit Organizations Glass and Ceramics
0
3 1 1 1 1 1 1
39 38
25
19
17 16
15
14
Electric Machinery
41
19 17 18
Communication and Internet Other Electronics Industry
34 33
45
14
19
13 12 12
8 7 7
5 4 4 4 4
4
4
2016 2017 Unit:number of company
7
Key Finding
01
O v e r 1 0 0 Ta i w a n e s e c o m p a n i e s responding to SDGs; Goal 8-Decent Work and Economic Growth-as priority. This is the third year since the United Nations officially announced the Sustainable Development Goals (SDGs) in 2015. Parties including governments, companies, academic institutions and other organizations gradually realized that SDGs provide a globally consistent framework and language for taking the world’s most pressing sustainability challenges and creating a better future for all. No one is an outsider for Global sustainable development. Although the 17 goals listed by the United Nations seem to fall on the national level, companies are one of the key roles in the success of SDGs. Regardless of industry or size, any company can contribute to the SDGs and implement Corporate Social Responsibility (CSR) is the best way to respond to the SDGs Meanwhile, SDGs have become a common language for communicating internationally on sustainable development and a trend faced by all countries, cultures, and people. Adopting the same language framework will help companies become in sync with international standards more effectively. According to a survey conducted by the research team, among the CSR reports compiled in 2017, 143 reports addressed SDGs and disclosed relevant practices. Compared to the 40 reports in the previous year, the number grew more than three times. The revenue of the 143 companies totaled to NT$12.8 trillion, equivalent to 40% of the total revenue of all listed companies.
143
Companies
NT$12.8
Trillion in Total Revenue
The average number of goals which has been responded by Taiwanese companies is 9.5, which means that most companies chose goals of major importance from 17 SDGs to respond to. In addition, the total number of companies disclosing all 17 SDGs increased from 3 to 16, with the majority in the technology industry. In Taiwan, reports responding to the SDGs currently account for 28% of the total number of CSR reports. In comparison with Taiwan, according to PwC SDG Reporting Challenge 2017 which surveyed CSR reports from 17 countries and 470 companies, 62% responded to the SDGs in the reports.
Percentage of Taiwanese companies reporting to the SDGs
Percentage of international companies reporting to the SDGs
Reporting 28% Not reporting yet 72%
8
Reporting 62%
Not reporting yet 38%
The technology industry responds to the SDGs most actively in Taiwan
From the industry perspective, the main growth of responding to the SDGs in 2017 came from the technology industry, dominated by semiconductor, electronic components and computers and peripheral equipment companies, with an increase from 18 to 59 companies (accounting for 32% of the whole technology industry). The manufacturing industry, mainly food and chemical companies, came in second, with an increase from 8 to 33 companies (accounting for 17% of the whole manufacturing industry). As for the financial industry, an increase from 7 to 19 companies (accounting for 40% of the whole financial industry). At last, for the service industry, mainly dominated by shipping and other companies, an increase from 7 to 26 companies (accounting for 33% of the whole service industry. The following chart demonstrates the distribution of the SDGs ranking by industry. For example, although “Goal 15: Life on Land” ranks third to last the manufacturing industry pay close attention to this goal. Also, “Goal 1: No Poverty” ranks fifth to last, but it is one of the top three sustainability issues for the finance industry.
TAIWANESE CORPORATES REPORTING TO THE SDGS 4 Major industries BREAKDOWN Technology Industry
Service Industry
Financial industry
Manufacturing Industry
Goal 8 Decent Work and Economic Growth
46
21
Goal 13 Climate Action
47
19
Goal 12 Responsible Consumption and Production
48
Goal 3 Good Health and Well-being
17
39
15
Goal 4 Quality Education
37
14
Goal 5 Gender Equality
39
11
Goal 7 Affordable and Clean Energy
37
Goal 9 Industry, Innovation and Infrastructure
16 13 13
29
10
16
8
Goal 11 Sustainable Cities and Communities
28
13
11
11
Goal 16 Peace, Justice and Strong Institutions
28
Goal 17 Partnerships for the Goals
29 22
Goal 10 Reduced Inequalities
23
12
11 6
5
10
Goal 15 Life on Land
18
Goal 2 Zero Hunger
17
9
Goal 14 Life below Water
17
6 5
7
18 11
14
6
8
17 6
14 5
15
13
Goal 6 Clean Water and Sanitation
7
22
16
18
10
19 17
18
15
11
33
Goal 1 No Poverty
22 21
11 6
8 5
Classification of four major industries: -Technology industry:other electronics industry, electronic parts/components industry, computer and peripheral equipment industry, communication and internet, optoelectronic industry, electronic products distribution, semiconductor industry, information services industry -Service industry:tourism industry, shipping and transportation, trading and consumer goods industry, cultural and creative industries, others -Manufacturing industry:chemical industry, food industry, textile industry, electric machinery, automobile industry, iron and steel industry, cement industry, building materials and construction, biotechnology and medical care, plastics industry, oil and gas and electricity industry, electrical and cable, rubber industry, pulp and paper industry, glass and ceramic -Financial industry:finance and insurance
9
Which companies respond to the SDGs?
Further analysis of the profiles of the 143 companies that have responded to the SDGs shows that 100% have adopted the GRI reporting framework (G4 or guidelines); 83% have obtained third-party assurances; 82% are listed and OTC companies; 73% had started compiling CSR reports before the obligatory compliance date, and most of the companies have set up CSR committees in charge of the CSR implementations. The research team also surveyed the number of CSR reports published by each company. The higher the publication number is, the earlier the company started to compile the CSR report and the more advanced the company's CSR approaches are. When the research team compared the companies that responded to the SDGs and their number of installments, it was found that the 143 companies that responded to the SDGs published an average of five reports with the majority published three reports. Among the companies that published the CSR reports for the first time, 10 companies responded to the SDGs. One of the evaluation criterias of the Taiwan Corporate Sustainability Awards (TCSA) is the company’s understanding of the SDGs how it connects to internally set CSR policies or goals and how the company discloses the information in their CSR report. Seventy perfect of last year’s TCSA winners reported in one way or another to the SDGs.
Decent Work and Economic Growth as the sustainable development goal that receives most attention from Taiwanese companies
10
Among the 17 SDGs, goals that receive the most attention from companies in Taiwan are “Goal #8: Decent Work and Economic Growth”, “Goal #13: Climate Action”, and “Goal #12: Responsible Consumption and Production”. Compared with PwC's SDGs Reporting Challenge 2017, the rankings are quite similar with slight differences in the orderThe goals that receive the least attention are “Goal #14: Life below Water” and “Goal #2: Zero Hunger” in both Taiwan and internationally, which indicates companies in Taiwan and international companies share similar views on SDGs. Besides the ranking made by the companies, there is also a ranking of SDGs by Taiwanese citizens. The source of the information is the three forums held by the National Council for Sustainable Development of the Executive Yuan in October 2017 on Taiwan's Voluntary National Review where 447 participants were surveyed for their focus on SDGs. The table below shows that Taiwan citizens pay noticeably more attention to “Goal 6 Clean Water and Sanitation” and “Goal 14 Life below Water”. However, the top two SDGs that international citizens focus on are very different; they pay more attention to “Goal 2: Zero Hunger” and “Goal 1: No Poverty”.
Rank
Taiwan SDGs Survey Company
International SDGs Survey
Citizen
Company
Citizen
1
Goal 8 Decent Work and Goal 8 Decent Work and Goal 13 Climate Action Economic Growth Economic Growth
2
Goal 13 Climate Action
3
Goal 12 Responsible Goal 6 Clean Water and Goal 12 Responsible Goal 3 Good Health and Consumption and Production Sanitation Consumption and Production Well-being
4
Goal 3 Good Health and Goal 13 Climate Action Well-being
Goal 3 Good Health and Goal 4 Quality Education Well-being
5
Goal 4 Quality Education Goal 14 Life below Water
Goal 9 Industry, Innovation Goal 6 Clean Water and and Infrastructure Sanitation
6
Goal 5 Gender Equality
7
Goal 7 Affordable and Goal 1 No Poverty Clean Energy
8
Goal 9 Industry, Innovation Goal 11 Sustainable Goal 7 Affordable and Goal 16 Peace, Justice and Infrastructure Cities and Communities Clean Energy and Strong Institutions
9
Goal 6 Clean Water and Goal 7 Affordable and Goal 11 Sustainable Goal 13 Climate Action Sanitation Clean Energy Cities and Communities
10
Goal 11 Sustainable Goal 16 Peace, Justice Goal 17 Partnerships for Goal 7 Affordable and Cities and Communities and Strong Institutions the Goals Clean Energy
11
Goal 16 Peace, Justice Goal 2 Zero Hunger and Strong Institutions
Goal 6 Clean Water and Goal 10 Reduced Sanitation Inequalities
12
Goal 17 Partnerships for Goal 15 Life on Land the Goals
Goal 15 Life on Land
Goal 12 Responsible Consumption and Production
13
Goal 1 No Poverty
Goal 4 Quality Education
Goal 10 Reduced Inequalities
Goal 11 Sustainable Cities and Communities
14
Goal 10 Reduced Inequalities
Goal 5 Gender Equality
Goal 16 Peace, Justice Goal 9 Industry, Innovation and Strong Institutions and Infrastructure
15
Goal 15 Life on Land
Goal 9 Industry, Innovation Goal 2 Zero Hunger and Infrastructure
Goal 15 Life on Land
16
Goal 2 Zero Hunger
Goal 17 Partnerships for Goal 1 No Poverty the Goals
Goal 14 Life below Water
17
Goal 14 Life below Water
Goal 10 Reduced Inequalities
Goal 17 Partnerships for the Goals
Goal 2 Zero Hunger
Goal 12 Responsible Goal 8 Decent Work and Goal 1 No Poverty Consumption and Production Economic Growth
Goal 3 Good Health and Goal 4 Quality Education Goal 5 Gender Equality Well-being
Taiwan SDGs Survey -Company:number of samples, 515 companies | Source: the research team -Citizen:number of samples, 447 Citizens | Source: forums on Taiwan's Voluntary National Review
Goal 5 Gender Equality
Goal 14 Life below Water
Goal 8 Decent Work and Economic Growth
International SDGs Survey -Company:number of samples, 173 companies | Source: PwC SDG Reporting Challenge 2017 -Citizen:number of samples, 2,563 citizens | Source: PwC SDG Reporting Challenge 2017
11
Key Finding
02
All time high of 515 CSR reports issued in Taiwan The results of a six-month research indicate that the number of CSR reports in Taiwan reached 515 in 2018, an increase of 57 compared to the previous year (458) ,and listed and OTC companies accounted for 91%, implicating that listed and OTC companies are still the main report compilers in Taiwan. The number of CSR reports published for the first time in 2017 was 68, of which 44 were from listed and OTC companies with the capital exceeding NT$5 billion. These companies compiled reports as required by law which indicates that regulation enforcement is still the drive for growth in 2018. Eighty-eight percent of the Top 100 listed and OTC companies in terms of revenue have compiled CSR reports, an increase of 5% compared with the previous year. The reason the remaining 12 companies have not yet compiled a CSR report is that their capital amount is less than NT$ Five billion and has not yet been included in the list of mandatory reporting. The percentage of having compiled CSR reports increased to 93% among the Top 100 listed and OTC companies in terms of profit after tax. The research team also reviewed the list of all companies whose capital amounted more than NT$5 billion to see the status of their CSR reports. It was found that nine companies have not compiled any CSR reports in 2017. As verified by the research team, the retained earnings of the nine companies in the year ended to be negative. Therefore, these companies only need to compile CSR reports in 2019.
CSR reporting rate among Taiwan,s top 100 companies by revenue
77%
83%
88%
Ownership Structure Listed company on the stock exchange market Listed company on the over-the -counter market Non-listed company Public company Foreign company Listed company on the emerging stock market
1.9%
56%
1.4%
0.2%
4.9% 19.6% 72%
2014
12
2015
2016
2017
Key Finding
03
Transition to the GRI Standards made by 38 companies In October 2016, the Global Reporting Initiative (GRI) released the new sustainability reporting framework, GRI Standards, which will officially replace G4 in July 2018 as a new standard for global CSR reporting. In view of a new reporting framework, 38 CSR reports in Taiwan have taken the lead in adopting the new GRI Standards, accounting for 7.3% of the total reports. These companies are mainly in the technology industry (16), followed by manufacturing industry (10), finance industry (6) and service industry (6). At the end of 2017, the World Business Council for Sustainable Development (WBCSD) conducted a CSR survey on its 157 members worldwide, and released the fourth edition of its landmark publication Reporting Matters. Although 18% of its members (about 28 companies) adopted the GRI Standards is a higher percentage than Taiwan, in terms of quantity, more companies in Taiwan responded actively to the latest reporting framework. It is worth mentioning that five out of these 38 CSR reports also adopted the Integrated Report (IR) framework, Cathay Financial Holdings, E.Sun Financial Holding Co., Taishin Holdings, Chunghwa Telecom, and Pacific Sogo Department Stores Co. Regarding GRI’s "in accordance" options, among the companies that adopted the GRI Standards, 76% cited the “Core” option and 13% cited the” Comprehensive” option; as high as 68% obtained third-party assurances, among which three reports were double assured. Among the companies that compiled CSR reports for the first time, 12 companies adopted GRI Standards; and eight of these companies compiled reports because it is mandatory for companies with the capital over NT$ 5 billion.
Reporting frameworks breakdown over the years 1%
2017
3%
2016
6%
GRI application levels and in-accordance options 2% 1% 6%
87%
2%
89%
Comprehensive
Core
None
11%
3%
13% 2015 2014
6%
88%
6%
9%
57%
34%
76%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GRI G3.1 or others No Reporting Framework GRI G4 GRI G4 + IR GRI Standards GRI Standards + IR
13
Key Finding
04
With 49% of all reports assured by third-party certificate authorities, quality and reliability of disclosed information strengthens The research team consolidated the assurance information for the past four years and revealed that the assurance percentage reached 52% in 2014 and decreased to 47% in 2015. The main reason for the assurance percentage decline in 2015 is that the number of CSR reports soared due to the mandatory requirements enforced that year but those reports were not assurance.. In 2017, as the number of CSR reports continue to increase and the number of assurances grew steadily, the assurance percentage climbed back up to 49%. This demonstrates that more and more companies are willing to improve the disclosure quality of the reports and the credibility of data through third-party assurance. In terms of market share, the leading assurance organization certification body is BSI, followed by PwC Taiwan. In addition, the top three assurance providers, BSI, SGS, and PwC, have been ranked consistently for the past three years as market leaders, accounting for nearly 70% of the assurance market. On the assurance level, 47% adopted AA 1000 Type 1 - Moderate Assurance, followed by 35% that did Limited Assurance. The assurance percentage is 33% among those compiling CSR reports for the first time, which indicates that most companies tend to compile the report on their own when they compiled the report for the first time. The assurance percentage only reached over 50% until after the third CSR report. It is worth noting that up to 92% of the TCSA Corporate Sustainability Awards winners in 2017 obtained third-party assurance and are encouraged to obtain third-party assurance in corporate governance evaluations. According to the results of the 2016 corporate governance evaluation, 68% of the Top 5% companies obtained third-party assurance,showing that the credibility of the information is one of the basic requirements when it comes to striving for CSRrelated external ratings.
14
Percentage of reporting assurance over the years 300
Levels of external assurance AA 1000 Type 1 High Assurance Moderate Assurance AA 1000 Type 1 Moderate Assurance AA 1000 Type 2 High Assurance Limited Assurance AA 1000 Type 2 Moderate Assurance
100% 90%
250 200 150
80%
60%
52% 47%
48%
49%
100 50 0
1%
70%
5% 10%
50% 40%
47%
30% 20%
78
180
221 253
2014
2015
2016
Number of reports
2017
2%
35%
10% 0%
Percentage
External Assurance Breakdown
AENOR 0.8% Lloyds 0.8% DNV 1.9% TUV 2.3% Bureau Veritas 2.7%
AFNOR 0.8% Other law firms 0.4%
Other accounting firms 3.1% KPMG 3.9% BSI 32.9% Ernst & Young 6.6%
Deloitte 8.1% Non-assurance 51%
Assurance 49% PwC 13.2%
SGS 22.5%
15
Less than 20% in chemical industry completed thirdparty assurance
When categorizing all industries into four major industries, the highest assurance percentage falls into the service industry (59%), followed by the financial industry (56%), the technology industry (48%), and the manufacturing industry (44%). In terms of individual industries (refer to the chart below), the industry with the highest assurance percentage (more than 10 CSR reports) is the food industry (97%), tourism industry (80%), and trading and consumer goods industry (67%). Government regulations are the main reason that food and tourism have the higher number of. However, the assurance percentage in the chemical industry is only eighteen percent. Only eight companies' CSR reports were assured by third parties and the quality of the information disclosure is worth noting. CSR reports in a single industry exceeding 10 and the assurance percentage lower than 30% include the biotechnology and medical care industry (26%) and textile industry (25%).
Assurance rate per industry Assured
Non-Assurance
21
24
19
14 1 14
37
27
14 28 17 8
20
12 14 11 11
24 19
8
3 6
6
6
4
12
11 7
5
7
6
8
9 8
8
7
6
8 3
2
6 1
5 2
3
1
2
3
1 2
2 1
0 3
2 2
56% 18% 41% 51% 63% 58% 97% 44% 37% 26% 39% 35% 50% 80% 57% 57% 54% 67% 25% 25% 14% 29% 40% 75% 67% 33% 100% 50%
1
0 1
0 1
1
0% 100% 100% 0%
t / r y y y y y y y s al y y y y y y y y y s s s s d n d e es ble tion cie ustr ital mic tion er ne str str str str str an n an e str atio ume ustr ustr ustr ustr ustr ustr nc str rts y er er y str tri p ra ndu Pa ustr Oth iph ustr ndu ndu ndu als ctio gy Car nter ndu ndu ndu chin ndu a Ca ribu en a d d d d d d d s rt us r I i g I I I I I I I In Hos Cer I o t a r tru ol al d ic Ind e Ind r po Con le In s In le In nt In r In r In and niz Ind l l s A i s s c y e d s I n a i P e M t t a t m o e e i e o n n t D en ic e ic l ti s a s n ic n e d ci ic ctro ts rg nd bb ap ive nd nt uc ts Fo ctro g M Con tech ed on a tron St ouri ctric last Tra and Tex rvic mob em ca tri m n an s a fit O reat Ru nd P ctri uc nm ra e d e Che Eleone ec d e P T C o M ati lec and g Se uto te uipm icon ele ildin El las pro od ver d El Bi le nc c C an din a n p i u r o E a A n E t G q o n p o u d g P G n i a m n lp u her Iro B m E Sem in an at Fi Tr Op m No l an Co Pu nic Co rm m ipp as Ot ra tro fo Sh Co ltu In l, G ec i l u E O C u ns
16
Key Finding
05
Higher EPS and ROE values than the average listed company for companies that issued a CSR report Among all listed- and OTC-companies, those that compiled CSR reports account for 28%, an increase of 3% compared to the previous year. Although the percentage is less than 30%, its influence on Taiwan's stock market is rather big. This is mainly due to the regulations requiring companies with capital amount over NT$5 billion to compile CSR reports. Regardless of financial indicators (revenue, profit after tax) and size of company (capital amount, number of employees, cash and cash equivalents), companies that compiled CSR reports account for nearly 80% of the total. Simultaneously, the research team also analyzed the long-term profitability of the companies that compiled CSR reports and put together line charts of Earnings Per Share (EPS) and Return on Equity (ROE) for the past three years. The amount of profit per share is derived via EPS and ROE assesses the profitability of the company's use of resources. It is also observed that the EPSs of the companies that have compiled CSR reports outperformed both the market and those who have not compiled CSR reports for three consecutive years. Meanwhile, in terms of ROE, although the overall trend is a negative growth, companies that compiled CSR reports still received 7/65%, while those who did not compile CSR reports in 2016 received a negative value.
Breakdown of listed- and OTC- companies structure by percentage Companies that issue a CSR report
Companies that do not issue a CSR report
Number of companies
28%
Financial Indicator Corporate Scale
Annual revenue
84%
16%
Net income after tax
87%
13%
Paid-in capital
81%
19%
Number of employees
74%
Case and other cash equivalent
2.5 2 1.5
2.71
2.63
26%
82%
Average EPS 3
72%
18%
Average ROE 2.61
2.18
2.04
2.1
1.97
1.81
1.91
10%
6%
3.51%
4%
3.39%
1.02% 1.76% -1.55%
-2%
0
2014
2015
2016
Listed-companies Companies that issue a CSR report Companies that do not issue a CSR report
-4%
7.65%
4.87%
0%
0.5
8.02%
8%
2%
1
8.69%
2014
2015
2016
Listed-companies Companies that issue a CSR report Companies that do not issue a CSR report
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Key Finding
06
Carbon emissions trading is imperative, but only 10% of the companies in Taiwan recognize its value and potential impact. According to The Global Risks Report 2018 released by the World Economic Forum (WEF), extreme weather events ranked as the top global risks in for two consecutive years and may bring immediate and significant impact worldwide. At the same time, the likelihood and the impact of the five risks in the environmental category (extreme weather events, natural disasters, failure of climate-change mitigation and adaptation failures, water crises, and biodiversity loss and ecosystem collapse) in the next ten years are both ranked higher than average,showing that environmental risks will gradually increase in the future. The research team surveyed the risk issues listed in the CSR reports in Taiwan and found that climate change ranks the fifth on the list of risk issues companies are the most concerned with, advancing two places higher compared to the previous year. In formulating the climate change policy, 40% of the companies disclosed measures for mitigation and adaptation in their CSR reports and only 27% further identified the risks and opportunities of climate change. As far as the regulatory risk of identifying climate change is concerned, there might be only 13% of Taiwanese companies aware of carbon trading trends, it is already a considerable increase compared to 5% in the previous year.
Risk Issues Focused in Taiwan and Globally Rank
Global Risks in Terms of Likelihood
Risks of Highest Concern for Doing Business in Taiwan
1
Extreme weather events
Financial risk
2
Natural disasters
Operational risk
3
Cyber attacks
Market risk
4
Data fraud or theft
Regulatory risk
5
Failure of climate-change mitigation and adaptation
Climate change risk
6
Large-scale involuntary migration
Information security risk
7
Man-made environmental disasters
Credit risk
8
Terrorist attacks
Currency risk
9
Illicit trade
Human resources / Human rights risk
10
Asset bubbles in a major economy
EHS risk
Source of risks focused globally:The Global Risks Report 2018
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Greenhouse gas reduction regulations expected to be completed by 2020
The Greenhouse Gas Reduction and Management Act was promulgated in July 2015. It stipulates greenhouse gas reduction targets for Taiwan by 2020, in which the emissions of greenhouse gases should be reduced by 2% compared to 2005 levels, to 10% by 2025 and to less than 50% by 2050. In order to effectively meet the reduction targets, the Environmental Protection Administration (EPA) under the Executive Yuan in Taiwan presented the Greenhouse Gas Reduction Proposal (Draft) in November 2017, which aimed to promote greenhouse gas offsetting projects and efficiency standards reward, establishing greenhouse gas reduction incentives. It is expected that the greenhouse gas regulations will be completed by 2020, and total-quantity control will be activated by 2025. The global carbon trading market has grown rapidly in the past few years. Japan (2010), Korea (2015), and China ( 2017) have already implemented carbon emission trading schemes, using emission trading as a reduction mechanism and achieving emission reduction through market mechanisms. As far as companies are concerned, incorporating carbon management into business strategy will have economic benefits to companies,fulfilling their corporate carbon reduction responsibilities and also implementing sustainability across their operations. The emission trading system also requires the participation of financial supervision institutions. Therefore, the Financial Supervisory Commission (FSC) in Taiwan presented the Green Finance Action Plan in November 2017 to coordinate with the EPA's plan for total greenhouse gas emission control project, establishing a greenhouse gas emissions trading platform and setting sub-regulations including emission quota account registration and transactions. From the various plans put forward by EPA and FSC, Taiwan's emission trading system is imperative. According to the study conducted by the research team, currently 71% of the companies have disclosed some type of information regarding greenhouse gas inventories in their CSR reports, but only 19% have received third-party assurance for the information provided. Likewise, only 19% of the companies disclosed their carbon footprint and only 9% of them obtained external verification. According to Greenhouse Gas Emission and Reduction Information provided by Market Observation Post System (MOPS), in 2016, 179 listed companies provided some relevant information, including the impact of their greenhouse gas emissions, management strategies, methods, and targets. This number accounts for 11% of all listed companies.
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Greenhouse Gas Inventory Undisclosed Disclosed Disclosed and externally assured
29% 19%
52%
The percentage of companies in energy-intensive industries setting environmental targets is lower
Carbon Footprint Disclosed and externally assured Undisclosed Disclosed
9% 10%
81%
In September 2015, EPA announced the ‘First Batch of Emission Sources Required to Report Greenhouse Gas Emission Inventory and Registration. The designated sources include industries such as utilities, iron and steel, refining, cement, semiconductors, TFT-LCD, and others with annual direct emissions from fossil fuel combustion exceeding the 25,000 tons CO2e threshold. In view of implementing total quantity controls by 2020, the research team compared the industry categories announced by EPA and selected the relevant industry categories from the CSR database for the following industries: cement, semiconductor, optoelectronic, oil and gas and electricity, plastics, and iron and steel Industries. The following table describes the brunt of the impact per industry, as well as the degree of response to the set of environmental targets and to climate change. In the short-, medium-, and long-target goal setting, plastics industry had a better response, while the iron and steel providing the lowest percentage of response. According to a global analysis of CDP (formerly known as the Carbon Disclosure Project), international companies are accelerating the pace of climate action with more leading companies incorporating low-carbon targets into their long-term business plans. Among CDP's samples of high-impact companies, 89% of the companies disclosed their emission reduction targets in 2017, of which more than two-thirds (68%) set targets by 2020 and 20% set targets by after 2030. The aforementioned statistics all increased compared to the previous year.
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In addition, among CDP's company samples, the number of companies that committed to implementing Science Based Targets (SBT) increased by 61% compared to 2016. In 2017, 51 companies (accounting for 14% of the overall study sample, compared to 9% from the previous year) set or committed to set carbon reduction targets to achieve the low carbon levels of limiting global temperature rise to 2°C. In addition, 30% of the companies (317 companies) are planning to set SBTs in the next two years. As of February 2018, there are 342 companies worldwide taking some form of science-based climate action. Out of those 342 companies, eight of them are based in Taiwan, including Delta Electronics, TSMC, Fubon Financial, AUO, Taiwan Mobile, China Steel Corporation, Compal Electronics, and Powertech Technology. Among them, Delta Electronics is the first company in Taiwan to pass the SBTi evaluation in late December 2017. Category Number of Samples
Setting Targets
Climate Change
Cement Industry
Semiconductor Industry
Optoelectronic Industry
Oil, Gas and Electricity
Plastics Industry
Iron and Steel Industry
7
38
25
4
14
16
Short-term target of 1-2 years (environmental)
29%
39%
48%
50%
79%
6%
Mid-term target of 3-5 years (environmental)
29%
32%
12%
25%
50%
6%
Long-term target of 6+ years (environmental)
14%
13%
4%
25%
29%
6%
Discloses their climate strategy
43%
53%
36%
50%
64%
44%
Identifies climate-related opportunities and risks
29%
55%
28%
0%
36%
25%
Recognizes carbon trading mechanisms
14%
24%
32%
25%
14%
38%
Item Publishes CSR reports
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Key Finding
07
Companies invested an average of 0.7% of their net income before taxes in social programs According to the research team's statistics, top three social issues that Taiwanese companies prioritize are education and science, benefit programs for children and teenagers, and local community welfare. Fifty-two percent of the companies specifically stated the prioritization or direction of their social welfare programs in their CSR reports. Regarding investments in social welfare, 37% of the CSR reports disclosed some relevant information, an increase of 10% compared to the previous year, mainly from the finance and insurance, electronic parts/components, food, and chemical industries. The total amount of social welfare disclosed was NT$6.2 billion, with an average amount of NT$33.09 million. Judging from the distribution of the disclosed amounts, it can be observed that Taiwanese companies spent less than NT$5 million on social welfare accounted for 56% of the total. The research team also calculated the percentage of social welfare spending in net income before taxes for each company. The overall average was 0.7%, slightly lower than 0.82% of the previous year. In addition, only 3.5% of the CSR reports disclosed the measures of social welfare expenditures benefits, such as SROI or the LBG Framework of the London Benchmark Group (LBG).
Distribution of spending on social welfare Units in NTDs
Over 100 million
13 14
50-100 million 10-50 million
42 13
5-10 million 1-5 million
63
Under 1 million
43 0
10
20
30
40
50
60
70
Unit:Number of companies
22
Social topics focused by the four major industries
Technology Industry
Service Industry
Education and Science
129
Child and Adolescent Welfare
135
Arts and Culture
79
39
Environmental Protection
84
25
Disabled Welfare
89
Rural Caring
85
Elderly Welfare
66
Health Care
63
Sports Competitions
23
Festivals or Religions
27
Agricultural Development Animal Protection Gender Equality
37
35
79
22 15
24 23 9
54 27
28 33
59 55
42 46
27
53
28
24
23
63
67
31
32
78
30
34
112 134
29
25
50
Economic Development
125
50
90
55
Financial industry
51
Local Community Welfare
Emergency Relief
Manufacturing Industry
23 20
28 27 14
10
11 10 15 7 5272
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Key Finding
08
In terms of corporate governance, 90% of the companies in the top 5% are already producing CSR Reports. In order to enhance the quality of corporate governance in Taiwan,the Financial Supervisory Commission (FSC) announced the five-year “Corporate Governance Roadmap 2013� in December 2013. Corporate governance evaluation in the roadmap is a focal point that is expected to encourage healthy competition among companies and to place more stress on corporate governance. "Putting Corporate Social Responsibility into Practice" is one of the key indicators in the corporate governance evaluation. For the purpose of understanding the relationship between the governance evaluation results and the compilation of CSR reports, the research team collected the list of the Third Round of Corporate Governance Evaluation results in 2016 and collated the table below. It can be observed that 91% of the Top 5% companies compiled CSR reports and 61% of the top 6-20% done so as well.As the governance evaluation results drop, the percentage of CSR reports compilation gradually decreased. This means that if companies wish to obtain better evaluation results in corporate governance evaluation, CSR is one of the key elements. The weighted criteria for the category of "Putting Corporate Social Responsibility into Practice� increased from 15% in the First Round of Corporate Governance Evaluation to 18% in the Second Round, and later went as high as 21% in the Fifth Round. Its importance is self-evident. Meanwhile, four additional CSR-related topics were added in the Fifth Corporate Governance Evaluation, including whether the company has a governance structure and policy guidelines, human rights policies, performance links, and integrity management policies. The research team collated the CSR report analysis database and screened the indicators related to the aforementioned topics. It was found that disclosure percentages on international human rights treaties and on the link between CSR performance and remuneration were the lowest: 17% disclosed the United Nations Global Compact while only 4% disclosed the link between CSR performance and remuneration. It is worth noting that 80% of the companies that had disclosed the remuneration packages were ranked in the first half of the evaluation (top 35%). This means that making reference to international human rights treaties and remuneration is a prerequisite for getting better scores in the Fifth Corporate Governance Evaluation.
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Percentages of Corporate Governance Evalution and CSR Report Compilation Corporate covernance evaluation percentile
Number of companies
Percentage of companies with CSR Reports
Percentage of companies without CSR reports
Top 5%
76
91%
9%
06%~20%
224
61%
39%
21%~35%
224
40%
60%
36%~50%
225
31%
69%
51%~65%
223
15%
85%
66%~80%
224
13%
87%
81%~100%
300
10%
90%
5th Round Corporate Governance Evaluation – New Indicators Corporate Governance Evaluation Criteria
Evaluation Criteria by the Research Team
Percentage of CSR Reports
Did the company have an adequate governance framework, by which to adopt and review corporate social responsibility policies, systems, or related management principles, and disclose the same in its annual report and on its website
Does the company have a CSR committee? Does the company have a CSR strategy or management approach?
54%
UN Global Compact Principles The OECD Guidelines for Multinational Enterprises ISO 26000 Social Responsibility Guidance Standard Has the company adopted a policy to Does the company have incentives adequately reflect business performance l i n k e d t o p r o g r e s s a g a i n s t C S R or results in employee remuneration, and performance? disclosed it in its annual report or on its website? Did the company disclose on its website Does the company have a code of or in its annual report its ethical corporate conduct or a statement of business management policy, expressly prescribing its integrity? specific ethical management practices and its D o e s t h e c o m p a n y p r o m o t e s o r programs to prevent unethical conduct? communicates about its code of conduct or business integrity statement? Does the company have a grievance mechanism?
17% 5%
Did the company, following the International Bill of Human Rights, adopt a policy to protect human rights, and disclose it in its annual report or on its website?
60%
18% 4%
95%
79%
71%
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Key Finding
09
Responsible sustainability communication begins with actively disclosing negative issues. A well-implemented materiality analysis is the core component of a CSR report. To achieve transparent disclosure and sustainability communication, the companies need to collect a wide range of sustainability issues from different stakeholders through diversified channels of communication, assessing the degree of impact of various issues on the environment and society, further identifying issues of materiality, and consolidating relevant information in CSR reports. Each industry has different sustainable issues. Through materiality analyses, companies can identify materiality issues from a wide range of sustainability issues and disclose them in CSR reports in accordance with GRI’s concept for "management approach". According to a survey conducted by the research team, 78% of the CSR reports carried out materiality analyses and 66% further addressed sustainability issues with GRI considerations and disclosed management approaches. The research team also collected the sustainability issues listed in all CSR reports and got the average of 24 issues per report. In the CSR reports compiled by Taiwanese companies, the first three sustainability issues are economic performance / operational overview, occupational health and safety, and training and education / career development.
Sustainability Factors Prioritized by Each Sector All Industries
Financial Industry
Technology Industry
Manufacturing Industry
Service Industry
Economic Performance / Operational Overview
Economic Performance / Operational Overview
Economic Performance / Operational Overview
Economic Performance / Operational Overview
Economic Performance / Operational Overview
Occupational Health and Safety
Training and Education / Career Development
Occupational Health and Safety
Occupational Health and Safety
Occupational Health and Safety
Training and Education / Career Development
Corporate Governance
Training and Education / Career Development
Training and Education / Career Development
Training and Education / Career Development
Energy Resource Management
Risk Management/ Emergency Response
Labor / Management Relations
Energy Resource Management
Energy Resource Management
Labor / Management Relations
Customer Privacy / Confidential Information
Energy Resource Management
Product and Service Responsibilities
Customer Privacy/ Confidential Information
Product and Service Responsibilities
Product and Service Responsibilities
Customer Privacy/ Confidential Information
Labor / Management Relations
Supply Chain Management
Customer Privacy / Confidential Information
Credit Risk
Employment Relations / Recruitment
Wastewater and Wastes
Employment Relations / Recruitment
Employment Relations / Recruitment
Occupational Health and Safety
Wastewater and Wastes
Water Resource Management
Labor / Management Relations
Corporate Governance
Market Risk
GHG Management
Employment Relations / Recruitment
Social Welfare / Social Participation
Wastewater and Wastes
Social Welfare / Social Participation
Water Resource Management
GHG Management
Compensations and Benefits
Source:2018 Taiwan CSR Overview and Trends
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34% of the companies proactively engaging in conversations about negative issues
As far as the sources of sustainable issues are concerned, besides GRI considerations, industry or trend issues, channels like news reports or comments on social media can also be used to learn about issues concerning external stakeholders. Especially negative news coverage, it is an issue that stakeholders expect the company to fully address. More and more companies have started to conduct public opinion analysis based on information from the press or social media as one of the sources of sustainability issues. According to a survey conducted by the research team, 34% of the companies (173 out of 515) proactively disclose relevant information on negative issues in CSR reports. When the research team searched for negative or controversial news in 2016 that occurred to companies that had compiled CSR reports, it was discovered that 26% (136/515) of the companies had relevant news, of which 58% (70/136) produced balanced reports (reflecting the positive and negative aspects of the organization’s performance) The research team classified the negative news collected and found that a majority of the information were about governance, including allegations of senior management's corruption and frauds, fights over operating rights, briberies, or investment losses, business misconduct, mainly on fines or penalties for violating industry-specific regulations, and employee human rights coverage mostly on labor union protests, unidentified layoffs, and long-working hours. Breaking the analysis by industry, the negative topics in the technology industry are mainly about the human rights of employees, business misconducts, sale of disputable financial products, unauthorized use of funds by bank clerks, and failure to implement money-laundering control in the finance industry, environmental pollution, such as investment loss, environmental, including investment losses, environmental impact assessment disputes, and air and water pollution in the manufacturing industry. The principle of balance is one of the key communication values ​​of CSR reports. Ideally, the companies should protectively disclose negative issues that occurred, explaining the context of the issues and suggesting precautionary and improvement measures to prevent recurrences to stakeholders.
27
Negative News Issues Corporate Governance
19
Business Misconducts
17
Employee Human Rights
16
Social Disputes
15
Product Safety
15
Occupational Safety
12
Environmental Pollution
12
Code of Conduct
7
False Advertising
5
Fair Trade
5
Operating Deficiency
4
Local Disputes
4
Information Security Patent Infringement
28
3 2
Special thanks (in stroke order) Yung-Shun Shen, Eliza Li, Yung-Ming Hsu, Eugene Chien, Sonia Lo, Wei-Chieh Su
CSRone Reporting
Founded in June 2013 and aims to become the report library of the Chinese-speaking world, CSRone Reporting has become the biggest platform for sustainability reports/corporate social responsibility reports in Taiwan with more than 2,000 reports collected to date. The CSRone consultant team conducts the comprehensive analysis on the sustainability reports published in that year, and releases key reports concerning CSR development in Taiwan in the hope of guiding domestic companies to be in sync with the international community, so that companies can move forward with greater vision and strategies with respect to sustainability topics.
Sinyi School, College of Commerce, National Chengchi University
By promoting forward-looking and ethical mindset in business education, NCCU College of Commerce aims to build an important education base and knowledge dissemination platform in Asia. At this turning point, Sinyi Realty Inc. granted vital assistance in 2013 to College of Commerce because of similar philosophy toward education. “Sinyi� is not only the name of the donating company, it also represents the basic concept of business practices of merchants in the Chinese culture. More importantly, it is the professional character that future business leaders of Taiwan should equip. With business ethics, social responsibility, and sustainability management as the core spirit and characteristics of business and management education, Sinyi School aims at becoming an international business management education center specializing in business ethics.
PwC Taiwan
At PwC Taiwan, our purpose is to build trust in society and solve important problems. We are a member of the PwC global network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, tax and advisory services. We have eight service offices and over 2,800 employees in Taiwan with expertise and strategic partners across all industries, and always ready to deliver the value you are looking for. For more information, please visit www.pwc.tw. As Taiwanese companies become globalized, the ability to create sustainable value has become a new evaluation standard for corporate competitiveness. The development of sound corporate governance, through the implementation of corporate social responsibility (CSR) practices and strengthening of information disclosure, is a fundamental requirement. As a leading professional services firm, PwC Taiwan is well equipped to provide companies with an integrated solution plan to further develop effective CSR strategies for sustainable business success.
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2018 Taiwan CSR Overview and Trends Publishers:Lien-Ti Bei, Joseph Chou, Gennie Yen Editor-in-chief:Cheng-Pai Lee Deputy Editors-in-chief:Eliza Li, Hou-Ru Chen, Shih-Ching Liu Executive editors:Lan Wang, Li-Nung Lee, Jose Salazar, Yen-Ling Chang, Amy Lin, Monru Tsai, Chien-Yu, Chen, Sammi Chang, Yu -Chun Hsu, Chien-Yu Chen, Chia-Chun Chen,Tze-An Dung Research team:Li-Ting Wang, Yi-Nuo Wu, Tsai-Chen Wu, Ting-Hsuan Yu, Ting-Jung Liu, Meng-Ju Kao, Yu-Tong Chen, Lao-Ting Chen, Yin Chia Tseng, Yu-Ya Tseng, Yung-I Tseng, Kueitzu Yang, Yuchia Liu, Ya-Ju Chung Art design:Ya-Hui Ou (Alphabetical order) Publishing Agency:CSRone Reporting, Sinyi School of National Chengchi University, PwC Taiwan Collaborative party:Taiwan Institute for Sustainable Energy (TAISE) Address:5F., No.178, Sec. 3, Xinyi Rd., Da’an Dist., Taipei City 106, Taiwan (R.O.C.), No.64, Sec. 2, Zhinan Rd., Wenshan Dist., Taipei City 116, Taiwan (R.O.C.) Website:http://csronereporting.com/, http://www.syschool.nccu.edu.tw/ E-mail:service@csrone.com Contact number:(02) 2704-3024 Date of publication:March 23, 2018 Price:NT$1,000 If you have any questions or suggestions about this report, feel free to contact us ! [Interactive Inforgraphic]
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