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Goertek Inc.
2021 Corporate Social Responsibility Report
Stock Abbreviation: GoertekStock Code: 002241
March 29, 2022
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About This ReportThis is the 12th Corporate Social Responsibility Report released by Goertek Inc. (hereinafterreferred to as "Goertek", "the Company" and "we"), covering the period from January 1, 2021to December 31, 2021. The data from the Annual Report 2021, official documents and statisticalreports of Goertek are included in this report.This report has been prepared in accordance with the Shenzhen Stock Exchange SocialResponsibility Instructions to Listed Companies, and the Self-regulatory Guidelines for ListedCompanies on Shenzhen Stock Exchange No.1 - Standardized Operation of Companies Listedon the Main Board, with reference to the ISO 26000: Guidance on Social Responsibility, theGuidelines for Preparing Corporate Social Responsibility Reports in China from the ChineseAcademy of Social Sciences, and the T/CESA 16003-2017 standard from the China ElectronicsStandardization Association. In addition, based on GRI Standards for Global SustainabilityReporting, this report focuses on presenting the CSR strategy, corporate governance, andperformance improvement.This report is available in both print and electronic versions. To view the report online or obtainan electronic version, please visit the website of Goertek Inc. at http://www.goertek.com.
FeedbackFor any suggestions or doubts about this report, you can provide the feedback by contacting us,and we appreciate your valuable feedback.Address: No.268 Dongfang Road, High-tech Industrial Development District, WeifangTel: 0536-3050543E-mail:goertekcsr.list@goertek.com
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Contents
1. Corporate Governance .............................................................................................................. 1
1.1. Company Profile ...................................................................................................................... 1
1.2. Corporate Operating Mechanism ............................................................................................. 4
1.3. Stakeholder Communication .................................................................................................... 9
2. Technological Innovation and Service ..................................................................................... 11
2.1. Technological Innovation Input ............................................................................................. 11
2.2. Promotion of Green Products ................................................................................................ 14
3. Employee Care ........................................................................................................................ 16
3.1. Respect for Employees and Protection of Their Legal Rights and Interests According to Law ...... 17
3.2. Compensation and Benefits ................................................................................................... 19
3.3. Career Development and Growth of Employees ................................................................... 25
3.4. Employee Engagement and Communication ......................................................................... 32
4. Occupational Health and Safety .............................................................................................. 37
4.1. Hazard Identification and Control ......................................................................................... 38
4.2. Shaping A Sound Working Environment ............................................................................... 39
4.3. Protection of Employee Safety and Health ............................................................................ 44
4.4. Covid-19 Pandemic Prevention and Control ......................................................................... 47
5. Adherence to Green Operation, and Continuous Efficiency Improvement and EmissionReduction ...... 51
5.1. Environmental Management .................................................................................................. 51
5.2. Pollution Prevention and Control .......................................................................................... 51
5.3. Resource Recycling and Climate Change Mitigation ............................................................ 53
6. Integrity In Business ................................................................................................................ 61
6.1. Integrity Concept ................................................................................................................... 61
6.2. Fair Competition .................................................................................................................... 62
6.3. Anti-Corruption and Anti-Fraud ............................................................................................ 62
6.4. Respect For Intellectual Property Rights ............................................................................... 64
6.5. Client-Oriented ...................................................................................................................... 66
6.6. Promotion of Common Growth With Suppliers .................................................................... 70
7. Community Engagement ......................................................................................................... 72
8. Outlook ................................................................................................................................... 74
Table of Corporate Honors In 2021 ...... 75
Appendix: Gri Sustainability Reporting Standards Index Table ...... 78
General Disclosures ...... 78
Materiality Disclosure ...... 83
1. Corporate Governance
1.1. Company Profile
Since its establishment in June 2001 and listing on the Shenzhen Stock Exchange in May 2008,Goertek Inc. has been a global high-tech innovator dedicated to serving the leading global clientsin the technology and consumer electronics industry, providing them with vertically integratedproduct solutions of precision components and smart hardware, as well as the related design,R&D and manufacturing services.The Company's main business divides into three segments including precision componentsbusiness, smart audio device business and smart hardware business. The precision componentsbusiness focuses on acoustics, optics, microelectronics, structural components, and otherprecision components. The related products include micro speaker/receiver, speaker module,haptic component (actuator), wireless charging device, antenna, MEMS microphone, MEMSsensors, micro-system module, VR optical component and module, AR optical component, ARlight engine, precision structural parts and etc. The above-mentioned products are widely appliedin devices such as smartphones, tablets, smart wireless earphones, VR, AR, smart wearable andsmart home devices. Smart audio device business focuses on providing products related to audio,voice interaction, artificial intelligence, and other technologies. The main products include smartwireless earphones (TWS), wired/wireless earphones, smart speakers, etc. Smart hardwarebusiness focuses on providing products related to entertainment, health and home security. Themain products include VR, AR, smart wearable products, gaming consoles and accessories,smart home products, etc.The Company has innovative competitive advantages in the fields of acoustics, optics, MEMSmicroelectronics and precision manufacturing, and owns many intellectual property rights in thefield of precision parts and components. In addition, the Company has accumulated richexperience in projects by cooperating with industry-leading clients in the field of smart audiodevice and smart hardware through "ODM", "JDM" and other business modes. During thereporting period, the Company maintained a good, long-term cooperative relationship withleading clients in the global technology and consumer electronics industry, kept growing in the
number of patent applications and in technological capabilities. As a result, the company hasbeen constantly recognized by global clients for its product solutions and service capability, andremains being an industry-leading manufacturer in the fields of micro speakers, MEMSmicrophones, MEMS sensors, TWS, VR products, smart wearable products, gaming console andaccessories, etc.During the reporting period, due to the continuous growth of demand of smart hardware productssuch as VR, TWS, smart wearable products, gaming consoles and accessories, and the relatedprecision components, the Company has achieved significant growth in revenue and net profit.At the same time, the Company further improved its position in the industry. During the reportingperiod, the Company won many honors, including being ranked the 3rd company in the Top-100China electronic component enterprises based on comprehensive economic indexes, the 86thcompany in the Top-500 private enterprises in China's manufacturing industry, the 164thcompany in the Top-500 private enterprises in China, as well as being the executive membercompany of CITIF.For other information of the Company, see the Company's Annual Report 2021.
? Mission
A better life enriched by technology
? Vision
To be a great company
? Core values
Client-orientation, employee development, trustworthy and pragmatic, cooperation andmutual benefits
? Management philosophy
Cultivation and ingenuity, constant improvement, create core competence of leading reform.
? Cultural slogan
We make, we share, we thrive.Our mission is the overarching orientation of the Company's value of existence, ultimate goaland social responsibility. A better life that integrates health and beauty is the ultimate pursuit ofmankind. It also serves as the ultimate goal of the Company that is committed to creating valuefor society with the application of technology. It has been our mission to develop cutting-edgemodern technology, and to integrate humanistic spirit into product design, so as to create artisticproducts that lead future lifestyles, convey the concept of a better life, and satisfy people's pursuitof a better life.Our vision is a general overview of the Company's prospect and development, as well as a long-term goal to be continuously pursued and a realm to be achieved in its future development. Ourvision of "To be a great company" is not only an inheritance of the excellent cultural value ofthe past, but also an inherent demand and expectation for future development. With continuousendeavors in innovation, products, services and brand, the Company aims to become a world-class high-tech company, thus creating maximum value for clients, employees, partners andsociety, and earning their respect.Our core values are the basic value orientation followed by the Company, and also the coreprinciple and value judgment standard for guiding employees' behaviors. The consensus hasbeen reached on the core values of "client-orientation, employee development, trustworthy andpragmatic, cooperation and mutual benefits" through extensive discussions. The core values arethe beliefs to be revered, the purposes to be pursued and the judgment standard to be relied upon,which shall be continuously strengthened in the whole process of production and operation, thusenabling all employees to consciously bear values in mind and put them into actions.Our business philosophy is a philosophical reflection on the Company's business policy, businessstrategy and management style. The Company is committed to the relentless pursuit of highquality and ambitious goals, and dedicated to innovating product technology and manufacturingtechniques, thus creating excellence with continuous improvement. Meanwhile, we activelyembrace transformation, and efficiently keep accumulating the knowledge, skills, tools, methodsand resource integration ability required for transformation, so as to lead the sustainable
development of the Company with transformation and shape our core competitiveness of"leading power of transformation"."We make, we share, we thrive" is the cultural slogan of Goertek. The Company advocates thecultural concept of "being together". Based on the common pursuit, the Company forms acommunity of shared cause, interests and destiny together with clients, employees, suppliers,and society, so as to create products for a better life together, share the achievements and honorstogether, and grow in the process of value creation together.Culture serves as the cornerstone of corporate survival and development, and an essential partof the core competitiveness of the Company. In 2021, based on the organizational cultureassessment, the Company focused on the problems identified in the organizational cultureassessment of each department and formulated improvement measures accordingly, so as toenhance the corporate culture recognition and employees' experience. The cultural philosophybeing promoted features integrity, loyalty, diligence, initiative, responsibility, objectivity,fairness, professionalism and pragmatism. The client-orientation strategy transformation projectis carried out to closely integrate culture construction with business and enhance the managementof the Company. In the meantime, the Company has strengthened the effect of honor incentivesby upgrading its company-level honor system. This has refined the Company's concept of talents,and elevated employees' sense of achievement, thus effectively guaranteeing the implementationof the Company's culture and forging consensus among all employees.
1.2. Corporate Operating Mechanism
1.2.1. Operation of the Board of Directors
During the reporting period, the Company continuously improved the corporate governancestructure, the internal management and control system, and continued to carry out corporategovernance activities in strict accordance with the requirements of relevant laws, regulations andnormative documents such as Company Law, Securities Law, Corporate Governance of ListedCompanies, Rules Governing the Listing of Shares on Shenzhen Stock Exchange as well as withrelevant documents of China Securities Regulatory Commission and the relevant instructions of
Shandong Securities Regulatory Bureau, so as to further standardize the Company's operationand improve the level of corporate governance.By the end of the reporting period, the actual practice of corporate governance met the relevantrequirements of the above laws, administrative regulations, departmental rules and normativedocuments on the governance of listed companies, and no documents concerning administrativesupervision measures taken by the supervised departments was received.By the end of the reporting period, the details of actual practice of corporate governance are asfollows:
1. Shareholders and shareholders' meetings: The Company has convened and held shareholders'meetings in strict accordance with the Rules for General Meeting of Shareholders of ListedCompanies and the Company’s Rules of Procedure of Shareholders' Meetings, so as to ensurethat all shareholders, especially minority shareholders, enjoy equal status and fully exercise theirrights; In addition, lawyers were engaged to witness the legitimacy of the convening, holdingand voting procedures of each general meeting of shareholders.
2. The Company and controlling shareholders: The Company, with independent business andoperation autonomy, is independent of the controlling shareholders in business, personnel, assets,organizations and finance. The Board of Directors, Board of Supervisors and internal institutionsof the Company operate independently. The controlling shareholders exercise their rightsthrough shareholders’ meeting, and there was no direct or indirect interference with theCompany’s operations and decision-making beyond the general meeting of shareholders.
3. Directors and the Board of Directors: The Company elects directors in strict accordance withthe selection and appointment procedures stipulated in the Articles of Association. There arethree independent directors in the Board, the number of directors and the composition of theBoard of Directors meet the requirements of laws and regulations and the Articles of Association.All directors can carry out their work in accordance with Rules of Procedure of the Board ofDirectors and Working System for Independent Directors, they attended all the Board ofDirectors meetings, and all the related trainings as required.
4. Supervisors and the Board of Supervisors: The election of supervisors and the composition ofthe Board of Supervisors were in strict accordance with relevant provisions of Company Lawand Articles of Association. The Company's supervisors strictly followed the Rules of Procedureof the Board of Supervisors. All supervisors scrupulously attended the sessions, seriouslyfulfilled their duties diligently, and supervised and issued opinions for major issues, related-partytransactions, and financial status.
5. Performance appraisals and incentives: The Company has gradually improved its fair andtransparent performance evaluation standards and incentive a restraint mechanisms for directors,supervisors and senior management. The appointment of Company’s senior management is openand transparent, and in line with the provisions of laws and regulations.
6. Stakeholders: The Company fully respects and safeguards the legitimate rights and interestsof stakeholders, actively communicates and coordinates with stakeholders, to balance theinterests of the society, shareholders, the Company, employees and other parties, and jointlypromotes the Company's development in a sustainable and steady manner.
7. Information disclosure and transparency: The Company duly performed the disclosureobligations in accordance with the provisions of Rules Governing the Listing of Shares onShenzhen Stock Exchange, Articles of Association and Investor Relations Management Rules,and discloses information as per the law, so as to ensure that the information disclosure is true,timely, accurate and complete. All shareholders were given equal access to the information. TheCompany has gradually revised and improved the Insider Information Management Rules,further improved the insider information management, strengthened the confidentiality of insiderinformation, maintained the fair principle of information disclosure and protected the legitimaterights and interests of investors. The Company has appointed the secretary of the Board ofDirectors as the head of investor relations management of the Company, responsible for theCompany's information disclosure and investor relations management. The Company hasdesignated Securities Times, China Securities Journal, Shanghai Securities News, SecuritiesDaily and cninfo.com.cn to disclose Company’s information in a faithful, accurate and timelymanner, strictly in accordance with relevant laws and regulations, so that all shareholders havea fair chance to get information.
For other information on the operation of the Board of Directors and corporate governance ofthe Company, see Section IV: Corporate Governance of the Company's Annual Report 2021.
1.2.2. Operation of the CSR Management Committee
Upholding with the core values of "client-orientation, employee development, trustworthy andpragmatic, cooperation and mutual benefits" and the corporate social responsibility of "law-abiding, employee respecting, sustainable developing, and give back to society", Goertekactively pursues the unity of corporate social responsibility and economic growth. Our CSRmanagement philosophy defines that while pursuing profits, we should always act as aresponsible global corporate citizen. We always take shareholders and creditors, employees,clients, communities and sustainable development as our own responsibility, actively facilitatethe fulfillment of stakeholders' social responsibilities, protect employees' legitimate rights andinterests, engage in environmental protection and public welfare activities, and boost thecoordinated and harmonious development of the Company and society.Since its establishment, Goertek has gradually set up its quality, environmental and occupationalhealth and safety management systems, and passed the certification of ISO9001, ISO14001 andISO45001, and introduced the EU WEEE/RoHS Directives. In 2005, the Company was certifiedby the ISO/TS16949. In 2007, the Company founded its occupational health and safetymanagement committee and a dedicated company-level division to take full responsibility forthe OH&S system for employees. In 2009, a hazardous substances management system was setup and the Company was certified by the IECQ QC080000. It was further certified by theIEC17025 in 2010, and by National Integration of Informatization and IndustrializationManagement System, the China AEO Certificate by China Customs, the GB/T29490-2013, andthe ISO/IEC27001:2013 Information Security Management System in 2016. In addition to thesecertifications, Goertek studied international CSR standards such as SA8000 and formallyimplemented the CSR system since 2011, and timely benchmarked with industry standards andobtained external opinions in line with ISO26000, China Electronics StandardizationAssociation standard T/CESA 16003-2017 and other international standards (such as GRIStandards and RBA Code of Conduct), as well as requirements of various stakeholders.
In order to facilitate its CSR efforts, Goertek formally established the CSR ManagementCommittee in 2013. In 2021, the Company continued to optimize and improve the scope andresponsibilities of the CSR Management Committee based on its business adjustment, so as tobetter meet the requirements of various stakeholders in the field of CSR. Moreover, we haveestablished the committee operation mechanism to continuously upgrade the company's CSRgovernance and improve the overall decision-making and operational efficiency of thecommittee. The current organizational structure of the CSR Management Committee as follow:
The President of the Company serves as the Head of the CSR Management Committee, and thecore management of the Company's Vice President or above serves as the member of theCommittee, who is responsible for decisions on the overall CSR policy of the Company. TheCSR Management Committee consists of a dedicated team responsible for formulating CSR-related rules and regulations, and assisting in the formulation of CSR strategic objectives andwork planning. The Committee coordinates the CSR work of various teams, provides guidance,coordination, supervision, inspection and evaluation of their work, and assists in the organizationof CSR meetings, events and other CSR management coordination work. The CSR ManagementCommittee convenes a decision-making meeting at least once a year to discuss relevant issuesand report on work progress. All related professional teams communicate with stakeholders onCSR management concepts, objectives, policies and practices, and provide the feedback on thedemands of stakeholders to the dedicated team of CSR Management Committee for review. The
Committee
CSR ManagementRelated
Professional Teams
Human Resource (HR)
EHS
EthicsInvestors/ClientsGovernment/Supply Chain
Related
Business Group
Steering Team
Business GroupSubsidiary/PlatformManagement Team
Business Group Management Team formulates annual work plans and regularly reviews workprogress.In addition, a standardized CSR target indicators and management plan have been developed.The CSR Management Manual, as the overarching guideline for Goertek to advance its CSRwork, covers various business areas, including targets for client satisfaction, employeesatisfaction, intellectual property, electricity consumption per unit output value, number ofenvironmental accidents, OH&S management, and HSPM which are integrated into theperformance assessment of each department, thus strongly promoting the organic integration ofsocial responsibility management and daily operation.
1.3. Stakeholder Communication
By continuing to dynamically identify stakeholders and maintain good communication withthem, Goertek is able to promptly understand their reasonable expectations and demands, learnfrom their advanced ideas, and actively listen to their suggestions for the Company'sdevelopment, which is crucial for the sustainable development of Goertek. In order to effectivelycommunicate with stakeholders on a continuous basis, Goertek has set up variouscommunication channels through departments of marketing, product technical support,securities, human resources, labor union, and sourcing, to engage with stakeholders around CSRmanagement concepts, objectives, policies, and practices, which are then disclosed via this reportand the corporate website.The following are the main stakeholders, communication channels and their main topics ofconcern:
| Stakeholders | Major communication channels | Main topics of concern |
| Shareholders and creditors | Shareholders' meeting Board meeting Investor communication meeting and letter survey | Business status and information on significant matters Survey on the fulfillment of corporate social responsibility |
| Bondholder meeting | ||
| Clients | Client satisfaction survey Client visit Special seminar | Corporate development strategy and supply chain capabilities Compliance Employee health and safety Green products Product safety |
| Employees | Employee satisfaction survey Employee reception day Employee proposal system Employee seminar Suggestion box | Corporate development strategy, and mid- and long-term planning Employee compensation and benefits Employee training and development Employee health and safety |
| Suppliers | Supplier conference Supplier review Special seminar | Fair procurement, integrity and honesty Fulfillment of social responsibility commitments Green products Product safety |
| Universities and research institutes | Academic cooperation Seminar | Science and technology innovation Intellectual property rights Talent cultivation |
| Government | Work meeting Work report Work inspection | Compliance Corporate development strategy Corporate governance Job and employment Taxation compliance |
2. Technological Innovation and Service
2.1. Technological Innovation Input
2.1.1. Innovation Culture
"Cultivation and ingenuity, constant improvement" is Goertek's unremitting pursuit. Goertekactively implements the core value of "employee development", and encourages technologicalinnovation, placing great emphasis on technical research and craftsmanship. By establishing arefined and diversified career development path for R&D engineers, the Company continuouslyimproves the professional skills and innovation ability of R&D engineers through jobqualification requirements and a perfect training system and resources. Meanwhile, it clearlydefines technological innovation achievements as a key criterion for employment and promotion,effectively stimulating the growth potential and innovation vitality of R&D engineers, andhelping R&D engineers to continuously attain professional achievement and grow together withthe Company.
2.1.2. Gathering Talents
Talent is the top resource for corporate development. In recent years, the Company has firmlyadhered to the strategy of strengthening the Company by introducing, nurturing and employingtalents, continuously optimizing the environment for talent development, and promoting theintegration of the "talent chain" with the "industry chain" and "innovation chain", which has
| Product quality Environmental protection and occupational safety | ||
| Media | Special interview Information disclosure | Corporate development strategy Corporate governance |
| Communities | Public welfare activity Forum Participation in community projects | Community progress and development Environmental protection Public welfare activity |
provided solid intellectual support for the Company to become one of the top 500 enterprises inChina and the only enterprise in China to rank among the global top 10 in the field of MEMS.Goertek insists on developing global channels to attract and recruit all types of domestic andinternational talents. With regard to attracting talents, Goertek has perfected its talentintroduction mechanism, with the Chairman taking the lead as the "talent introduction specialist".Relying on its HR department, the Company has appointed "talent liaison officers" to ensure afull chain of talent contact services. Its talent introduction plan is also implemented by categoryaccording to the characteristics of talents at different levels. In addition, the Company hasinnovated the talent introduction mode and set up R&D centers targeting the frontiers of theworld's scientific and technological innovation to attract world-class high-end technical talentslocally. Besides, a platform for talent introduction has been established. Goertek has jointlyestablished the research institute with the government and universities. In 2021, the Companywas recognized as the outstanding municipal sci-tech innovation platform for introducing andnurturing talents, and the excellent provincial new R&D institution.Goertek actively builds a platform for talent development, and formulates differentiateddevelopment channels for new talents, and helps them draw up career development plans,thereby boosting the integration of talent value and career development. R&D platforms givefull play to the "innovation ability" of talents. Goertek has approved 8 national and provincialinnovation platforms, and jointly established the research institute with many well-knownuniversities. Financial support has been granted to the scientific research projects carried out bytalents relying on the platforms and institutes, and over 50 scientific research achievements havebeen industrialized successfully. A number of awards have been obtained, including the nationalchampion of manufacturing, the fourth China Quality Award, and the first prize of the 6thMayor's Cup Industrial Design Competition. Through projects, talents are trained to commandstronger "breakthrough capacity". With a focus on 5G, AI and IoT technologies, the Companyencourages all types of talents to build teams for independent innovation and problem solving,thus creating a "high-grade, precision and advanced" talent team. The Company has also joinedhands with universities to shape the "competence" of talents. Exchange training programs arecarried out jointly with top universities and research institutes at home and abroad, including the
"joint training base for graduate students in industry-education integration" with ShandongUniversity, and the "excellent engineer class" for undergraduate students with the School ofOpto-electronic Engineering at Changchun University of Science and Technology. Besides, a"new model" for skill cultivation has been developed, with the establishment of a three-leveleducation and training system comprised of the Goertek College, workshop training and onlineclasses. Expert lectures and technical trainings are held regularly. In addition, a "2+1+1" trainingmodel for undergraduate manufacturing engineers has been proposed.With heartfelt affection for talents, Goertek strives to create an "excellent ecology" for talentretention with the help of distinct positive incentives. With the launch of the talent performanceimprovement campaign, the Company has been honoring employees' compensation accordingto their work performance. Some outstanding talents have their compensation doubled. Effortshave been made to create a favorable environment for employees in terms of training, housingsubsidies, medical care, medals for seniority, employee hotlines, and loving assistance, so as toretain talents with satisfactory compensation, promising career development, and earnestaffection.
2.1.3. Innovation Mechanism and Investment
As an innovative high-tech company with global presence, Goertek attaches great importance toits R&D investment and technological innovation. In order to promote technological competence,facilitate technological innovation and strengthen R&D capabilities, the Company hasestablished its Technology Committee, with seven specialized technology sub-committees thatare responsible for the enhancement of technological competence in each professional field. Wehave carried out the construction of Integrated Product Development (IPD) system in phases,and established a cross-discipline core team in the field of product development as well asstrengthening the Decision Check Point (DCP) based on the comparison with industrybenchmarks and our actual business, thus accumulating the best practices in the industry. Therepresentatives of each field are responsible for the quality planning, acceptance andimprovement in their own field. By minimizing the possible risks in the product design process,improving the market awareness of R&D personnel, and enhancing their foresight, we are able
to maximize corporate profits.Over the past five years, the Company has invested a total of over RMB 13 billion in R&D. ItsR&D investment in 2021 totaled over RMB 4.3 billion, accounting for 5.50% of its operatingincome. The central research institute and system solution center have been established at thecorporate level and business group level. With Weifang and Qingdao centers as the core,supplemented by Shenzhen and Dongguan centers, a global R&D model of "double core + multi-location synergy" is created to stay close to forefront of technical talents, plan on promoting newtechnology research, and reserve technology and talents for the future development of theCompany. Meanwhile, by closely following the frontiers of technological innovation, identifyingpotential opportunities of technology, and monitoring the technology trends in real time, we areable to steer the direction for the technology development of the Company. Our continuousincrease in R&D investment has further enhanced the competence of our product solutions inthe global market.
2.2. Promotion of Green Products
Goertek has always been committed to using safer materials to produce safer products. Ourpolicy for the management of hazardous substances is "Complying with laws and regulations,promoting green manufacturing, providing environmentally friendly products, and satisfyingclients' needs". The Company has established a professional team for green product management,thus gaining recognition from well-known clients in the industry. With great importance attachedto environmental compliance, the green product management division has been under the directsupervision of the Company. In 2021, Goertek made numerous breakthroughs in its greenproduct management, especially in term of raising the awareness of all employees onenvironmental compliance, the effective operation of the hazardous substances processmanagement system, the comprehensive IT-based operation of the Company's environmentalcompliance data, and the interpretation and response to the latest dynamics of regulations andclient requirement.In 2021, we inquired a total of 95 green product-related regulations and interpreted the updatedhazardous substance specification of 8 key clients to effectively identify and ensure the
continuous compliance of our products. The Interpretation of Hazardous SubstancesRegulations for Electrical and Electronic Products was released for the first time in January asa monthly newsletter, totaling 12 issues. Study sessions were organized among all employees tofacilitate learning of product environmental regulations. In July, the Company launched anonline course on knowledge of environmental regulations, enabling online induction training fornew employees. In November, when the pandemic situation was severe, the Company activelycooperated with third-parties, and implemented online environmental compliance training forsuppliers for the first time, which effectively raised the environmental awareness of allemployees and suppliers.
In 2021, Goertek successfully passed the IECQ QC080000 system certification renewal audit,and also gained certifications for seven new product ranges. Our hazardous substances processmanagement system was running effectively, with positive recognition from clients.The Company continues its vigorous efforts to optimize the IT-based management of data. Bythe end of 2021, all environmental compliance data of suppliers had been uploaded onto theCompany's Supplier Collaboration System, enabling full IT-based management.In addition, the Company adequately owns 15 sets of XRF testing equipment, and a high-endchemical testing laboratory. Equipped with ICP-OES, GC-MS, IC, UV-Vis and other testingequipment, the laboratory passed the accreditation of China National Accreditation Service forConformity Assessment in 2010 and obtained ISO/IEC 17025 laboratory qualification(certificate number: CNAS L4750). It passed the renewal re-accreditation in 2016 and theexpansion re-accreditation in 2020, making its accreditation continuously valid.
3. Employee Care
People create the corporate value. Human resources is Goertek's key resources and fundamentalcomponents of Goertek's core competitiveness. On top of complying with laws and regulationsand the Code of Conduct of the Responsible Business Alliance (RBA), Goertek further advocatesthe cultural slogan of "We make, we share, we thrive", committed to creating a safe andcomfortable working and living environment for its employees, protecting their legitimate rightsand interests, and caring for their welfare and career development. Goertek listens to employees'voices through various employee communication channels and, based on their feedback, tailorsits compensation and benefits policies and improves its management system. In addition, theCompany implements a "first-class talent" strategy, and builds multiple career training platformsand promotion channels to facilitate the training and development of human resources andachieve all-round care for employees in work and life, thereby achieving common growth withthem.The total number of Goertek employees was 95,780 in 2021, serving in different businesses ofGoertek, as detailed below:
| Employee Composition | |
| Position category | The number of people in each section |
| Production person | 69,815 |
| Sales person | 670 |
| Technical person | 19,753 |
| Financial person | 306 |
| Administrative person | 5,236 |
| Total | 95,780 |
| Education background | |
| Education background category | The number of people |
| Doctor | 78 |
| Master | 3,435 |
| Bachelor | 16,170 |
| Junior college | 18,823 |
| Below junior college | 57,274 |
| Total | 95,780 |
3.1. Respect for Employees and Protection of their Legal Rights and Interests Accordingto LawGoertek pursues the culture concept of "We make, we share, we thrive" and fully respects eachand every employee. The Company fully implements the Labor Law of the People's Republic ofChina, the Labor Contract Law of the People's Republic of China, and the Social Insurance Lawof the People's Republic of China, among other relevant laws and regulations, and hasestablished corresponding management rules and regulations to ensure that all discrimination inrelation to race, color, age, gender, sexual orientation, disability, pregnancy, religious belief,political affiliation, geography, association membership or marital status, and other factors thatgenerate discrimination are prohibited in the recruitment, employment, training, promotion,compensation and benefits. The Company enters into labor contracts with its employees on thebasis of equality, voluntariness, consensus, honesty and credibility in accordance with laws, andfully fulfills its labor contract obligations. In the context of the normalization of pandemic
prevention and control, the Company has innovated a new model of "Internet + labor contract"and launched a nationwide electronic labor contract signing system to improve employees'experience, effectively protect their legitimate rights, and realize the unity of employee value,company value and social value.We conduct employee management in compliance with laws and regulations, and strictly enforcethe compensation standards as required by the government. Forced labor is strictly prohibited,and the three measures of process and system, training and communication, and supervision andinspection are applied to avoid forced labor, harassment and abuse, so that employees' freedomof employment is respected and modern slavery is eliminated. In addition, the Companyexplicitly prohibits the employment of child labor in its recruitment system and adopts the "five-step method" of identity confirmation at interviews to ensure that employees' identities are realand valid, so as to avoid child laborers from mistakenly joining the Company. Also, the Companyhas formulated remedial measures for child laborers to effectively implement its child laborprotection obligations.Special employees are treated with great care in Goertek. In accordance with the EmploymentPromotion Law of the People's Republic of China and the Law of the People's Republic of Chinaon the Protection of Disabled Persons, the Company respects equal employment opportunitiesfor special groups such as disabled persons and guarantees fair and just treatment in terms oflabor protection and job adjustment. Meanwhile, according to the Law of the People's Republicof China on the Protection of Women's Rights and Interests and the Special Rules on the LaborProtection of Female Employees, the Company strictly protects the legitimate rights and interestsof female employees during the "three periods", namely pregnancy, maternity leave and nursingperiod, and reduces the workload of pregnant female employees who are unable to take up theirprevious work or assigns them to other work that they can adapt to.The protection of employees' legitimate rights and interests has further strengthened the cohesionof the Company, creating a multi-win pattern of harmonious labor relations.
3.2. Compensation and Benefits
Goertek practices the culture concept of "We make, we share, we thrive". In 2021, the Companycontinued to emphasize the attraction, motivation and retention of talents, and implemented acompetitive and high-performing compensation incentive policy and benefits care. Throughoptimizing the distribution mechanism, employees could share the growth of corporateprofitability.Despite the challenges of the pandemic and the unfavorable economic environment in 2021, theCompany still insisted on its annual compensation review and adjustment, resulting incontinuous and stable growth of employees' incomes. For core positions, key groups and high-end talents that support the strategic new business development of the Company, a specialcompensation adjustment policy has been implemented to effectively achieve the precision talentattraction and retention. To further reserve talents for the sustainable and sound development ofthe Company, the compensation level of fresh graduates has been continuously and vigorouslyraised, and a "moat" special retention incentive has been offered to the identified outstandinguniversity students.In addition to providing competitive compensation, the Company has been providing stock andoption incentive plans for its core employees, so that more and more core employees can sharethe value growth of the Company. The number of stockholders has further increased in recentyears through the continuous innovation of the equity incentive mechanism. Benefiting from thecontinuous rise of the Company's share price in recent years, employees have enjoyed a steadyincrease in their annual exercise proceeds, and long-term incentives have become a key way toattract, retain and motivate employees to make joint efforts to boost company growth.The compensation of directors and supervisors of the Company is proposed by the Compensationand Appraisal Committee of the Board of Directors. After review and approval by the Board ofDirectors, it shall be submitted to the Shareholders' Meeting of the Company for approval beforeimplementation. The compensation standards of senior management shall be proposed by theCompensation and Appraisal Committee, and implemented after deliberation by the Board ofDirectors. In addition, allowances for independent directors shall be paid on a regular basis.
In addition, Goertek is committed to building a diversified welfare system with its owncharacteristics. Free physical examination, accommodation, shuttle bus and tailored transit areprovided to all employees; the 1st, 3rd and 5th anniversary and 10-year and 20-year loyalty anddiligence exclusive activities are carried out for employees; colorful employee activities, suchas Cultural Street of Mid-Autumn Festival, mass wedding and employee family days are held;the Employee Assistance Program (EAP), legal aid, family
+mutual aid fund, and 99 publicwelfare days are offered to employees and their families, aiming to bring happiness to employeesin all aspects and enhance their welfare satisfaction.
To foster employees' diversified interests and create a healthy living climate, each industrial parkin Weifang is equipped with a variety of leisure and entertainment facilities, including outdoorsoccer fields, basketball courts, running tracks, and fitness areas, as well as staff activity centerswith standardized indoor facilities (table tennis, badminton, billiards, fitness facilities, stafflibrary, dance/yoga rooms, consultation rooms, and club rooms). Moreover, 12 interest clubshave been established based on employees' interests, which include the empowerment andenhancement clubs, namely, the photography club, the reading club and the calligraphy andpainting club, the sports and fitness clubs, namely, the basketball club, the soccer club, thebadminton club, the table tennis club, the cycling association and the yoga club, and the qualityof life clubs, namely, the matchmaker club, the singing and dancing club and the traveling club.Based on these clubs and corporate culture, the Company held a number of cultural activities in2021, including Spring Festival couplet writing with blessings, Lantern Festival, mass wedding,youth bonding, basketball tournament, Cultural Street of Mid-Autumn Festival, New Year'sshopping Festival, ping pong and badminton league, and cycling, which greatly enriched thespare-time cultural life of employees.
Besides the physical health, the mental health of its employees is also of great concern to theCompany. To care for employees' mental health and strengthen the humanistic care for them, theLabor Union, together with the Human Resources Department and the Employee ManagementDepartment, launched multifaceted explorations on how to enhance employees' happiness inOctober 2020. After enterprise benchmarking, the EAP project was officially initiated in May2021 under the guidance of professional consulting organizations. A special EAP project teamwas set up to carry out EAP services comprehensively. By the end of 2021, the EAP programhad been running for half a year, with six service projects carried out altogether, including 7*24hotline for psychological counseling, training of corporate mental health managers, holistichealth counseling, mental health assessment, training for new employees known as "GoertekWings", and crisis intervention and management. In the coming years, we will also carry outEAP-themed training and empowerment program for different groups, so that EAP services canbenefit more people and truly achieve maximum value.Employees may inevitably encounter legal disputes and traps in their life and work, which cancause various troubles. We aim to provide better legal services to employees and meet their needsfor legal support, as well as to further educate employees on legal knowledge, so that they cantruly enjoy the legal services at their doorstep. Starting from 2020, the Labor Union has joined
hands with the Legal and Intellectual Property Management Department of the Company tolaunch the Legal Service Day. In 2021, our legal service team continued to grow, with more than10 legal experts in handling cases. In respect of civil and criminal services, the coverage wasexpanded from two parks, namely, Weifang Electroacoustic Park and Photoelectric Park, to theR&D building in Qingdao. On the Legal Service Day, two to three legal experts will be availablein each industrial park to provide one-on-one legal consultation, offering professional anddetailed legal advice to our employees. Over 240 cases of legal consultation were received in2021, with the main topics of consultation being real estate disputes, marriage and family affairs,personal loans and traffic accident disputes. Experts will provide continuous legal servicesaccording to the actual situation of each employee. After two years of development, the LegalService Day has successfully set up a bridge between the Company and its employees, not onlyhelping employees to solve difficult legal disputes, but also educating them on common legalknowledge and promoting the sound culture of "knowing the law, understanding the law andabiding by the law" within the Company. As the legal awareness of employees continues to riseover time, the demand for legal advice will increase as well. The Legal Service Day will continueto follow the needs of employees, exert greater value and fulfill its role as a "legal back-up" foremployees.
In addition, the Company has built a platform offering universal benefit, "Goertek Welfare Mall",by integrating internal and external resources, and regularly organizes group purchase activitiesfor leisure and entertainment, life services, daily necessities, internal purchase of electronics andholiday stuff, so that employees can truly enjoy the benefits and convenience. In 2021, 26 grouppurchase activities were conducted, with 700,000+ views, 100,000+ visitors to the mall, 35
newly introduced partners, and 20,000+ participants, saving a total of more than 1.8 millionRMB for employees. These activities, such as themed group purchase activities for traditionaland electric vehicles, home appliances, Mid-Autumn Festival & Chinese New Year festival items,were highly popular among employees.
In order to get employees fully involved in the brand growth of Goertek, the mascot of Goertek— Goerboy — was launched and its image was upgraded in 2021, reaping the love of manyemployees quickly with its three-dimensional image. Its lively and lovely image of intelligentrobotic doll has deepened the emotional bond between Goertek and its employees. With themascot as the spokesperson, a creative call for brand enhancement has been launched. Moreover,through such forms as Goerboy's online science education videos, employees are able to promotetheir professional knowledge reserves. A variety of new peripheral products have been createdmodeling the mascot, such as dolls, dazzling laser bags, cartoon canvas bag sets, multifunctionalcartoon card holders, metal keychains, cartoon balloons of Goerboy, refrigerator sticker sets,mugs, notebooks, emoji, calendars, and stickers, gaining great popularity among employees.Goerboy appeared in scenarios such as Goertek's 20th anniversary celebration, Goertek Sports
Meeting, Goertek mass wedding, Loyalty and Diligence Award Ceremony, Goertek CulturalStreet of Mid-Autumn Festival, and all-media communication platforms, thus enablingemployees to perceive a real connection with the mascot and experience Goertek's warmth, andthus enhancing their sense of belonging.
In 2021, the Labor Union of our Vietnam subsidiary also organized a number of significantactivities aiming to improve the welfare of employees. For example, gifts were provided toemployees on International and Vietnamese Women's Day, Mid-Autumn Festival, VietnamLiberation Day, International Labor Day and other such holidays; during the Chinese New Year,in addition to gifts for employees, a special bus was arranged to ensure that employees got homesafely for the holiday; monthly birthday parties were hosted for all employees, with specialbirthday gifts prepared. Besides, lucky draws were arranged during the festival and annualmeetings of the Vietnam subsidiary, and gifts were presented to those lucky ones. In order torecognize and encourage employees with significant contributions in their work, and to inspiretheir work enthusiasm, the Vietnamese subsidiary organized a Commendation Conference forOutstanding Employees in 2021. During the Conference, the outstanding employees were highlyrecognized for their dedication and efforts. The Company expected that they could maintain their
excellent characters, continuously improve their skills and professionalism in their work, andserve as benchmarks for more employees to learn from.
In the process of production management, employees' health is also a concern of the Vietnamesesubsidiary. It organized various sports activities for employees in 2021, such as shuttlecockcompetition and soccer match. In order to appreciate and encourage employees' contribution tothe company, warm greetings and gifts were also given to employees with 5 years of service;furthermore, after learning that the roads posed difficulties to employees' daily commute, thesubsidiary and its labor union made timely funding for road renovation to ensure employees'safety and convenience in their commute.In the meantime, Vietnam still faced grim pandemicconditions in 2021. Under this circumstance, thesubsidiary continued to give top priority to protectingthe rights and interests of its employees. To protect thesafety of employees, the subsidiary set up a PandemicContainment Command Center, and formulated variouspandemic prevention measures and instructedemployees to comply with them. Confirmed employees were sent to hospitals for treatmentpromptly, and each confirmed employee received a condolence allowance from the labor unionin addition to his/her salary.
3.3. Career Development and Growth of Employees
As talent is the core competence of a company, Goertek attaches great importance to the growthand development of its employees. In 2021, the Company continued to carry out human
resources transformation projects, and established a special project for accelerated cultivation oftalents for transformation, focusing on business needs, cultivation of talents in each tier, exertingthe driving forces of culture, mechanism and policy, and continuously improving the careerdevelopment channels for employees. Various learning, training and improvement channels wereconstructed for employees, and a sound learning system for employees was set up to develop thecareer development opportunities of employees. In 2021, the Company's investment in trainingincreased by 52% year-on-year. The HR Department works with all business departments tocarry out training programs for leaders, new employees, specialized talents, technical talents,and front-line employees, so as to help them keep learning and growing, and better realize theirpersonal value and professional achievement. Through constant improvement of the businesstraining mechanism, a pool of talent resources is established to supply a steady chain of talentoutput for the Company according to business needs.In 2021, the Company continued to implement a comprehensive and multi-disciplinary talenttraining strategy to fully inspire its organizational energy. The HR Headquarters is continuouslyupgrading training programs by coordinating the work among platforms of each specialized line.As a result, these specialized talent training programs have become increasingly well established.By continuously empowering specialized talents (via special training in finance and economics,quality, lean management, supply chain, and HR), the business foundation is continuouslyconsolidated and the competence of each specialized list of talents is soundly improved.The Company has been continuously upgrading its new employee training system, with newemployee training programs for campus recruitment (the "Goertek Wings" program and "Wings2000" program) and for social recruitment (HUG training), so as to facilitate the rapid integrationof new employees, improve their professional capabilities comprehensively, and boost theirsteady growth. In 2021, the Company focused on the retention and development of employeesin the Goertek Wings program, in order to facilitate their adaptation to and integration into theCompany. Through the establishment of a Company-level project targeting employees in theGoertek Wings program, the HR department joins hands with business departments to managethe entire process from precise recruitment, training and development, to compensation andincentive, and care and retention, clarifying the career paths and various guarantee policies for
the development of employees in the Goertek Wings program, enhancing employees' trust in andloyalty to the Company, and propelling common growth of both employees and the Company.
Meanwhile, the HR department undertakes the senior-level employee training of the Company,and continues to strengthen the enforcement of senior-level employee standards and senior-levelemployee monitoring. Through the G-Plan and M-series training programs, the goals ofidentifying and training senior-level employees with great potential, enhancing and putting theirabilities into use, and improving their ethics, so as to continuously produce and competentsenior-level employees with good character for the Company.
The key to the progress and development of a company lies in its talents. In order to strengthenthe Company's core competencies, build a learning organization and refine the construction of atalent pipeline, the HR department took the lead in 2021, in collaboration with all businessgroups, to systematically upgrade the Company's training operations, sort out lecturers, coursesand resources, and focus on improving lecturers' professionalism and enhancing their sense ofhonor, while emphasizing the quality of courses and setting course levels and standards. In 2021,a total of 545 lecturers were certified, all of whom went through the TTT training to improve
their professionalism and effectiveness of their lecturing. 404 courses were developed in 2021,17 of which were rated as excellent courses and 81 of which were company-level quality coursesdeveloped based on business needs. At all levels of the Company, talent cultivation is vigorouslypromoted in support of the Company's strategy. The Company's senior management played aleading role in offering lectures, registering a total of 6,923 lecturing hours, 27.4 lecturing hoursper capita, and an 87% increase in the frequency of lecturing. All employees receive training,with 45.8 hours of training per capita.To train primary-level managers and technical talents more effectively, and promote thesustainability of manufacturing manpower, Goertek gave full play to its role as an innovativeentity in 2021, and carried out a series of cultivation and training activities related tomanufacturing manpower, forming a unique mechanism for selecting, nurturing, employing andretaining talents, so that primary-level managers and technical talents can keep up with thedevelopment of this industry.For the employed manufacturing manpower, the Company continues to empower and optimizethe manufacturing manpower structure by opening up the promotion path for primary-levelmanagers, adjusting the remuneration structure and conducting a review of the entiremanufacturing manpower. In 2021, the Company continued to train shift leaders and rate themwith stars. 1,373 shift leaders participated in the training. Moreover, instructors were appointedin business units for the first time to take charge of the training of primary-level managers, with74 individuals having completed the training and 23 having passed the evaluation so far. Tofurther enhance the stability of primary-level managers while continuously improving theircapabilities, the Company further optimized the promotion paths for these managers in 2021 byupgrading the 5-level hierarchy to a 7-level hierarchy, so that it is possible for primary-levelmanagers to be promoted to ministerial-level managers.As the manufacturing mode upgrades, requirements for technical talents are getting increasinglyhigher. In 2021, the Company continued to put effort into building a great team of technicaltalents, clarifying the positioning of craftsmen and improved the career path for them. 195craftsmen passed the evaluation, while 471 were trained under a. novel enterprise apprenticeshipsystem jointly carried out with universities. The Company conducted internal empowerment
training for craftsmen, training camps for inexperienced craftsmen and training camps for skilldevelopment. Moreover, a systematic review was conducted for the technical talents in theCompany, who were divided into 11 groups based on their technical specializations, with theirjob posts and specific requirements clarified. Meanwhile, the Company further benchmarked itsskill level settings against those adopted by other enterprises, and continued to carry outindependent evaluation, with a total of 2,558 employees evaluated in 2021. This furtherstrengthened the efficiency of the occupational skill levels set for evaluating the Company'stechnical talents.
In 2021, the Company continued to improve the quality and quantity of training for preparatoryprimary-level managers and technical talents, with strengthened joint training of craftsmen classbetween Goertek's Craftsman Training Center and various colleges and universities. 215craftsmen/technicians were trained in 2021, 84% of whom were qualified by skill recognition,receiving the same pay level as an average graduate with a bachelor's degree. The training hasbeen strengthened continuously to enhance front-line management ability. In 2021, 507 newfront-line shift leaders were trained, and 470 employed shift leaders received rotational training.The management ability of these front-line shift leaders was systematically enhanced throughtheory learning and practicing. In 2021, the Company continued to explore the university-enterprise cooperation mode. On the basis of the "1+1+1" craftsman/technician class model,Goertek built a modern industrial college many universities and conducted training for the firstbatch of 112 undergraduates. Through the systematic training on manufacturing technology,process, mold, workflow, quality, and corporate culture, students are able to master theknowledge and capabilities required by enterprises while further deepening their understandingof employment and career choice. The Company was jointly recognized by the National
Development and Reform Commission and the Ministry of Education in June as one of the firstbatch of state-level industry-education integration enterprises integrating production andeducation; in December, it was recognized by the Department of Industry and InformationTechnology of Shandong Province as a public training base (demo category) for the new-generation highly skilled personnel in information technology.
In 2021, oriented toward employee growth, the Vietnam subsidiary vigorously promoted thetalent localization training program, with a focus on senior-level employees and employees inthe Goertek Wings program, so as to orderly construct a localized talent pipeline.
Despite the impact of the pandemic, various training programs were carried out in an orderlymanner. In 2021, a new plan was made for the senior-level employee training system of theVietnamese subsidiary, with upgraded internal and external resources, regulated operation andimplementation, and standardized processes. A total of five senior-level employee trainingclasses were set up, covering 306 people, including 231 Vietnamese nationals, with anaccumulative 300 hours of lectures. As a strategic reserve of talents for the Company's futurerapid development, an end-to-end management system for the Goertek Wings was establishedin early 2021. For the Goertek Wings candidates of previous years, a series of training andemployee care activities were carried out by coordinating the efforts of various business groups;
and for the Goertek Wings candidates of the present year, a comprehensively upgraded inductiontraining camp was held, training 154 people. Through good management of the all-round entire-process training, a localized management ecology for the Goertek Wings initially took shape.
In 2021, with continued adherence to the Company's strategic direction and focus onbusiness development needs, the Goertek subsidiary in South China remained dedicated to thetraining of talents in each tier and development of a learning organization. In particular, the SouthChina subsidiary empowered its team through a variety of senior-level employee training andfront-line management improvement courses, which enhanced the management ability of thesenior-level employee team and effectively stimulated their vitality. By optimizing the contentand operation form of HUG training courses, new employees had better induction experienceand integrate faster. English language courses were developed to improve the English of thebusiness teams and thus enable them to serve clients more efficiently. The in-service growthprogram for the Goertek Wings candidates was developed and implemented, to facilitate the skillimprovement of fresh graduates while they work and to quickly make them feel a sense of value.The Learning Together Day (LTD) program organized weekly learning on specific topics. Itsrich content and flexible lectures won wide popularity among the employees of the South Chinasubsidiary, and at the same time, everyone in the organization was encouraged to pursue personaldevelopment. As more people were engaged in learning, people are more convinced by thepower of learning income growth. Through the project of "Gathering Teachers for ExtensiveEducation", internal lecturers of the South China subsidiary were selected and trained; thisproject also became a booster for corporate culture inheritance of the Company and skillimprovement of the employees. In 2021, the South China subsidiary independently developedand introduced 42 excellent courses, organized 36 public courses at Company level, and trained
28 internal lecturers. The internal training covered 83.1% of senior-level employees; the numberof voluntary participants grew by 211%; the per capita offline learning hours grew by 750%; andthe average satisfaction of participants scored 4.91 (out of 5).
3.4. Employee Engagement and Communication
In order to more widely and timely receive the suggestions and opinions of employees and moreeffectively solve their problems, Goertek continued to strengthen the function of its Labor Unionin 2021 and set up a professional team to systematically manage issues such as employee care,employee rights protection, assistance for those in need, convenient facilities, inclusive servicesand cultural and sports activities. In July, the Weifang Campus of the Company held the FourthEmployees' Congress, which was attended by the leaders including the Secretary Chief of theHigh-tech Zone, the Head of the HR department, the chairmen of all functional departments andbusiness groups as well as employee representatives, with a total of more than 200 participants.The Congress heard the reports on the work of the Labor Union, the Funds Review Committee,human resources, administration and work safety in recent years, elected the members of theFourth Labor Union Committee, the Chairman and the Vice Chairman of the Labor Union, themembers and the Director of the Funds Review Committee and the members and the Director ofthe Female Workers Committee, and deliberated on the member composition of the LaborDispute Mediation Committee. Moreover, 12 rules and regulations were deliberated andapproved by the Congress, including the code of conduct for employees, leave management, andthe reward and punishment mechanism, to continuously improve the capacity of employees'democratic engagement and give full play to the Employees' Congress.
The Labor Union has set up communication and feedback platforms such as the Labor UnionService Hotline, the Labor Union Email, the "Goertek Staff Home" official WeChat account, andsatisfaction surveys, so as to hear the demands of employees and solve their pressing concernsin a timely manner, thus creating a harmonious labor relationship and forming a community ofshared destiny between employees and the Company. In 2021, the Labor Union received 2,630messages of feedback from employees through various channels such as WeChat, email andhotline, with a 100% closure rate. Timely and effective assistance was provided to employees insolving or responding to various problems they encountered, so that employees could truly "turnto the Labor Union whenever in need".In addition, an internal supervisory organization has been established, with standardized internalcomplaint and appeal channels and handling mechanisms, maintaining strict confidentiality andprotection measures for complainants and petitioners, and prohibiting any form of retaliation.Employees can complain about any problems, and the internal supervisory organization assistsemployees in solving problems through such ways as visits, investigations and employee talks.The year 2021 marks the 20th anniversary of Goertek. The employees jointly composed a themesong for the 20th anniversary - "Together", with more than 300 employees contributing theirideas. The youthful and vigorous sound covered every corner of the Company's departments andcampus, and its vibrant music video has also swept across the employees' WeChat Moments.The theme song was also well received by platform users after being released on QQ Music,Netease Cloud Music and WeSing. At the same time, the Company carried out multiple creativeactivities for the 20th anniversary on the TikTok App, with a total of more than 2 million viewson the topics, receiving enthusiastic responses from employees. In the #Shining Goerteker#activity, employees actively uploaded self-choreographed videos, with over 1,000 employees
participating in the shooting and interaction, showing their passion for life and work; in the#Singing Goertek# activity, hundreds of employees participated in the hand-gesture dance anddanced to the theme song, showing their best dance moves. A variety of activities such as WeChatportrait customization, exclusive blessing poster customization and creative group photochallenge were launched on WeChat, engaging employees in the bustlw of the Company'scelebration.
In 2021, Goertek created its original workplace gymnastics as part of the Goertek WorkplaceFitness Initiative, and called on all employees to spend five minutes every day on exercise. Theworkplace gymnastics comprises six moves to help employees enhance their physical fitness,exercise their body, and relax their muscles. The activity gave rise to a workout craze amongemployees. More than 30 teams from various departments within Goertek were formed tocompete in the workplace gymnastics competition. Over 10,000 people participated in votingthe best-performing team, making workplace gymnastics a featured activity for physical fitnesswithin the Company.
In 2021, the TV program "Goertek TV" was officially launched and broadcast in staff cafeterias,spaces in front of elevators and Goertek's intranet, with six episodes already aired. Goertek TVfocuses on the latest news of the Company and the industry, and activities of various departments.Employees can also send blessings to their colleagues by ordering songs, which has been wellreceived by employees once it was launched. Many ordered songs for their colleagues. Theposition of "Goertek TV" anchor is held by employees, becoming an opportunity for them toshow their personal charisma. Currently, there are already more than 20 TV anchors.
In 2021, the South China subsidiary set up a jukebox program to enable employees to betterrelax themselves and have more pleasant their break from work. 387 songs were orderedthroughout the year, and employees' sense of engagement and sense of ownership within theCompany was strengthened. Birthday parties were held for employees monthly with exclusiveprivileges for employees having birthdays. There are games, Karaoke, delicacies and cakes forthe celebration. In traditional festivals such as the Mid-Autumn Festival and the Lantern Festival,joyful events were prepared to make employees feel the care and love of the Goertek family andto improve their sense of belonging and happiness.
In addition, to enrich the leisure life of employees and to keep a good balance between work andleisure, the South China subsidiary actively carried out various activities, including moviescreening, art performance, dating activity for the single, "GBA three-player basketball match,flash mob where employees give Chinese New Year blessing in dialects and various teambuilding activities.
In 2021, the Vietnamese subsidiary continued to strengthen the functions of its Labor Union, andset up a professional team to systematically manage such affairs as employee care, assistance forthose in need, convenient services, art and sports activities, and medical services. Feedbackchannels such as hotlines, emails, satisfaction surveys, employee suggestion boxes and talkswere established by the Labor Union to fully and timely learn about the demands of employeesand address their demands. In 2021, the Union received 83 messages of feedback fromemployees, mainly related to cafeterias, parking areas and union benefits, through emails,hotlines, employee suggestion boxes and face-to-face talks, with a 100% close rate. Throughtimely and effectively helping employees solve or answer various problems encountered in theirwork and life, the Union set up a bridge of communication with employees, enabling them totruly enjoy the benefits of "Turning to the Labor Union whenever in need". To make it moreconvenient for employees to provide feedback more comprehensively, the Vietnamese
subsidiary opened an official WeChat account as a new feedback channel for employeesuggestion boxes in 2021, which was used actively by employees.
4. Occupational Health and Safety
The safety management of Goertek is mainly about aspects such as employees' occupationalhealth and safety, environmental protection and fire safety. Since 2007, the Company hassuccessfully passed the certification of ISO14001 environmental management systems andISO45001 (certified OHSAS18001 by 2019) Occupational Health and Safety ManagementSystems by DNV.GL for 15 consecutive years without any serious non-conformity. TheCompany conducts internal audits on a rolling basis every year covering the entire businessprocess of all departments, to continuously improve and optimize the EHS management. TheCompany has passed the certification review of Level 2 Safety Production Standardization since2015 by further strengthening its safety production management. The Safety ManagementCommittee has been set up with 5 secondary management panels, totaling more than 40registered safety engineers and about 10 registered fire engineers working together to ensure thesafety of all employees and the surrounding areas.
4.1. Hazard Identification and Control
The Company actively carries out graded risk control and hidden danger investigation andmanagement. The construction of the double prevention system has been taken as a key measureto prevent and resolve major risks in production, with its concept, method and means beingcontinuously improved and perfected. Through targeted guidance and precise improvement,various types of supervision functions were coordinated to monitor the fulfillment ofresponsibilities and comprehensively improve the prevention and control of production accidents,so as to boost the steady and sustainable production safety of the Company.The Company follows the principle of "moderate size, easy classification, independent functions,convenient management and clear scope". Based on the Hazard Identification and RiskManagement Process and the Operation Guideline for Hazard Identification and RiskEvaluation, we use the Operation Activity List and the Equipment and Facilities List toinvestigate in all aspects and processes, and reasonably classify the risks in the Company thatmay lead to accidents, including equipment and facilities (including common facilities sharedby various departments), operation behaviors, environmental conditions and construction sites.The Job Hazard Analysis (JHA) + Evaluation Record and the Safety Checklist Analysis (SCL) +Evaluation Record are respectively used for analysis and evaluation. According to the evaluationresults, the level of risks is determined, and the Risk Grading and Control List for OperationActivities and Risk Grading and Control List for Equipment and Facilities are developed toclarify the control measures and control levels. As required by the Safety Inspection ManagementSystem, periodic inspection and remediation of risks at sites are conducted to continuouslyimprove safety management by identifying and addressing problems.
| Inspection of chemicals | Inspection of limited space |
4.2. Shaping a Sound Working Environment
4.2.1. Working Environment and Condition Guarantee
The Company provides employees with safe and sound working environment and conditions,with simultaneous planning and implementation of occupational disease prevention facilities andsafety facilities at the beginning of construction projects. Production equipment is equipped withsafety guards or interlocking devices, and employees engaged in jobs with occupational hazardsare provided with free up-to-par personal protective equipment (PPE). Meanwhile, medical kitsand first-aiders are available on site to provide emergency rescue for employees.In 2021, we focused on making improvements in terms of apartment safety and security, facilityupgrades and environmental improvement to continuously better the employee accommodationexperience and raise their sense of belonging.
(1) Greater investment in safety
The Company has always attached great importance to the safety of accommodation, withcontinuous increase in its investment in apartment safety facilities and intelligence. In 2021, theCompany upgraded the common mesh for all apartment windows to diamond mesh, for greatersafety and security, as well as beauty and uniformity. It spent substantial sums replacing alltraditional mechanical door locks with intelligent ones to ensure safety at employees'accommodation while making access more convenient for employees. By upgrading thetraditional electricity meters to intelligent ones, the electricity use can be better monitored toensure the safety of employees' electricity use. While upgrading the hardware, attention was also
| Nighttime safety inspection | Safety inspection of environmental protection facilities |
paid to strengthening safety management. The set-up of safety exits of the apartments compliedwith laws and regulations and design specifications, and daily inspections and spot checks werestrictly implemented to ensure that safety exits are available and the escape routes are kept clear.
(2) Upgraded facilities for service improvement
The Company is committed to continuously improving the living conditions of its employees.With great concern for employees' health, direct-drinking water collection points were set up atthe apartment floors in 2021, with plans to further upgrade the water to mineral water ofrecognized brand in 2022, so that employees could enjoy high-quality and safe drinking water.For historical reasons, some of the apartment buildings were built long time ago, with centralizedbathrooms at their initial planning and construction. After evaluation and validation, theCompany launched an intelligent bath upgrade project to place bathrooms at all floors, makingshowering more convenient, efficient and private for employees and thus solving their worriesover showering. Through practical actions, the Company honors its service concept of "servingwith heart and soul, and sharing a warm home", delivering quality services and joy to itsemployees.
(3) Environmental beautification and cultural heritage
The Company has made great efforts to improve the accommodation environment of employees.By cooperating with professional property management companies, the Company has increasedthe investment in human and material resources, and continuously improved the standard ofhygiene and cleanliness, so as to create a neat and hygienic apartment environment. Designedby the Company and participated by employees, an apartment culture wall with Goertek'scharacteristics has been created, embellishing the accommodation environment while delightingthe employees. The concept of integrity, pragmatism, and win-win cooperation has beenembedded into the minds of all employees, enhancing their sense of ownership, so that Goertek'sculture takes root in the hearts of every employee.
4.2.2. Solid Promotion of Fire Safety Management
The Company always adheres to the fire safety management principle of "prevention comes first,followed by defense and elimination". It conscientiously implements fire safety investigation,rectification, publicity, training and drill activities, putting fire safety work as the top priority,while taking various measures to ensure effective implementation of fire safety work.
(1) Clearly define fire protection responsibilities
By improving the grid-like management of fire safety, responsible persons and administratorsfor fire safety are assigned at all levels, so as to consolidate the organizational basis of fire safetymanagement. A graded risk control system is implemented, and daily inspections of high-riskareas are intensified. Specific persons are designated to take charge of key fire protection areas,with clearly defined control responsibilities. Voluntary fire brigades of each department areestablished and improved, and a monthly centralized training mechanism is implemented toimprove employees' capability of putting out fire in factories at the incipient stage.
(2) Step up the use of an IT-based fire fighting system
The Company has established an intelligent firefighting Internet-of-Things system to realize24/7 real-time monitoring of firefighting water level, water pressure and residual current ofpower distribution cabinets. Flame video detectors are used for video monitoring of fireinformation, which can track the area of fire automatically and transmit the live videos tomanagement personnel, so as to effectively control hidden fire hazards through high-tech means.
(3) Dutifully carry out fire evacuation drills
In 2021, the Company organized more than 190 fire evacuation drills to ensure that all employeesparticipate in at least one emergency evacuation drill every six months, through whichemployees could learn about fire emergency plans, master evacuation and escape skills as wellas the use of fire-fighting equipment, and improve their emergency response capabilities. In May2021, the Free Trade Zone Management Committee organized fire managers of enterprises underits jurisdiction to observe and learn from the Company's fire evacuation drills. This shows thatthe Company drove the improvement of fire evacuation drills capabilities of neighboringenterprises.
(4) Provide proper fire safety education and training
By inviting experts from fire-fighting branches (brigades) to the Company to train safetymanagement personnel of each department, making posters and billboards, and showing firesafety films, the Company strictly implements the three-level safety training system andcontinuously enhances employees' awareness of fire safety. The Company organized a fire safetyroad show in November to promote fire safety knowledge. Besides, the Company continued toorganize fire safety training for all employees, focusing on explaining the Company's firemanagement rules, the use of fire-fighting equipment, and fire escape skills, so as to enhanceemployees' awareness of fire safety.
4.2.3. Establishment of a Sound Corporate Emergency Rescue System
In order to ensure that the Company can quickly and effectively carry out on-site rescue and dealwith the accident effectively in the event of an emergency, the Company improves emergencyresponse capability, reduce casualties and property losses, protects the safety of the Company,society and employees, and safeguards lives and property. The Company has established andimproved its emergency rescue system and emergency response plan. By the extent of the
damage, the scope of impact, the resources required for emergency disposal and the ability todeal with emergencies, the Company's emergency response can be divided into three levels:
Level 3 (grassroot team level), Level 2 (corporate level) and Level 1 (society level).With the principle of "people-oriented and safety first" and "prevention-based, combined withdefense efforts", the Company formulated the Comprehensive Contingency Plans for WorkSafety Incidents in 2021, in accordance with the Production Safety Law of the People's Republicof China, Regulation on Emergency Responses to Work Safety Accidents, Measures for theAdministration of Contingency Plans for Work Safety Incidents, Guidelines for Enterprises toDevelop Emergency Response Plan for Work Place Accidents (GB/T29639-2020) and other laws,regulations and standards, and was approved by the President of the Company for release.In addition to the corporate-level contingency plan, the Company also prepared more than 20dedicated contingency plans such as Fire Contingency Plan, Chemical Leakage ContingencyPlan and Environmental Pollution Accident Contingency Plan for specific sites, devices orfacilities according to different types of work safety accidents. In addition, more than 10 on-sitehandling plans were prepared, including Fire Site Handling Plan, Chemical Leakage SiteHandling Plan, Electrocution Accident Site Handling Plan and Limited Space Accident SiteHandling Plan, clarifying the description of accident risks, emergency work responsibilities,emergency handling measures and precautions, and prioritizing self-help and mutual help,information reporting and advance handling.A sound emergency response organization has been established, with emergency responsegroups of two levels, namely, the on-site emergency response group and the corporate emergencyresponse group. The on-site emergency response group is composed of field personnel from eachregion. The specific composition is stated in the On-site Handling Plan of each region. Thecorporate emergency response group is composed of the emergency leadership team, emergencymanagement office and emergency response team. In the meantime, the Emergency AddressBook has been prepared, containing the list of members of each group and their contactinformation, so as to quickly get in contact during emergencies with group members.
4.3. Protection of Employee Safety and Health
4.3.1. Hazard Source Notification
According to the distribution of risk points, the Company has posted risk point distribution mapsat the entrance or prominent position of each building/floor/workshop, provided information onthe main risk points, risk categories, risk levels, control measures and emergency measuresthrough risk point notification cards, and organized training for employees to ensure that theyunderstand the basic situation of risk points and master preventive and emergency measures. Forworkplaces and jobs that may lead to accidents, alarm devices, on-site emergency equipmentand facilities, evacuation routes, etc. are set up.
4.3.2. Safety and Health Training
Goertek always takes employees' personal safety as a top priority. In 2021, it organized a varietyof safety training and activities to enhance employees' safety awareness and create a safety-oriented culture. The Company continued to promote the LOPA model management ofhazardous chemical storage areas, and upgraded and optimized the WMS-HXP system toachieve early warning management of chemical storage quantity and dynamic management ofstorage types, thus upgrading the safety management capability and efficiency. In order tostrengthen employees' safety awareness and enhance their safety knowledge and skills, theCompany has been carrying out regular training on injury prevention and creating a strongsafety-oriented atmosphere. Over the years, the Company has been continuously reinforcing thebuilding of a safety-oriented culture. With the theme of "Fulfilling Safety Duties and PromotingSafe Development" in 2021, the Safety Production Month and continuous safety improvement
activities were held. In addition, commercial insurances such as group insurance for personalaccidents, aviation accidents and business travel accidents were purchased for all employees toprotect their lives and properties.
In order to improve all employees' awareness of safety, enhance their safety knowledge and skills,and create a strong safety-oriented culture, the Company places emphasis on safety training andeducation for all employees. Specifically, such safety training includes regular training, targetedtraining, targeted consultation and external training.For regular training, the Company conducts monthly training themed around safety participatedby relevant personnel within the Company, in addition to the three-level safety education andvarious targeted training required by national laws and regulations. The themes carried out in2021 included traffic safety, holiday safety, special power equipment safety, occupational health,chemical safety, environmental protection, summer safety, food safety, production equipmentsafety, first aid knowledge, fire safety and public security, which improved the safety awarenessand knowledge of relevant personnel, ensured 100% training coverage as required of personnelwhose duties were relevant to safety and health, and achieved positive results.
| Work safety cartooning activity | Emergency experience activity |
EHS comprehensive abilityenhancement training
| EHS comprehensive ability enhancement training | Examination on safety knowledge |
Moreover, special attention has also been given to training of safety management and learningof safety management rules for safety management personnel. In 2021, the Company organizedspecial training on safety management, such as safety leadership training for middle and seniormanagers, EHS comprehensive ability enhancement training, safety management personnelrotating training, hazard source identification theory and field practice, compliance evaluationtheory and field practice, and ISO14001 & ISO45001 knowledge training. In addition, youngtalents with great potential in safety management of the Company were identified and invited toparticipate in the EHS 50 Professional Workshop in 2021, with elaborate professional +comprehensive course plans to create a training system for EHS 50 trainees through integratingexternal teaching resources, targeted development of internal courses, and learning forms of bothlectures and seminars. The various targeted training programs on safety managementparticipated by a total of over 1,000 safety managers of the Company. Through theoreticallearning plus on-site practice, the professional capability and competence of safety managerswere continuously improved to ensure the long-term and stable development of the Company'ssafety management.
4.3.3. Occupational Health Management
Through workplace occupational hazards testing and occupational health evaluation, theCompany is able to identify posts with occupational hazards, and regularly organize healthcheckups for employees in such posts. Moreover, various occupational health protectionmeasures are taken to minimize the risk of occupational diseases. In terms of occupational healthcheckups, the Company has cooperated with hospitals to conduct regular pre-job, on-the-job and
EHS internal reviewer trainingEnvironmental factoridentification training
off-the-job medical checkups for employees in positions with exposure to occupational hazards.Not a single case of occupational diseases has emerged in the Company so far.
4.4. COVID-19 Pandemic Prevention and Control
Despite the generally stable COVID-19 pandemic situation in 2021, Vietnam still faced a severecondition, with clusters of associated cases in some parts of the country, and the transmission ofDelta and Omicron variants made the situation worse. Goertek made active arrangements, all-round deployment and rapid response, and carried out comprehensive prevention and control,with corresponding measures implemented swiftly.
4.4.1. Organization of Emergency Drills for COVID-19
In order to carry out the COVID-19 prevention and control and standardize the emergencyresponse, emergency drills of COVID-19 prevention and control were conducted under theguidance of the government. The drill process was executed in an orderly manner according tothe standardized handling process to ensure safety and efficiency of the drill. The drill teamsmade a proper division of duties, performed their respective duties and cooperated with eachother smoothly. The drill significantly strengthened the Company's ability of emergencyhandling and teamwork in preventing any clustered outbreak.
4.4.2. COVID-19 Vaccination
The COVID-19 pandemic is still spreading worldwide and will continue for a relatively longtime. Through vaccination, more people can be immunized and a population immunity barriercan be formed as early as possible in order to consolidate the hard-earned progress of pandemicprevention and control. Vaccination against COVID-19 pandemic also stands a good chance ofpreventing serious illnesses and deaths caused by COVID-19 infection.In 2021, the Company's Health Team for Pandemic Prevention contacted medics from varioushospitals and coordinated a total of 208 times of COVID-19 vaccination. The vaccination ratefor the first and second doses was 93.5%, and that for the booster dose was 83%. In 2022, thebooster vaccination will continue to be promoted to achieve a vaccination rate of more than 90%,thus building up a stronger immunity barrier.
The pandemic rapidly spread in Vietnam in 2021. In order to raise employees' awareness ofpandemic prevention, the Vietnamese subsidiary organized activities to motivate all employeesto fight the pandemic together, praising those working on pandemic prevention, and awardedthose with outstanding contributions to pandemic prevention.
By the end of 2021, the vaccination rate for both the first and second doses of COVID-19 amongVietnamese subsidiary employees was 99%, and that for the booster dose was 82%.
4.4.3. Emergency Response
During the Spring Festival, the Company immediately contacted a third-party medical testingcompany to formulate a nucleic acid testing plan for employees' return after the Spring Festivalholiday according to the number of people returning to Weifang as reported by each campus,with 20 nucleic acid testing points set up in each campus to ensure the smooth operation of theCompany after the festival.
4.4.4. Guaranteed meals and commuting
To avoid packed commuter public transportations at rush hours, staggered work schedules arearranged for employees, with corresponding flexible shifts, and online meetings recommended.All vehicles of the Company are disinfected twice before departure and after return, and all keyareas such as the floor, windows, seats, handrails and air-conditioning openings are fullydisinfected, no corners left unattended.Goertek's staff cafeteria continues to maintain normalized pandemic prevention and control. Byimproving its mechanisms and processes, scientific disinfection and protection measures, andpersonnel management, the cafeteria ensures zero COVID-19 case and safe meal provision.After each meal, the staff cafeteria is ventilated and disinfected, and employees must have theirbody temperatures taken every day and receive regular nucleic acid testing and health screening;the control over procurement of ingredients is strengthened, and cold-chain ingredientsperiodically go through nucleic acid testing; employees are encouraged to dine at staggeredintervals, and panels are erected on tables to create individual dining spots, so as to ensure thesafety of diners.
5. Adherence to Green Operation, and Continuous Efficiency Improvement and EmissionReduction
5.1. Environmental Management
Environmental protection has always been an integral part of Goertek's sustainability strategy.The Company's work in various aspects such as wastewater, noise, waste, green office, andgreenhouse gas assessment has achieved good results. In recognition of the great significance ofprotecting the environment and creating a sustainable society, Goertek has integratedenvironmental protection into every aspect of its operations and throughout the life cycle of itsproducts. According to ISO14001:2015, the Company's environmental management system hasbeen established and applied to all stages of production, including design, development,manufacturing, delivery and service of its products. Environmental factors are identified andevaluated with respect to the life cycle of the products, and corresponding control measures areformulated for critical environmental factors. No environmental protection-related violationsand related penalties have occurred since the establishment of the Company.
5.2. Pollution Prevention and Control
5.2.1. Wastewater Management
The Company's products are mainly assembled, with no industrial wastewater produced duringthe production process. Domestic wastewater mainly comes from drainage of the officebathrooms, dormitories and staff cafeteria. In 2021, approximately 3,939,000 tons of water wasconsumed in each campus of the Company in Weifang, of which the living area of PhotoelectricCampus II was retrofitted with a water reuse system, with an annual recycling water volume of46,000 tons, used for cleaning and greening in the campus. The wastewater is general domesticwastewater, uniformly discharged to the municipal pipe network, which complies with theGB/T31962-2015 Wastewater Quality Standard for Discharge to Municipal Sewers; theVietnamese subsidiary complies with the Local National Sewage Discharge Standard(QCVN40:2011/BTNMT, Grade 1B (COD<150mg/L, SS<100mg/L)).
5.2.2. Waste Gas Management
The waste gas generated by the Company mainly comes from industrial waste gas in theproduction process and cooking fume waste gas from the cafeteria. The industrial waste gas ispurified and treated tom meet the relevant standard through adsorption of activated carbon andtreatment by other facilities, and then discharged through the exhaust duct at high altitude. Allthe waste gases discharged meet the Class II standards in Table 2 of the Comprehensive EmissionStandard for Air Pollutants (GB 16297-1996); the Vietnamese subsidiary complies with theEmission Standard for Organic and Inorganic Waste Gases (QCVN19/2009/BTNMT &QCVN20/2009/BTNMT).
5.2.3. Noise Management
The major sources of noise in the Company include the operation noise of air conditioning units,air compressors, cooling towers, fans, pumps and other power equipment. Various measures,such as equipment renewal, process upgrading and noise source isolation, have been taken tocontrol noise. According to the monitoring results of the noise within the plant boundary, all thenoise within the plant boundary complies with the Class II standard in Table 1 of the EmissionStandard for Industrial Enterprises Noise at Boundary (GB12348-2008); the Vietnamesesubsidiary complies with the National Emission Standard for Environmental Noise in the country(QCVN24:2016/BYT).
5.2.4. Waste Treatment
Waste is collected and temporarily stored according to its forms and properties, which isgenerally categorized into general waste and hazardous waste. In waste management, theCompany always upholds the principle of "reduction, reuse and recycling", so as to achieve theintegration of waste recycling and corporate social responsibility. General waste is uniformlycontracted to professional recyclers for recycling and treatment, while hazardous waste isdelivered for treatment to organizations with qualifications for hazardous waste treatmentapproved by the Environmental Protection Bureau. Waste electronic products are strictly listedas hazardous waste, and delivered to qualified hazardous waste partners for legal and complianttreatment in accordance with laws and regulations, in an effort to maximize waste recycling andresource conservation. In March 2018, the Company began to promote and implement the policy
advocating zero landfill of waste. By promoting this policy to recycling suppliers, the Companydisposed approximately over 70,000 tons of waste from 2018 to 2021 through means other thanlandfill. In 2021, the Company continued to promote this policy, with approximately 20,000 +tons of waste disposed of by non-landfill means, of which approximately 98% was recycled. Thewaste treatment in the Company's Vietnamese subsidiary is in full compliance with theinstructions of the Vietnamese government (ND38/2015/NDCP) and the hazardous wastetreatment is in compliance with the national government standard: QCVN6707:2009.
5.3. Resource Recycling and Climate Change Mitigation
As a major power-consuming enterprise, Goertek is well aware of "limited resources andunlimited value". The Company's energy management policy featuring "compliant energy use,efficient emission reduction, full participation and green development" has been implementedacross the Company's product manufacturing chain. With the energy management system as thebasis of scientific management, the Company works to optimize the management organizationacross all channels, improve the mechanisms and processes, and implement the managementtools to further explore the potential of energy saving and actively improve the overall energyefficiency, so as to integrate energy efficiency enhancement, emission reduction and greendevelopment into the internal operation of the Company.In order to accomplish the strategic goals of the Company on energy, the Company's energymanagement work involves a two-pronged approach, covering both management and technology.The main focus lies on the manufacturing process of products. Starting from the energy used,the Company insists on developing and promoting the use of clean energy to increase theproportion of "green energy". Putting clients first, the Company participates in market-basedpower trading to satisfy clients' demand for low-carbon production. Digital energy operation ispromoted to identify the sources of carbon emissions and reduce negative impact on theenvironment through targeted control, so as to ultimately realize the development of theCompany, enhance energy efficiency, protect environment, and slow down climate change.
5.3.1. Optimize Energy Management Personnel Arrangement and Improve the AssessmentMechanism
Goertek has set up a three-tier energy management hierarchy, comprising the EnergyManagement Steering Panel, the Energy Management Team and each Energy Management Unitto ensure accountability. The energy management work is comprehensively consolidated byrefining the energy management functions of relevant departments, improving the Company'senergy management system, tapping deep into the energy-saving potential of each productionscenario, and continuously promoting refined management and control. In 2021, the Companystrengthened the development of the energy management specialization. The Companyimproved the capability of energy management personnel by formulating over 30 rules forenergy management and control, holding over 20 training sessions, and conducting quarterlyevaluations, among other measures.
Meanwhile, the Vietnamese subsidiary set up an energy conservation management organizationin 2021, advocating the strengthening of energy-saving efforts such as: paper saving, electricityconservation, water conservation, and waste recycling. In order to deepen all employees'understanding of energy conservation, the Vietnamese subsidiary actively promoted theseresource conservation activities through various channels such as email, broadcast, and training.
5.3.2. Promote the Use of Clean Energy to Increase the Percentage of "Green Energy"
Energy Management Steering PanelEnergy Management Team
Energy Management TeamSupply Side
| Supply Side | Demand Side | |
FunctionalDepartments
FunctionalDepartments
Subsidiaries
SubsidiariesEach Energy
Management
| Unit |
In response to government policies and client requirements, Goertek has introduced distributedphotovoltaic power generation projects and solar collector projects to reduce fossil fuelconsumption and provide effective support for the carbon peak and neutrality goals at this stage.? Distributed photovoltaic power generation: Constantly increase the proportion of cleanelectricity, and continuously supply green power. By adopting the contract energymanagement model on existing rooftops, the Company has realized a total of 37.8 MWp ofdistributed photovoltaic power generation, an annual power generation capacity of 34.31million kW·h and an annual emission reduction of about 30,340 tCO2e.? Solar power collector: Solar power collector systems are installed in living areas to heat upwater. As hot water is provided to employees in a natural way without extra heating, naturalgas consumption is reduced. 7 solar collector systems have been installed, with a totalcollector capacity of 390 tons and an annual emission reduction of 673 tCO2e.
5.3.3. Actively Carry Out Energy Conservation Technology Improvement and ImproveEnergy Efficiency of EquipmentThe improvement of the energy efficiency system of equipment allows the Company to not onlyreduce greenhouse gas emissions, but also provide one of major way to lower production energycosts. The Company actively improves energy conservation technology to continuously enhanceenergy efficiency of the Company's equipment.? Frequency conversion/maglev energy-saving technology application: The energy stationhave adopted Both frequency conversion technology and maglev technology for regulation,equipped with 8 frequency conversion chillers, 1 maglev chillers, and 7 frequencyconversion air compressors, reducing 8,513tCO2eemissions annually.
? Application of automatic energy conservation system for the chiller: The integrated energy-saving control system compatible with both strong and weak currents is built for the chillerin the energy station to monitor various parameters and display equipment status, regulateautomatic operation, enhance energy conservation, interlock various equipment and initiateautomatic protection, measure energy/power consumption, conduct central monitoring andmanagement, etc. After the implementation of the project, the energy-saving rate hasreached 19.5%, and the annual emission reduction has amounted to 3,435 tCO2e.? Energy recycling: The heat generated during the operation of air compressors is recycledand used to produce hot water through direct heat exchange or through water source heatpump units, which is transferred to workshops for production use. A total of 26 waste heatrecovery units have been installed, with recovered thermal power of over 3,360kW and anannual emission reduction of 1,138 tCO2e.? Application of central vacuum system: Compressed air is one of the main energy source in
production workshops. In view of the waste of compressed air in the process of usingvacuum generators in workshops, the technical modification to replace vacuum generatorswith energy-saving central vacuum pumps has achieved the purpose of reducing workshopnoise, improving test performance and reducing power consumption. Currently, 23 screwvacuum pumps with variable frequency have been installed, with a total power capacity of374kW and an annual emission reduction of 10,914 tCO2e.
5.3.4. Promote IT Development and Digitized Energy Operation
Based on the present 18 electric power monitoring systems and dynamic monitoring systems, anenergy management platform has been established to realize functions such as data display,energy efficiency analysis, data query, real-time monitoring and system management. Bybuilding such a platform, the Company can improve data utilization rate, data accuracy anddelivery timeliness, guide the orderly execution of energy-saving efforts, achieve the purpose ofcontinuous cost reduction and efficiency enhancement, and realize IT-based energy management.
5.3.5. Build a Scientific Management System through Energy Management SystemCertificationIn order to build a long-term energy-saving mechanism and effectively improve the Company'senergy management level, the ISO50001 Energy Management Systems were introduced into the
| Cost sharing | Energy | ||
efficiencybenchmarking
dimensionalanalysis
| Multi- | Energy |
efficiencyanalysis
reports
| Customized | Real-time |
monitoring
(Single-itempower
| consumption) | Power | ||
consumption
warningInformation
transmission
| Information | WEB O&M | ||
Energy Big-Data
Platform
Energy Big-Data
Goertek Information Network
| Weifang Industrial Energy Saving Platform | Goertek Information Network | |
Power supply and
distribution system
| Power supply and distribution system | Air compressor system | Air conditioning system | Boiler system | Photovoltaic system | ||||||||
Company in 2021. During the system set-up process, processes involved in organizationalresponsibilities, energy review, target benchmarking, monitoring and measurement, procurementand design, publicity and training were sorted out, and based on the actual situation of energymanagement of the Company, 5 management systems were established, with over 20 sets ofmanagement templates produced, to guarantee the scientific, systematic and process-orientedenergy management of the Company. The Weifang Park has passed the Energy ManagementSystem Certification. The overall energy management level has been improved and the operationof energy management systems will be continuously deepened in the future.
5.3.6. Promote Energy-Saving Culture and Raise All Employees' of Energy-SavingAwarenessPersonnel are a weak yet the most vital link in energy conservation. With great attention to therole played by employees in energy saving, Goertek continues to empower employees withenergy-saving culture in the process of improving its management and organization mechanismsand upgrading its technologies. In 2021, the Company carried out a number of campaigns andspecial inspections to raise employees' awareness of energy saving. For example:
? Conserve and cherish water resources: Water resources are the essential material basis forthe survival and development of human beings. Conserving water resources and improvingwater use efficiency is not only a long-term solution to guarantee the normal productionand operation of the Company and realize its sound and sustainable development, but alsoan inevitable choice for the Company to adapt to the market and improve itscompetitiveness. In this regard, a series of activities such as water conservation campaigns,water conservation quizzes and water conservation proposals were carried out to make usfully aware of the importance of water conservation efforts, bear in mind the concept ofwater conservation and put it into actions, and continuously improve our awareness of waterconservation, so that water conservation becomes a voluntary action and everyone becomesan advocate, supervisor and practitioner of water conservation.
? Carry out special inspection of air conditioners to reduce indirect carbon emissions: Theelectricity consumption of air conditioning continues to rise in the summer with a largepercentage, becoming a major indirect source of carbon emissions. In order to raise theawareness of energy saving and emission reduction among all employees, improve theoperation efficiency of air conditioning systems, and ensure its scientific, rational, efficientand sound operation, we conducted special inspections of air conditioning systems in theCompany, starting from four major items and 36 minor items, to improve the energymanagement ability of all departments, ensure the efficient operation of air conditioningsystems and reduce carbon emissions through promoting learning and actions throughexaminations.
5.3.7. Win the title of the Model Enterprise for the Electricity Demand-Side Managementin the Fifth Batch of the National Industrial Sector
With high carbon emissions, the power industry is currently an important sector for achievingcarbon emission reduction targets. As the Company consumes a great amount of electricity. Inorder to respond positively to the internal and external emission reduction requirements, basedon the systematic management of electricity, the Company adopts the power monitoring systemto realize the balance of supply and demand, thus creating a safe and efficient internal powersystem and reducing the power consumption at source. This can further reduce the investmentin new power plants and the pollution of primary energy to the atmosphere, thereby boosting theachievement of the carbon peak and neutrality goals.In March 2021, recommended by the local industry and information technology department andChina Electricity Council, and through expert review, on-site assessment, and publicannouncement, Goertek was recognized as the Model Enterprise for the Electricity Demand-Side Management in the Fifth Batch of the National Industrial Sector.
5.3.8. Continuously Promote Green Development
In 2022, the Company will continue to systematically promote efficiency improvement andemission reduction, step up the implementation of the energy management system, and takemeasures to optimize the energy structure and boost energy recycling and reuse, so as toeffectively control carbon emission intensity, slow down carbon emission growth and reducegreenhouse gas emissions. The work planned to be promoted are as follows:
? Further step up the implementation of theenergy management system, with improvedsystems and processes, and maintain theconsistency of energy management, sharingexperiences with all subsidiaries at the sametime.? Continue the fourth phase of photovoltaicdistributed power generation project. Fornewly-built plants, we will continue to buildphotovoltaic power stations to continuously
reduce the Company's power costs and reduce carbon emissions.? Build high-efficiency server rooms. By configuring high-efficiency equipment, low-resistance assembly tandem piping and integrated energy-saving control systems for strongand weak power, build super-efficient server rooms with energy efficiency level ≥6.0.? Promote the application of the energy-saving automatic control system for chillers.
Continue to promote the construction of the energy-saving automatic control system for
chillers so as to realize the intelligent energy-saving control of power equipment and
improve the overall energy efficiency of server rooms.? Boost digitalization in energy management. Continuously improve all kinds of measuring
instruments and upgrade the systems, to accelerate the informatization of energy
management.? Continue to extend the scope of application of central vacuum pumps for product lines to
reduce the number of energy conversions, so as to save electricity and reduce carbon
emissions.? Build green plants. We will adhere to green development and introduce the green concept
throughout the life cycle of production, to build plants with intensified land use, harmless
raw materials, clean production, waste recovery and low carbon energy.
6. Integrity in Business
6.1. Integrity Concept
Goertek upholds an open, honest and transparent business model, and strictly abides by theinformation disclosure management rules to protect the rights and interests of its shareholders.With the people-oriented management philosophy, we effectively safeguard the legitimate rightsand interests of employees, actively advocate the values of trustworthiness and pragmatism,inspire employees to work enthusiastically, and pursue excellence as a team. Goertek pledges tocomply with all laws and regulations related to Goertek's business such as trade control in China,international organizations such as the European Union and the United Nations, and othercountries including the United States, to effectively fulfill its export control responsibilities and
obligations, to establish an international image of the integrity management and responsibleperson, and to win the trust of clients, suppliers and partners.
6.2. Fair Competition
Goertek has formulated relatively complete management regulations and other requirementsmanagement systems, and the bidding and tendering process is fair and just, and the opportunityto win the bid is equal. Goertek focuses on the intellectual property services and the intellectualproperty ecosystem, with dedicated intellectual property personnel and departments, as well asan intellectual property management system that runs through the entire enterprise chain. Toprotect trade secrets, Goertek has established rigorous and considerate technical solutions, withcomprehensive protection measures, to prevent the leakage of trade secrets and effectivelymaintain trade secrets.
6.3. Anti-Corruption and Anti-Fraud
Goertek has formulated and strictly implemented systems such as Rewards and Punishments forBehaviors and Code of Business Conduct. In order to eliminate corruption and fraud, allemployees in management positions of the Company have signed the Integrity Agreement,committed to the principle of fairness and impartiality in business dealings with all parties, andensuring that the interests of all parties shall not suffer due to corruption. An internal supervisoryorganization has been set up and a perfect reporting and feedback mechanism has beenestablished. Internal and external personnel can report cases by email, fax, and telephone, amongother ways, and strict confidentiality and protection measures are in place to ensure thatwhistleblowers are not subject to retaliation. For employees who violate the Company'sregulations and relevant national laws and regulations, the Company will deal with themaccording to its internal systems and regulations, and meanwhile, will transfer them to judicialauthorities according to national laws and regulations. For suppliers of the Company involvedin bribery, they will be dealt with according to relevant systems and disqualified fromcooperation, and they will be held legally accountable depending on the severity of the situation.In 2021, the Company continued to step up its efforts to combat fraud and punished a number offraud cases. Meanwhile, to enhance employees' awareness of integrity, the Company conducted
compliance training, online and offline, for employees, and promoted the concept of integrity toemployees and suppliers during national holidays in the form of integrity-themed posters. Interms of management improvement, audit projects in multiple areas were conducted to identifybusiness risks, and improve internal management, which effectively boosted the sounddevelopment of the Company.Cadres are the core and backbone of the Company, shouldering the significant responsibility ofpromoting the Company's business development and leading its future growth. With greatattention to cadre management in 2021, the Company established an up-and-down collaborativecadre supervision organization. Concerted effort was made to improve the work-style of cadresand ensure the long-term healthy development of the Company. In order to regulate theprofessional conduct, management work-style and virtue of cadres, the Company has establisheda management system stipulating six "red lines" that cadres must never cross and ten "yellowlines" that they are seriously asked not to cross. Red lines are the highest-level warnings, whichmust never be touched, crossed or violated, and the Company has "zero tolerance" for "red-line"behaviors. Yellow lines are cautionary warnings, indicating thoughts or behaviors unacceptablein the workplace, and the Companyopposes any form of "yellow-line"behaviors. By holding self-reflectionmeetings, the Company guides cadres toreflect on their thoughts and behaviorsagainst the "red lines" and "yellow lines",so as to timely identify problems andrectify them.Corporate culture directly affects the development and the future of the Company. It is not onlythe inherently necessary in ensuring the healthy development of the Company, but also amotivation for employees to undertake their duties and responsibilities under the guidance ofcorrect values. To encourage everyone to learn from good examples, the Company widelypublicizing the stories of some employees in the corporate magazine, official WeChat accountand website, promotes the proactive and enterprising corporate culture and shapes the unique
culture of Goertek. The work-style of cadres has been incorporated into their appraisal,promotion, and merit evaluation and performance assessment. Those who conduct unethicalbehaviors are given "red cards" promptly, which effectively manages people while addressesimmorality issues. The management of cadres becomes more scientific, standardized andinstitutionalized, and an environment featuring pragmatism, enterprise and initiative for doingbusiness is created.Through patrol inspections and supervision, the Company conducts a comprehensiveexamination of cadres to promptly identify problems and eliminate them at an early stage, so asto force them give up any immoral idea A complaint hotline and a complaint mailbox have beenset up for complaints against cadres who touch the "red lines" and "yellow lines". Thesecomplaints are handled at different levels according to requirements, and cadres who touch the"red lines" will receive severe punishments and those who touch the "yellow lines" will bewarned in time. In 2021, the Company carried out meetings, seminars and knowledge conteststo warn cadres of the "red lines" and "yellow lines", remind cadres of the Company's missionand to maintain loyalty, integrity and the sense of responsibility at all times, so as to jointly createa good environment of integrity for the sustainable development of the Company.
6.4. Respect for Intellectual Property Rights
Since its inception, Goertek has attached great importance to intellectual property rights. Puttingthe enhancement of its independent innovation capability at the core of the intellectual propertyright work, through vertical integration and in-depth expansion of the industrial chain, based onthe pool of international key account clients and high-end talents as the guarantee, Goertekactively captures the opportunities of emerging industries inthe era of intelligent consumer electronics, deeply integratingitself into the global high-end industrial chain, acceleratingtechnological entrepreneurship and innovation, andachieving sustainable and rapid development. It also digsdeep into the industrial trend related to its main business.Based on the trend of the industry in which it operates, the
Company puts emphasis on identifying what technology has the potential to be used to apply forpatents and in what areas the Company should own patents. In 2021, the Company applied for3,468 patents, including 2,539 invention patents, and was granted 1,036 invention patents. As ofDecember 31, 2021, a total of 25,818 patents (including 3,322 overseas patent applications) werefiled, including 13,102 invention patents; a total of 15,525 patents were granted, including 4,165invention patents, reflecting the strong R&D capabilities of the Company.The Company not only fully respects the intellectual property rights of others, but also attachesgreat importance to the role of intellectual property rights in the Company's operation. As such,the Company actively utilizes intellectual property rights to enhance its core competitiveness,and vigorously promotes its proprietary products, to give full play to the value of its patents, andto shape its core technologies and key technologies with its own intellectual property rights. Asound innovation cooperation mechanism is structured and established to integrate internal andexternal resources and carry out effective collaborative innovation and re-innovation. Intellectualproperty strategies are formulated and implemented, and the operational mode and workingmechanism of intellectual property management are improved to enhance the capability ofintellectual property creation, application, management and protection. We also actively respondto the national strategy by cooperating with well-known universities and research institutes inthe industry, academia and research, forming industrial clusters thanks to the extended influenceof such cooperation across the entire region, and enhancing the overall competitiveness of theindustry and the region. So far, we have established long-term strategic partnerships with anumber of renowned research institutions and universities dedicated to the basic research ofcutting-edge technologies and the development of new technologies and products in the field ofacoustic-optics, with fruitful results achieved.Our intellectual property protection efforts have been recognized by government departments atall levels, with the following honors in recent years: National Intellectual PropertyDemonstration Enterprise, National Intellectual Property Advantage Enterprise, National PilotEnterprise for Patent Operation, National Technology Innovation Demonstration Enterprise,Shandong Provincial Trademark & Brand Innovation Demonstration Unit, and ShandongProvincial Intellectual Property Brand Unit for Key Core Technologies. We have remained the
winner of the First Prize of the Shandong New and Old Growth Driver Conversion High-ValuePatent Cultivation Competition, and won the Silver Award of the 22nd China Patent Award, aswell as the Excellence Award of China Patent Award, the First Prize of Shandong Province PatentAward and the First Prize of Weifang City Patent Award for multiple times.
6.5. Client-Oriented
The core value of "client-oriented" can be interpreted in three levels: "meeting client needs","continuously satisfying clients", and "contributing to client success". By paying close attentionto clients, the Company identifies client needs and proactively solves problems for clients. Byvertically integrating precision components such as acoustic, optical and electrical structuralparts and solutions for smart hardware and complete systems, the Company provides clients withone-stop services from design, R&D and testing to automated production and manufacturing,and offers high-quality products and services with the overall innovative advantages ofmarketing, R&D and manufacturing.
6.5.1. Guarantee Product Quality
At the early stage of Goertek's establishment, it was already proposed that "Quality is thelifeblood of the Company, and initiative is the source of development". It has always been theoriginal intention of the Company to attach importance to quality and to provide best productsto clients. The quality management system of the Company is built based on ISO9001 anddeepened in IECQ QC080000, IATF16949, ISO13485, ESD, and NMPA standards. The systemis getting mature gradually. The Quality Management Department is set up on the platform ofthe Company to take charge of system construction and evaluation in quality area, and a QualityManagement Center is set up in each business group to take charge of process quality guaranteeand system implementation.In 2021, the platform led the business groups to carry out targeted quality process review withthe guidance of “prevention and prediction, quality value-added”. The end-to-end processsystem construction was conducted in aspects including process framework, process definitionand process indicators related to quality. For example, the Quality Reward and Punishment
Management Regulations were optimized to implement "one-vote veto" for quality and safety,providing robust institutional guarantee for product quality.In terms of data informatization, the Company has built a quality process management systemwith QIS system at the core, realizing end-to-end quality informatization from client demand toclient satisfaction. Analyzing by the big data analysis model, the results are fed back and thenguide the continuous improvement of the business. The development and replication of systemsin new product areas and new business areas of each business group, as well as the sorting anddevelopment of scenario-based processes, are continuously providing insurance for secureproduct launches.It is precisely because of the Company's high standards and requirements for quality that noquality penalties or quality failure announcements by the Quality Supervision Department haveoccurred in the past three years. The Company was awarded the Nomination Award of ChinaQuality Award in September 2021, reshaping the brand image of Goertek.
6.5.2. Safeguard Clients' Rights and Interests
Goertek has always been practicing the corporate core values of "client-oriented, employeedevelopment, trustworthy and pragmatic cooperation and mutual benefits". Putting clients at thecenter of business operation, the Company believe our responsibility is to continuously satisfyour clients and prioritize their requirements when providing products and services.The Company strictly abides by business ethics in its operation, upholds the principles of fairnessand impartiality in transactions and respect for its partners, and signs relevant contracts withclients on an equal footing in accordance with the relevant requirements of the Civil Code of thePeople's Republic of China. Integrity Agreement and other agreements have also been signed toprovide strong support for fair transactions between both sides. With great emphasis on thestandardization of contract management, the Company has devoted much effort to themanagement of contract standardization and established the systematic management of thewhole process from contract signing, contract implementation process monitoring to the filingand archiving. Meanwhile, in order to strengthen the Company's credit management capability
and reduce transaction risks, the Company has formulated and improved client credit-relatedmanagement regulations and established a more comprehensive credit management system.By firmly implementing the "Key Account Strategy", the Company focuses on business dealingswith global high-quality clients, and actively builds win-win relationships with clients. Inaddition, it proactively collects and handles clients' voices, builds a good and trustworthy tradeorder and wins clients' trust with excellent after-sales services. By following closely thedynamics of the industry and responding positively to national trade policies, the Company aimsto play a greater role in fostering a prosperous, stable and sustainable trade environment.While providing clients with quality products and services, the Company properly protectsclients' information, and strictly follows the confidentiality agreement signed with clients. It hasalso formulated and improved the system for regulating the use of customer information, and setup the Information Security Risk Management Regulations, which are strictly put intoimplementation. Moreover, the Company continues to close all the loopholes, and ensure propernetwork security protection by assessing all kinds of existing information systems and addingfunctional modules such as password protection in information systems. The Company hasestablished a strict authorization management system, and carried out information securitytraining-related activities regularly to strength network security at all times and free clients fromany worries.
6.5.3. Continuously Enhance Brand Awareness
In order to raise the public's awareness of Goertek and its products, the Goertek Brand ExhibitionHall was officially opened in 2021. Located in the domestic departures area of Qingdao JiaodongInternational Airport, the Exhibition Hall, a space that integrates smart technology and designaesthetics, offers passengers an amazing experience. Travelers around the world are able to seeprecision components related to sound, light and electricity in intelligent products in theExhibition Hall, and also listen to the beautiful sound delivered by TWS headsets, wirelessspeakers and Hi-Fi speakers. In the Virtual Vision area in the Exhibition Hall, visitors canexperience virtual reality through immersive and realistic head-mounted VR displays andintelligent seats. There are also interactive projection lights and other intelligent products on site,
allowing visitors to experience health and beauty through technology. On the launch day,Goertek also gave away noise-cancelling earplugs in a creative way to passengers on site,providing them with a better travel experience while arousing their interest in high-tech products.
Under the core value of "client-oriented", in order to improve employees' brand knowledge andbetter provide more professional services to clients, the Company completed nearly ten offlinetrainings on brand knowledge in 2021, covering topics including brand concept, brand symbolsand brand colors. New employees and relevant personnel from various departments were trained,with nearly 20,000 people learning through the brand training e-courses online. This effectivelyconveyed the Company's brand concept. In order to enable employees to better understand thestories behind the brand, a podcast that shares the brand's stories called "Night Reading" waslaunched. In each episode of the monthly podcast, a short story is read out while a long image
that illustrates the story is displayed in the background, to make employees feel the warmth ofthe stories about the Company's development and understand the culture of Goertek, and throughcontinuous training, to, and deepen employees' understanding of brand knowledge and motivatethem to practice what they have learned.
6.6. Promotion of Common Growth with Suppliers
While actively carrying out and implementing its own CSR, Goertek also attaches greatimportance to the CSR management of its suppliers, committed to building a safe, efficient, fairand sustainable supply chain system. The Company works closely with its suppliers to strengthenthe continuous improvement and management of CSR across the supply chain throughenvironmental, social and governance risk assessment and audit verification. The aim is to ensurethat products are produced in a socially responsible manner in order to achieve sustainabledevelopment of the supply chain.
6.6.1. Responsible Supply Chain
Goertek endeavors to build a mutually beneficial, sustainable and competitive platform with itssuppliers. It upgrades the multi-dimensional evaluation of suppliers by improving the rules andmechanisms, and drives its suppliers to become better together with Goertek. The Company hasstrict rules for its suppliers in terms of integrity, honesty and environmental protection, andrequires suppliers to shoulder their social responsibility in labor protection, environment, healthand safety, and ethics by signing the Supplier Social Responsibility Commitment and IntegrityCommitment formulated on the basis of the RBA Code of Conduct and assessing the CSRperformance of suppliers. In addition, it guides suppliers to establish harmonious relationshipswith their employees, boosts their CSR awareness and management capabilities, and works withthem to build a responsible supply chain.In 2021, the Company set up dedicated internal control to strengthen the internal controlsupervision and improve business compliance. The supply chain rectification campaign wascarried out to create a transparent supply chain. Continuous efforts were made to promoteGoertek's supply chain social responsibility policy to its partners, with particular emphasis onthe fact that should a supplier be involved in any "red-line" issues, such as child labor, forced
labor, prison labor, major fire safety hazards, no environmental impact assessment approval &acceptance approval, and illegal disposal of hazardous waste, the Company would rejectcooperation through one-vote veto.Besides, as the leading enterprise of the new-generation IT industry in Shandong Province, theCompany takes the initiative to contact with "specialized, advanced, distinctive and innovative"enterprises in the province for cooperation opportunities, and works to attract suppliers to buildfactories in the vicinity of Weifang, so as to build a cluster of advanced electronic informationenterprises.
6.6.2. Responsible Mineral Supply Chain
Goertek endeavors to responsibly source tin, tantalum, tungsten, gold, cobalt and other mineralraw materials used in its products, and to promote the development of policies among itssuppliers to prevent and reduce risks of minerals contained in their manufactured productscoming directly or indirectly from high-risk areas, in accordance with the requirements of theOECD Due Diligence Guidance and the Chinese Due Diligence Guidelines for ResponsibleMineral Supply Chains (hereinafter collectively referred to as the "Guidelines") as well as theRMI International Guidelines. The Company requires suppliers to conduct responsible mineraldue diligence on the minerals used in the products it purchases, and to share due diligenceinformation with clients to ensure consistency between its supply chain policies and theimplementation of the Guidelines. The Guarantee Letter of Non-Use of Conflict Minerals is alsoincluded as an attachment to the supplier contract or as a supplemental agreement for bindingregulation. The Company conducts a corporate-level responsible mineral inspection at least oncea year, during which it investigates the corresponding suppliers in real time according tocustomer requirements, thus continuously promoting the completion of responsible mineralprocurement throughout the supply chain together with clients and suppliers.Goertek complies with laws and regulations on trade control and economic sanctions related toGoertek's business in China, international organizations such as the European Union and theUnited Nations, and countries including the United States, to effectively fulfill its export controlresponsibilities and obligations and to establish a global corporate image characterized by
integrity and responsible management. In 2021, Goertek set up a Trade Compliance Group,taking full responsibility for formulating and improving the Company's trade compliancepolicies, systems, organization and processes, approving or making decisions on major tradecompliance matters and solutions, promoting the implementation and enforcement of relevantrequirements in applicable business areas, and conducting regular internal reviews and audits ofthe trade compliance system.
7. Community Engagement
Goertek values dedication, mutual support and gratitude, and actively fulfills its socialresponsibilities while conducting good production and operation.In 2021, the Company carried out fivewelfare and philanthropic campaignsincluding the "Your Generosity GivesHope" campaign for the children ofemployees, the "Meet your love on theChinese Qixi Festival" campaign to helpemployees find spouses, the "Heart-warming Double Ninth Festival" campaign for the parentsof employees, and the "Love Knows No Bounds, Goertek is Always with You" campaign for thechildren of employees and a campaign helping out employees in need during the Spring Festival.A total of 114 persons received assistance, including 82 employees and their relatives sufferingfrom severe diseases, as well as 19 employees in need, with a total of 937,700 RMB provided.In 2021, the "Goertek - Together Plan" public welfare activity continued, with Goertek using itsown technology to bring such technologies as VR, AR and drones into classrooms of schoolslacking such educational resources. In 2021, the Company established four new "GrowthStations" in Rongcheng Shidao Experimental Primary School, Linqu Bayi Hope Primary School,Anqiu Xiapo Primary School and Anqiu Linghe Primary School. Volunteers from the Companymade use of their expertise to develop science courses, teaching materials and various fun skilldevelopment programs to help students broaden their horizons and develop their interests,inspiring children with science and technology and motivating them to grow up to be outstanding
talents. A total of more than two hundred and fifty people participated in the activities throughoutthe year, and drones, VR devices and teaching materials were donated to schools. These techdevices were maintained regularly, assisting schools in exposing more students to scienceeducation. As of early 2022, the "Goertek - Together Plan" had already established eight"Goertek Growth Stations", covering more than 2,000 students in Anqiu, Linqu and Rongcheng,and the activities were well received by local teachers and students and commended by theeducation department. In addition to helping out teaching, the "Growth Specialists" kept contactwith the schools to help them solve difficulties, fulfilling hundreds of students' wishes.
In 2021, the assistance activities for families in need in the Vietnamese subsidiary continued. AsChina and Vietnam are friendly neighbors, the Company and the labor union kept following upthe living conditions of the employees in Vietnam. Throughout the year, the management of thecompany provided strong support to 46 employees in need by visiting their families and offeringgifts.
Recognizing the seriousness of the pandemic and the risk of infection through waste posed toemployees, the Vietnamese subsidiary organized a "waste pick-up" activity among employeesinside and outside factories, not only to protectthe environment but also to reduce the risk ofvirus transmission. The subsidiary took anactive part in supporting the Vietnamesegovernment's pandemic prevention actions,which demonstrated its fulfillment of socialresponsibility.
8. Outlook
With great expectation for the future, Goertek is committed to become a world-class enterprisein the face of exceptional opportunities arising from the development of a new generation ofinformation technology, thus providing its employees with a better platform and yielding greaterreturns. Meanwhile, Goertek believes all companies should bear their social responsibilities. Theeffective development and implementation of actions demonstrating social responsibilities willin turn boost their sound and sustainable development. The Company will continue to fulfill itscorporate social responsibility, and boost economic growth while shouldering socialresponsibility, so as to gradually achieve its sustainable development and create a better life withtechnology.
Table of Corporate Honors in 2021
| Date | Title of Honor | Awarding Institution |
| December 2021 | Shandong Provincial Science and Technology Progress Award - First Prize | Shandong Provincial People's Government |
| New Leap-Forward Private Enterprise of Shandong Province in 2020 | Department of Industry and Information Technology of Shandong Province | |
| Shandong New and Old Growth Driver Conversion High-Value Patent Cultivation Competition - First Prize | Organizing Committee of Shandong New and Old Growth Driver Conversion High-Value Patent Cultivation Competition | |
| November 2021 | Top 100 Industrial Enterprises in Shandong in 2021 - No. 22 | Shandong Enterprise Confederation, Shandong Enterprise Directors Association |
| Top 100 Enterprises in Shandong in 2021 - No. 27 | Shandong Enterprise Confederation, Shandong Enterprise Directors Association | |
| Standing Council Director of China Federation of Electronics and Information Industry | Standing Council of China Federation of Electronics and Information Industry | |
| October 2021 | China's Top 50 VR Companies in 2021 | Industry of Virtual Reality Alliance, China Federation of Electronics and Information Industry |
| Top 100 Most Competitive Enterprises in | China Federation of |
| Electronic Information in 2021 | Electronics and Information Industry | |
| September 2021 | Top 500 Chinese Enterprises - No. 351 | China Enterprise Confederation, China Entrepreneurs Association |
| Top 500 Chinese Manufacturing Enterprises - No. 164 | China Enterprise Confederation, China Entrepreneurs Association | |
| The 2021 (34th) Ranking of China's Electronic Component Companies in terms of economic indicators and comprehensive R&D strength - No. 1 | China Electronic Components Association | |
| Top 500 Private Manufacturing Enterprises in China in 2021 - No. 86 | All-China Federation of Industry and Commerce | |
| Top 500 Private Enterprises in China in 2021- No. 164 | All-China Federation of Industry and Commerce | |
| China Quality Award - Nomination Award | Selection and Commendation Committee of the Fourth China Quality Award | |
| August 2021 | Top 100 Private Enterprises in Shandong - No.13 | Federation of industry and Commerce of Shandong Province, Department of Science and Technology of Shandong Province, etc. |
| Top 10 Leading Private Enterprises of Shandong Province in New Generation Information Technology Industry in 2021 - No.1 | Department of Industry and Information Technology of Shandong Province |
| Top 100 Innovative Private Enterprises in Shandong in 2021 - No.1 | Department of Industry and Information Technology of Shandong Province | |
| June 2021 | The 22nd China Patent Award - Silver | China National Intellectual Property Administration and World Intellectual Property Organization |
| May 2021 | Top 500 Most Valuable Brands in China in 2021 - No. 99 | Brand Finance |
| April 2021 | Co-founder of the Industry-University-Research Institute Collaboration and Innovation Platform for Electronic Materials and Components in China | China Industry-University-Research Institute Collaboration Association |
| Executive Vice-President Unit of the Industry-University-Research Institute Collaboration and Innovation Platform for Electronic Materials and Components in China | China Industry-University-Research Institute Collaboration Association | |
| January 2021 | Top 100 Most Valuable Technology Brands in the World in 2021 | Brand Finance |
Appendix: GRI Sustainability Reporting Standards Index TableGeneral Disclosures
| GRI Disclosure Item | Corresponding Chapter and Description | Page |
| GRI 102: General Disclosures 2016 | ||
| 1. Organizational profile | ||
| 102-1 Name of the organization | 1.1. Company Profile | 1 |
| 102-2 Activities, brands, products, and services | 1.1. Company Profile | 1 |
| 102-3 Location of the headquarter | 1.1. Company Profile | 1 |
| 102-4 Location of operations | 1.1. Company Profile | 1 |
| 102-5 Ownership and legal form | 1.1. Company Profile | 1 |
| 102-6 Markets served | 1.1. Company Profile | 1 |
| 102-7 Scale of the organization | 1.1. Company Profile | 1 |
| 102-8 Information on employees and other workers | 3. Employee Care | 16 |
| 102-9 Supply chain | 6.6. Promotion of Common Growth with Suppliers | 70 |
| 102-10 Significant changes to the organization and its supply chain | No significant changes during the report period | |
| 102-11 Precautionary principle or approach | 2.1.3. Innovation Mechanism and Investment 4.1. Hazard Identification and Control 6.5.2. Safeguard Clients' Rights and Interests | 13, 38, 67 |
| 102-12 External initiatives | 1.2.2. Operation of the CSR Management Committee 3. Employee Care | 7, 16, 70 |
| 6.6.1. Responsible Supply Chain | ||
| 102-13 Membership of associations | Industry of Virtual Reality Alliance, China Federation of Electronics and Information Industry, China Electronic Components Association, China Audio Industry Association, etc. | |
| 2. Strategy | ||
| 102-15 Key impacts, risks, and opportunities | Refer to the "Outlook for the Future Development of the Company" in Section III: Management Discussion and Analysis of Goertek's Annual Report 2021 | |
| 3. Ethics and integrity | ||
| 102-16 Values, principles, standards, and norms of behavior | 1.1. Company Profile 1.2.2. Operation of the CSR Management Committee 6. Integrity in Business | 1, 7, 61 |
| 102-17 Mechanisms for advice and concerns about ethics | 6. Integrity in Business | 61 |
| 4. Governance | ||
| 102-18 Governance structure | 1.2. Corporate Operating Mechanism | 4 |
| 102-19 Delegating authority | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-20 Administrative-management-level responsibility for economic, environmental, and social topics | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-21 Consultation with stakeholders on economic, environmental, and social topics | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-22 Composition of the highest governance body and its committees | 1.2.1. Operation of the Board of Directors | 4 |
| 102-23 Chair of the highest governance body | 1.2.1. Operation of the Board of Directors Refer to the relevant content in Section IV: Corporate Governance of Goertek's Annual Report 2021 | 4 |
| 102-24 Nomination and selection of the highest governance body | 1.2.1. Operation of the Board of Directors | 4 |
| 102-25 Conflicts of interest | 1.2.1. Operation of the Board of Directors 1.3. Stakeholder Communication | 4， 9 |
| 102-26 Role of highest governance body in setting the purpose, values, and strategies | 1.2. Corporate Operating Mechanism | 4 |
| 102-27 Collective knowledge of highest governance body | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-28 Evaluation of the highest governance body’s performance | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-29 Identification and management of economic, environmental, and social impacts | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-30 Effectiveness of risk management processes | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-31 Review of economic, environmental, and social topics | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-32 Highest governance body’s role in sustainability reporting | 1.2.2. Operation of the CSR Management Committee | 7 |
| 102-35 Remuneration policies | 1.2.1. Operation of the Board of Directors 3.2. Compensation and Benefits | 4， 19 |
| 102-36 Process for determining remuneration | 1.2.1. Operation of the Board of Directors 3.2. Compensation and Benefits | 4， 19 |
| 102-37 Stakeholders’ involvement in remuneration | 1.2.1. Operation of the Board of Directors 1.3. Stakeholder Communication | 4, 9 |
| 102-38 Annual total remuneration ratio |
| 102-39 Percentage increase in annual total remuneration ratio | Refer to "Notes to the Consolidated Financial Statements" in Section X "Financial Reports" of Goertek's Annual Report 2021 | |
| 5. Stakeholder engagement | ||
| 102-40 List of stakeholder groups | 1.3. Stakeholder Communication | 9 |
| 102-41 Collective bargaining agreements | 1.3. Stakeholder Communication 3.4. Employee Engagement and Communication | 9, 32 |
| 102-42 Identification and selection of stakeholders | 1.3. Stakeholder Communication | 9 |
| 102-43 Approach to stakeholder engagement | 1.3. Stakeholder Communication | 9 |
| 102-44 Key topics and concerns raised | 1.3. Stakeholder Communication | 9 |
| 6. Reporting practice | ||
| 102-45 Entities included in the consolidated financial statements | Refer to "Interests in other entities" in Section X "Financial Reports" of Goertek's Annual Report 2021 | |
| 102-46 Definition of boundaries of content and issues in the reports | Contents | Ⅲ |
| 102-47 List of substantial issues | Contents | Ⅲ |
| 102-48 Restatements of information | No restatements of information | |
| 102-49 Changes in reporting | About this report | Ⅱ |
| 102-50 Reporting period | About this report | Ⅱ |
| 102-51 Date of the most recent report | About this report | Ⅱ |
| 102-52 Reporting cycle | About this report | Ⅱ |
| 102-53 Contact information for any questions regarding the report | Feedback | Ⅱ |
| 102-54 Claims of reporting in accordance with the GRI Standards | About this report | Ⅱ |
| 102-55 GRI content index | Appendix: GRI Sustainability Reporting Standards Index Table | 78 |
Materiality Disclosure
| GRI Disclosure Item | Corresponding Chapter and Description | Page |
| 201: Economic Performance 2016 | ||
| 201-1 Direct economic value generated and distributed | Refer to "Key Accounting Data and Financial Indicators" in Section II " Company Profile and Key Financial Indicators" of Goertek's Annual Report 2021 | |
| 201-2 Financial implications and other risks and opportunities due to climate change | 5.3. Resource Recycling and Climate Change Mitigation 5.3.2. Promote the Use of | 53, 40, 57, 54 |
| Clean Energy to Increase the Percentage of "Green Energy" 5.3.3. Actively Carry Out Energy Conservation Technology Improvement and Improve Energy Efficiency of Equipment | 55 | |
| 201-3 Defined benefit plan obligations and other retirement plans | 3.2. Compensation and Benefits | 19 |
| 201-4 Financial assistance received from the government | Refer to "Notes to the Consolidated Financial Statements" in Section X "Financial Reports" of Goertek's Annual Report 2021 | |
| 202: Market Presence 2016 | ||
| 202-1 Ratios of standard entry-level wage by gender compared to local minimum wage | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law 3.2. Compensation and Benefits | 17, 19 |
| 203: Indirect Economic Impacts 2016 | ||
| 203-1 Infrastructure investments and auxiliary services | 7. Community Engagement | 72 |
| 203-2 Significant indirect economic impacts | 7. Community Engagement | 72 |
| 205: Anti-corruption 2016 | ||
| 205-1 Operations assessed for risks related to corruption | 6.3. Anti-Corruption and Anti-Fraud | 62 |
| 205-2 Communication of and training about anti-corruption policies and procedures | 6.3. Anti-Corruption and Anti-Fraud | 62 |
| 205-3 Confirmed incidents of corruption and actions taken | 6.3. Anti-Corruption and Anti-Fraud | 62 |
| 206: Improper behaviors in competition 2016 | ||
| 206-1 Legal actions for improper behaviors in competition as well as anti-trust and anti-monopoly practices | 6.2. Fair Competition | 62 |
| 207: Tax 2019 | ||
| 207-1 Approach to tax | Refer to "Taxation" in Section X "Financial Reports" of Goertek's Annual Report 2021 | |
| 207-2 Tax governance, control, and risk management | ||
| 207-3 Stakeholder engagement and management of concerns related to tax | ||
| 207-4 Reporting by country | ||
| 301: Materials 2016 | ||
| 301-1 Weight or volume of materials | 5.2.4. Waste Treatment | 52 |
| 301-2 Recycled materials used | 5.2.4. Waste Treatment | 52 |
| 302: Energy 2016 | ||
| 302-1 Energy consumption within the organization | 5.3. Resource Recycling and Climate Change Mitigation | 53 |
| 302-2 Energy consumption outside of the organization | 5.3. Resource Recycling and Climate Change Mitigation | 53 |
| 302-3 Energy intensity | 5.3. Resource Recycling and Climate Change Mitigation | 53 |
| 302-4 Reduction of energy consumption | 5.3. Resource Recycling and Climate Change Mitigation | 53 |
| 302-5 Demand of products and services of lower energy consumption | 2.2. Promotion of Green Products 5.3. Resource Recycling and Climate Change Mitigation | 14, 53 |
| 303: Water and Effluents 2018 | ||
| 303-1 Influence of the organization and water as a shared resource on each other | 5.2.1. Wastewater Management | 51 |
| 303-2 Management of water discharge-related impacts | 5.2.1. Wastewater Management | 51 |
| 303-3 Water withdrawal | 5.2.1. Wastewater Management | 51 |
| 303-4 Water discharge | 5.2.1. Wastewater Management | 51 |
| 303-5 Water consumption | 5.2.1. Wastewater Management | 51 |
| 306: Waste 2020 | ||
| 306-1 Waste generation and significant waste-related impacts | 5.2.4. Waste Treatment | 52 |
| 306-2 Management of significant waste-related impacts | 5.2.4. Waste Treatment | 52 |
| 306-3 Waste generated | 5.2.4. Waste Treatment | 52 |
| 306-4 Waste diverted from disposal | 5.2.4. Waste Treatment | 52 |
| 306-5 Waste directed to disposal | 5.2.4. Waste Treatment | 52 |
| 307: Environmental Compliance 2016 | ||
| 307-1 Non-compliance with environmental laws and regulations | 5.1. Environmental Management No such cases occurred during the reporting period | 51 |
| 308: Supplier Environmental Assessment 2016 | ||
| 308-1 New suppliers screened using environmental criteria | 6.6.1. Responsible Supply Chain | 70 |
| 308-2 Negative environmental impacts in the supply chain and actions taken | 6.6.1. Responsible Supply Chain No such cases occurred during the reporting period | 70 |
| 401: Employment 2016 | ||
| 401-2 Benefits provided to full-time employees (not provided to temporary or part-time employees) | 3.2. Compensation and Benefits | 19 |
| 401-3 Parental leave | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 402: Labor/Management Relations 2016 | ||
| 402-1 Minimum notice periods regarding operational changes | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 403: Occupational Health and Safety 2018 | ||
| 403-1 Occupational health and safety management system | 4. Occupational Health and Safety | 37 |
| 403-2 Hazard identification, risk assessment, and incident investigation | 4.1. Hazard Identification and Control | 38 |
| 403-3 Occupational health services | 4.3. Protection of Employee Safety and Health | 44 |
| 403-4 Worker participation, consultation, and communication on occupational health and safety | 4.3. Protection of Employee Safety and Health | 44 |
| 403-5 Worker training on occupational health and safety | 4.3.2. Safety and Health Training | 44 |
| 403-6 Promotion of worker health | 4.2. Shaping a Sound Working Environment 4.3. Protection of Employee Safety and Health | 39, 44 |
| 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships | 4.2. Shaping a Sound Working Environment | 39 |
| 403-8 Workers covered by an occupational health and safety management system | 4.2. Shaping a Sound Working Environment 4.3. Protection of Employee Safety and Health | 39, 44 |
| 403-9 Work-related injuries | 4.3. Protection of Employee Safety and Health | 44 |
| 403-10 Work-related ill health | 4.2. Shaping a Sound Working Environment 4.3. Protection of Employee Safety and Health | 39, 44 |
| 404: Training and Education 2016 | ||
| 404-1 Average hours of training per year per employee | 3.3. Career Development and Growth of Employees | 25 |
| 404-2 Employee skill improvement programs and transition assistance programs | 2.1.2. Gathering Talents 3.3. Career Development and Growth of Employees | 11, 25 |
| 404-3 Percentage of employees receiving regular performance and career development assessments | 3.3. Career Development and Growth of Employees | 25 |
| 405: Diversity and Equal Opportunity 2016 | ||
| 405-1 Diversity of governance bodies and employees | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 405-2 Ratio of basic salary and remuneration of women to men | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 406: Non-discrimination 2016 | ||
| 406-1 Incidents of discrimination and corrective actions taken | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 407: Freedom of Association and Collective Bargaining 2016 | ||
| 407-1 Operations and suppliers at possible risk for the right to freedom of association and collective bargaining | 3.4. Employee Engagement and Communication | 32 |
| 408: Child Labor 2016 | ||
| 408-1 Operations and suppliers at significant risk for incidents of child labor | 3.1. Respect for Employees and Protection of their | 17 |
| Legal Rights and Interests According to Law No cases of child labor occurred during the reporting period | ||
| 409: Forced or Compulsory Labor 2016 | ||
| 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 411: Rights of Indigenous Peoples 2016 | ||
| 411-1 Incidents of violations involving rights of indigenous peoples | No such cases occurred during the reporting period | |
| 412: Human Rights Assessment 2016 | ||
| 412-1 Operations that have been subject to human rights reviews or impact assessments | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 412-2 Employee training on human rights policies or procedures | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law | 17 |
| 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law 6.6.1. Responsible Supply Chain | 17, 70 |
| 413: Local Communities 2016 | ||
| 413-1 Operations with local community engagement, impact assessments, and development programs | 7. Community Engagement | 72 |
| 413-2 Operations with significant actual and potential negative impacts on local communities | 7. Community Engagement | 72 |
| 414: Supplier Social Assessment 2016 | ||
| 414-1 New suppliers screened using social criteria | 6.6. Promotion of Common Growth with Suppliers | 70 |
| 414-2 Negative social impacts of the supply chain and actions taken | 6.6. Promotion of Common Growth with Suppliers | 70 |
| 415: Public Policy 2016 | ||
| 415-1 Political contributions | No such cases occurred during the reporting period | |
| 416: Client Health and Safety 2016 | ||
| 416-1 Assessment of the health and safety impacts of product and service categories | 2.2. Promotion of Green Products 6.5.1. Guarantee Product Quality | 14, 66 |
| 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services | No such cases occurred during the reporting period | |
| 417: Marketing and Labeling 2016 | ||
| 417-1 Requirements for product and service information and labeling | 2.2. Promotion of Green Products 6.5.1. Guarantee Product Quality | 14, 66 |
| 417-2 Incidents of non-compliance concerning product and service information and labeling | No such cases occurred during the reporting period | |
| 417-3 Incidents of non-compliance concerning marketing communications | No such cases occurred during the reporting period | |
| 418: Client Privacy 2016 | ||
| 418-1 Substantiated complaints concerning breaches of client privacy and losses of client data | 6.5.2. Safeguard Clients' Rights and Interests No such cases occurred during the reporting period | 67 |
| 419: Socioeconomic Compliance 2016 | ||
| 419-1 Non-compliance with laws and regulations in the social and economic areas | 3.1. Respect for Employees and Protection of their Legal Rights and Interests According to Law 6.1. Integrity Concept 6.3. Anti-Corruption and Anti-Fraud 6.6.2. Responsible Mineral Supply Chain No such cases occurred during the reporting period | 17, 61, 62, 71 |
Board of Directors of Goertek Inc.
March 29, 2022