Conflict Minerals

Responsible sourcing of minerals

“Conflict minerals” sourcing form the Democratic Republic of the Congo (DRC) and adjoining regions(Angola, Burundi, Central African Republic, Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia), as well as disputed areas where their extraction of gold, tin, tungsten, and tantalum (3TG) and cobalt may unexpectedly finance or benefit armed groups associated with human rights violations. Some of these minerals might be involved in the supply chains of the electronics industry. To address this issue, PEGATRON has launched conflict mineral due diligence investigation project since 2012. PEGATRON encourages our suppliers to transparently disclose the conflict minerals and cobalt containing in their products and components in accordance with the OECD Guidance. We expect our suppliers to cooperate in providing the report of smelters information with the Conflict Minerals Reporting Template (CMRT) of gold, tin, tungsten, and tantalum and Cobalt Reporting Template (EMRT) of cobalt in our supplier chain. Besides, Pegatron do not ban conflict-free minerals (including cobalt) from DRC and adjoining regions, and advocates RMI Compliant Smelter & Refiner Lists in our supply chain, so as to drive the smelters to join Responsible Minerals Assurance Process (RMAP; formerly the CFSP). PEGATRON respects international human rights and keeps following this issue closely to fulfill our commitment and Responsible Business Alliance (formerly EICC) Code of Conduct, and take the accountability as a corporate citizen.

The investigation of conflict minerals in supply chain was initiated since 2012. We require direct suppliers to disclose the source of minerals sources used in the products which were supplied to us. Over 1,500 suppliers were investigated in every year and the average response rate is more than 90%. 

Conflict Minerals Reporting Template, CMRT

Supplier Management

Ensure suppliers meet requirements by audit

To promote the implementation of the PureCSR management system in the supply chain so as to ensure sustainable development, PEGATRON has developed internal procedures based on international norms to conduct supply chain management. We regularly hold supplier conferences to advocate PureCSR policies and supplier management requirements as well as implement annual electronic questionnaires audit to ensure that suppliers implement our PureCSR and supplier management requirements. New suppliers are required to comply with the code of Conduct of the Business Responsibility Alliance (RBA). For major suppliers, CSR self-assessment is also required. There are more than 2,000 suppliers signed the “Pegatron Supplier Code of Conduct Agreement”. 

PEGATRON respects for international labor rights and work closely with our partners to promote labor rights in the industry value chain. As a corporate citizen and a member of the RBA (Responsible Business Alliance), we actively participate in the initiatives held by the RBA with our partners in the supply chain and endeavor to uphold its value. We also encourage our suppliers to join RBA Validated Audit Process (VAP) to evaluate their compliance and the performance on sustainability via external audits by the independent 3rd parties.

Labor Rights

Recognize labor rights to protect employee rights

To promote the protection of human rights and prevent rights violations, PEGATRON complies with the Labor Standards Law and the internationally recognized Basic Labor Rights to protect employees' lawful rights and interests. Moreover, we have developed policies and procedures to protect the basic human rights of employees, including labor safety. Risk identification, assessment and control are in place at least once per 2 years to ensure the compliance on labor rights. Our employment practices emphasize equal opportunity in ways of prohibiting any kind of harassment, discrimination or inhumane treatment, as well as tracking the handling of grievances regularly. At the same time, we comply with the RBA (formerly EICC) Code of Conduct to respect the rights of all workers to freely choose employment as well as prevent illegal use of child labor.

PEGATRON as a corporate citizen and a member of the RBA (Responsible Business Alliance) conduct internal training/orientation courses align with legal requirements and RBA Code of Conduct, and involves the labor rights issues in the training materials.

Our Commitment of Sexual Harassment Prevention, Correction, Complaint, and Punishment

PEGATRON takes proper prevention , correction, punishment, and response to against all kinds of sexual harassment. We take use of various opportunities and means appropriately to strengthen the promotion of sexual harassment preventing measurement and grievance procedure, also holding training and seminars that related to gender equality and sexual harassment prevention simultaneously. We also provide a complaining mail address and hotline specially for employees who are confronting with sexual harassment. All kinds of harassment can be disclosed or reported based on relevant laws or “Regulations for Prevention, Correction, Complaint and Punishment of Harassment and Abuse at Workplace”, legislated by PEGATRON, to ensure a gender friendly environment, implement the harassment prevention, eliminate the gender discrimination, and arouse the gender equality.

Social Benefits

0.5% of annual net income given to charity

When Pegatron was established in 2008, it supported and participated in various charity activities, community participation, and caring actions. We hope to start from Pegatron and expand the care to the most needed. The Board of directors approved that the company will allocate 0.5% of the annual after-tax surplus for charity purposes annually. The company actively participates in public welfare activities and sponsors various groups. In addition to caring for the disadvantaged and environmental protection, Pegatron has also invested in culture, sports, and other issues in recent years. Some operating locations have also invested in local public welfare activities, including recycling of electronic wastes, material donations, invoices donations, blood donation activities, and environmental health care activities.

Headquarters

• Hired the intellectually disabled to work in bakeries for a long period of time.
• Invited charities and disadvantaged groups to participate in activities or performances on Family Days.
• Sponsored dinners prepared by our food suppliers for impoverished students in a nearby school.
• Supported nearby elementary and junior high school to enhance their teaching environment.
• Announced public welfare information and participate in donation activities.
• Recycling of waste electronic products.
• Deliver public welfare information, initiate charitable fundraising, invoice persuasion, and donation of second-hand clothes, and participate in the foundation's donation of materials for the remote villages.
• Participated in 422 World Earth Day and river-side cleaning activities in Guandu District.

Taiwan operation center

• Invite employees to participate in material donation activities for a homeless care foundation.
• Blood donation activities.
• Held a 422 World Earth Day Activity, including recycling of waste electronic products and waste pills.
• Invited employees to donate receipts to the Genesis Social Welfare Foundation.
• Street sweeping by environmental volunteers: we sweep surrounding neighborhoods to maintain a clean environment.

China operation center

• Initiated blood donation activities, involving more than 1,000 colleagues
• Hold networking and donation activities, and give volunteer medical consultation.
• Launched the charity donation activity.
• Participate in the Christmas lighting ceremony and respond to charitable donations.

East China operation center

• Sichuan earthquake donations.
• Blood donations activities.
• Organized "World AIDS Day" campaign.
• Sponsored funding of neighboring kindergartens, primary schools and secondary schools.
• Participated in a local road running activity, and inspired employees to experience the harmonious culture in the community and actively join sports activities.
• Invited employees to participate in used clothes donation activities for elementary schools in impoverished areas of Gansu Province.
• Accompanied the elderly in a local elderly nursing home and donated household appliances.
• Served as nursery volunteers in the "stars of the future kindergarten" and helped to clean up the flower garden.
• Participate the voluntary tree-planting activities hold by Pudong Park Management Department.
• Participate the Pudong hiking activity to create a harmonious community culture, promote the concept of sports and fitness.
• Hold the health promotion activities of "World No Tobacco Day".
• Hold the action of family planning to promote healthy living.
• Hold the road running activities of "Meet in drip lake, run up your healthy", and promote the Shanghai traffic regulation rule at the same time.

West China operation center

• Organize employees to visit the elderly in nursing home, and carry out cultural performances and interactive activities for the elderly.
• Launch the public welfare activities for environmental protection and health promotion, so as to promote environmental education and achieve sustainable development.
• Held the Arbor Day activities and enhance the employees’ awareness of greening.
• Held the blood donation activity and contribute to the local community.
• Carry out the waste separation, sign the environmental protection banners, and issue the environmental manuals, so as to promote the energy conservation and environmental protection.
• Organized a mask donation event and donated more than 5,000 N95 masks to community hospitals.

Czech manufacturing center

• Sponsored a local children’s home, including a charity bazaar of Christmas presents and donations.
• Adopted a 7-year-old boy.
• Student internship education project: We cooperated with local senior high schools and vocational colleges.
• Held blood donation activities.
• Sponsorship of research program of VSB technical university.

Mexico Operation center

• Provided help to troubled families.
• Donations of clothing to the local charity Niños de Luz Civil Association.
• Donations to local civic organization Vision in Action Rescue Mission.
• Donated food during holidays to the church Nuestra Señora del Sagrado Refugio.
• Donated a fence to the local kindergarten, with the objective to separate an area from the parking lot to protect the students’ safety.