“What is taken from society should be used in the interest of society.” Walsin Lihwa fully understands that enterprises are obligated and must commit to fulfilling their corporate social responsibility and strive for common good. Therefore, we review our measures in the economic, environmental, and social aspects of sustainability through the process of preparing a report every year. This drives us to continue making progress and improvements in the fields of CSR and sustainability. In 2018, our profits reached a record high thanks to the collective efforts of our employees: a reflection that we are doing great in the economic aspect yet not forgetting our compromises with society. While pursuing better business performance, we have not forgotten to dedicate our efforts to environmental and social aspects. Our corporate sustainability goals are in line with our core business development strategies, and through the daily implementation of organizational functions in daily operations, we hope to build our ability to achieve sustainable growth.
Governance improvements, unleashing potential
With regard to corporate governance, we continue to improve our governance framework and have pushed for sustainability-related policies, regulations, and systems. We have also implemented an external mechanism that assess our Board's performance, established and disclosed Board-approved dividends and human rights policies, and strengthened the dedicated unit's supervision of the immediacy, consistency, and transparency of internal and external information disclosure, thus prudently keeping pace with the times. The company still rank among the top 5% in the 5th Corporate Governance Assessment conducted by the Corporate Governance Center of the Taiwan Stock Exchange.
For business development, we actively invest resources in R&D to gain technical capabilities in the development of new materials and products. In response to the impact of technological advancements, we are gradually transitioning to smart manufacturing. We are developing smart manufacturing systems for process optimization to improve our production efficiency and product quality. We are also developing industrial applications and implementing horizontal integration to enter the manufacturing services industry, hoping to create a synergistic effect that will enhance our competitiveness in the long run.
Moving forward together, co-existing with the environment
For supply chain management, we incorporated CSR aspects in last year's supplier assessments. We required our key suppliers to fill out the Supplier CSR Performance Self-Assessment Form. We have organized CSR workshop with suppliers at our Hsinchuang Plant in Taiwan and Changshu Plant in China, aiming to jointly comply with CSR-related regulations to improve our sustainability performance and create momentum for positive change.
Starting in 2018, Walsin Lihwa began to promote the implementation, certification, and operation of ISO 50001 management system in plants around Taiwan. We support green procurement through practical actions and continue to improve our energy performance management and operations. As we seek to further manage energy efficiency, we greatly value the carbon reduction benefits brought by energy conservation technologies, especially given the slag within the steel industry. We established a steel slag recycling promotion team and are collaborating with professional organizations and academic institutions in research projects focusing on steel slag recycling, so as to reduce and restore the slag produced during the steelmaking process to achieve the government's circular economy vision. Furthermore, we continue to carry out independent air pollution reduction engineering and have adopted the best air pollution protection and waste gas emission reduction equipment. We plan to replace our coal furnaces with natural gas furnaces in 2019.
Friendly workplace, happy society
People are the foundation of enterprises. Employees are the most important asset of Walsin Lihwa. We deeply care about the physical and mental wellbeing of our employees and the workplace environment. Besides working hard to provide a friendly working space, as well as establishing and implementing strict safety regulations, we have also planned a comprehensive health promotion plan. We regularly have physicians provide on-site medical services, including one-to-one consultation and on-site visits, so that employees may receive thorough healthcare and medical services. We have also organized a series of happiness seminars and recreational events focusing on love to elderlies, friendly workplace and social event for singles, as we exert every effort to promote work-life balance. Our goal is to promote the physical, mental, and spiritual wellbeing of our employees for them to experience happiness. Walsin Lihwa was included into the Taiwan RAFI® EMP 99 Index for the first time in 2018. It is our unshirkable responsibility to create more employment opportunities and contribute to social stability.
In line with its “Corporate commitment to social communion” philosophy, Walsin Lihwa effectively integrates company resources with employee voluntarism through ongoing corporate citizenship, care for the underprivileged, environmental protection and preservation, and community outreach to make sincere contribution to society. We have continuously funded the "Light Up the Corners Throughout Taiwan Project” for 5 years. Said initiative provides resources to relatively lacking junior high schools and elementary schools so that they can develop their educational plans. We also implemented the Baoshan Shesui Project for the protection and restoration of Taiwan's endemic plants. Additionally, and in cooperation with Chung Yuan Christian University, we developed the Industry 4.0 Industry-Academia Collaboration Base Project. Furthermore, we have demonstrated our concern and sponsored community development activities in areas where we operate. We have engaged in a variety of public welfare initiatives related to ecology, education, and care for the underprivileged through volunteer services provided by our employees. These activities have cultivated a stakeholder mindset among out employees which in turn has expanded their social participation.
Walsin Lihwa attentively carries out CSR work and has laid a solid foundation through years of self-assessments and third-party certifications. We have also been reaffirmed through the external awards we have been receiving through many years. The next two to three years will be a turning point for our development. We hope to deliver the best performance and profits to our shareholders as we also hope that each and every single one of our employees incorporate CSR the different aspects of their work, so that CSR becomes a part of our corporate sustainability DNA as we join hands in creating a bigger and more positive impact on society.
Chairman: Yu-Lon Chiao