Corporate Social Responsibility

Stakeholder

Novatek is committed to the pursuit of sustainable development and growth for our shareholders, employees and the community to create a reasonable profit and value by adhering to government regualtions and lwas and its long-term dedication to the integrity and openness. We value the interests of all stakeholders, and have established a transparent, effective and multiple communication channels to respond to the interested parties' expections, suggestions and demands timely, whitch are considered as valuable input and reference for the Company's social responsibility and future development plans.

 

Stakeholders' Issues

Novatek's achievements today rely on the wisdom and contribution of stakeholders from all walks of life. Novatek has always attached great importance to the interests and opinions of its stakeholders. We not only maintain close interaction with our stakeholders through various communication channels, but have also set up a Stakeholders Page on our official website to allow stakeholders to express their opinions at any time. Furthermore, through the responsibilities of each functional unit within the Company, the needs of stakeholders are managed and responded accordingly. The following steps are adopted for handling stakeholders' issues:

 

Identifying Stakeholders

Stakeholders refer generally to groups or individuals in an organization that affect or are affected by the organization's goals. Novatek is a listed company; therefore, the Company's business development involves various stakeholders. To accurately focus the contents of this Report and achieve the goal of effective communication, it is necessary to identify the Company's main stakeholders. Based on the opinions of various functional units within the Company, which were summarized and discussed by members of the CSR Committee and in accordance with the 5 principles of the AA1000 Stakeholder Engagement Standard (SES) (dependency, responsibility, influence, diverse perspectives, tension), Novatek's stakeholders have been identified. They can be grouped into 7 main categories including investors, customers, employees, suppliers, government agencies, academic research institutes and non-governmental organizations.

 

Sorting Sustainability-Related Issues

Novatek's 2020 Corporate Social Responsibility Report inherits the focus on the major topics identified in the previous Report and continues to carry out response and management. The methods used to identify these topics are as follows:

 

Novatek's collection of sustainability issues in economic, environmental and social aspects includes not only the important matters of concern of various stakeholders in the semiconductor industry as collected by the Company's various functional units on a daily basis, but also refers to relevant international sustainability issues, research and norms, including the Global Reporting Initiative (GRI), the Responsible Business Alliance (RBA), the Dow Jones Sustainability Index (DJSI), and so on. After following the recommendations of the Company's upper management, 41 Novatek sustainability issues were determined.

 

Analyzing and Verifying Major Issues 

To gain a more direct understanding of our stakeholders' response to Novatek's sustainability issues, we have taken the initiative to use the "Novatek CSR Questionnaire Survey" to collect information on the stakeholder's level of concern with respect to Novatek's performance in the economic, environmental and social aspects. The questionnaires were recovered and analyzed to sort the degree of concern about relevant issues. In addition to understanding the degree of concern of the stakeholders on various sustainability issues, Novatek's senior executives were also tasked to assess the degree of impact of various sustainability issues on the operation of Novatek.

 

In accordance with the principles of the GRI Standards, Novatek has adopted the SWOT analysis approach to carry out the determination of major issues based on the "degree of stakeholders concern" and the "degree of impact on the Company's operation". Issues that were both high in the "degree of stakeholders concern" and the "degree of impact on the Company's operation" were identified as the concerned issues for priority disclosure. There were a total of 7 concerned issues for priority disclosure.


In addition, in view of the recent increase of labor awareness, and the fact that talents are the foundation of Novatek's development, we have also incorporated topics such as "Protection of Labor Rights", "Workplace Health and Safety", "Labor Relations", and "Fair Employment Opportunity" into the issues of concern for supplementary disclosure, particularly as they are closely related to the employees and are issues that our stakeholders are highly concerned about. Apart from continuing to focus on its own business, Novatek has taken the initiative to participate in social welfare activities in recent years, generating outstanding results. In order to provide our stakeholders with a more in-depth understanding of Novatek's role as corporate citizens, topics such as "Participation in Charity Activities" and "Indirect Economic Impact" were included in the issues of concern for supplementary disclosure.


In recent years, the impact of high-tech industries on the environment, regardless of resource consumption or pollution emissions, the has raised a great deal of public concern and discussion. To provide our stakeholders with a better understanding of the impact Novatek's operation on the environment, topics such as "Environment, Energy and Resource Management", "Energy Saving and Carbon Reduction Actions" and "Greenhouse Gas Emission" have been included in the issues of concern for supplementary disclosure. To consolidate the above, "Compliance with Various Laws and Regulations" has also been added. In addition to the 7 concerned issues for priority disclosure, this Report also details 10 concerned issues for supplementary disclosure.


Regarding the issue of "Response Measures for Climate Change", since Novatek is an IC design company, and has limited involvement in the actual manufacturing process only the issues of "Environment, Energy and Resource Management", "Energy Saving and Carbon Reduction Actions", "Greenhouse Gas Emission" and "Supply Chain Management" were selected. An internal team is being formed to further analyze the IC design process in order to have more coverage to the issue of "Response Measures for Climate Change".

 

 

 

Stakeholder Communication Channels

Through a wide variety of communication channels, the expectations and suggestions of our stakeholders are widely accepted.

Stakeholder  Relevance to the Organization Communication Method and Frequency Content
Investor Provides the capital needed by Novatek Microelectronics Corporation for its operation

Shareholders' general meeting (Annually)

Shareholders' general meeting (Annually) 

Meeting/phone call/email (Aperiodically)

Reporting operation status, dividend policy, financial statement and outlook of next quarter, major issues of the company, stock price fluctuation
Customer A strategic partner for Novatek, we strive to create value for our customers

Phone call/email (Daily)

Customer meeting (Aperiodically)

Customer satisfaction survey (Quarterly)

Customer audit (Aperiodically)

Quality control meeting (Monthly/Quarterly)

Customer relations development, product quality tracking and Improvement
Employee Novatek's most important resources; employees create the biggest value for the Company

Department meeting (Monthly)

Educational Training Committee (Semi-annually)

Labor-Management Meeting (Quarterly)

Performance interview (Annually)

Occupational Safety and Health Committee (Quarterly)

Electronic suggestion box/bulletin board (Aperiodically)

Employees' Welfare Committee (Semi-annually)

Occupational health and safety, employer-employee relations, talent recruitment, planning and result of talent cultivation, workplace environment and salary benefits, balance between work and life
Supplier Provides related resources
and services needed for the Company's operation; suppliers grow together with Novatek

Phone call/email (Daily)

Quality control meeting (Monthly/Quarterly)

Supplier audit (Quarterly/Annually)

Channels for Customer complaints (Aperiodically)

Follow-up on daily production, follow-up on customer complaints, new production progress integrated with platforms of both parties, surveys related to green products/conflict minerals
Government agency Enjoy the infrastructure and services provided by the government; compliance with government regulations

Announcement of Market Observation Post System (Aperiodically)

Various meetings (Aperiodically)

Official document exchanges (Aperiodically)

Labor inspection (Aperiodically)

Major company information/ financial statements/ documents of shareholders’ meeting/ major investment projects

Academic

research institute

An important source and driving force for Novatek's tech professionals and skills

Campus scholarship (Annually)

Industry-university collaboration meeting (Aperiodically)

Summer internship (Annually), campus lecture (Aperiodically)

Industry-university collaboration project, summer internship program, teaching of industrial technologies and experiences

Non-governmental

organization

The main targets for delivering social care by Novatek, primarily public welfare organizations

Charitable activities (Aperiodically)

Popular science education and sponsorship, corporate voluntary service, participation in charitable activities, social care and donation
For more stakeholder information, please refer to the “Stakeholder” chapter in the Corporate Social Responsibility Report. Download