2012 GUC

Corporate Social

Responsibility

Report

Table of Contents

Overview------------------------------------------------------------------------------------------1

1. Letter from the Chairman and President--------------------------------------------------2

2. Company Profile-----------------------------------------------------------------------------4

2.1 An Introduction to GUC--------------------------------------------------------------------4

2.2 Market Overview----------------------------------------------------------------------------6

2.3 Business Overview--------------------------------------------------------------------------8

2.4 Business Development--------------------------------------------------------------------12

2.5 Business Proprietary Information Protection-------------------------------------------17

2.6 Awards and Recognitions-----------------------------------------------------------------18

2.7 Membership in Industry Associations---------------------------------------------------19

2.8 Financial Highlights-----------------------------------------------------------------------20

3. Stakeholder Engagement------------------------------------------------------------------23

4. Corporate Governance---------------------------------------------------------------------25

4.1 Corporate Governance structure --------------------------------------------------------25

4.2 Board of Directors-------------------------------------------------------------------------26

4.3 Audit Committee---------------------------------------------------------------------------34

4.4 Compensation Committee----------------------------------------------------------------35

4.5 Regulatory Compliance-------------------------------------------------------------------35

4.6 Code of Ethics and Business Conduct---------------------------------------------------35

5. Employee Care-----------------------------------------------------------------------------36

5.1 Employment Status------------------------------------------------------------------------36

5.2 Employee Development-------------------------------------------------------------------38

5.3 Total Compensation------------------------------------------------------------------------40

5.4 Employee Relations------------------------------------------------------------------------41

5.5 Integrated Solutions for Work and Life Balance---------------------------------------42

5.6 Corporate Security and Safety Management-------------------------------------------45

5.7 Safety and Health--------------------------------------------------------------------------45

6. Social Participation------------------------------------------------------------------------47

7. Environmental Protection-----------------------------------------------------------------47

7.1 Green Procurement and Production-----------------------------------------------------48

7.2 Green Product------------------------------------------------------------------------------50

7.3 Green Life-----------------------------------------------------------------------------------51

8. Appendix------------------------------------------------------------------------------------51

GRI (Global Reporting Initiative) G3.1 Index-----------------------------------------52

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Overview

This is the second time that GUC conducts the Corporate Social Responsibility (CSR)

Report. We will continue to establish it from time to time and would like to share with

you our ceaseless efforts in sustainable development of economic, environmental, and

social dimensions. By complete information disclosure and communication of

stakeholder engagement, we hope to show GUC’s management guidelines and

performance of economic, environmental and social aspects to gain further

understanding and more trust from stakeholders.

Report Timeline

This report outlines our performance and efforts in the past and full 2012 calendar

year for the most relevant CSR issues, environmental protection and social

participation, CSR management guidelines, responses and actions of key issues with

employees, customers, suppliers, and shareholders.

Report Scope and Profile

The report contains CSR-related data and activities of GUC Hsichu Headquarters and

Taipei Office in Taiwan, except our overseas subsidiaries and liaison offices. Financial

information is the consolidated basis in this report.

Reference

This book is compiled based on the Global Reporting Initiative (GRI) G3.1

framework. Attached is a table in appendix for reference.

Contact Information

The report is available on GUC’s company website. If you have any further questions

regard this, please contact us.

Address: No. 10, Li-Hsin 6th Rd., Hsinchu Science Park, Taiwan, R.O.C.

Tel: +886-3-5646600

Email: irinfo@guc-asic.com

Website: http://www.guc-asic.com

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1. Letter from the Chairman and President

GUC is committed to the pursuit of business growth and sustainability to fulfill the

one of most important target of corporate social responsibility and being a good

corporate citizen since its inception. GUC insists to treat the partners of upstream and

downstream in integrity, strength social welfare, and environmental activities are

consistent. In recent years, based on the social and environmental commitments and

faiths, we internally aggressively promote the green product designs and the related

environmental protection works in order to implement the good environmental

protection responsibility of the corporation.

GUC is as one of the global electronics industry supply chain. In order to comply with

international standards and meet the vendors’ and customers’ requirements, there are

plans to enhance corporate culture and management system which include: the

establishment of Electronic Industry Citizenship Coalition (EICC) committee under

the operating committee to plan and implement compliance of EICC Code of Conduct

as the operating principals in 2012. Meanwhile, GUC signifies the commitment to the

Code’s principals together with the suppliers as collaborating for a sustainable

electronics industry.

In 2012, GUC was awarded the Science Park Administration “2012 Most Outstanding

Landscape Award.” Moreover, GUC’s good corporate governance and transparent

corporate information have been highly recognized, which Taiwan Stock Exchange

and GreTai Securities Market rated GUC “A++” and ranked GUC as the Top 10

companies in the 9th Information Disclosure Assessment and Evaluation of Listed

Companies.

To pursue sustainable corporate growth and operation, it is the most important issue to

carry out corporate social responsibility. GUC believes in the following principles.

1. GUC insists on honesty and integrity.

2. GUC opposes corruption and bribery. GUC does not engage in illegal

government-business relations.

3. GUC offers its employees great and healthy environment and emphasizes the

balance between work and life.

4. GUC practices good corporate governance and transparent business disclosure.

GUC keeps its promise to its stakeholders.

5. GUC provides good job opportunities to the public.

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6. GUC encourages innovation to create value to the society.

7. GUC actively participates in social beneficial activities by supporting educational

and cultural activities, and caring for the poor.

8. GUC obeys the law and reviews itself by the highest ethical standards and

business moral standards.

9. GUC protects the environment safe and sound, cherishes the global resources and

implements environmental protection habits in daily life.

Looking ahead, GUC will continue to execute its strategy prudently and utilize core

competence. GUC will strive to run its operation with honesty and integrity and act as

a benchmark of corporate social responsibility. GUC will bring happiness and balance

to its employees and contribute to implement educational programs in environmental

protection and conservation. GUC will embrace the era of cloud computing, focus on

digital opportunities and face the challenge of new times. GUC will persist in

strengthening its corporate governance, corporate social responsibility and sustainable

business performance to maximize the benefit of corporate value, shareholders and

stakeholders and create a brighter future for the society.

Global Unichip Corporat ion

F. C. Tseng

Chairman

Jim Lai

President

~ 4 ~

2. Company Profile

2.1 An Introduction to GUC

Founded in January 1988 and headquartered in Hsinchu, Taiwan, GLOBAL UNICHIP

CORP. (GUC) is the Flexible ASIC LeaderTM whose customers target IC devices to

leading edge computing, communications and consumer applications. GUC reached

the net sales of NT$9,013,760 thousand in 2012. As of 12/31/2012, the company has

the employee of 435 persons in Taiwan and the capitalization of NT$1,340,119

thousand dollars. GUC’s Flexible ASIC ModelTM offers full-spectrum services to

satisfy today’s innovative technology companies’ unique operational and

technological needs.

With close cooperation with TSMC and major IC backend service suppliers, GUC

combines advanced technology, lower-power consumption and embedded CPU design

methodology for ASIC design of advanced communication, computing and consumer

electronics. GUC pursues excellent thinking to punctually deliver products of lower

power-consumption, high speed, and great quality. GUC aims to innovate and assist

IC visionary customers to reach the next level of leadership in their markets.

Based in Hsin-chu, Taiwan GUC has developed a global reputation with a presence in

China, Europe, Japan, Korea, and North America. GUC is publicly traded on the

Taiwan Stock Exchange under the symbol of 3443.

~ 5 ~

GUC Headquarters, Hsinchu

GUC Taipei GUC China

~ 6 ~

GUC Europe B.V. GUC Japan

GUC Korea GUC North America

2.2 Market Overview

2.2.1 Current Status of the Industry and Future Development

The production volume contributed from Taiwan’s fabless IC design companies has

reached to the world No. 2 just behind the United State. When the products migrated

to the advanced technology process and the increased complexity make the IPs

synthesis, verification and DFT/DFM have become the huge challenges, especially

considering the more and more expensive non-recurring engineering charges. The

specific design services will quickly reinforce the whole process of the company.

In addition to the fabless IC industry, another is IDMs (integrated device

manufacturers) are reducing capital expenditure and transiting to the fab-lite trend.

For the advanced technology process needs are steering to the professional design

services provider. Moreover, the system companies are pursuing the differentiation

and also beginning to design their own key chips, which is also another great

opportunity for design services provider.

Given the industry's rapidly changing trends and customer demand, GUC proposes

our value as “Flexible ASIC Services”, in which, we help customer from concepts,

spec definition, product design & development, and verification to mass production.

Depends on different engagement model, we can engage with customer from different

stage and help them to accelerate time-to-market.

Flexible ASIC Services include three core competences: IP Solution, Chip

~ 7 ~

Implementation and ASIC Manufacturing. Precise provide the IP Solution, helping

customers reduce design time and cost in order to meet customer demand customized

IC. In the Chip Implementation, we collaborate with TSMC's advanced technology

process closely enable to help customers in quick mass production, improvement of

yields, and strengthening of market competitiveness. GUC provides ASIC

Manufacturing, which is the best collaboration between the foundry and the back-end

packaging and testing suppliers.

2.2.2 The Supply Chain of Taiwan Semiconductor Industry

The top-down supply chain of Taiwan’s semiconductor industry is divided into design,

wafer manufacturing, packaging and testing.

The division- of-labor of Taiwan semiconductor industry (up, mid, and down stream)

2.2.3 Future market supply and demand situation

According to forecasts made by IEK, global semiconductor industry will be slightly

decline 3.2% in 2012 and estimated to turn to a upside trend with the growth rate of

4.5% in 2013.

According to the forecasts made by different research institutes, global electronic

industry’s main growth driver is coming from the mobile devices of the emerging

market which include of smart-phone, tablet, and notebook, with combination of

multiple and powerful functions as a trend of certainty.

With Flexible ASIC Service Model, advanced high-end process design capabilities,

and long term commitment to the design services, our all team will exert all efforts to

continuously provide the best one-stop complete solutions to our customers, aiming to

keep the leading position.

IC designIC

manufacturingSubstrate Lead frame

IC packaging

IC testingChemical

Materials

IC design services

(IPs ; EDA tools)

: core industry

: related industry

Up stream Mid stream Down stream

~ 8 ~

Figures of 2012 Taiwan IC Industry Revenue by Sales Region

Unit: NT$ 100 Million

Domestic North

America

Japan HK/China Korea Southeast

Asia

Europe Other Total

2012 33.6% 6.7% 3.7% 51.8% 1.6% 0.5% 1.9% 0.2% 100%

Source：TSIA ；IEK (2012/11)

Figures of 2012 Taiwan IC Industry Revenue

Unit: NT$ 100 Million

2010 2010

Growth

Rate

2011 2011

Growth

Rate

2012 2012

Growth

Rate

2013

(e)

2013

Growth

Rate (e)

IC Industry

Total Rev.

17,693 38.3% 15,62

7

-11.7% 16,342 4.6% 17,856 9.3%

IC Design 4,548 17.9% 3,856 -15.2% 4,115 6.7% 4,507 9.5%

IC

Manufacturing

8,997 56.0% 7,867 -12.6% 8,292 5.4% 9,054 9.2%

Foundry 5,830 42.8% 5,729 -1.7% 6,483 13.2% 7,139 10.1%

IDM 3,167 88.1% 2,138 -32.5% 1,809 -15.4% 1,915 5.9%

IC Package 2,870 30.6% 2,696 -6.1% 2,720 0.9% 2,965 9.0%

IC Test 1,278 32.3% 1,208 -5.5% 1,215 0.6% 1,330 9.5%

IC Product 7,715 39.2% 5,994 -22.3% 5,924 -1.2% 6,422 8.4%

Global Semi

Growth

Rate

- 31.8% 0.4% -3.2% 4.5%

Note： (e) Means (estimate)

Source：TSIA ；IEK (2012/02)

2.2.4 Growth of the Future Market

Due to the increased investment and capital expenditure of advanced technology

production, more and more IDMs (integrated device manufacturers) are focusing on

the business and reduce capital expenditure and intend to transit to the fab-lite trend.

For the needs of advanced technology process, they are steering to the professional

design services provider. Moreover, the system companies are pursuing the

differentiation and also beginning to design and develop their own key chips, which is

also the great opportunity for design services provider.

2.3 Business Overview

2.3.1 Major Business

(A) Engage in research & development, production, testing and sales of: � Embedded memory, logic, and analog components for various application ICs; � Cell libraries for various application ICs; and

� EDA tools for various application ICs.

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(B) Provide technological support and consulting services related to the aforementioned products.

2.3.2 Main products and services:

(A) ASIC & wafers: Provide complete services from design, wafer manufacturing

to packaging and testing.

(B) NRE (Non-Recurring Engineering): Provide circuit design cell library and

various IPs required in the process of product design; provide circuit layouts

needed for mask making; subcontract mask making, wafer manufacturing,

dicing and packaging to vendors; conduct final testing to get prototype samples

for customers.

(C) MPW (Multiple-Project Wafer): MPW integrates multiple design projects of

different customers on one single mask and by one wafer engineer run. It is an

effective and fast time-to-market chip verification service with cost-sharing in

masking and wafer engineering run. Design engineers, before the phase of mass

production, are able to timely verify their prototype designs with advanced

process technologies and much lower costs.

(D) IP (Intellectual Property): These are silicon-verified reusable IC designs with

specific functions. With the rapid advancement of semiconductor processing

technologies, the design industry is trending toward multi-functional chips and

SoC (System on a Chip). Reusable IP help customers avoid redundant designs

and resources.

2.3.3 Revenues Breakdown by Product and Region

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2.3.3 Revenues Breakdown by Technology and Application

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2.3.5 Latest Technologies and New Products in 2012

� Successfully developed 1st silicon success in high speed 1.8 GHz ARM

Cortex-A9 dual cores with 28nm of CPU/GPU SoC.

� Successfully developed 28nm LPDDR2/DDR2/3 controller and PHY of key IPs.

� Successfully developed 28nm PCIe Gen 3 PHY IP and launched in tsmc OIP

forum.

� Unveiled new 28nm data converter IP family which includes ADC/DAC and a

new thermal sensor macro.

� Successfully developed 40 nm 10 G Burst Mode CDR technologies and

certificated by customer.

� Successfully developed and offered WiFi Integrated Passive Device (IPD)

services and technologies.

~ 12 ~

2.4 Business Development

2.4.1 Product Development Trend and Competition

IC design used to be a simple task without the application of complex design

methodologies. The picture has been changed along with the industry trending toward

miniaturization and the convergence of system on a chip (SoC). To cope with the

development of the technology changes, it is important for design service providers to

exercise internal Design Reuse and apply abundant external IP to develop SoC.

Thanks to the semiconductor cluster in Taiwan with thorough supply chain of

booming IC design houses, foundries, and packaging and testing support, design

service providers have expanded significantly, with a current number of more than 20

in Taiwan. As most Taiwanese IC design companies have alliance either with TSMC

or with UMC, accordingly design service providers belong to either one of the two

groups. There are also some services providers choose to work with Korean wafer

foundries or with the newly arisen foundries in China.

Along with the global IC projects migrate from 65nm to 40nm or even more advanced

process technologies, wafer foundries must place significant emphasis on design

services which have evolved from purely providing placement & routing toward

executing register transfer level (RTL) and developing synthesis. That trend signals

closer collaboration between foundries and design service providers. In the future, it

will be the service providers who have the know-how and capabilities to develop IP

platform for SoC applications and to synthesize process services, to stand out

competition and take the lead.

~ 13 ~

2.4.2 New Product Development Plan

- To develop high-end and high-in-demand Intellectual Properties (IPs): high speed

interface like 10GKR SerDes, XAUI, PCIe Gen2/3, eDP, sRIO, etc and

10G-GPON/EPON, Burst CDR, DDR Memory Controller, LVDS, Voltage Regulator,

Power Management Solution, ADC/DAC, Data Converter, Clock Generator, etc.

- To offer complete silicon IP, SOC integration and design platform solution for

applications of networking PON, mobile devices which include networking and

multimedia portable device, and digital television.

- Continue to offer high-end design and turnkey services in 40nm, 28nm, and 20nm

technologies.

2.4.3 Long Term and Short Term Business Development Plan

Short-term:

(A) Promote advanced technology MPW projects to lower customers’

risk.

(B) Raise entry barriers by developing advanced know-how and

product differentiation. Provide support services for the 40nm and

28nm below advanced technology processes.

(C) Provide multiple platforms and total solutions to different

applications and markets to shorten customers’ time to market.

(D) Enhance cooperation with upstream and downstream partners.

(E) Provide complete IP solutions and SoC development according to

product applications.

Long-term:

~ 14 ~

(A) Establish offices in global market to promote brand name and

worldwide market share.

(B) Enhance new business opportunities when more and more IDMs

are going fab-lite.

(C) Develop leading-edge process flow and products via closer

cooperation with foundry.

(D) Seek for the long term technology corporation with world-wide

system companies.

(E) Strengthen strategic alliance and cooperation with IP suppliers.

(F) Strengthen frontend SoC design capability and develop all kinds of

application platform structures.

(G) Develop the COWOS (Chip on Wafer on Substrate) technology and

collaborate with foundry closely In order to provide the complete

and one-stop shopping design services.

2.4.4 Competitiveness, Strength, Weaknesses and Counter Strategies

(A) Competitive advantages

(a.) Abundant experience in IP development and integration

GUC has successfully developed a series of IP in accordance with design

reuse guidelines. GUC not only licenses its self-developed IP to IC design

~ 15 ~

houses and system houses at home and abroad, but also provide services in

integrating IP into customer projects.

(b.) Mature and complete design and verification flow

GUC’s design and verification flow has been proven by numerous customer

projects. Such flow serves to shorten the time needed for IC verification,

hence reducing risks. Customers are able to complete product design within

the shortest timeframe.

(c.) Keep hold on advanced process design technology

GUC has been committed in conducting advanced process technology

projects and have has successfully completed many 40nm and 28nm

projects. This year, we are proud to get several advanced projects and to

work on advance designs together with important clients and strategic

partners. Our abundant hands-on experiences will support and guarantee the

realization of our customers’ advanced technology projects.

(d.) Technology-oriented R&D team

GUC has always been putting emphasis on developing its own technologies.

Over the past years, GUC has formed an experience-rich R&D team with

reliable design resources and know-how. Customers are well-supported by

our R&D force to develop international-standard products.

(e.) Complete SIP partnership

In order to increase the quantity and types of SIP available for customers,

GUC in addition to developing home-grown SIP, also collaborates closely

with leading worldwide SIP vendors such as ARM, MIPs, Synopsys, TCI,

AnalogBits, Cadence and TSMC. GUC guarantees to provide complete IP

solutions for customers’ projects.

(f.) Multiple service model

GUC provides one-stop shopping service to customers with thorough SoC

solutions, and supports customers from design phase to mass production

phase. GUC has built up all the important service links in the IC

manufacturing flow. Customers are free to choose different services and

deliveries based on their technology capacity and needs.

(g.) Providing IP trading service through IP Mall

GUC offers a IP trading platform for our IP providers and users.

Customers therefore have accesses to information and services of certain IP,

as well as the verification information and quality assurance of these IPs

through a single contact window.

(B) Strength, weaknesses and counter strategy for long-term development

~ 16 ~

(a.) Strength

a-1. Specialized division of work in the semiconductor industry

Taiwan’s IC industry has a unique infrastructure of vertical disintegration,

characterized by a cluster of IC design, advanced IC foundry and back-end

packaging and testing firms. The infrastructure creates an extremely

favorable environment for the development of design services. For example,

newly developed SIP can be rapidly verified by the two world-class IC

foundries to minimize failures and risks. With the closely-tied cooperation

between IC foundries and service foundries, Taiwanese design service firms

are able to offer process-verified SIP to foreign customers who are

accordingly very likely to become the clients of the two IC foundries in

Taiwan. Taiwan has a good chance to become the international ISP trading

center.

a-2. Abundant IC design companies and downstream system companies

There are a huge number of Taiwanese system manufacturers engaged in

ICT applications and consumer electronics. Whether these system

manufacturers are OEM vendors or own brand-name developers, their

systems in line with technology trend require multiple and powerful

functions integrated on one single chip. The cooperation between design

service firms and system integrators plays a critical role in enhancing

Taiwan’s SoC industry.

a-3. IDM Fablite

In order to keep core-competence and save large-scale capacity investment

in advance process nodes, we aware the world-wide IDM’s Fablite trend.

They start to outsource projects to design services providers.

(b.) Weaknesses and counter measures

b-1. Shortage of design talents

~ 17 ~

The IC industry boom in Taiwan is challenged by short of design talents.

The costs for design service firms are very high to find, recruit and retain

qualified talents.

Counter measures:

I. Provide internal and professional external trainings to cultivate

own talents. Strengthen cooperation and exchange with leading

industrial players and the academies to sustain our technology

competitive edge.

II. Strengthen project management capability and global logistics

operation.

III. Reduce dependence on manpower by applying innovative and

automate design and production flow.

b-2. Growth prospect causes fierce competition

As design service becomes the future to be, the industry has attracted

a great deal of new entries into competition.

Counter measures:

I. Develop niche and high value-added SIP to differentiate GUC

from competitors and to avoid price-cut competition.

II. Provide special-application platform in response to

time-to-market demands.

It is foreseen that the industry will keep growth momentum. Our company has been

committed in the research and development of the design flow and technologies in the

advanced 40nm and 28nm process nodes as well as in the development and

improvement of multi-media platform. Furthermore, GUC will focus on providing

more complete system application solution for networking PON, multi-media portable

devices and DTV. Besides, the company’s another focus of research lies on the

ultra-high-speed interface IP such as SerDes, XAUI, PCIe, SATA, and LVDS which

are widely applied in high value-added telecommunication equipments and will also

develop 2.5D/3D/IPD design flow and assembly & testing technology. By way of

developing and launching above-mentioned new technologies and new applications,

GUC hopes to deliver revenue growth in the year of 2012.

2.5 Company Proprietary Information Protection

~ 18 ~

GUC is in the highly intelligent and technology-intensive industry. In order to well

protect our business and operation proprietary information, we set the "GUC

Proprietary Information Protection (PIP) Policy” and "GUC PIP Procedures"

accordingly. The PIP Committee shall conduct periodic audits to ensure full

compliance of by company team member and convene the regular meetings every two

months.

We provide the advocacy and training to help company team member better

understand how to maximize the protection of company proprietary information while

reducing risks of inadvertent disclosure. Failure to comply with the PIP Policy by

employees may constitute grounds for disciplinary, corrective, and legal action in

accordance with GUC PIP Procedures.

2.6 Awards and Recognitions

� GUC won the “Innovative Research Prize” awarded by the Ministry of

Economic Affairs, among all Taiwanese small & medium-sized enterprises in

2001.

� GUC won the “Most Outstanding Landscape Award” awarded by Hsinchu

Science Park Administration in 2006.

� GUC won the “the Best Environmental Protection Award” awarded by Hsinchu

Science Park Administration in 2006.

� GUC won the award of “Outstanding Innovative Enterprise” by the Ministry of

Economic Affairs, R.O.C in 2006.

� GUC won Deloitte Taiwan 2007 Technology Fast 50 Award.

� GUC awarded “2008 Amiable Workplace Prize” by Council of Labor Affairs

� GUC awarded “2008 Health Management Award” by the Bureau of Health

Promotion, Department of Health, Taiwan, R. O. C.

� GUC won the “the Best Environmental Protection Award” awarded by Hsinchu

Science Park Administration in 2008.

� GUC was ranked No.3 of 50 Best Operating Performance companies by

Common Wealth Magazine in 2008.

� GUC won Deloitte Taiwan 2008 Technology Fast 50 Award.

� GUC won Deloitte Asia Pacific 2008 Technology Fast 500 Award.

� GUC won Deloitte Asia Pacific 2009 Technology Fast 500 Award.

� GUC awarded “Business Unit of 2009 National HRD InnoPrize”.

� GUC won the “the Best Environmental Protection Award” awarded by Hsinchu

Science Park Administration in 2009.

� President –Jim Lai award “National Manager Excellence Award 2009” by

Chinese Professional Management Association.

~ 19 ~

� GUC passed “Certificate of Corporation Governance System CG6005 General

Assessment” by Taiwan Corporate Governance Association in 2010.

� GUC was rated “A+” in the 7th Information Disclosure Assessment and

Evaluation of Listed Companies by Taiwan Stock Exchange and GreTai

Securities Market in 2010.

� GUC was awarded “2010 Art and Business Award” by Council for Cultural

Affairs, Taiwan.

� GUC was awarded “The Benchmark of 2010 Taiwan TrainQuali System” by

Bureau of Employment and Vocational Training, Council of Labor Affairs,

Executive Yuan.

� GUC was awarded “Most Outstanding Landscape Award” by Hsinchu Science

Park Administration in 2010.

� GUC was awarded “the Top 10 companies” and rated “A+” in the 8th Information

Disclosure Assessment and Evaluation of Listed Companies by Taiwan Stock

Exchange and GreTai Securities Market in 2011.

� GUC was awarded “2011 Innovation Award of Monte Jade in Taiwan” by Monte

Jade Science and Technology Association of Taiwan.

� GUC was awarded “2011 Outstanding APAC Semiconductor Company” by

Global Semiconductor Alliance (GSA).

� GUC received “2011 Occupational Health Promotion Certification” from the

Public Health Bureau, Hsinchu City Government.

� GUC was awarded “the Top 10 companies” and rated GUC “A++” in the 9th

Information Disclosure Assessment and Evaluation of Listed Companies by

Taiwan Stock Exchange and GreTai Securities Market in 2012.

� GUC was awarded “Most Outstanding Landscape Award” by Hsinchu Science

Park Administration in 2012.

2.7 Membership in Industry Associations

~ 20 ~

� The Allied Association for Science Park Industries

� Chinese Professional Management Association of Hsinchu

� Taiwan Semiconductor Industry Association (TSIA)

� 3DIC SIG, Special Interest Group

� Global Semiconductor Association (GSA)

� Video Electronics Standards Association (VESA)

� Institute of Electrical and Electronics Engineers (IEEE)

� JEDEC Solid State Technology Association

� Taiwan Corporate Governance Association

� Chinese Human Resource Management Association

� Chinese Association of Business and Intangible Assets Valuation

� Hsinchu City Nurses Association

2.8 Financial Highlights

Unit: NT$ Thousand

~ 21 ~

Unit: NT$ Thousand

Unit: NT$ Thousand

~ 22 ~

Unit: NT$ Thousand

Unit: NT$

~ 23 ~

Unit: NT$ Thousand

3. Stakeholder Engagement

GUC stakeholders include stockholders, investors, employees, customers, suppliers,

governmental organization, communities and government. GUC’s CSR taskforce

includes Investor Relations Department, Legal, Sales, Human Resources Division,

Marketing Division, Operations, and Employee Facilities and Services Department.

These units compile stakeholders’ concerns through various channels, communicate

with them, and ensure implementation of appropriate initiatives and programs

responsive to those interests and concerns.

GUC Identification Procedure for Stakeholders’ Concerns:

GUC divisions most closely related to corporate social responsibility issues confirm

the direction of CSR and communicate the Company’s achievements to the public.

First, CSR related divisions follow the Company’s principles of CSR, identify

stakeholders and compile stakeholders’ concerns through various channels. Secondly,

GUC prioritizes the concerns according to their frequency and severity and integrates

stakeholders’ concerns into routine tasks and annual plans, and maintains flexibility to

incorporate ad-hoc issues into annual plans. GUC continues to promote and improve

projects related to stakeholder concerns. GUC believes that it’s imperative for the

Company to be responsible to its stakeholders and communicate with them through

various measures and channels to understand their needs and expectations from GUC,

and also take these needs and expectations into account for corporate social

~ 24 ~

responsibility policy and projects. GUC and its stakeholder communication measures

and channels are described in the following table; more detailed information can be

found in related chapters of this report.

~ 25 ~

Topics of Concern for GUC Stakeholders and Communication Channels

Stakeholder Stockholders & Investors Customers Employees Suppliers Community Government

Retail Investors: 1. Customer audit 1. Announcements 1. Information plat form for 1. CSR Report 1. Official docuements

1. Annual Shareholder Meeting 2. Customer meeting 2. Regular communication meetings suppliers 2. Corporate website 2. Communcation meetings or public hearings on

2. Annual Financial Report 3. Annual tech seminar 3. Employee suggst ion channels, 2. Regular meetings 3. Volunteer activities regulat ions

3. Communicate with GUC by phone and e-mail 4. Customer satisfaction survey such as HR e-mail and EFS 3. Corporate finanical reports

Institutional Investors: 5. Complied with customers' requests of service center 4. Responses to requests from government authorit ies

1. Semi-annual investor conference industry and social responsibility survey 4. Questionnaire, such as 5. Communication with government authorities through

2. non-deal roadshow or investment forum food satisfaction industry organizations

3. one-on-one and group meeting 5. Employee assistance program 6. Seminars

Economic Issues: 8. Organization and management change Social Issues: 8. Philanthropic activities Environmental Protection Issues:

1. Corporate governance 9. Employee bonus and dividend distribution 1. Labor relations 9. Communication with employees 1. Green product

2. Legal complance 10. Tax 2. Employee recognition 10.Fair recruitment 2. Wate management

3. Proprietary information protect ion 11. Product R&D 3. Occupational health improvement 11. Labor rights 3. Ecological preservat ion

4. Financial informat ion 12. Communication channels for Stakeholders 4. Salary and benefit s 12. Gender equality 4. Environmental protection expense

5. Share price 5. Training 13. Leadership 5. Cert ification of Environmentally Preferrable Products

6. Operational status 6. Partnership with customers

7. Investment plan 7. Employment

Communication Channels

Topics of Concerns

~ 26 ~

4. Corporate Governance

To obtain investors’ trust and secure corporate sustainability, GUC’s principles for

corporate governance include well-planned business strategy, well-supervised strategy

execution, maintenance on shareholders’ equity, and information disclosure at a

proper time. GUC’s four independent directors have established “Audit Committee”

and “Compensation Committee” to strengthen corporate governance and management

of board of directors. To ensure investors can access to latest update of GUC related

news, GUC discloses GUC’s news on operation, finance, board of directors and

annual shareholders’ meeting on GUC’s website and TWSE Market Observation Post

System .

4.1 Corporate Governance Structure

~ 27 ~

4.2 Board of Directors

Our Board of Directors is currently composed of nine distinguished directors with a

great breadth of experience. Four of the nine members are independence directors.

GUC’s Board of Directors takes a serious and forthright approach to its duties and is a

dedicated, competent and independent Board. The Board supervises the Company’s

compliance with relevant laws and regulations; financial transparency; timely

disclosure of material information, and maintaining of highest integrity within the

Company. Secondly, the Board provides guidance to the management team of the

Company. The Board meets at least once every quarter. Four regular board meetings

were convened in 2012. Most of directors participated in person except one by proxy.

While we intended to prevent or minimize losses for Board of Directors and in order

to mitigate risks resulting from the lawsuits, we offered insurance with the coverage

of US$12 million in the tenor from 04/28/2012 to 04/28/2013.

Dr. F.C. Tseng

Chairman; Vice Chairman of TSMC

Dr. F.C. Tseng is the Chairman. He has been our Chairman since January 2003. He is

also a Vice Chairman of TSMC, a director of Digimax, Inc., TSMC Solar Ltd., TSMC

Solid State Lighting Ltd., and Vanguard International Semiconductor Corp. He also

serves as an independent director, a member of Compensation Committee and

Chairman of Financial Statement and Internal Control Review Committee of Acer Inc.

Prior to this post, Dr. Tseng served as Deputy Chief Executive Officer, President, and

Senior Vice President of Operations of TSMC. Dr. Tseng spent two years as President

of Vanguard International Semiconductor Corporation (VIS), which was derived from

the Industrial Technology Research Institute's (ITRI) Sub-micron Process Technology

Development Project and was Taiwan's first eight-inch IC facility.

Dr. Tseng led 110 specialists to spin off from ITRI's Electronics Research & Service

Organization (ERSO), and in 1987 he co-founded TSMC as a pioneer specializing in

the "foundry only" semiconductor manufacturing business. Dr. Tseng established a

solid technical base for TSMC's six-inch and eight-inch fabs.

~ 28 ~

From 1973 to 1986, Dr. Tseng served at ITRI-ERSO, where in 1976 he was one of the

pioneers in setting up the IC project in Taiwan. He was responsible for installing the

7.5 mm metal-gate CMOS process into the 3-inch line, which later was converted

smoothly to 4-inch under his management. In 1978, Dr. Tseng was promoted to plant

manager of the IC demonstration plant, where he was responsible for the production

and development of silicon-gate CMOS from 5 mm to 1.2. Under his supervision, he

established the capability to develop an advanced CMOS process.

He holds a Ph.D. in Electrical Engineering from National Cheng Kung University and

has been active in the semiconductor industry for over 41 years. Dr. Tseng was named

as one of the "Outstanding Alumni" by National Cheng Kung University in 2000, and

one of the "Ten Outstanding Engineers" in 1991 and "The Excellent Engineers" in

1982 respectively by the Chinese Institute of Engineers and by Electronic Buyer's

News as one of the Hot 25-Industry Executives who made a difference in 1999.

Mr. Jim Lai

President

Jim Lai has 27 years of experience in semiconductor and ASIC industries. Jim

currently serves as president of Global Unichip Corp.

Mr. Lai was promoted from TSMC North America to GUC in 2003 when TSMC

became the major shareholder of GUC. From 1992 to 2003, Jim served various

positions at TSMC North America, including director of emerging account, director

of design services and business manager responsible for the ASIC business unit.

Prior to TSMC, Mr. Lai co-founded ASICtronics, one of the earliest design service

companies to provide ASIC design consultation and libraries in the USA. Prior to

ASICtronics, Mr. Lai worked at Toshiba America, Knights Technology and LSI

Logic in various engineering positions in ASIC and CAD groups.

~ 29 ~

Mr. Lai received his Master of Science degree in Electrical Engineering from

University of California, Santa Barbara in 1984 and his Bachelor of Science degree in

Electrical Engineering from National Taiwan University in 1981.

Ms. Lora Ho

SVP, CFO, and Spokesperson of TSMC

Lora Ho is Senior Vice President of Taiwan Semiconductor Manufacturing Company

Limited (TSMC), Chief Financial Officer and Spokesperson.

Prior to joining TSMC in 1999, Ms. Ho served as Vice President of Finance and Chief

Financial Officer at Acer Semiconductor Manufacturing, Inc. (formerly known as

TI-Acer Inc.) from 1990 to 1999. Before that, Ms. Ho held various positions in the

accounting and finance fields that included Financial Controller at Thomas & Betts

Industries, Deputy Manager of Finance at Wyse Technology Taiwan Ltd., and Cost

Accounting Manager for Cyanamid Taiwan Corporation.

Ms. Ho was awarded "The Outstanding Financial Executive" in1993, in view of her

outstanding contribution to Financial Management during her service at TI- Acer Inc.

Ms. Ho received her EMBA from National Taiwan University in 2003 and her B.A.

degree from National Chengchi University in 1978.

~ 30 ~

Dr. Cliff Hou

Vice President of TSMC

Dr. Cliff Hou is TSMC’s Vice President of Research and Development. Prior to this

post, he was the Senior Director of Design Technology Division and Director of

Design Methodology Division at TSMC. Dr. Hou established TSMC’s Technology

Design Kits Development Teams and Reference Flow Development Teams. He also

leads Design-for-Manufacturability (DFM) task force at TSMC.

Dr. Hou received his B. S. degree in 1983 from National Chiao-Tung University, and

his Ph.D. degree in Electrical and Computer Engineering from Syracuse University in

1992.

Prior to joining TSMC in 1997, Dr. Hou was an Associate Professor at Kaohsiung

Polytechnic Institute in 1992, and prior to that, he worked at ITRI/CCL for front-end

design environment development and integration from 1993 to 1995 and at a local

consulting company for 0.5um and 0.35um physical verification methodology and

flow development from 1995 to 1997.

Dr. Hou has 15 U.S. patents and also serves as Technical Committee Member of

VLSI Symposium.

Mr. K.C. Shih

Founder

~ 31 ~

K.C. Shih has more than 30 years of experience working in the high-tech industry. Mr.

Shih observed the emergence of the post-PC era when the demand for IC is migrating

from ASIC to SoC. In 1998, he founded Global Unichip Corp. with Dr. Nicky Lu and

Dr. Steve Lin, to be the world's first dedicated SoC Design Foundry. In recognition of

its leading market position and successful business model, TSMC invested and took

partnership with Global Unichip Corp. in 2003. Global Unichip Corp. has

successfully demonstrated its leadership in advanced SoC designs (i.e. 90nm, 65nm,

40nm and 28nm) and has listed on the Taiwan Stock Exchange in 2006.

In 1990, Mr. Shih was the President of Cadence Design Systems Inc. Mr. Shih then

founded Faraday Technology Corporation in partnership with UMC and served as the

Vice Chairman and CEO. Faraday is the first IC Design Service Company in the

world. Based on its ASIC expertise, Faraday provides ASIC technology and design

service to customers in Taiwan, the USA and other countries.

In 1983, Mr. Shih founded Suntek to develop under-$1,000 UNIX PC with NS32000,

targeting college students on the college local area network. Evaluating from revenue

figures, one may say that Suntek did not make the grade; however, it has indeed made

a profound impact on Acer.

While at M.I.T., Mr. Shih was an original member of the MULTICS team. MULTICS

was the first multi-processing, multi-programming, network operating system running

on ARPAnet. It was later re-written to become UNIX at Bell Labs. He then worked at

DEC involving in the design of the famous VAX computer. In 1980, he joined

National Semiconductor as Director of the MESA project, in charge of the NS32000

32bit microprocessor development.

Mr. Shih earned his Bachelor of Science degree in Physics from Chung Yuan

Christian University, Taiwan, his Master of Science degree from University of

Massachusetts, and Ph.D. studies in Electrical Engineering at M.I.T.

~ 32 ~

Mr. Benson W. C. Liu

Independent Director; Former Chairman and CEO of Bristol-Myers

Squibb (Taiwan) Ltd

Mr. Benson W.C. Liu, Independent Director, was the Chairman and General Manager

of Bristol-Myers Squibb Taiwan (BMST) from Jan.1999 through March 2005. Mr.

Liu joined BMST in 1978 as Accounting Manager and he progressed within the

Company through Finance Manager, Controller, Finance Director, VP Finance and

Administration and finally Chairman and General Manager.

Mr. Liu retired from BMST in March 2005 after 28 years of dedicated services to this

leading global Pharmaceutical and Health Care Company. Prior to joining BMST, Mr.

Liu was an auditor of Deloitte, Taiwan for 5 years. He holds a bachelor degree in

Accounting from Soochow University, a master degree in International Business

Administration from Northrop University, USA.

Mr. Liu is active in participating public services through NPO organizations like

Chinese Corporate Governance Association and Chinese Professional Manager

Association. He also serves as an independent director, a member of Compensation

Committee of Polylite Taiwan Co., Ltd and Vanguard International Semiconductor

Corporation, and a member of Audit Committee of Ho-Ping Power Company. He

was awarded Financial Manager of the Year by the Chinese Professional Manager

Association in 1985, Outstanding Alumni of the Accounting Department of Soochow

University in 1986 and Financial Manager of The Year of Bristol-Myers Squibb

Company International Group in 1989.

~ 33 ~

Dr. Chein-Wei Jen

Independent Director; Former Dean of Institute of Electronics at

National Chiao Tung University, Taiwan

Dr. Chein-Wei Jen has retired from the Department of Electronics Engineering,

National Chiao Tung University, Taiwan since 2004. During his academic career he

also served as the Chairman of the Department of Electronics Engineering, from 1989

to 1991 and the Director of the Institute of Electronics from 1991 to 1994 at the same

university.

He has supervised over 25 PhD students and many Master students in the area of

System-on-Chip design, processor architecture, and multimedia signal processing.

Most of his students are now working in the academic and IC Design industry in

Taiwan. He holds seven patents and published over 50 journal papers and 100

conference papers in these areas. He has also received numerous research paper

awards and service awards from technical societies.

From 2004 to 2007 he was invited to join ITRI which is a government-sponsored

R&D organization in Taiwan and served as the Director of SoC Technology Center in

ITRI. From 2002 to 2007 he also served as one of the Coordinators of the National

SoC Program in Taiwan.

Dr. Jen received his B.S. degree from National Chiao Tung University in 1970, his

M.S. degree from Stanford University in 1977, and his Ph. D. degree from National

Chiao Tung University in 1983.

~ 34 ~

Dr. Wen-Yeu Wang

Independent Director; Ph. D., Stanford Law School, Professor of

College of Law at National Taiwan University

Dr. Wang is professor of law and director, Center for Corporate and Financial Law,

College of Law, National Taiwan University. He received law degrees from NTU,

Columbia (LL.M.) and Stanford (J.S.D.), respectively. During his tenure, he visited

and taught at well known law schools, including National University of Singapore and

PRC’s Peking University. In addition, he was a visiting professor of law at Stanford

from 1995-96, teaching a seminar on financial transactions; in fall 2007 he taught

“Corporate Governance in Greater China” seminar at Columbia. Principal research

subjects include business associations, financial regulations, and law and economics.

Before pursuing an academic career, professor Wang had practiced commercial law at

the international law firms of Lee and Li, Taipei (from 1985-1989), and Sullivan &

Cromwell, a Wall Street firm in New York City (1989-1991), respectively. Areas of

specialty include corporate law and business transactions.

From 2004 to 2006, professor Wang served as a commissioner at the Fair Trade

Commission. In addition, he has served in many important public and private

functions, i.e., as director or supervisor of the Taiwan Stock Exchange, Taiwan

Futures Exchange, and Taiwan Cooperative Bank. He also serves as an independent

director, a member of Compensation Committee of Cosmos Bank and President Chain

Store Corporation and a member of Compensation Committee of Xintec Technology

Corporation. He has also participated in the drafting or amendment of major

economic and financial legislation, such as the Company Law and the Securities and

Exchange Law.

~ 35 ~

Dr. Chung-Yu Wu

Independent Director; Former President of National Chiao Tung

University, Taiwan

Dr. Chung-Yu Wu is Professor of Electronics Engineering Department of National

Chiao Tung University. He has served different roles at National Chiao Tung

University, including President of National Chiao Tung University, Dean of College

of Electric Engineering and Computer Science, Dean and Vice for Research and

Development, Funding Director of Division of Engineering and Applied Science,

Director of Institute of Electronics and Department of Electronics Engineering,

Chairman of Department of Electronics Engineering. He also serves as an

independent director and a member of Compensation Committee of Mediatek

Technology Corporation.

Dr. Wu received his B.S. degree from National Chiao Tung University in 1972, his

M.S. degree from National Chiao Tung University in 1976, and his Ph. D. degree

from National Chiao Tung University in 1980. He did his post-doctor research at

EECS from the University of California, Berkeley in 2002.

4.3 Audit Committee

The Audit Committee consists of four independent directors. The Committee meets at

least once every quarter to assist the Board in carrying out its financial oversight

responsibilities and other duties as set forth in the Company Act, the Securities and

Exchange Act and other applicable laws and regulations. The Audit Committee

reviews matters which include the Company’s financial reports; auditing and

accounting policies and procedures; internal control systems; potential conflicts of

interests; material asset or derivatives transaction; offering or issuance of any

equity-type securities; hiring or dismissal of an attesting CPA or the compensation

given thereto; and appointment or discharge of financial, accounting, or internal

auditing officers.

The Committee has direct access to GUC’s internal auditors and CPA. The Committee

~ 36 ~

is authorized to retain and oversee special legal, accounting, business issues as it

deems appropriate to fulfill its mandate.

Mr. Benson W.C. Liu was Chairman of the Audit Committee, and convened four

regular meetings and one special meeting in 2012. All of them participated in person.

4.4 Compensation Committee

The Compensation Committee consists of four independent directors. The Committee

meets at least once every year to assist GUC in mapping out GUC’s total

compensation and benefits policies, plans and programs, and in the evaluation and

compensation of GUC’s directors of the Board and executives.

Dr. Wen-Yeu Wang was the Chairman of our Compensation Committee, and

convened four regular meetings in 2012. All of them participated in person.

4.5 Regulatory Compliance

To enable all employees to understand various compliance issues within the company,

we provide relevant education, training courses and advocacy resources. For example,

the “Personal Data Protection Law” and “Trade Secrets Act”, all of the management

team and the related colleagues are required to attend these courses.

GUC’s management team closely monitors both domestic and foreign government

policies and regulatory developments that could have any impact on GUC’s business

and financial operations. In 2012, GUC has not been subjected to any monetary fines

and nonmonetary sanctions for noncompliance with any statutory laws and

regulations.

4.6 Code of Ethics and Business Conduct

To comply with any applicable laws and regulations, act ethically in all aspects of our

business, constantly and vigilantly promoting integrity and honesty, GUC’s Code of

Ethics and Business Conduct (the “Code”) applies to GUC and its subsidiaries, and

the Code requires that each employee bears a heavy personal responsibility to

preserve and to protect GUC’s ethical values and reputation. All employees, officers

and Board members must practice the Code. The principles of the Code are as

follows:

� All employees, officers and managers must understand and comply with the

Code.

� All employees should avoid any conflict of interest between themselves and the

Company.

� To maintain the highest standard of the Code, GUC does not allow any kinds and

~ 37 ~

any forms of corruption, bribery and illegal entertainment among employees,

vendors, customers and related parties.

To ensure and improve Code of Ethics and Business Conduct, GUC periodically holds

ethics compliance programs to demand all employees to abide by the Code. To

encourage an open culture of ethics compliance, GUC has implemented several

related policies that allow employees or any whistleblowers with relevant evidence to

report any ethical irregularities or a breach of the Code through “Irregular Business

Conduct Reporting”. (http://www1.guc-asic.com/guc_en/)

5. Employee Care

The linchpin of GUC’s success is its ability to continuously attract and develop talent.

GUC believes that talent is the most important asset for the Company’s growth.

Therefore, the Company has always been creating an innovative and multicultural

corporate culture and been devoted to providing career opportunities that offer

competitive compensation.

Based on the Company’s belief that “employees are the GUC’s most important asset”,

GUC provides reasonable and competitive compensation packages, attracting and

retaining outstanding employees who provide the synergy for GUC’s continued

growth. GUC’s total compensation includes salary, cash bonus/profit sharing, which is

based on individual expertise, job responsibility, operational performance, and

achievement.

The cash bonus is distributed semi-annually, which provides timely reward and

encourages employees to contribute more. Based on governmental regulations, GUC

offers pension plan and employee group insurance plan.

GUC also offers open and transparent communication channels to strengthen

interaction between the Company and employees. Regular communication meetings

are held for various levels of managers and employees. Periodic employee satisfaction

surveys are conducted to ensure that the employees’ opinions and voices are heard,

and their issues are addressed and timely solved. GUC fosters harmonious labor

relations and creates a win-win situation for the Company and the employees.

In 2012, there was no labor dispute and loss.

5.1 Employment Status

In employees’ devotion and dedication lies GUC’s future development. GUC

periodically maps out annual corporate operational plan to decide the annual

~ 38 ~

divisional goals and workforce requirement to meet these goals. GUC’s Human

Resources division recruits talent via open and fair approaches, considering an

applicant according to his or her qualifications to the requirement of the position,

rather than race, gender, age, religion, nationality, or political affiliation. In GUC’s

recruitment policies, GUC ensures that all applicants and employees are treated

equally in aspects of hiring, talent development, evaluation and compensation.

5.1.1 GUC Workforce Structure As of 12/31/2012

No. % No. % No. % of total

Managers 5 83.3% 1 16.7% 6 1.4%

Professionals 319 74.4% 110 25.6% 429 98.6%

Below 30 58 69.9% 25 30.1% 83 19.1%

31~50 254 74.7% 86 25.3% 340 78.2%

Above 50 12 100.0% 0 0.0% 12 2.8%

Ph.D 10 90.9% 1 9.1% 11 2.5%

Master 250 89.3% 30 10.7% 280 64.4%

College 63 44.4% 79 55.6% 142 32.6%

Below college 1 50.0% 1 50.0% 2 0.5%

Full-time 323 75.8% 103 24.2% 426 97.9%

Part-time 1 11.1% 8 88.9% 9 2.1%

324 74.5% 111 25.5% 435 100.0%

Total 435

Total and %

Function

Age

Degree

Type

Subtotal

Category GroupingMale Female

5.1.2 Employee Retention

To increase employee retention and ensure work-life balance, GUC provides a work

environment with an avalanche of social and entertaining activities and on-job

training and career development program. In 2012, the turnover rate for all employees

was 14.0%. By gender, the turnover rate of male was 17.1% and 10.9% for female.

Turnover 2008 2009 2010 2011 2012

Male 10.7% 9.8% 29.3% 15.6% 17.1%

Female 12.8% 16.2% 21.8% 9.7% 10.9%

Average 11.8% 13.0% 25.6% 12.7% 14.0%

5.1.3 Employee Recruitment

GUC recruits necessary professionals and managers of competence and high quality

via fair, open and well-designed approaches to meet the business and operational

demand in the future. Moreover, the Company strives to continuously attract young

and outstanding graduates to pursue a career with GUC.

~ 39 ~

In 2012, we totally recruited 52 new employees which include 43 persons of male and

9 persons of female.

GUC provides job opportunities for the disabled. By the end of 2012, GUC hired 5

disabled persons, more than 25% of 4-person-minimum labor regulation.

New Employee Male FemaleBelow 30 13 2

31~50 30 7

Above 50 0 0

43 9

Age

Total

5.1.4 No Child Workers Policy

According to the Labor standards Law of the Republic of China, no employer may

employ a worker below fifteen years of age. A worker over fifteen but less than

sixteen years of age shall be considered as a child worker if they are employed to

work. No child worker shall be permitted to do heavy and hazardous work. GUC

complies with the law and never hires persons below sixteen years of age.

5.1.5 Performance Management Development and Individual

Development Program

The purpose of GUC’s “Performance Management Development” (PMD) and

“Individual Development Program”(IDP) is to develop employees’ potential and

enhance interaction and communication channels between employees and managers.

PMD and IDP include five principles:

� Individual employee should be responsible for his or her performance.

� Close cooperation of employees and managers

� Continued interaction and communication

� Performance and development are equally important

� Performance differentiation identification

5.2 Employee Development

GUC is in a competitive industry and environment, and our employees’ capabilities

and knowledge have to be continually renewed to respond to our business challenges

successfully. Based on individual job function, work performance and career

development track, GUC emphasizes employee learning and development, providing

diversified and rich tailor-made learning resources and on-job plans to simultaneously

enhance our employees’ capability and fully develop employees to their maximum

potential.

~ 40 ~

In 2012, the average training hours of total employees, please refer to the table below:

Male Female Male Female

Employee No. (A) 5 1 319 110 435

Total training hours (B) 56 51.3 6984 1202 8293.3

Average training hours

(C=B/A)11.2 51.3 21.9 10.9 19.1

Training programsManagers Professional

Total

To provide the best learning environment and the most effective training, GUC offers

various learning platforms, including physical classrooms, virtual e-classrooms and

knowledge management system and learning feedback survey. GUC employees can

access to proper training courses via the following approaches:

� New Employee Orientation

� Training Roadmap

� Personal Efficiency Training

� Management Development Program

� Executive Level Forum

� Self Development

~ 41 ~

5.3 Total Compensation

GUC believes that employees are the Company’s most important assets. GUC

provides various and competitive salary packages and profit-sharing bonus to attract

and retain excellent employees. GUC’s total compensation policy includes:

� Base salary

� Employee profit sharing

� Bonus: business bonus, intellectual property bonus, referral bonus

� Welfare of GUC

� Employees and their relative insurance coverage

� Health care and examination

GUC employees’ total compensation is based on their qualifications to the

requirements of the positions, rather than race, gender, age, religion, nationality, or

political affiliation. Not only does GUC proactively obey Taiwan labor regulations,

but also actively participates in salary-survey related associations to ensure GUC’s

total compensation is competitive.

GUC employees’ benefits are as below:

� GUC provides flexible leave programs which are better than the requirements of

the Taiwan Labor Standards Act. Our employees can also apply for leaves of

absence for reasons such as childcare, military service and medical treatment for

~ 42 ~

serious illness or injury.

� A Comprehensive Insurance Plan: Apart from Statutory Labor Insurance and

National Health Insurance, GUC provides group insurance plans to employees

and their relatives, including life insurance, accident insurance, hospital

insurance, and cancer insurance.

� Pension Plan: GUC’s employee pension plan is set according to the Taiwan

Labor Standards Act.

� Free three-meal dining service and café.

� Free parking lots.

� A library.

� An outdoor basketball court.

� A gym and a Wii game console.

� GUC’s employees help the blind of Hsinchu Blind Welfare Association. The

blind offer their professional massage therapy to GUC’s employees at favorable

prices.

� Employees counseling services with the Hsinchu Lifeline association.

� Coupon and gift certificated ordering services.

� Happy birthday parties.

� Year-end party.

� GUC family day.

� One-day trip.

� Sponsorship of group travels and clubs.

� Free uniforms.

5.4 Employee Relations

GUC values harmonious employee relations and is committed to maintaining open

and transparent communication channels between the management level and

employees.

5.4.1 Open Communication Channels

To maintain open and transparent communication, regular communication meetings

are held for various levels of managers and employees; employees are able to send

e-mails to senior management and independent directors directly if needed.

5.4.2 Employee Award

GUC sponsors various award programs and recognizes excellent achievements, both

as a team or on the individual level. Through these award programs, GUC aims to

~ 43 ~

encourage employees’ sustainable development that adds to the Company’s

competitive advantage. Award programs sponsored by GUC include:

� Corporate Transformation Award

� Intellectual Property Award

� Service Award

� Internal Teacher Award

5.4.3 Human Rights

GUC believes that all employees have to be fairly and equally treated. The Company

is dedicated to complying with internationally recognized human rights which include

UN Universal Declaration of Human Rights and international labor standards by the

International Labor Organization. Ceaselessly GUC strives to communicate with

customers, vendors, investors, employees and communities in terms of corporate

ethics and social value.

GUC also sets and promotes policies and measures to ensure gender guilty and sexual

harassment prevention in accordance with employment laws, fostering a fair work

environment for employees of both genders. The Company provides training course

for all employees and includes related courses into the orientation training.

In 2012, there were not any cases related to gender and race discrimination, fraud, and

corruption from employees.

5.4.4 Freedom of Assembly and Association

GUC complies with the law and never obstructs employees’ freedom of assembly and

association.

5.5 Integrated Solution for Work and Life Balance

GUC believes that employees’ physical and mental well-being is the cornerstone of

efficiency and effectiveness. The Company works actively to build a healthy work

environment through health promotion activities, assistance programs, and

multi-dimensional practices.

5.5.1 Health Care and Health Promotion

GUC strives to address the health issues which employees care the most and plan

various programs to assist them to live a healthy life.

In 2012’s annual health examination results, there are no occupational factors

associated with abnormal cases.

~ 44 ~

All new employees receive health examinations before the first work day. GUC offers

health examinations for employees every year. Moreover, the Company conducts

diverse health promotion activities, such aerobatic exercise courses, women’s health

care, massage service, lectures on physical and mental health.

5.5.2 Employee Assistance Program

To enhance employee’s physical and psychological health, GUC’s Employee

Assistance Program offers two free psychological counseling interviews and diverse

helpful activities to employees per year.

Assistance Program Usage 2010 2011 2012

No. of persons 4 4 4

5.5.3 Multi-Dimensional Employee Assistance

GUC has one cafeteria and one café which provide various of dining options and

comfortable environments, including coffee, tea, bread, noodles, Taiwanese, Western,

vegetarian and specialized cuisine.

5.5.4 GUC Employee Welfare Committee

In 2011, GUC Employee Welfare Committee held the following activities that helped

employees to balance life and work:

� One-day spring field trip and one-day fall field trip

~ 45 ~

� Family movie day

� Sponsored seventeen clubs which are organized by employees, such as

basketball, table tennis and badminton games.

� Massage services

� Employee group travel

~ 46 ~

� Sponsorship of education programs for students

5.6 Corporate Security and Safety Management

To ensure that employees work in a safe environment and remain competitive in the

industry, GUC ceaselessly strives to proprietary information protection (PIP),

hardware safety and employee safety.

GUC periodically implements PIP training for all employees every year and improves

control flow of confidential information. If any employee breaks PIP regulations, he

or she will be penalized based on the extent of the breach.

GUC’s door access control system ensures that well-trained security guards can

perform CPR and safety related functions, such as reception courtesy, traffic control

and security check. Moreover, it allows authorized personnel to work in specific

areas.

5.7 Safety and Health

GUC strives to maintain a safety culture that ensures a safe and healthy workplace.

All GUC’s offices and facilities are designed to protect employees’ safety. All

entrances and exits are equipped with the door access control system. Major entrances

and exits are guarded around the clock by security guards. All parking lots and female

lavatories are equipped with emergency buttons. All electronic facilities and fire

~ 47 ~

equipments are examined periodically every year to comply with Taiwan related

regulations.

GUC pays considerable attention to emergency response. Every floor has its own

emergency response team. In 2012, GUC held drills for gas leaks, fire alarm, CPR and

other accident prevention.

In terms of safety and health-related activities, GUC considers environmental

protection, safety and health agenda as important corporate cornerstone. GUC

continues to enhance quality of service and product to achieve “zero accident” and

“sustainable environmental development” and to become a world-class benchmarking

company of environmental protection, safety and health. To provide a working

environment which can improve welfare of all employees, GUC complies with

Taiwan’s related regulations and is aggressively geared to international standards,

including accident prevention, safety and health improvement for employees and

corporate asset protection. We have implemented the following policies:

� Offer educational training programs to improve employees’ awareness of safety,

health and environmental protection issues.

� Continue to improve environment quality to reduce risks of safety and health.

� Map out every health enhancement plan to ensure employees’ physical and

psychological wellness.

� Regularly conduct safety and environment educational program to increase

employees’ awareness of safety and health issues.

� Ensure our operation and service to meet or exceed applicable regulations and

standards of environment protection, safety and health.

� Conduct our operation in an environmentally-sound way, so as to achieve green

design and provide green products and green services.

� Establish a safe working environment, prevent occupational injury and illness,

and keep employees healthy.

� Stay abreast of global issues of environment protection, safety and health,

evaluate risks and take effective risk management measures.

� Enhance employees’ awareness on issues of environment protection, safety and

health and sense of accountability for these issues, and build a friendly culture of

environment protection, safety and health.

� Establish a green supply chain and enhance performance of environment

protection, safety and health with suppliers through experience sharing and

collaboration.

� Aggressively communicate with shareholders, actively disclose and share

~ 48 ~

experience and information of safety and health, and encourage improvement in

the industry and society.

6. Social Participation

GUC’s activities of community involvement, social contribution, social work, public

welfare in 2012 were as follows:

� Encouraged GUC’s employees to donate blood.

� Helped the blind of Hsinchu Blind Welfare Association. They offered their

professional massage therapy to GUC’s employees at favorable prices.

� Participated in the public welfare activities hosted by Accton’s Public Welfare

House to donate Christmas gifts to the children.

� Sponsorship of education programs for Wufeng Garden elementary school

students of Hsinchu county

� Sponsored National Taiwan University Academic Development Foundation for

its IC-related or system-on-chip research.

� Sponsored Taiwan IC Design Society’s academic conferences.

� Sponsored Industrial Technology Research Institute to host 2012 International

VLSI Conference.

7. Environmental Protection

GUC believes its environmental protection should not only comply with domestic

legal requirements, but also implement governmental plans for resource recycling,

waste disposal and garbage separation. In addition, GUC reduces the usage of paper

cups and disposable plastic tableware for environmental protection and the best use of

resources. GUC has been committed to prevent pollution, ensure efficient use of

resources, prevent accidents, improve employee safety and health and protect property.

The aim is to create a work environment that upholds the well-beings of our

employees and communities. GUC’s acknowledges responsibility for environmental

protection. Not only does GUC comply with the environmental regulations in Taiwan,

but also tracks new global environmental issues. Meanwhile, GUC shares

environmental protection knowledge and experience and offers recommendations to

suppliers to face various new challenges together.

Our commitments and implementations are as follows:

� Execute the standards of “Green Energy-saving Design” and provide

energy-saving products that comply with environmental protection regulations

and customers’ requirements.

� Use package materials that comply with environmental protection regulations for

~ 49 ~

waste reduction and resource recycling.

� Increase employees’ fundamental responsibility and awareness of environmental

protection, source recycling and energy saving through educational training and

propaganda.

� Continue to execute energy-saving management and resource recycling.

� Comply with governmental environmental protection regulations and fully assist

the authorities in carrying out environmental protection affairs.

7.1 Green Procurement and Production

Global climate change has become a major concern around the globe. GUC, while

ensuring that the quality of its products remains high, has introduced a series of

environmentally friendly, energy saving and carbon reduction policies in response to

the most significant environmental issues. GUC's environmental policies and concepts

have extended to its entire supply chain. GUC not only engages in environmental

protection, but also requests and assists suppliers to establish a green supply chain.

Supply Chain by Region

Taiwan

Korea

China

Japan

USA

Others

In 2012, we also established an “Electronic Industry Code of Conduct Committee”

(EICC) to implement and follow the related regulations.

EICC Committee organization chart:

~ 50 ~

GUC requires suppliers to meet the following demands:

� Establishment of a dedicated taskforce of employees to ensure that all products

meet various national & client environmental regulations or requirements.

� Prohibit the use of environmentally harmful materials as defined in RoHS

regulations.

� It’s required for suppliers to provide the “environment material analysis report on

production material” by the third party, such as SGS.

� Suppliers are required to sign the "Conflict-Free Minerals Warranty" to certify

their minerals using in its products are not originated from the regions controlled

by non-governmental military groups or unlawful military factions.

GUC's electronics raw materials supply and waste management systems all strictly

comply with international environmental regulations and client expectations,

including:

� EU RoHS compliance

� EU PFoS Directive

� REACH (Registration, Evaluation, Authorization and Restriction of Chemical

substances)

� WEEE (Waste Electrical and Electronic Equipment directive)

� China RoHS compliance

� JIS C 0950: 2008

� Korea RoHS compliance

In the long term, in order to protect stakeholder interests and meet EICC standards,

GUC will implement regular inspection of its raw material supply process and

~ 51 ~

strengthen its internal control mechanisms to ensure that raw materials from areas of

conflict do not enter into the production process; thereby ensuring the continuation of

safe and secure work environments; the protection of employee rights and interests;

and GUC's capability to fully leverage its CSR capabilities and duties with regard to

environmental responsibility in the production process.

7.2 Green Products

GUC’s products take both quality and environmental impact into account. GUC

believes that green products need to consider the entire product life cycle, including

raw material mining, transportation, product manufacturing, use, and waste disposal

to thoroughly evaluate environmental impact. The product carbon footprint, water

footprint, or other environmental impact footprints are important indicators in the

environmental performances of products. Therefore, it’s imperative for GUC to ask

suppliers to perform good hazardous substance management, pollution prevention,

energy saving, waste reduction and other clean production measures to establish a

green supply chain.

As part of its initial product design phase, GUC uses a life-cycle thinking

management method in which environmental impact factors of a product's life

cycle—from its initial production to the final disposal stage—are included in product

design considerations. Moreover, GUC invests significantly in research and

development expense to design innovative, energy-saving technology, which is then

included in design parameters. Above all, implementation of “Reduce, Reuse, and

Recycle” design philosophy not only ensures the efficient use of resources, but also

lowers resource consumption, and reduces the amount of polluting emissions.

7.2.2 Low Power Design

To offer customers both cost and product competitive advantages competitive cost

advantage, GUC's System-on-Chip integrated technology effectively simplifies the

product structure and lowers power consumption. GUC cooperates closely with all

suppliers to enhance production technology to upgrade product performance.

Meanwhile, GUC has implemented energy-saving and carbon-reducing procedures

into the manufacturing process to help lower energy consumption and polluting

by-products. Therefore, GUC can realize an environmentally friendly and efficient

design and manufacturing process, which has created a win-win situation for both

customers and the environment.

7.2.3 Green Materials

~ 52 ~

To ensuring that all materials used its product lines meet EU ROHS compliance

standards, EU REACH policies, and other restrictions regarding prohibited industrial

materials, GUC has committed itself to the use of Halogen free materials and a

manufacturing process which emphasizes the reduced use of chemical substances as a

way to prevent environmental degradation. The Company hopes that through the

concrete application of criteria dictating the use of environmentally friendly materials,

it can effectively reduce CO2 and other greenhouse gas emissions and help mitigate

greenhouse effect on climate change.

7.2.4 Green Transportation

GUC requires that suppliers, both during on-site operations and transportation, use

recycled materials and make efforts to reduce the amount of consumable materials

being used. For example, the reuse of plastic trays for IC products, and the use of

anti-electric-static-damage black boxes or other reusable materials when storing and

delivering products reduce the need for paper-based containers. Furthermore, GUC

has itself reduced the use of paper-based documents by developing an electronic

documentation and file system for logistic applications.

7.3 Green Life

7.3.1 Internal Resource Reduction

As a member of the global village, GUC has internal policies regarding reducing

energy consumption and CO2 emission reduction. For instance, GUC sets interior air

con temperature at 26oC and installs water-saving faucets.

7.3.2 e-Documents

GUC has reduced the use of paper-based documents by developing an electronic

documentation and file system for logistic applications.

7.3.2 Recycle

GUC has dedicated to environmental protection and green education by recycling

waste and reusing.

8. Appendix

GRI (Global Reporting Initiative) Index

~ 53 ~

Global Reporting Initiative (GRI) 3.1 Index

● Fully disclosed ◎◎◎◎ Partially disclosed ○ Not disclosed or Not Applicable

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

1 Strategy and Analysis

1.1 Statement from the most senior decision-maker of the

organization. ● 1. Letter from the Chairman and President 2

1.2 Description of key impacts, risks, and opportunities. ● 1. Letter from the Chairman and President

2.4 Business Development 2, 12

2 Organizational Profile

2.1 Name of the organization. ● 2.1 An Introduction to GUC 4

2.2 Primary brands, products, and/or services. ● 2.3 Business Overview 8

2.3 Operational structure of the organization, including main divisions,

operating companies, subsidiaries, and joint ventures. ● 2.1 An Introduction to GUC 4

2.4 Location of organization’s headquarters. ● 2.1 An Introduction to GUC 4

2.5

Number of countries where the organization operates, and names

of countries with either major operations or that are specifically

relevant to the sustainability issues covered in the report.

● 2.1 An Introduction to GUC 4

2.6 Nature of ownership and legal form. ● 2.1 An Introduction to GUC 4

2.7 Markets served (including geographic breakdown, sectors served,

and types of customers/beneficiaries). ● 2.2 Market Overview 6

2.8 Scale of the reporting organization. ● 2.1 An Introduction to GUC 4

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GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

2.9 Significant changes during the reporting period regarding size,

structure, or ownership. ●

2.3 Business Overview

2.4 Business Development 8, 12

No significant changes during the

reporting period

2.10 Awards received in the reporting period. ● 2.5 Awards and Recognitions 18

3 Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year) for information

provided. ● Overview 1

3.2 Date of most recent previous report (if any). ● Overview 1

3.3 Reporting cycle (annual, biennial, etc.) ● Overview 1

3.4 Contact point for questions regarding the report or its contents. ● Overview 1

3.5

Process for defining report content including: Determining

materiality; Prioritizing topics within the report; and Identifying

stakeholders the organization expects to use the report.

● 3. Stakeholder Engagement 23

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries,

leased facilities, joint ventures, suppliers). See GRI Boundary

Protocol for further guidance.

● Overview 1

3.7 State any specific limitations on the scope or boundary of the

report (see completeness principle for explanation of scope). ● Overview 1 No specific limitations

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,

outsourced operations, and other entities that can significantly

affect comparability from period to period and/or between

organizations.

○ The basis for this report mainly covers

GUC Taiwan.

~ 55 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

3.9

Data measurement techniques and the bases of calculations,

including assumptions and techniques underlying estimations

applied to the compilation of the Indicators and other information

in the report. Explain any decisions not to apply, or to substantially

diverge from, the GRI Indicator Protocols.

● Overview 1

3.10

Explanation of the effect of any re-statements of information

provided in earlier reports, and the reasons for such re-statement

(e.g. mergers/acquisitions, change of base years/periods, nature of

business, measurement methods).

● Overview 1 No such occurrence.

3.11 Significant changes from previous reporting periods in the scope,

boundary, or measurement methods applied in the report. ● Overview 1 No such occurrence.

3.12 Table identifying the location of the Standard Disclosures in the

report. ● Global Reporting Initiative Index 52-67

3.13 Policy and current practice with regard to seeking external

assurance for the report. ○

4 Governance, Commitments, and Engagement

4.1

Governance structure of the organization, including committees

under the highest governance body responsible for specific tasks,

such as setting strategy or organizational oversight.

◎◎◎◎ 4.1 Governance Structure 25

4.2 Indicate whether the Chair of the highest governance body is also

an executive officer. ◎◎◎◎ 4.2 Board of Directors 26

~ 56 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

4.3

For organizations that have a unitary board structure, state the

number of members of the highest governance body that are

independent and/or non-executive members.

● 4.2 Board of Directors 26

4.4 Mechanisms for shareholders and employees to provide

recommendations or direction to the highest governance body. ●

3. Stakeholder Engagement

4.3 Audit Committee 23, 34

4.5

Linkage between compensation for members of the highest

governance body, senior managers, and executives (including

departure arrangements), and the organization’s performance

(including social and environmental

performance).

● 4.4 Compensation Committee 35

4.6 Processes in place for the highest governance body to ensure

conflicts of interest are avoided. ● 4.3 Audit Committee 34

4.7

Process for determining the composition, qualifications, and

expertise of the members of the highest governance body and its

committees, including any consideration of gender and other

indicators of diversity.

● 4.2 Board of Directors 26

4.8

Internally developed statements of mission or values, codes of

conduct, and principles relevant to economic, environmental, and

social performance and the status of their implementation.

● 4.3 Audit Committee

4.5 Regulatory Compliance 34-35

4.9 Procedures of the highest governance body for overseeing the

organization’s identification and management of economic, ● 4.3 Audit Committee 34

~ 57 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

environmental, and social performance, including relevant risks

and opportunities, and adherence or compliance with

internationally agreed standards, codes of conduct, and principles.

4.10

Processes for evaluating the highest governance body’s own

performance, particularly with respect to economic, environmental,

and social performance.

● 4.4 Compensation Committee 35

4.11 Explanation of whether and how the precautionary approach or

principle is addressed by the organization. ● 4.3 Audit Committee 34

4.12

Externally developed economic, environmental, and social

charters, principles, or other initiatives to which the organization

subscribes or endorses.

● 3. Stakeholder Engagement 23

4.13

Memberships in associations (such as industry associations) and/or

national/international advocacy organizations in which the

organization: * Has positions in governance bodies; * Participates

in projects or committees; * Provides substantive funding beyond

routine membership dues; or * Views membership as strategic.

● 2.6 Membership in Industry Associations 19

4.14 List of stakeholder groups engaged by the organization. ● 3. Stakeholder Engagement 23

4.15 Basis for identification and selection of stakeholders with whom to

engage. ● 3. Stakeholder Engagement 23

4.16 Approaches to stakeholder engagement, including frequency of

engagement by type and by stakeholder group. ● 3. Stakeholder Engagement 23

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GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

4.17

Key topics and concerns that have been raised through stakeholder

engagement, and how the organization has responded to those key

topics and concerns, including through its reporting.

● 3. Stakeholder Engagement 23

Management Approach and Performance Indicators

DMA Disclosures on management approach ● 2.1 An Introduction to GUC 4

EC1

Direct economic value generated and distributed, including

revenues, operating costs, employee compensation, donations and

other community investments, retained earnings, and payments to

capital providers and governments.

● 2.8 Financial Highlights

6. Social Participation 20, 47

EC2 Financial implications and other risks and opportunities for the

organization’s activities due to climate change. ○

EC3 Coverage of the organization’s defined benefit plan obligations. ● 5.3 Total Compensation 40

EC4 Significant financial assistance received from government. ● 2.7 Financial Highlights 16-19

EC5 Range of ratios of standard entry level wage by gender compared

to local minimum wage at significant locations of operation. ◎◎◎◎ 5.3 Total Compensation 40

EC6 Policy, practices, and proportion of spending on locally-based

suppliers at significant locations of operation. ● 7.1 Green Procurement and Production 48

EC7

Procedures for local hiring and proportion of senior management

hired from the local community at significant locations of

operation

● 5.1 Employment Status 36

EC8 Development and impact of infrastructure investments and services ○ 6. Social Participation 47

~ 59 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

provided primarily for public benefit through commercial, in-kind,

or pro bono engagement.

EC9 Understanding and describing significant indirect economic

impacts, including the extent of impacts. ○

GUC does not evaluate indirect economic

impacts.

Environmental

DMA Disclosures on management approach ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN1 Materials used by weight or volume. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN2 Percentage of materials used that are recycled input materials. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN3 Direct energy consumption by primary energy source. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN4 Indirect energy consumption by primary source. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN5 Energy saved due to conservation and efficiency improvements. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN6

Initiatives to provide energy-efficient or renewable energy based

products and services, and reductions in energy requirements as a

result of these initiatives.

○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN7 Initiatives to reduce indirect energy consumption and reductions ○ Not applicable since GUC outsources all

~ 60 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

achieved. manufacturing to suppliers.

EN8 Total water withdrawal by source. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN9 Water sources significantly affected by withdrawal of water. ○ No significant impact

EN10 Percentage and total volume of water recycled and reused. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN11

Location and size of land owned, leased, managed in, or adjacent

to, protected areas and areas of high biodiversity value outside

protected areas.

○ No such occurrence

EN12

Description of significant impacts of activities, products, and

services on biodiversity in protected areas and areas of high

biodiversity value outside protected areas.

○ No such occurrence

EN13 Habitats protected or restored. ○ No such occurrence

EN14 Strategies, current actions, and future plans for managing impacts

on biodiversity. ○ No such occurrence

EN15

Number of IUCN Red List species and national conservation list

species with habitats in areas affected by operations, by level of

extinction risk.

○ No such occurrence

EN16 Total direct and indirect greenhouse gas emissions by weight. ○

EN17 Other relevant indirect greenhouse gas emissions by weight. ○

EN18 Initiatives to reduce greenhouse gas emissions and reductions ○

~ 61 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

achieved.

EN19 Emissions of ozone-depleting substances by weight. ○ GUC does not use ozone-depleting

substances.

EN20 NOX, SOX, and other significant air emissions by type and

weight. ○

Not applicable since GUC outsources all

manufacturing to suppliers.

EN21 Total water discharge by quality and destination. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN22 Total weight of waste by type and disposal method. ○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN23 Total number and volume of significant spills. ○ No such occurrence

EN24

Weight of transported, imported, exported, or treated waste

deemed hazardous under the terms of the Basel Convention Annex

I, II, III, and VIII, and percentage of transported waste shipped

internationally

○ Not applicable since GUC outsources all

manufacturing to suppliers.

EN25

Identity, size, protected status, and biodiversity value of water

bodies and related habitats significantly affected by the reporting

organization’s discharges of water and runoff.

○ No such occurrence

EN26 Initiatives to mitigate environmental impacts of products and

services, and extent of impact mitigation. ● 7.2 Green Product 50

EN27 Percentage of products sold and their packaging materials that are

reclaimed by category. ○ Not applicable

~ 62 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

EN28

Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with environmental

laws and regulations.

○ No such occurrence

EN29

Significant environmental impacts of transporting products and

other goods and materials used for the organization’s operations,

and transporting members of the workforce.

◎◎◎◎ 7.2 Green Product 50 No significant environmental impact

EN30 Total environmental protection expenditures and investments by

type. ○

Social: Labor Practices and Decent Work

DMA Disclosures on management approach ● 5 Employee Care 36

LA1 Total workforce by employment type, employment contract, and

region broken down by gender. ◎◎◎◎ 5.1 Employment Status 36

LA2 Total number and rate of new employee hires and employee

turnover by age group, gender, and region. ◎◎◎◎ 5.1 Employment Status 36

LA3

Benefits provided to full-time employees that are not provided to

temporary or part-time employees, by significant locations of

operation.

● 5.3 Total Compensation 40

LA4 Percentage of employees covered by collective bargaining

agreements. ● 5.4 Employee Relations 41

LA5 Minimum notice period(s) regarding significant operational

changes, including whether it is specified in collective agreements. ○

GUC complies with notification process

regulations.

~ 63 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

LA6

Percentage of total workforce represented in formal joint

management worker health and safety committees that help

monitor and advise on occupational health and safety programs.

○

LA7 Rates of injury, occupational diseases, lost days, and absenteeism,

and number of work-related fatalities by region and by gender. ○

LA8

Education, training, counseling, prevention, and risk-control

programs in place to assist workforce members, their families, or

community members regarding serious diseases.

● 5.5 Integrated Solutions for Work and Life Balance 42

LA9 Health and safety topics covered in formal agreements with trade

unions. ○ GUC does not have unions.

LA10 Average hours of training per year per employee by gender and by

employee category. ● 5.2 Employee Development 38-39

LA11

Programs for skills management and lifelong learning that support

the continued employability of employees and assist them in

managing career endings.

● 5.2 Employee Development 38-39

LA12 Percentage of employees receiving regular performance and career

development reviews by gender. ●

5.1.5 Performance Management Development and

Individual Development Program

5.2 Employee Development

38, 38-39

LA13

Composition of governance bodies and breakdown of employees

per category according to gender, age group, minority group

membership, and other indicators of diversity.

● 5.1 Employment Status 33-38

~ 64 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

LA14 Ratio of basic salary of women to men by employee category, by

significant locations of operation. ● 5.3 Total Compensation 40

LA15 Return to work and the survival rate of after parental leave by

gender ● 5.3 Total Compensation 40

Social: Human Rights

DMA Disclosures on management approach ● 5 Employee Care 36

HR1

Percentage and total number of significant investment agreements

and contracts that include clauses incorporating human rights

concerns or that have undergone human rights screening.

○ No significant investment in 2012.

HR2

Percentage of significant suppliers, contractors and other business

partners that have undergone screening on human rights and

actions taken.

○

HR3

Total hours of employee training on policies and procedures

concerning aspects of human rights that are relevant to operations,

including the percentage of employees trained.

○

HR4 Total number of incidents of discrimination and corrective actions

taken. ● 5.4.3 Human Rights 41

HR5

Operations and significant suppliers identified in which the right to

exercise freedom of association and collective bargaining may be

violated or at significant risk, and actions taken to support these

rights.

● 5.4.4 Freedom of Assembly and Association 41

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GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

HR6

Operations and significant suppliers identified as having

significant risk for incidents of child labor, and measures taken to

contribute to the elimination of child labor.

● 5.1.4 No Child Labor Policy 36

HR7

Operations and significant suppliers identified as having

significant risk for incidents of forced or compulsory labor, and

measures to contribute to the elimination of all forms of forced or

compulsory labor.

○

GUC complies with governmental

regulations and effectively manages work

risks. No such occurrence

HR8

Percentage of security personnel trained in the organization’s

policies or procedures concerning aspects of human rights that are

relevant to operations.

● 5.6 Corporate Security and Safety Management 45

All GUC security personnel are required

to complete training regarding reception

courtesy.

HR9 Total number of incidents of violations involving rights of

indigenous people and actions taken. ○ No such occurrence.

HR10 Percentage and total number of operations that have been subject

to human rights reviews and/or impact assessments.

HR11 Number of grievances related to human rights filed, addressed, and

resolved through formal grievance mechanisms.

Social: Society

DMA Disclosures on Management Approach ● 4. Corporate Governance 25

SO1 Percentage of operations with implemented local community

engagement, impact assessments, and development programs. ● 6. Social Participation 47

SO2 Percentage and total number of business units analyzed for risks ● 4.6 Code of Ethics and Business Conduct 35 Business units of risks related to

~ 66 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

related to corruption. corruption are defined and all of them

have completed 2012 annual declaration

of conflicts of interest.

SO3 Percentage of employees trained in organization’s anti-corruption

policies and procedures. ● 4.6 Code of Ethics and Business Conduct 35

SO4 Actions taken in response to incidents of corruption. ● 4.6 Code of Ethics and Business Conduct 35 No corruption in 2012

SO5 Public policy positions and participation in public policy

development and lobbying. ○

SO6 Total value of financial and in-kind contributions to political

parties, politicians, and related institutions by country. ○

SO7 Total number of legal actions for anti-competitive behavior,

anti-trust, and monopoly practices and their outcomes. ● 4.5 Regulatory Compliance 31

SO8

Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws and

regulations.

● 4.5 Regulatory Compliance 31

SO9 Operations with significant potential or actual negative impacts on

local communities. ○ No significant impact

SO10

Prevention and mitigation measures implemented in operations

with significant potential or actual negative impacts on local

communities.

○

Social: Product Responsibility

~ 67 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

DMA Disclosures on Management Approach ●

PR1

Life cycle stages in which health and safety impacts of products

and services are assessed for improvement, and percentage of

significant products and services categories subject to such

procedures.

● 7.2 Green Product 50

PR2

Total number of incidents of non-compliance with regulations and

voluntary codes concerning health and safety impacts of products

and services during their life cycle, by type of outcomes.

○

There were no non-compliance cases with

regulations and voluntary codes

concerning health and safety impacts of

products and services in 2012.

PR3

Type of product and service information required by procedures,

and percentage of significant products and services subject to such

information requirements.

● 7.2 Green Product 50

PR4

Total number of incidents of non-compliance with regulations and

voluntary codes concerning product and service information and

labeling, by type of outcomes.

○

There were no non-compliance cases with

regulations and voluntary codes

concerning product and service

information and labeling in 2012.

PR5 Practices related to customer satisfaction, including results of

surveys measuring customer satisfaction. ○

PR6

Programs for adherence to laws, standards, and voluntary codes

related to marketing communications, including advertising,

promotion, and sponsorship.

○ Not applicable

~ 68 ~

GRI Guidelines Disclosures Related GUC CSR Report Section Page Note

PR7

Total number of incidents of non-compliance with regulations and

voluntary codes concerning marketing communications, including

advertising, promotion, and sponsorship by type of outcomes.

○

There were no non-compliance cases with

regulations and voluntary codes

concerning marketing communications,

including advertising, promotion, and

sponsorship in 2012.

PR8 Total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data. ○

There were no substantiated complaints

regarding breaches of customer privacy

and losses of customer data in 2012.

PR9

Monetary value of significant fines for non-compliance with laws

and regulations concerning the provision and use of products and

services.

○ No such occurrence