Catalog - tehtai.com.t Bed Company CSR.pdf · prop The mor mor prov has cons mat anding the ormance o impact to t p the compe organizat label app 119, focusi ... nce or sust n quality

Catalog 1. Strategy and Analysis ...................................................................................... 1

1.1 Statement from Chairman of Board ........................................................ 1

1.2 Provide a description of key impacts, risks, and opportunities .......... 3

2. Organizational Profile ...................................................................................... 6

3. Identified Material Aspects and Boundaries ............................................. 12

4. Stakeholder Engagement .............................................................................. 16

5. Report Profile .................................................................................................. 18

6. Governance ..................................................................................................... 22

7. Ethics and Integrity ......................................................................................... 27

8. Disclosures on Management Approach ...................................................... 28

9. Economic ........................................................................................................... 29

9.1 Economic Performance ............................................................................. 29

9.2 Market Presence ....................................................................................... 29

9.3 Indirect Economic Impacts ....................................................................... 29

9.4 Procurement Practices .............................................................................. 30

10. Environmental ................................................................................................ 31

10.1 Material ................................................................................................... 31

10.2 Energy ...................................................................................................... 31

10.3 Water....................................................................................................... 31

10.4 Biodiversity ............................................................................................. 32

10.5 Emissions .................................................................................................. 34

10.6 Effluents and Waste .............................................................................. 34

10.7 Products and Services ........................................................................... 35

10.8 Compliance ............................................................................................. 36

10.9 Transport ................................................................................................. 36

10.10 Overall .................................................................................................. 36

10.11 Supplier Environmental Assessment .................................................. 36

10.12 Environmental Grievance Mechanisms ............................................ 37

11. Social: Labor Practices and Decent Work ............................................... 38

11.1 Employment ............................................................................................. 38

11.2 Labor/Management Relations ............................................................ 38

11.3 Occupational Health and Safety ....................................................... 38

11.4 Training and Education ......................................................................... 39

11.5 Diversity and Equal Opportunity ........................................................ 40

11.6 Equal Remuneration for Women and Men ........................................ 40

11.7 Supplier Assessment for Labor Practices ........................................... 40

11.8 Labor Practices Grievance Mechanisms ............................................ 40

12. Social: Human Rights ................................................................................... 41

12.1 Investment ................................................................................................ 41

12.2 Non-discrimination, freedom of Association and Collective Bargaining, and Child Labor ......................................................................... 41

12.3 Forced or Compulsory Labor ............................................................... 41

12.4 Security Practices ................................................................................... 42

12.5 Indigenous Rights ................................................................................... 42

12.6 Assessment ............................................................................................... 42

12.7 Supplier Human Rights Assessment ..................................................... 42

12.8 Human Rights Grievance Mechanisms ............................................... 42

13. Social: Society............................................................................................... 43

13.1 Local Communities ................................................................................. 43

13.2 Anti-corruption ........................................................................................ 43

13.3 Public Policy ............................................................................................ 43

13.4 Anti-competitive Behavior .................................................................... 43

13.5 Compliance ............................................................................................. 43

13.6 Supplier Assessment for Impacts on Society ..................................... 44

13.7 Grievance Mechanisms for Impacts on Society................................ 44

14. Product Responsibility .................................................................................. 45

14.1 Customer Health and Safety ............................................................... 45

14.2 Product and Service Labeling ............................................................. 45

14.3 Marketing Communications .................................................................. 45

14.4 Customer Privacy ................................................................................... 46

14.5 Compliance ............................................................................................. 46

1

1. Strategy and Analysis

1.1 Statement from Chairman of Board

Taiwan is seeing more and more problems with consumer products, especially in the food sector. The products either contain ingredients unsafe for consumption or are mislabeled. This puts a microscope on all businesses to provide safe products that are made the way they are advertised. Because of this, sustainability priorities have become increasingly important. Our organization must work to maintain consumer trust in our product. We can do this by having a culture where our employees take responsibility in our final product’s quality and in turn will help us continue to thrive in our industry.

As a company that has already been in business for 50 years, sustainability is extremely relevant to our organization. We continuously find ways to improve our manufacturing process and final product while ensuring that that product is the safest it can be for our consumers.

In the short term, we are focused on earning the Blue Angel certification and maintaining those standards in our operation in addition to the Taiwan Green Mark standards, which we already are certified with. Within our organization, we are currently in the process of establishing groups of employees to serve as brainstorming and decision making groups for different things ranging from product quality control to sales and marketing ideas. This allows our employees to have more input and greater responsibility within our company. And all of this will be expected to be achieved in 2015.

In the next 3-5 years, we have three main plans that we are currently discussing details of. The first idea in the works is to take advantage of the many days of sun we have in Tainan City by installing solar panels on our factory rooftop and allowing that energy to be our sole source of electricity. The second plan is to help bring us closer to our final consumers by changing the design of our factory to be open to regular tours. This would allow us to receive more input directly from consumers as well as allow us the ability to educate them on what to expect when they need to make a mattress purchasing decision. Lastly, we would like to implement a new mattress recycling program that is cost efficient and effective. The use of mattresses has gone up recently and in turn has caused a lot of waste from old mattresses. With a good program, we would like to see waste go down and recycling go up as most ingredients used to produce a mattress are able to be recycled. To the three main plans, we will continuously be mapping out the methods and progress to push forward, and reach the goal in the time limit of expectation.

Signature

In 2actssuccachiwasdominitialaw relawasare and

2014, our os a warehocessful in ouievement was our inabiminated by ally project changes r

ationship wits the change on pace to

d will be sch

rganizationouse, which r certificatioas securing lity so far larger branted figures. recently, neth a large reeover periodo be compleeduled to b

was succesimproves o

on for Taiwa an internatto sell int

nd names. There weew hotel petail agent d for this prted. Goal

be complete

Taiwan G

2

ssful in openour productan Green Mtional orderto an internOur perfor

ere two marojects slowand began rocess. Mals for the ne

ed in that tim

Green Mark

ning 4 new t delivery e

Mark for pror in Guam. Anational brrmance duriin reasons

wed down. to open ouain targets aext 3-5 yeameframe.

Certificate

retail storeefficiency. oduct qualityA failure duranded hoteing 2014 dfor this. Fi Second,

r own retailand goals fors are in the

es, one of wWe were

y. Anotheruring the peel as they

did not meetirst, becauswe ended

l outlets. 2or the next ye working st

which also

r key eriod are t our se of our

2014 year tage

3

1.2 Provide a description of key impacts, risks, and opportunities

1.2.1 The organization’s key impacts on sustainability and effects on stakeholders

There were two key strategies in our organization’s sustainability operation. First, the quality of products must be complying with, even over the requirements of the international environmental regulations for providing consumers the safe and health mattress products to develop the value of green brand. Second, the market should be expanded to the international for the creation of selling routes.

For reaching the goal of key strategies, our organization is planning to apply the international eco-label (German Blue Angel) as the first priority for conducting the green design and clean manufacturing of our products. Currently, our products have complied with the requirements of Taiwan eco-label and gotten the certificate, therefore, we are going to challenge the stricter certificate of international eco-label for the brand value promotion and the first step of international visibility extending. To comply with the requirements of international eco-label, our organization is constantly cooperating with suppliers by the principle of clean manufacturing to eliminate the use of hazardous substances, especially the hazardous substances under the international environmental regulations, needing the active seeking of alternatives or the improvements of manufacturing process to reduce the content and getting the collaboration with the material suppliers whom have the certificates from Forest Stewardship Council (FSC) to reach the target of environment friendship for products. Our products will be posted on the official website of the international eco-label if we get the certificate, and it will be helpful to creating the selling routes. Besides, since the requirements of international eco-label are stricter than the ones of international environmental regulations, our products could be naturally fit the environmental regulations of internationally after the certificate of international eco-label, overcoming the international trade barriers.

In the progress of green design and clean manufacturing, our organization must overcome the consequences which came from the effective of reducing the use of hazardous substances, seeking the alternatives or improvements of manufacturing, actively. Therefore, it gotta be more sophisticated in our green design skill. And for customers, the green mattresses could be provided for serving with health and safety.

1.2.2 The impact of sustainability trends, risks, and opportunities on the long term prospects and financial performance of the organization.

Our organization is the head among the counterparts. Basing on the responsibility of products and sustainability operation, we are in continuously developing of green mattresses for the value creating of brand and distinction of market, and establishing the operation culture for gathering the centripetal force from employees. The costs came from environment protection, social, employee welfare…etc., however, could be a large burden to our organization and should be overcome through the financial performance of our organization operating. Under the trend of international environmental issues, the international environmental regulations will be stricter more in the future; therefore, the products made by our organization use the compliance with the mandatory regulations of domestic and international to be the basic target. The way to conduct adopts the compliance with the standards of international eco-label for creating the green product brand and promoting the visibility of international,

expperfthe kee

Oureco-UZ-comTestwhicscresupp

On andsystprocmanenvi

OurdevpropThe mormorprovhas consmat

panding the formance oimpact to tp the compe

r organizat-label app119, focusi

mpleted the iing Center, ch followingeening of Fpliers.

the managed supervisioems in eithcedures, nonagement, iironmental h

r organizatvelopment aperties shou four beliefre sophisticare comfortabviding safer gotten the stantly devttresses is ou

selling marf organizatthe organizaetitive stren

tion is curreplication. Tng on the cimproving m Taiwan (Lag national ormaldehyd

ement of opn of Gooder governao matter onternal comhealth, fire s

ion has bend manufac

uld not be mfs – no feaate – are foble sleepingr and heath certificate veloping aur strategies

ISO 90

ket into the ion. Furtheation operagth from br

ently targeThe criteriocontrolling o

measures witb Accreditastandards

de and Azo

eration, ourd Service Pance or suston quality mmunication,safety and

een for mocture of matmoved to offar with diffiorever leadg of natives.hier sleep, oof a Taiwand manufas for long te

001 Certific

4

internationaermore, the ating that wand and pr

eting the Gon for appof hazardoth suppliers,ation Code: CNS 1520o that are

r organizatioProduct for tainability dmanageme

, customer ssocial respo

re than 50ttresses andfshore that icult, bold ting us to m. Meanwhour organizaan Green Macturing saerm.

cate

al hotel cha copy from

we need to groducts.

German Blulication of us substanc, and been c CNLA 117705-1, 1520

popular hi

on is under GSP, the b

developmenent, processervices, emonsibility.

0 years, ded roots in Taearned goo

to try, sustaanufacture

hile, for protation was th

Mark amongafe, health

in, and raisicounterpartgo innovatio

e Angel fomattress p

es. Our ocooperating7) for prod5-2 and 1gh risk sub

the certificaboth are pnt and stands managemployee welf

edicating toiwan, and wod reputatioinability dehigh quality

tecting the ehe first mang counterpa

and comf

ing the finats could be on constant

or internatiproducts is organizationg with Electroucts pre-tes2943 for

bstances aro

ate of ISO 9providing rodard opera

ment, operafare, educa

o the reseawe insist thaon around loevelopment y mattresseenvironment nufacturer warts. Therefortable g

ncial also ly to

ional RAL

n has onics sting, pre- ound

9001 obust ating ation ation,

arch, t our ocal. and s for and

which fore, reen

5

Strategies for Sustainability Development against Key Aspect

Term Sustainability Development Key Aspect of GRI

Short

1. Application for German Blue Angel

2. Employment engagement for organization operation

Materials, Product and Service Labeling, Compliance, Occupational Health and Safety, Diversity and Equal Opportunity, Non-discrimination, Freedom of Association and Collective Bargaining, Customer Health and Safety, Marketing Communications, Economic Performance, Market Presence

Middle

1. Expending the markets of international hotel chain

2. Solar panels for powering electricity of manufacturing

3. Factory to be open to regular tours

4. Mattress recycling program

Economic Performance, Market Presence, Materials, Energy, Effluents and Waste, Products and Services, Training and Education, Investment, Local Communities, Customer Health and Safety, Marketing Communications, Compliance

Long

Constantly developing and manufacturing safe, health and comfortable green mattresses

Market Presence, Materials, Product and Service Labeling, Compliance, Customer Health and Safety

6

2. Organizational Profile

The full name of the organization under business registration is France Bed Company, Ltd, Teh Tai as the primary brand and My Side is the commercial agent of ours, which services and products selling are including mattresses, foundations, pillows and mattress protectors. Teh Tai and its’ factory are headquartered at 100 Gong Ye 3rd Road, Annan District, Tainan City, Taiwan ROC, and 14 direct stores are located in Taipei City, New Taipei City, Taichung City, Yunlin County, Tainan City and Kaohsiung City in Taiwan.

The Table of Direct Stores

Direct Store Address Phone

Taipei Store No.79, Sec. 4, Nanjing E. Rd., Songshan Dist., Taipei City 105, Taiwan (R.O.C.)

(02) 2712-1069

Taipei Daan Store No.140, Sec. 1, Xinsheng S. Rd., Zhongzheng Dist., Taipei City 100, Taiwan (R.O.C.)

(02) 2358-7719

Taipei Xinyi Store No.18, Songlong Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.)

(02) 2765-9175

Taipei Neihu Store No.75, Xinhu 1st Rd., Neihu Dist., Taipei City 114, Taiwan (R.O.C.)

(02) 2793-2625

New Taipei Shinjo Store No.506, Sec. 4, New Taipei Blvd., Xinzhuang Dist., New Taipei City 242, Taiwan (R.O.C.)

(02) 8521-1509

New Taipei Chungho Store No.69, Anle Rd., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)

(02) 8941-2421

Taichung Store No.136, Sec. 1, Wenxin Rd., Nantun Dist., Taichung City 408, Taiwan (R.O.C.)

(04) 2475-5936

Taichung Ching Store No.351, Sec. 1, Zhongqing Rd., North Dist., Taichung City 404, Taiwan (R.O.C.)

(04) 2205-9018

Yunlin Douliu Store No.487, Sec. 2, Yunlin Rd., Douliu City, Yunlin County 640, Taiwan (R.O.C.)

(05) 533-3886

Tainan Minsheng Store No.85, Sec. 1, Minsheng Rd., West Central Dist., Tainan City 700, Taiwan (R.O.C.)

(06) 211-1666

Tainan Park Store No.630, Gongyuan Rd., North Dist., Tainan City 704, Taiwan (R.O.C.)

(06) 251-1911

Tainan Culture Store No.401, Chongming Rd., East Dist., Tainan City 701, Taiwan (R.O.C.)

(06) 290-0973

Tainan Jiankang Store No.16, Sec. 2, Jiankang Rd., South Dist., Tainan City 702, Taiwan (R.O.C.)

(06) 221-0038

Tainan Yucheng Store No.1065-2, Yucheng Rd., Gushan Dist., Kaohsiung City 804, Taiwan (R.O.C.)

(07) 553-1779

Direct Stores

7

Besides, our organization even sells our products with the cooperative stores, which were locating at north, south, east and west of Taiwan. The services and products selling is focusing on domestic market, the part of retail sale is using the direct stories and cooperative stores as selling routes. Our business promotion was conducted by dedicated business sector, focusing on purchasing with hotel, motel, maternity hospital, household and department, including the international hotel in Japan and Guam. Furthermore, our organization is engaging in the OEM to accept the orders from Taiwan furniture brands.

The Table of Cooperative Stores

Cooperative Store Address Phone

BEREAN No.176, Zhongshan Rd., Tamsui Dist., New Taipei City 251, Taiwan (R.O.C.)

(02) 2622-8985

teh tai No.312, Sec. 1, Jingguo Rd., East Dist., Hsinchu City 300, Taiwan (R.O.C.)

(03) 543-6522

MORiii No.557, Sec. 2, Guoguang Rd., Dali Dist., Taichung City 412, Taiwan (R.O.C.)

(04) 2407-3241

Goden Furniture No.71, Sanyi Rd., Yuanlin Township, Changhua County 510, Taiwan (R.O.C.)

(04) 832-0737

Zheng Xing No.580, Sec. 2, Yunlin Rd., Douliu City, Yunlin County 640, Taiwan (R.O.C.)

(05) 533-4977

Chiayi Furniture Store No.318, Sec. 1, Shixian Rd., West Dist., Chiayi City 600, Taiwan (R.O.C.)

(05) 231-8108

Yuan Fu Furniture No.23-6, Xinzhuang, Puzi City, Chiayi County 613, Taiwan (R.O.C.)

(05) 369-1199

Home Brisk No.183, Zhongshan N. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)

(06) 233-3115

Yung Shing Furniture No.65, Sec. 3, Datong Rd., Rende Dist., Tainan City 717, Taiwan (R.O.C.)

(06) 268-6211

De Yi Furniture No.13, Qingnian 2nd Rd., Lingya Dist., Kaohsiung City 802, Taiwan (R.O.C.)

(07) 338-9870

Zheng Xing No.961, Jiachang Rd., Nanzi Dist., Kaohsiung City 811, Taiwan (R.O.C.)

(07) 363-0572

Forbesbed No.502, Bo’ai 3rd Rd., Zuoying Dist., Kaohsiung City 813, Taiwan (R.O.C.)

(07) 349-2799

HOME IDEA No.293, Bade Rd., Fengshan Dist., Kaohsiung City 830, Taiwan (R.O.C.)

(07) 776-7207

Ya Yun Furniture No.253, Sec. 4, Zhongyang Rd., Hualien City, Hualien County 970, Taiwan (R.O.C.)

(038) 575-268

Dong Ge No.157, Sec. 2, Zhongzheng Rd., Wujie Township, Yilan County 268, Taiwan (R.O.C.)

(039) 641-889

Quan Guo Furniture No.879, Gengsheng Rd., Taitung City, Taitung County 950, Taiwan (R.O.C.)

(089) 225-641

Xin Song Sheng No.282, Zhongzheng Rd., Taitung City, Taitung County 950, Taiwan (R.O.C.)

(089) 324-596

The main departments are involved in our organization with Chairman, General Manager, Resource Management, Factory Affairs and Sales Section, and 15 divisions belonged in them are Services, Store, Transportation, Quality Control, Purchase, Accounting, Human Resources, Production Management, Document Control, Sewing,

8

Manufacturing, Bed, Spring, Warehouse, Research and Development.

Chairman

General

Manager

Resource

Management

Sales Section

Services Division

Store Division

Transportation Division

Quality Control Division

Purchase Division

Accounting Division

Human Resources Division

Production Management Division

Document Control Division

Factory Affairs

Sewing Division

Manufacturing Division

Bed Division

Spring Division

Warehouse Division

Research and Development Division

The capitalization of our organization was 10,000,000 NTS, net revenue for 2014 was 200,000,000 NTS, and the total number of products manufacturing for 2014 was 24,886 pieces. Now we have 90 employees in our organization, and the information related to them is tabulated as below;

The Total Number of Employees by Employment Contract, Type, Supervised Workers and Gender

Employee Types Gender Number

Employment Contract Male 0

Female 0

Permanent Employees Male 46

Female 44

Supervised Workers Male 6

Female 6

Workforce Male 46

Female 44

Fromlow permpowconcTaicencoorgaprot

201

ToWork

m the tables transferringmanent emp

wer increasicentrating ochung, Kaohountered aanizations. tests.

TheRegion

Tainan

Kaohsiun

Taichung

Taipei

Signi4 年 Se

otal kforce

s above, theg rate. Theployees. Tng of direcon Tainan hsiung are tany protest Therefore,

e Total Workn

ng

g

ficant Variaeason 1

81

ey shown th total work

The 5 emploct stores adheadquartethe staff ofts from la, there wer

Teh Tai

9

kforce by RGender

Male

Female

Male

Female

Male

Female

Male

Female

ations in EmSeason 2

84

he changes kforce of seoyees who wdding. Ouer, factory f direct sto

abor unionsre no empl

i and Its’ Fa

Region and

mployment Season

84

in total numeason 4 in were hired ur organizat

and direcres. Besids, environmloyees hired

actory

Gender Number

42

34

2

0

1

2

1

8

Numbers 3 Seas

8

mber were n2014 is 86in 2014 aretion main mt stores, otes, our orgental groud from the

son 4

86

not evident 6, and all we for the human power thers in Taanization n

ups and so negotiatio

with were uman

was aipei, ever ocial n of

10

In the supply chains, our upstream suppliers are including fabric, lumber, foam, machinery, packages and testing laboratories, downstream ones are cooperative stores and logistic companies. The total number of the upstream suppliers is 52, in 30 percentage of suppliers relating with domestic and abroad, mostly of them are located in Taiwan, parts of fabric suppliers are located in Belgium, Thailand and Indonesia; lumber suppliers are located in Canada; one special foam supplier is located in Italy; parts of machinery suppliers are located in Switzerland and Italy. The total payment to all suppliers in 2014 was approximately 90,000,000 NTS.

The details of suppliers for Teh Tai

Suppliers Types Features Countries

Fabric Materials Processor

Labor Intensive Taiwan, Belgium, Thailand and

Indonesia

Cotton Cushion Materials Processor

Labor Intensive Taiwan

Foam Materials Processor

Labor Intensive Taiwan, Italy

Spring Wire Materials Processor

Capital Intensive

Taiwan

Lumber Materials Processor

Labor Intensive Canada

Packages Contractor Labor Intensive Taiwan

Binding/ Nail/ Cutting Tools

Contractor Labor Intensive Taiwan

Machinery Equipment

Manufacturer Technology Intensive

Taiwan, Switzerland and Italy

Testing Laboratories

Contractor Technology Intensive

Taiwan

Cooperative Stores Dealer Labor Intensive Taiwan

Logistic Companies

Contractor

Labor Intensive

Taiwan

Our organization was not in large changing with structure, capital and supply chain. The primary changing was in operation strategy. For our organization, the 2014 year was a important period for the operating changes, it ended the cooperative relationship with big retailers and began to create the selling routes and direct stores that our own, add them up to 4.

Typically, the internal components of our products cannot be seen by consumers. The way we use the precautionary approach in our organization is by ensuring that each mattress is made the way that we say that we say we are going to make it. We also never reuse materials from mattresses that have been returned from customer’s homes, no matter how long it has been used. By doing this, our philosophy is to prevent any possible issues with the actual product and to maintain the customer’s trust. At the

11

same time, we join the Tainan Importers and Exporters Chamber of Commerce, International Sleep Products Association and Taiwan External Trade Development Council for products’ promotion and visibility extending.

The environmental issue is going to get attention day by day. Until now, our company is certified with the Green Mark issued by the Environmental Protection Agency of Taiwan. This requires certified products to be made with certified materials and also requires our production facility to be approved to manufacture these products. In the future, we will go getting international eco-label certificate as the goal for extending the international markets, cooperating with Electronics Testing Center, Taiwan to join the government project, Green Little Giant Counseling Program, for popularizing green design and clean manufacturing to get the certificate from Blue Angel.

12

3. Identified Material Aspects and Boundaries

For identifying material aspects and boundaries, we go first recognizing the entities in conjunction of our organization with operating. According to the revenues and expenditures from publicly available consolidated financial statements, the entities in conjunction of our organization are including the company, factories, direct stores, dealers, cooperative stores, suppliers, customers, governments and industry associations, etc., that used as the foundation for assessment of material aspects by referencing the G4 guideline of Global Reporting Initiative, which the procedures as following:

Step 1: Identification

(1) Consider the GRI Aspects list and other topics of interest

(2) Apply the Principles of Sustainability Context and Stakeholder Inclusiveness: Identify the Aspects – and other relevant topics – based on the relevant economic, environmental and social impacts related to all of the organization’s activities, products, services, and relationships, or on the influence they have on the assessments and decisions of stakeholders

(3) Identify where the impacts occur: within or outside of the organization

(4) List the Aspects and other topics considered relevant, and their Boundaries

Step 2: Prioritization

(1) Apply the Principles of Materiality and Stakeholder Inclusiveness: Assess

each Aspect and other topic considered relevant for:

–the significance of the organization’s economic, environmental and social

impacts

–the influence on stakeholder assessments and decisions

(2) Identify the material Aspects by combining the assessments

(3) Define and document thresholds (criteria) that render an Aspect material

(4) For each material Aspect identified, decide the level of coverage, the

amount of data and narrative explanation to be disclosed

(5) List the material Aspects to be included in the report, along with their

Boundaries and the level of coverage

Step 3: Validation

(1) Apply the Principles of Completeness and Stakeholder Inclusiveness: Assess the list of material Aspects against Scope, Aspect Boundaries and Time to ensure that the report provides a reasonable and balanced representation of the organization’s significant economic, environmental and social impacts, and enables stakeholders to assess the organization’s performance

(2) Approve the list of identified material Aspects with the relevant internal senior decision-maker

(3) Prepare systems and processes to gather the information needed to be disclosed

13

(4) Translate the identified material Aspects into Standard Disclosures – DMA and Indicators – to report against.

(5) Determine which information is available and explain those for which it still needs to establish management approaches and measurements systems

Step 4: Review

(1) Apply the Principles of Sustainability Context and Stakeholder Engagement:

Review the Aspects that were material in the previous reporting period

(2) Use the result of the review to inform Step 1 Identification for the next

reporting cycle Following the procedures, this report has a screening first for the material aspects relating to our organization. The screening way is based on the 2 principals – sustainability and stakeholder inclusiveness, and consideration of the items of organization activities, products, services and effectiveness is to list the relative aspects of economic, environment and society. As the relative aspects are listed for 3 times, they will be regarded as material aspects.

The list for assessment of material aspects Consideration

of the items

Aspects

Organization Activities

（Purchase, Manufacturing,

Transportation, Sell,

Operations…）

Products Services Effectiveness

Economic

Economic Performance, Marketing Communications, Indirect Economic Impacts, Procurement Practices

Economic Performance, Procurement Practices

Economic Performance

Economic Performance, Marketing Communications, Procurement Practices

Environment

Materials, Energy, Emissions, Effluents and Waste, Products and Services, Compliance, Transport, Overall, Supplier Environmental Assessment, Environmental Grievance Mechanisms

Materials, Products and Services, Transport, Overall

Energy, Emissions, Products and Services, Compliance, Transport

Energy, Biodiversity, Products and Services, Compliance, Transport, Overall, Supplier Environmental Assessment,

Society

Labor/Management Relations, Employment, Occupational Health and Safety, Training and Education, Diversity and Equal Opportunity, Equal Remuneration for Women and Men, Labor Practices Grievance Mechanisms, Forced or Compulsory Labor, Human Rights Grievance Mechanisms, Compliance (Society), Grievance Mechanisms for Impacts on Society, Customer Health and Safety, Product and Service Labeling, Compliance (Product responsibility)

Occupational Health and Safety, Product and Service Labeling, Compliance(Product responsibility)

Occupational Health and Safety, Training and Education, Forced or Compulsory Labor, Product and Service Labeling, Compliance (Product responsibility)

Labor/Management Relations, Employment, Occupational Health and Safety, Diversity and Equal Opportunity, Equal Remuneration for Women and Men, Labor Practices Grievance Mechanisms, Forced or Compulsory Labor, Human Rights Grievance Mechanisms, Compliance (Society), Grievance Mechanisms for Impacts on Society, Customer Health and Safety, Compliance (Product responsibility)

14

Following the list for assessment of material aspects, the result for material aspects is including economic performance, procurement practices, energy, products and services, compliance (environment), transport, overall, occupational health and safety, forced or compulsory Labor, customer health and safety, product and service labeling and compliance (product responsibility), total counting as 12 items. Every material aspects having importance or not within or outside organization could be identified by relating to the entities, the results as tables shown below;

The boundary within organization Entities

Relation or not Material Aspects

Company Factory Direct Stores

Stockholder Employee

Economic Performance Yes Yes Yes Yes Yes

Procurement Practices Yes Yes No No No

Energy Yes Yes Yes No No

Products and Services Yes Yes Yes No No

Compliance(Environment) Yes Yes No No No

Transport Yes Yes Yes No Yes

Overall Yes Yes No No No

Occupational Health and Safety

Yes Yes Yes No Yes

Forced or Compulsory Labor

Yes Yes Yes No Yes

Customer Health and Safety

Yes Yes Yes No No

Product and Service Labeling

Yes Yes Yes No No

Compliance (Product responsibility)

Yes Yes Yes No No

15

The boundary outside organization Entities

Relation or not Material Aspects

Dealers, Suppliers,

Cooperative Stores

Customers Governments Industry

Association

Economic Performance Yes No No Yes

Procurement Practices Yes No No Yes

Energy No No Yes No

Products and Services Yes Yes Yes No

Compliance(Environment) Yes Yes Yes No

Transport Yes No No No

Overall No No No No


No No Yes No


No No Yes No


Yes Yes Yes No


Yes Yes Yes No

Compliance (Product responsibility)

Yes Yes Yes No

The information and locations of entities

As the table shown in

paragraph 2

The customersand clients in Taiwan and international hotels which located in Japan and

Guam

Consumer Protection Committee, EPA, Tainan

Labor Ministry

NIE, ISPA, TAITRA

16

4. Stakeholder Engagement

For identifying stakeholders, our organization uses the directly activities affecting as principle. According to the principle, our stakeholders are including customers, employees, stockholders, suppliers, banks and Government, the relative information as below;

Stakeholders’ Information of France Bed Company, Ltd

Items Stakeholders Basis of

Selection Reasons Frequency

Is there any action in

2014?

1 Customers Fund flowed in Income of sales Irregularly Customer Grievance

2 Employees Fund flowed out Payment of salary Monthly Employees’ meeting

3 Stockholders Fund flowed in/ out

Increase in investment,

Dividend distributionTwice Annual Stockholders’ meeting

4 Suppliers Fund flowed out

Expenditure on purchasing Twice Annual Suppliers’ meeting

5 Banks Fund flowed in/ out Loan, Interest Irregularly None

6 Government Fund flowed in/ out

Project subsidy, Tax and regularly fee Irregularly

Eco-label application, GSP certificate

extending

About the engagements of Stakeholders in 2014, our organization has regularly held stockholders’ meeting, employees’ meeting and suppliers’ meeting, the date and location as table shown below;

The stakeholders’ activities of France Bed Company, Ltd in 2014 Items Engagement Date Locations

1 Employees’ meeting 1/14/2014 Tainan factory












13 Stockholders’ meeting 06/30/2014 Tainan

14 Stockholders’ meeting 12/29/2014 Tainan

15 Suppliers’ meeting 3/19/2014 Tainan factory

16 Suppliers’ meeting 9/5/2014 Tainan factory

17

Employees’ meeting

The operation of our organization in 2014 has had no customer grievances, and employees provide their comments for the improvements of working place in every monthly employees’ meetings, including the air condition adding and the way of cargos storage, which are related to safeguard the safety of employees. In Suppliers’ meetings, the suppliers of green product promise us continuing to provide raw materials that were without any hazardous substances. As a result, our green mattresses could still maintain the certificate of Taiwan eco-label, and the stores could maintain the certificate of GSP, to keep providing customers the better products and services.

18

5. Report Profile

This report is the first corporate social responsibility report of France Bed Company, Ltd, Teh Tai, which the reporting period is set in 2014 and reporting cycle is based on annual. The main contact person for the narrative of this report is Mr. Johnson Yen, the Special Assistance of Teh Tai and here are his phone no. and mail address:

Phone No.: 06-3843000

Mail Address: [email protected]

This report considers the organization activities, products, services and influence as the assessing items to screen out the high relative to economic, environment and social as material aspects. The material aspects screened out are totally 12, including economic performance, procurement practices, energy, products and services, compliance, transport, overall, occupational health and safety, forced or compulsory labor, customer health and safety, product and service labeling and compliance for product responsibility.

GRI content index for ‘In accordance’ – comprehensive as following:

GENERAL STANDARD DISCLOSURES General Standard

Disclosures Page Omission

In exceptional cases, if it is not possible to disclose certain required information, provide the reason for omission (as defined on Reporting Principles and Standard Disclosures p. 13).

External Assurance Indicate if the Standard Disclosure has been externally assured. If yes, include the page reference for the External Assurance Statement in the report.

STRATEGY AND ANALYSIS

G4-1 1 N.A. Y (Department of Commerce, MOEA in Taiwan, GSP (Good Service Practice))

G4-2 3 N.A. N ORGANIZATIONAL PROFILE




G4-6 6 N.A. N G4-7 6 N.A. N

G4-8 6-7 N.A. Y (Department of Commerce, MOEA in Taiwan, GSP (Good Service Practice))

G4-9 7-9 N.A. Y (UCS,ISO 9001) G4-10 9 N.A. N G4-11 9 N.A. N G4-12 9-10 N.A. N

19





G4-13 10-11 N.A. N

G4-14 10-11 N.A.

Y (UCS,ISO 9001;Taiwan Green Mark; Department of Commerce, MOEA in Taiwan, GSP (Good Service Practice))

G4-15 10 N.A. N G4-16 10 N.A. N

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17 12 N.A. N G4-18 12-13 N.A. N G4-19 14 N.A. N G4-20 14 N.A. N G4-21 15 N.A. N G4-22 - First Year N G4-23 - First Year N

STAKEHOLDER ENGAGEMENT G4-24 16 N.A. N G4-25 16 N.A. N G4-26 16-17 N.A. N G4-27 17 N.A. N

REPORT PROFILE G4-28 18 N.A. N G4-29 18 N.A. N G4-30 18 N.A. N G4-31 18 N.A. N G4-32 18-21 N.A. N G4-33 18-21 N.A. N

GOVERNANCE G4-34 22-23 N.A. N G4-35 22-23 N.A. Y (UCS,ISO 9001) G4-36 23 N.A. Y (UCS,ISO 9001) G4-37 23 N.A. Y (UCS,ISO 9001) G4-38 22-23 N.A. N G4-39 23 N.A. N G4-40 22-23 N.A. N G4-41 23-24 N.A. N G4-42 24 N.A. N

G4-43 24 N.A. Y (UCS,ISO 9001; Department of Commerce, MOEA in Taiwan, GSP (Good Service Practice))

G4-44 24-25 N.A. Y (UCS,ISO 9001; Department of Commerce, MOEA in Taiwan, GSP (Good Service Practice))

20





G4-45 25-26 N.A. Y (UCS,ISO 9001) G4-46 25-26 N.A. Y (UCS,ISO 9001) G4-47 25-26 N.A. Y (UCS,ISO 9001) G4-48 25-26 N.A. Y (UCS,ISO 9001) G4-49 25-26 N.A. Y (UCS,ISO 9001) G4-50 25-26 N.A. Y (UCS,ISO 9001) G4-51 26 N.A. N G4-52 26 N.A. N G4-53 26 N.A. N G4-54 26 N.A. N G4-55 26 N.A. N

ETHICS AND INTEGRITY




SPECIFIC STANDARD DISCLOSURES Material Aspects (As in G4-19) List identified material

Aspects.

DMA and Indicators List Specific Standard

Disclosures related to each identified material Aspect,

with page number (or link).

Omissions In exceptional cases, if it is not possible to

disclose certain required information, provide the reason

for omission (as defined on Reporting

Principles and Standard Disclosures

p. 13).

External Assurance Indicate if the

Standard Disclosure has been externally assured. If yes, include the

page reference for the External

Assurance Statement in the report.

Economic Performance (G4-EC1~EC4) 28, 29 N.A. N

Procurement Practices (G4-EC9)

28, 30 N.A. Y (UCS,ISO 9001)

Energy (G4-EN3~EN7)

28, 31 N.A. N

Products and Services (G4-EN27~EN28)

28, 35-36 N.A. Y (Taiwan Green Mark)

Compliance (G4-EN29)

28, 36 N.A. N

21

SPECIFIC STANDARD DISCLOSURES Material Aspects (As in G4-19) List identified material

Aspects.

DMA and Indicators List Specific Standard

Disclosures related to each identified material Aspect,

with page number (or link).

Omissions In exceptional cases, if it is not possible to

disclose certain required information, provide the reason

for omission (as defined on Reporting

Principles and Standard Disclosures

p. 13).

External Assurance Indicate if the

Standard Disclosure has been externally assured. If yes, include the

page reference for the External

Assurance Statement in the report.

Transport (G4-EN30)

28, 36 N.A. N

Overall (G4-EN31)

28, 36 N.A. N


(G4-LA5~LA8) 28, 38-39 N.A. N

Forced or Compulsory Labor (G4-HR6) 28, 41 N.A. N


(G4-PR1~PR2) 28, 44 N.A.

Y (Taiwan Green Mark)

Product and Service Labeling(G4-PR3~PR5) 28, 44 N.A.

Y (Taiwan Green Mark)

Compliance （(G4-PR9)）

28, 45 N.A. Y (UCS,ISO 9001)

For the external assurance of our organization, France Bed Company, Ltd has already established internal management and audit system, including the GSP (Good Service Practice) and ISO 9001 (Registration No.: UCS-Q-10-049), which certified by Department of Commerce and Universal Certification Service Co., LTD separately. The Universal Certification Service Co., LTD was an independent third certification party which was founded from 1999 for 10 more years until now; it has been authorized not only by UKAS (United Kingdom Accreditation Service), but also TAF (Taiwan Accreditation Foundation), ANAB (The ANSI-ASQ National Accreditation Board) and DAkkS (Deutsche Akkreditierungsstelle GmbH). France Bed Company, Ltd will be following the implementing process and method of the internal management and audit system, conducting the sustainable working, all the relating material aspects will be narrated by the evidences from organizations’ financial report, environmental monitoring report of Industry Park and the testing reports of products.

22

6. Governance

Governance Structure and Composition

The highest governance structure of France Bed Company, Ltd, Teh Tai is including chairman, president, director of plant division, deputy of director of plant division and manager of management department, and the action and governance for sustainability management are brought into the system ISO 9001 for carrying out together that established the sustainability management committee as governance for the company. According to the management measures of organization and accountability (the reference of serial number of a document: QP0501), the members of management committee were representatives of management, who were designated by president (as the table below shown). And the relevance sustainability actions, they were designated by the representatives of management, which following the duty of each unit of company to be attribute for designation.

The composition of sustainability management committee

Member Professional Title Name Duty of member

Chairman, the representatives of shareholder

President Nuan Xu

1. Make operation policy of organization 2. Set the goal of economic, environment

and social performance and go supervise

Vice chairman Special assistance Johnson Yen Help auditing and supervising for

operation of organization

The representatives of employee

Director of plant division Mei Yun Zhou

1. Management of factory affairs, relating to economic, environment and social performance

2. Communication and management of employees

The representatives

of other relevance

Deputy of director of

plant division Ming Jie Xu

1. Management of suppliers 2. Responding the regulations came from

the government authorities

The representatives of management

Manager of management department

Ming Jun Su 1. Set into action for the social performance

2. Set into action for the human right performance Employee Yi Ci Chen

The representatives

of quality control

Manager of quality control Qing Xiang Xu 1. Set into action for the environmental

performance 2. Management of quality control Employee Xia Yu Lin

The representatives

of business

Manager of business division Guo Zhen Hong 1. Set into action for the economic

performance 2. Customers’ service and communication Employee Yi Lun Su

23

The attributions of sustainability management committee

Unit Name Executive or non-

executive Independe

nce

Tenure on the

governance body

Number of each

individual’s other

significant positions and commitments

, and the nature of the commitments

Gender

Membership of

under-represented social

groups

Competences relating to economic,

environmental and social

impacts

Stakeholder representation

Office of president Nuan Xu Yes Yes Irregularly President Female Non All covered Shareholder

Office of special

assistance Johnson

Yen Yes Yes Irregularly Special

assistance, retailer

Male Non All covered -

Division of factory affairs

Mei Yun Zhou Yes Yes Irregularly Director of

plant division Female Non All covered Employee


Ming Jie Xu Yes Yes Irregularly Deputy of director of

plant division Male Non Environment,

society Suppliers,

government authorities

Division of managemen

t Ming Jie Xu Yes Yes Irregularly


Female Non society -

Division of managemen

t Yi Ci Chen No No Irregularly Employee Female Non society -

Group of quality control

Qing Xiang Xu Yes Yes Irregularly Manager of

quality control Female Non Environment, society -


Xia Yu Lin Yes Yes Irregularly Manager of

factory affairs

Male Non Environment, society -

Division of business

Guo Zhen Hong Yes Yes Irregularly

Manager of business division

Male Non Economic, society Customers

Division of accounting Yi Lun Su No No Irregularly Accountant Female Non Economic,

society -

The principal for designing members of sustainability management committee is in accordance with the attributions of the units to design relevance executives to serve, and authorize them setting into action, which consider the comments and suggestions provided by the stakeholders (such as; customers, suppliers, governments authorities) who will be contacting with in the marketing business, simultaneously. The topics about economic, environment and society could be provided for discussing in every employee’s meeting monthly and submitted to the chair of sustainability management committee. On the other hand, over the engagement of sustainable topic, the stakeholders could get consultation and go communicating through the annual meeting (such as; shareholders’ meeting, suppliers’ meeting, etc.). To the irregularly requirements from the governance authorities or comments from customers, they will be also provided by the representatives of committee in the employee’s meeting for discussing, then submitted to the chair of sustainability management committee.

The chair of sustainability management committee is served to the post by the president, Mr. Nuan Xu, whose position in France Bed Company, Ltd, Teh Tai is the charge for the decision maker, and hence she has the completely power for policy making and the delegation to relevance executives for handling the works about sustainability

24

performance. If there has any conflicts of interest to part of representatives who are executives during the handling the works about sustainability performance, the representatives who are executives will withdraw out of automatically and inform other members for assuring the just of decision.

Highest Governance Body’s Role in Setting Purpose, Values, and Strategy

For the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts, this report shows as table as below;

The highest governance body’s and senior executives’ roles in sustainability management committee

Members Purpose Value

Mission statements

Strategies Policies Economic goals Environmental

and social impacts

D A U D A U D A U D A U D A U D A U D A U

President ● ● ● ● ● ● ● ● ● ● ● ● ●

Special assistance

● ● ● ● ● ● ● ● ● ●

Director of plant division

● ● ● ● ● ● ● ● ● ● ● ●

Deputy of director of

plant division ● ● ● ● ● ● ● ●


● ● ● ●

Employee of management department

● ●

Manager of quality control

● ● ● ●

Manager of factory affairs

● ●

Manager of business division

● ● ● ●

Accountant ● ●

D for Development; A for Approval; U for Updating

Highest Governance Body’s Competencies and Performance Evaluation and Its’ Role in Risk Management

To the collection of the latest news about economic, environment and society topic, our organization has done and comprehended it, through the engagement to association applying the electronic news from the government authorities and the information services provided by corporation unit, knowing well that the basic info needs for company operation assessing.

In addition, the assessment of performance for our organization’s economic, environment and society topic, it was included into the internal audit procedure of ISO 9001 system.

25

The internal audit plans were proposed by the representatives of highest governance body one month before auditing and submitted to the president or representatives of highest governance body for approving and conducting, depending on the internal audit management approach of ISO standard. The internal audit was one time annual at least, and the representatives of highest governance body could recommend the request of internal audit if there is a big movement happening in the guiding principle of sustainability action. Before conducting the audit, the group of audit was assembled by the representatives of highest governance body and operating after the president’s permission. The group of audit couldn’t audit the division which the group of audit belongs to, and therefore the internal audit is not a kind of self-assessment.

The auditors could collect the evidences through the ways of interview, documentation, record, observation, testing and the opinions from the stakeholders’ meeting. Auditors shall record the evidence which they observed during the auditing for the basis of audit reporting. The conflict should be avoided during the auditing, and it should be provided by group leaders or representatives of highest governance body for discussing if there is any conflicts happened. Auditors shall control the auditing time, and they could extend it by getting the permissions from the group leaders or representatives of highest governance body if the auditing time controlling is impossible.

Auditors will register the non-compliance into the “Notification for Correction of Internal Audit”, notifying the unit which was in being audited to improve. The unit which was in being audited shall reply to the auditors with the “Correction Measures” in 15 days. The follow-up of the correction measures should be conducted by the auditors. The representatives of highest governance body shall compile the internal auditor checklists which were completed by the auditors, and fill out the front page to be as the Audit Report, submitting to the president for reviewing. Audit Reports were reserved by the professional persons who are designated by the representatives of highest governance body, and the reserving period is 1 year, which is in accordance with the “Quality Control Record Table” of “Files and Records Control Measures (the reference of serial number of a document: QP0401)”.

Highest Governance Body’s Role in Evaluating Economic, Environmental and Social Performance

According to the “Management Measures for the Examination (the reference of serial number of a document: QP0502)”, the president shall convene and host the “Examination Meeting” within a month after the internal audit, which was reporting of overall performance of sustainability topic for quality management by representatives of highest governance body whom are in charge of tracing the correction and prevention of outcome of examination and audit, and run discussion of improving measures by every executives of unit. Every topic was judged by the president one by one after running discussion. The procedure of the examination meeting as shown below;

Rem

The termsenisociThe empyeaopeis acomcomcomcomperc

muneration

remuneratmination payor executiveety that are remuneratployees in tar-end bonuerating perfoa grievancemmon consenmpany’s highmpensation mpensation fcentage inc

Convened Presiden

The p

and Incent

tion of senyments andes who aree the duty tions are dthe interviewuses and pormance.

e way for nsus betweehest-paid infor all emor companyrease in ann

by nt Com

procedure o

ives

ior executiv retirement

e in charge of their pos

determined w and decay increaseIf any emplconvening tn the labor

ndividual, thmployees. y’s highest-pnual total co

Data mpilation

26

of the exam

ves is fixed benefits is of the actisition; the cby preside

cided when e, however,oyee has ththe coordin and capitahe ratio is And the p

paid individuompensation

ExaminatiMeetingHosting

mination me

d pay plusbased on Lons about e

company doent, which both were, are deterhe questions nate meetinal. The ann1.7 times topercentage ual, the ration for all em

on g g

ReCar

eeting

s bonuses; Labor Standeconomic, eoesn’t give owere refer in the comrmined by about remug to discusnual total coo the mediaincrease i

o is 1.3 timeployees.

esolution rrying Out

the regimedards Act. environment other paymrred to bymmon consethe Compa

unerations, tss reachingompensationan annual in annual es to the me

ExaminatioOutcome

e of The and ents. the

ensus, anies there the n for total total dian

on e

27

7. Ethics and Integrity

France Bed Company, Ltd, Teh Tai was the creator of mattress in Taiwan. Until now from the company founded, we developed the spring beds under moving forward of improving and researching, from those which function with pocket-spring and protection net that were suited for the sleeping habit of compatriots to the latest ones with the Nanotechnology, all these just because we want to provide the mattresses that are more suiter to the habit of individual, and then go step further for promotion of sleeping quality and embracing the health. After being the 50 years of qualification and public praise, now we have had countless rewards and been designated by 80% of the five-star hotels as the designation mattresses. We always used the needs of our clients as the direction for working hard to bold trying, sustainability developing and get more excellence, in together with our all employees, providing more professional and enthusiastic quality and service.

With the GSP certificate of Ministry of Economic Affairs, R.O.C., our company made the management procedures and implementation measures on customer services and communications, human resources management, environmental sanitation and facility management, service procedure management, social responsibility, operation performance and internal audit, for assuring the satisfied services could be delivered to customers. Besides, with the certificate of ISO 9001 and volunteer eco-label, the mattresses our company provided to customers are guaranteed by reliable quality and healthy products reaching the requirements of environmental protection.

The operation in our company observes the regulations and laws of R.O.C., all the relevance enactments were assessed and made by the senior executives, which consults with professional consultant if it is necessary. We have no dedicating law consultants.

To the management of internal employees, our company established the rules for the employees’ management and set the channel for the grievances to settle the problems that the employees met in the working environment. Furthermore, on the important information announcing and employees’ opinions listening, our company convenes the meetings for it in regularly and irregularly.

Over the dispute of consumption, our company set the customer service hotline for the consultant and grievance that could be an efficiency connection between customers and our company. The warranty provided the clear company address and customer service hotline, either. When the case of grievance occurs, we will explain the way how we deal with to the customers and make sure it will be settled in 3 days. We will get the common consensus with customers if there is any situation needing to extend the 3 days period.

28

8. Disclosures on Management Approach

The aspects material were considering the activities, products, services and influences of company for screening out the closely relationships with our operations. The result of considering is including the Economic Performance and Procurement Practices for Category Economic; the Energy, Products and Services, Compliance, Transport and Overall for Category Environmental; the Occupational Health and Safety, Forced or Compulsory Labor, Customer Health and Safety, Product and Service Labeling, Compliance for Category Social. The report for their impacts is shown as table below.

Reporting of the impacts that make this aspect material

Aspects Material Impacts

Economic Performance The economic performance influences whether the company keeps operating or not.

Procurement Practices Cooperation with local suppliers could advance the development of local economy.

Energy Insufficient energy supplying could influence the activities of production and services for stores.

Products and Services The manufacturing, selling and servicing of products have the potential risks that contaminating environment and affecting the consumers’ health.

Compliance （Environmental）

Violation of relevance environment regulation would lead to a heavy fine and be closed down by order.

Transport The transportation of products, materials and employees could cause environmental contaminations.

Overall It could be illegal of environmental protection, or affecting the R & D of green product if the expenditure and investment are not enough.


The health and safety of employees are relating to the sustainable operation for the company.


Compulsory labor not only affects the health of employees, but also violates the Labor Standards Act.


It would be leading to a situation that the products could not be selling if the products threatens the health and safety of customers.


The label of products and services illegally to relevance regulations will be punished by fine and other disciplinary as well as impacting the sales of products.

Compliance （Product Responsibility）

The quality of products and services illegally to relevance regulations will be punished by fine and other disciplinary as well as impacting the sales of products.

The action, management and evaluation of sustainable operations were involved into the system ISO 9001 for implementing, establishing the sustainability management committee as the managing unit for the sustainability works of company and designating the unit relating to the relevance attribution unit in the company as responsible unit of sustainability works. All the working reports were discussed in the employees’ meeting and evaluated in the internal auditor, regularly. About management approach for every aspects material, it will be reported in follow-up narrative.

29

9. Economic

9.1 Economic Performance

Economic Performance is relating to the fundamental of company’s operation. For reaching the goal of growing up, our company sustains to invent innovative products, promote competitiveness and develop new market, and started to transform from 2014, ending the relationship of cooperation with big retailers to build the stores and logistics of our owns. In the future, our company will be dedicating to build our brand and selling logistics.

The operating income of our company in 2014 was around 163 million NTS; the net operating income was around 33.7 million NTS – which was the remaining that the operating income minus the operating costs 81.5 million NTS, the staff salaries and welfare 24 million NTS, investors pay 21 million NTS and tax pay 2.8 million (The accounting principle was based on R.O.C Generally Accepted Accounting Principle, ROCGAPP ). The government never gives relevance financial subsidies or preferential, and never holds any stock shares to our company, either. The operation location was limited at Taiwan of Republic of China; there are no bases of operations set in other countries.

About the impact of climate change to our financial affairs, it produced relevance risks and opportunities to our company after the implement of Greenhouse Gas Reduction Act; for example, the greenhouse gas reduction maybe causes the increase of expenditure, or incurs the fines if illegally. Relatively, however, the implement of Greenhouse Gas Reduction Act could reduce the expenditure of energy using, as well as get the subsidies of carbon credit. Regarding the greenhouse gas reduction, our company proposes to launch the solar powering system in the next 3~5 years, making the solar power to be the only powering source, which expected to invest around 22 million NTS.

As for the effect upon the welfare to the financial, the welfare of employees was expended by operating income, not by the foundation which was founded independently, neither by the welfare expenditure which was drawn from employees’ salaries. Regarding the employees’ retirement mechanism, our company was totally following the Labor Standards Act.

9.2 Market Presence

In the salary level of our company, the lowest position was 1.35 times to the lowest one regulated by Labor Standards Act. And there is no difference between male and female, which the salary level simply was considered by the position and the duty. The salary level covering all the operation location including headquarter, factories and direct stores is without exemption. Besides, the highest governance body, including President, Director of Plant Division, Deputy of Director of Plant Division, Manager of Business Division and Manager of Detail Division, etc., they were all Taiwan natives.

9.3 Indirect Economic Impacts

Headquarter of our company is located at Tainan Technology Industrial Park. The investment to land, factory and facilities is around 210 million NTS, which was a kind of commercial activity. The operation of company could add the taxation of local

30

government; promote the career and selling opportunities to the natives and native suppliers, prompting the economic development. In relation to the production activities, there was never coming with obvious environmental pollution (e.g. water, air, waste… etc.), neither was the negative economic impact caused by the environmental pollution.

9.4 Procurement Practices

All the operation locations, including the headquarter, factory and direct stores, the ration that the procurement practices adapted the products and services came from the Taiwan native suppliers is around 80%. Due to the suppliers influence the products and quality of services of our company so much, the sieving out of suppliers was the point to our quality management. Upon the suppliers’ management, our company was following the measures for the procurement and supplier controlling practices of ISO 9001 (the reference of serial number of a document: QP0703), sieving out the qualify suppliers and registering them on the Table of Qualify Suppliers. The items of management in the measures are including the delivery date, prices, certificate of product and qualification suppliers, for making sure that the raw materials and services provided by the suppliers were qualified for our company.

31

10. Environmental

10.1 Material

The raw material, which was used in manufacturing and packaging in 2014, the non-renewable and renewable ones were around 1,300 and 620 tons respectively, tally up were 1,920 tons. Our company never uses the recovery material to manufacture products.

10.2 Energy

The energy consumption of our company was based on the records of purchasing receipt, the result summed up as table shown below;

The Result of Energy Consumption Summed Up

Scope Type The consumption of 2014

Internal

Diesel Gas 60,000 Liters

≒ 2,322,000 MJ

Electricity 250,000 kWh

≒ 9000,000 MJ

External Gas Can’t be estimated

To the standard of energy intensity calculating, our company used the double mattress with the dimension of 5.0 m x 6.2 m as the standard, calculating the single mattress with the dimension of 3.5 m x 6.2 m to be the 0.7 unit and the extended mattress with the dimension of 6.0 m x 6.2 m to be the 1.25 unit. The total amount of mattress production in 2014 was 29,350, which was the denominator we used to calculate the energy intensity. The result of energy intensity is 109.78 MJ/unit, which used the consumption of 2014 3,222,000 MJ in the table above as the numerator to calculate. In 2014, our company had no energy saving programs to launch, neither did the energy selling.

10.3 Water

About the water consumption, the main source was including the both of the storage of rain and tap water (as the table below shown). Our company, besides, not yet used the water came from any recycling sources.

Statistics for Water Consumption

Source The consumption of 2014

The Storage of Rain 250 Cubic Meter

Tap Water 1250 Cubic Meter

32

The source of water used by our company was came from a serial water source retained by Nanhua Dam and Wushantou Dam, which the effective storage capacity was 152.32 million cubic meter, offering the natives with the necessary water for agricultural, living and industry development (Source: Water Resource Agency). The region of water sources was including Tsengwen River and its tributary, which was set as the drinking water protection region of Nanhua Dam and Wushantou Dam by Environmental Protection Administration Executive Yuan, R.O.C (Taiwan).

The catchment area ranging from Nanhua Dam to Wushantou Dam, was the shallow mountain region with low altitude under 500 meter, and the mostly region sustains relative complete natural ecology due to the its administration of the catchment area ranging. According to the findings of biological resources from Water Resource Agency, which conducted the investigation to the biological resources of the catchment area ranging from Nanhua Dam to Wushantou Dam, the animal resources were at least including 27 species of mammals, 58 species of birds, 19 species of amphibians, 16 species of reptiles, 108 species of butterflies and 33 species of dragonflies. Endangered species of animals were including the Hodgson's Hawk Eagle, Black Eagle, Osprey, Grass Owl, Herpestes urva, Masked palm civet, Oriolus traillii, Yellow-margined box turtle, Swinhoe's Grass, Luciola hydrophila, Sinogastromyzon, etc., showing the plenty of biological resources.

10.4 Biodiversity

The operation locations of our company were covering with Taipei, New Taipei, Taichung, Yunlin, Tainan and Kaohsiung, where most locations are located at the populated area without neighboring with the environment protection region, but Tainan - Tainan Technology Industrial Park - where the headquarter was located at is neighboring with the environment protection region.

The government of Tainan city proclaimed the 515.1 hectares land around the Tainan Technology Industrial Park as wildlife sanctuary - Sihcao Wildlife Reserve, using for the Tainan native ecological environmental reserve and species conservation. Every year, there were a lot of migratory birds coming to Sihcao Wildlife Reserve for hibernating; or using it as relay station for south migration. In another word, the Sihcao Wildlife Reserve was an important habitat for the migratory birds between Asian and Australia. In the biological resources, Sihcao Wildlife Reserve has the vegetation with 51 families equal to 169 species (MOEAIDB, 1992; TNBIRD and KWBS, 1994), crab of benthic animal with 12 families equal to 53 species (Mr. Tong and Mr. Li, 1998), shellfish with 218 species (Mr. Weng, 1996), fish with 18 species such as Tilapia, Goby, mudskipper, etc. (Mr. Wang, 2000) and bird with around 200 species. Among these biological resources, the migratory bird was with the largest ratio, around 75%, which the endangered birds were Platalea minor, Ciconia ciconia and Tringa guttifer. There were around 300 Platalea minors coming for hibernating every year. The main environments of Sihcao Wildlife Reserve are including fish farm, salt pan, waterway and mangrove forest, sustaining the natural and artificial wetlands coexisting, therefore, is the purpose for providing the wild animals a stable habitat (Source: Forestry Bureau, Taijiang National Park, Wang Jianping, Department of Life Sciences, National Cheng Kung University).

By Environmental Impact Evaluation Act, MOEAIDB has to conduct monitoring of Tainan Technology Industrial Park and its neighboring region every year, for avoiding the

33

activities of the industrial park to imperil the ecological of Sihcao Wildlife Reserve. And the monitoring items and methods were under the environmental monitoring methods announced by the Environmental Analysis Laboratory EPA, Executive Yuan. This report compiled the ecological data for territory and marine shown as below by referring the 2014 environmental monitoring data of Tainan Technology Industrial Park;

The 2014 biological investigation in Tainan Technology Industrial Park

Type Item Results

Land

Terrestrial

Flora

Total were 83 families, equal to 235 genera, or 308 species. Among them were 6 species of pteridophyte, 5 species of gymnosperm, 219 species of dicotyledons, 78 species of monocots, 4 species of endemic plants, 167 species of native plants, 51 species of Naturalized plants and 86 species of Cultivated plants.

Birds

Total were 35 families, equal to 109 species, around 199,511 birds. The endangered birds were 12 species totally. The most was Whiskered Tern, the secondary was Kentish Plover.

Mammals

Total were 3 orders, equal to 3 families, 5 species, around 244 mammals, including 2 kinds of endemics species (Mus Musculus & Rattus losea), without endemic subspecies and endangered species.

Amphibians Total were 3 families, equal to 4 species, around 199,511 amphibians, without endemic species and endangered species.

Reptiles

Total were 5 families, equal to 7 species, around 199,511 reptiles, including 1 endemics specie (Stejneger's Grass Lizard) and 1 endangered specie (Cobra).

Butterflies Total were 5 families, equal to 7 subfamilies, 26 species, around 1,916 butterflies, without endemic subspecies and endangered species.

Marine

Phytoplankton Total were 104 species of phytoplanktons. The relative dominance was between 0.13~0.33, and the degree of homogeneity was between 0.48~0.63.

Zooplankton Total were 46 species of zooplanktons. The relative dominance was between 0.24~0.65, and the degree of homogeneity was between 0.27~0.57.

Benthos

(1) Subtidal Zone: Total were 90 species of benthos. The relative dominance was between 0.12~0.93, and the degree of homogeneity was between 0.07~0.66. (2)Intertidal Zone: Total were 41 species of benthos. The diversity of species was between 0.93~1.45.

Larval Fish

Total were 6 families, around 12 larval fish. The species, abundance and amount of roe to larval fish were in the region over the year.

34

The square measure of our company in Tainan Technology Industrial Park is 0.013 square kilometers, which contains the operating forms with office and factory for manufacturing mattresses. With the electricity and diesel as the primary powering energy of manufacturing, our manufacturing process includes the manufacturing and assembling of spring, the tailoring and machine sewing of fabric and stitching the mattress up, without producing wastewater and wasteland. The only waste is the waste air discharged by the transportation that is the minimum pollutant to the environment. According to the biological investigation, the diversity in the region is in the situation without damaging or deteriorating, therefore, there is no need to provide responding strategies.

10.5 Emissions

About the GHGs emission, our company never conducted the inventory and verification, due to the industry of ours is not in the scope that Taiwan EPA mandates to register the GHGs emission. The operations our company involved are offices, direct stores and factories, so the main greenhouse gas emissions are including transportation (direct greenhouse gas emission) and electricity consumption (energy indirect greenhouse gas emission), and the types of the gas are CO2, CH4 and N2O. Here is the 2014 greenhouse gas emission of our company, which was evaluated by following the consumption of diesel and electricity in 2014 and the emission factors from environmental protection administration executive yuan. R.O.C. (Taiwan).

The evaluation of greenhouse gas emission in 2014

Scope Type Consumption Emission Factor Emission

（CO2e）

Scope 1 Diesel 2.322

Mega Joule

74,100

kgCO2/TJ

172,060

Kg CO2e

Scope 2 Electricity 250,000

1kWh 0.612 kg/1kWh

153,000

Kg CO2e

According to the evaluation above, the greenhouse gas emission of our company in 2014 was 325,060 Kg CO2e. The calculation for the intensity ratio of greenhouse gas emission was 11.08 Kg CO2e/mattress, if the total amount of 29,350 mattresses is used as the denominator for the intensity ratio calculating. The operations our company runs were without any greenhouse gas emission reduction program as well as discharging of ozone depleting substance, NOX, SOX, POP, VOC, HAP and PM.

10.6 Effluents and Waste

The manufacturing process of our company didn’t produce waste water, the water using is all for domestic water only. The consumption of water using in 2014 was around 1,250 cubic meters, the storage of rain was around 250 cubic meters, and the disposal of all the domestic wastewater (sewage) was centered to the sewage treatment plants

35

of Tainan Technology Industrial Park for disposing, which the treatment procedures were including the primary treatment (entrance water pumping station, coarse screen, aerated grit and degreasing chamber and PH adjustment), secondary treatment (biological sewage treatment), tertiary treatment (rapid mixing tank, flocculation basin, tertiary sedimentation tank and sand filter) and sludge treatment (concentrated tank and dewatering plant).

In the disposal of waste, the industry of our company is not in the scope that was required to conduct disposing the business waste by EPA, so what the only need is the disposal of the general waste without containing hazardous. Our company conducts the recycling of steel, paper and plastic by directly transporting to recycling facilities, general waste, otherwise, was transported to the sanitary landfill site by garbage truck. The standard of waste classification is following the “Resources garbage classification” announced by Environmental Protection Bureau of Tainan City Government. The recycling stuffs in 2014 were around 20,000 kg, the general wastes carried by garbage trucks to the landfill were around 5,000 kg. There were no leakages happened to the fuel, chemistry substances and waste over the years.

10.7 Products and Services

In 2014, our company continued manufacturing the Taiwan Eco-label mattresses which the hazardous substances controlling were compliance with the requirements of its criteria, including;

1. Textile shall not contain organochlorine pesticides, migratable fluorescent substances, free formaldehyde more than 20 ppm and coloring without azo.

2. The textile shall be with the criteria relating to the heavy metal and PH, as below;

The criteria relating to the heavy metal and PH for the mattress of Taiwan Eco-label

Heavy Metal & pH Limit（ppm）

Arsenic

Lead

Cadmium

Chromium

Chromium（6+）

Cobalt

Copper

Nickel

Mercury

Zinc

pH

≦0.2 ppm

≦0.8 ppm

≦0.1 ppm

≦2 ppm

Not Detected

≦4 ppm

≦25 ppm

≦4 ppm

≦0.02 ppm

≦50 ppm

4.0 ~ 7.5

36

3.The latex foam used in the mattress as cushioning material shall not contain chlorophenols, butadiene, nitrosamines and carbon disulfide.

4.The foam plastic used in the mattress as cushioning material shall be the single material and without containing halogen, formaldehyde, aromatic hydrocarbons, phthalates, organic tin, cadmium, lead, hexavalent chromium and mercury compounds.

5. The VOC of formaldehyde shall be less than 0.1mg /m3.

6. The spring and wire used in the mattress shall not be electroplated and coated with pitch.

The hazardous substances controlling mentioned above were tested and certified to provide a compliance testing report by a laboratory licensed by EPA, for assuring the mattresses manufactured by our company possess the low contaminating characteristic. The mattresses and package were without containing the applying of recycling materials. With the target of getting the certificate of international eco-label, our company expects to go further green design in the future.

10.8 Compliance

Our company never gets punished by fine or any other kind of penalty. We will continue following the nation environmental regulations to avoid causing significant contamination.

10.9 Transport

The transportations in our company were the transiting of products, raw materials and employees. Transportation vehicles could cause the environmental pollution by the exhaust gas, but the use of the transportation vehicles was not controlled by our company, including the transportation company and the consumption of the fuel of employees’ vehicles, so this part of information could not be evaluated.

On the measures of lowering the contamination of transportations, our company was in addition to purchase the vehicles complied with the national emission standards, we also assure the exhaust gas was compliance with the national environmental regulations through regular maintenance and discharging checking.

10.10 Overall

The environmental contaminations caused by our operations may involve electricity consumption (indirect pollutant from thermal power generation) and exhaust gas from transportation vehicles, with no hazardous waste produced, so the expenditure on environment protection every year primarily is the fee for maintenance of transportation vehicles (around 400,000 NTS). In the future, our company is going to develop the solar powering system for lowering the indirect pollutant from thermal power generation.

10.11 Supplier Environmental Assessment

Due to the property of our company belongs to small and medium enterprise, which means the operating scale is small, and we couldn’t possess the advantageous position to the management of suppliers. Therefore, our company still has no solution to force

37

the suppliers conducting environment assessment. Currently, the ratio that uses the environment standard to sieve out the new suppliers is 0%.

10.12 Environmental Grievance Mechanisms

The amount of complaint in 2014 on environment impact through the environmental grievance mechanism is zero.

38

11. Social: Labor Practices and Decent Work

11.1 Employment

The totally new employees of 2014 our company recruited were 8, whom were 6 in male and 2 in female, the working locations of them were all in Taiwan. The number of labor turnover was 5, 4 in male and 1 in female, the age was from 20 to 35, working locations of them the same were in Taiwan.

The welfare for whole employees was based on the Labor Standards Act, Labor Insurance Act, Act of Gender Equality in Employment and Occupational Safety and Health Act, and whole employees, no matter in headquarter, factory or direct stores, possessing labor insurance, national health insurance, special leave, leave, sick leave, marriage leave, bereavement leave, maternity leave, antenatal examination leave, menstruation Leave, paternity leave, fetal stabilization leave, parental leave without pay, Pension and workplace safety.

According to the regulations, whole employees in our company, no matter male and female, possess parental leave without pay for the longest of 2 years and parental subsidy for 6 months. Until now, only one female employee used the parental leave without pay and got reinstatement for 12 months more, so the ratio for using parental leave without pay and getting reinstatement was 100%.

11.2 Labor/Management Relations

Our company will notice employees and its representatives four weeks in advance before we implement any measures which could significantly affect the right of employees and largely change the operations of company, for efficiently communicating with employees and other units, and lowering the impact of employees on operating changing.

11.3 Occupational Health and Safety

The Occupational Health and Safety Committee in our company is primarily composed of groups at working place, for the assistance of supervising, collecting comments of feedback and providing advice. The proportion of workers’ representatives in the committee accounted for whole employees was 10%.

Every position in our company were without attributions on high risk or high specific disease occurring. Since there is no union existing in the employees, our company does not sign any agreement with unions about employees’ health and safety. The employees’ health and safety is conducted by following the Occupational Safety and Health Act.

For the future, we are busing on regrouping our employees for brainstorm and decision on different issues, currently is including product quality controlling, selling and operating idea involving the issues of occupational health and safety. All these will make our employees input effort more and take responsibility more on the operation of company, as well as protect the rights and interests themselves.

39

The 2014 Statistics of Employment Injuries shown as table below;

The Statistics of Employment Injuries in 2014

City Gender Injury Ratio

（IR）

Occupational Disease

Ratio （ODR）

Lost Day Ratio（LDR）

Absence Rate

（AR）

Die at Employees’

Post

Taipei Male 0％ 0％ 0％ 0％ 0

Female 0％ 0％ 0％ 0％ 0

New

Taipei

Male 0％ 0％ 0％ 0％ 0

Female 0％ 0％ 0％ 0％ 0

Taichung Male 0％ 0％ 0％ 0％ 0

Female 0％ 0％ 0％ 0％ 0

Yunlin Male 0％ 0％ 0％ 0％ 0

Female 0％ 0％ 0％ 0％ 0

Tainan Male 0％ 0％ 0％ 0％ 0

Female 0％ 0％ 0％ 0％ 0

Kaohsiung Male 0％ 0％ 0％ 0％ 0

Female 0％ 0％ 0％ 0％ 0

All the information in the table above was come from the employees’ working record. And the working place our company is charged with was without working of independence sub-contractor, so there was no relative statistics of employment injuries.

11.4 Training and Education

In 2014, the average time for training and education taken by the employees of our company, no matter by male or female, was 36 hours. If distinction is based on the positions, the time for training and education were 30 hours for manager, 40 hours for sales, 30 hours for administrators and 35 hours for factory staffs, respectively. The courses were including;

1. Safety training: the standards for operating equipment, carrying heavy stuffs and safety relating to.

2. Selling training: the skills for selling and service.

3. Managing training: the methods for managing, communicating and efficiently exercising the capability of employees.

In addition, to the assistance of job conversion for former employees, our company didn’t propose any mechanisms or plans for it. In 2014, whole employees in our company were reviewed for their performance and career developing periodically.

40

11.5 Diversity and Equal Opportunity

The composition of management in our company was; 42.86% in male, 57.14% in female, 0% under 30-year-old, 50% between 30~50-year-old, 50% beyond 50-year-old and 0% belongs to minority. For whole employees, the composition in our company was; 47% in male, 53% in female, 12% under 30-year-old, 73% between 30~50-year-old, 15% beyond 50-year-old and 11.5% belongs to minority.

11.6 Equal Remuneration for Women and Men

The statistic to remuneration of employees in 2014, including headquarter, factory and direct stores, were shown as table below;

The statistic to Remuneration of Employees in 2014

Type Ratio

Female Male

Management 1.0 1.0

Administration 1.3 1.0

Sell 1.1 1.0

Factory 0.9 1.0

11.7 Supplier Assessment for Labor Practices

Due to the property of our company belongs to small and medium enterprise, which means the operating scale is small, and we couldn’t possess the advantageous position to the management of suppliers. Therefore, our company still has no solution to force the suppliers conducting assessment for labor practices. Currently, the ratio that uses the “Supplier Assessment for Labor Practices” to sieve out the new suppliers is 0%.

11.8 Labor Practices Grievance Mechanisms

The amount of complaint in 2014 on labor practices through the labor practices grievance mechanism is zero.

41

12. Social: Human Rights

12.1 Investment

There was no article about human right including in the company’s contracts for investment and authorization, as well as no article about conducting the review of human right. About the issue of human right, our company was following the national relative regulations; such as, Labor Standards Act, Personal Information Protection Act, Act of Gender Equality in Employment…etc., protecting the rights of employees, clients and personal. Even so, out company never conducted any training about this.

12.2 Non-discrimination, freedom of Association and Collective Bargaining, and Child Labor

In 2014, the discrimination incident happened in our company, including headquarter, factory and direct stores, was zero. Simultaneously, no situations about disobeying or endangering the freedom of association and collective bargaining had happened. Our company completely follows the national regulations, without hiring any child labors to engage dangerous working.

12.3 Forced or Compulsory Labor

Our company manages the working hours in according with Labor Standards Act to avoid overworking on employees.

The Work Site

42

The Work Site

12.4 Security Practices

There is no training course about human right policy on security staffs.

12.5 Indigenous Rights

In 2014, the total number of incidents of violations involving rights of indigenous peoples was zero.

12.6 Assessment

Our company, including headquarter, factory and direct stores, didn’t conduct reviewing and impact assessing to human right.

12.7 Supplier Human Rights Assessment

Due to the property of our company belongs to small and medium enterprise, which means the operating scale is small, and we couldn’t possess the advantageous position to the management of suppliers. Therefore, our company still has no solution to force the suppliers conducting assessment for human rights. Currently, the ratio that uses the “Supplier Human Rights Assessment” to sieve out the new suppliers is 0%.

12.8 Human Rights Grievance Mechanisms

The amount of complaint in 2014 on human right through human rights grievance mechanisms is zero.

43

13. Social: Society

13.1 Local Communities

The local community engagement, impact assessments, and development programs which have been conducted among all of our company’s operation locations, including headquarter, factory and direct stores, the percentage was 0%.

The headquarter and factory of our company, which are located at Tainan Technology Industrial Park, were using the electricity power and diesel as the primary power for manufacturing without producing the wastewater and wasteland, merely the transportation vehicles discharge waste air that is the less contaminant to the environment. According to the 2014 environmental monitoring data of Tainan Technology Industrial Park, the diversity in the region is in the situation without damaging or deteriorating.

In addition, the direct stores owned by our company throughout Taiwan only carry out the mattresses selling, without any activities causing negative impact to environment and social.

13.2 Anti-corruption

Our company had have conducted the risk assessment of corruption to the headquarter and direct stores throughout Taiwan, and the result showed the significant risk to the corruption including the bribing to the potential customer, receive the bribery and private selling of company’s products by staff price.

On anti-corruption, our company didn’t yet conduct relevance education or training to the executives and business partners. To the 32 employees whom could direct contact with customers or suppliers which the number accounted for 35% throughout Taiwan, our company has had progressed the communication and education training of anti-corruption.

Our company had once ferreted out one corruption case – the logistic driver tried to purchase products by staff price and used the advantageous position on price to resell the products to other customers. This logistic driver had been fired after ferreting out. There was no other corruption case happened, but this one. During the 2014, no corruption case was ferreted out.

13.3 Public Policy

No politicians our company had donated toward.

13.4 Anti-competitive Behavior

In 2014, our company didn’t involve in any lawsuits over anti-competitive behaviors; such as violated the anti-trust law.

13.5 Compliance

Our company had never been punished by significant fine or any kind of punishment.

44

13.6 Supplier Assessment for Impacts on Society

Due to the property of our company belongs to small and medium enterprise, which means the operating scale is small, and we couldn’t possess the advantageous position to the management of suppliers. Therefore, our company still has no solution to force the suppliers conducting assessment for impacts on society. Currently, the ratio that uses the “Supplier Assessment for Impacts on Society” to sieve out the new suppliers is 0%.

13.7 Grievance Mechanisms for Impacts on Society

The amount of complaint in 2014 on social impact through grievance mechanisms is zero.

45

14. Product Responsibility

14.1 Customer Health and Safety

For promotion of health and safety, there were four mattresses which were manufactured by our company conducted assessment of impact, and getting certificate of Taiwan eco-label, accounted for 18 % of whole products. In 2014, our company didn’t violate any regulations on product, service, health and safety.

Our company will continue developing the green technologies for mattresses and strengthening the controlling of raw material from suppliers and management of manufacturing, for assuring the products could provide the customers health sleeping quality. In the future, we are going to use the international voluntary eco-label application as target to promote the product’s environmental performance and protect the health and safety of customers.

14.2 Product and Service Labeling

Any commodities selling in the domestic of Taiwan should be labelled following the Commodity Labelling Act, and all of the mattresses manufactured by our company have been labelled following the requirements of the regulation, the labelling information including;

(1) Product name.

(2) The name of manufacturer, phone, address, country of origin.

(3) Content:

(3-1) Ingredient or material.

(3-2) Net weight, volume, quantity or measurement.

(4) Manufacturing date – with timeliness should note expiration date or effective period.

(5)The others following the authority’s regulations to label.

Except the labelling information above, the product information relating to the impact of environment and society is still including;

(1) The substances contained in the product that could cause the impact of environment and society.

(2) Safety using to product.

(3) The end-of-life disposal of product and its impact of environment and society.

Until now, our company never violated any regulations about product and service labeling, and our company, in addition, didn’t proceed any customer satisfaction questionnaire in 2014, either.

14.3 Marketing Communications

Our mattresses never been prohibited selling, neither did be queried by stakeholder or with controversial. The selling and promotion of product, including advertising and

46

sponsorship, never disobeyed any regulations.

14.4 Customer Privacy

Our company never been complained over violating customer privacy.

14.5 Compliance

Our company never violated any regulations due to the products and service. To correspond to the regulations, the deputy of director of plant division was in charge of supervising, in which demands every accountability person to indeed reach the requirements of regulations, for avoiding the violation of regulations.

Documents

Catalog - tehtai.com.t Bed Company CSR.pdf · prop The mor mor prov has cons mat anding the ormance o impact to t p the compe organizat label app 119, focusi ... nce or sust n quality