We firmly believe that while seeking business growth and creating business values, we can also build a good structure for corporate governance and establish an effective system for internal control to improve the quality of business management and increase our competitiveness. The directors of Chroma perform their functions objectively and independently, guided by the long-term interests of Chroma and all shareholders. We continue to adhere to the principles of corporate governance. Members of the Board of Directors are elected by all shareholders through a voting process in accordance with the Articles of Incorporation and legal requirements. Functional committees have been established under the Board of Directors. We seek to strengthen the functions of the Board of Directors, safeguard the rights and interests of shareholders and stakeholders, and increase information transparency. We are actively implementing our corporate governance policies and fulfilling our social commitments. Over the past few years, the company has stipulated and announced several internal regulations such as the “Principles on CSR Best Practices,” “Ethical Code of Conduct,” "Ethical Management Best Practices," and "Rules on Ethical Management Best Practices,” which continue to reinforce our corporate governance.
- Meaning for Chroma
- Concrete Plans for 2018
- Goals for 2018
- Resources Invested
- Evaluation Mechanism
- Concrete Performance in 2018
- 2019 or Medium-term to Long-term Goals
Meaning for Chroma
- Business operations are based on maintaining stable growth of profits to meet the expectations of investors and stakeholders. We can achieve stable business performance in the long term only through pursuit of overall operational benefits and market development.
- We are able to enhance the stability and transparency of business operations with a well-established mechanism for corporate governance.
Concrete Plans for 2018
Goals for 2018
- Goals of 2018
- We hope to rank within the top 20% of publicly traded companies for good corporate governance.
- Financial goals
- Positive growth of annual revenue.
- Continuous annual growth of net profit after tax.
- Our website lists the contact persons for investor relations
- We continue to publish the CSR reports every year
Concrete Performance in 2018
- In 2018, our ranking in the corporate governance evaluation of publicly traded companies was within the top 21%-35%.
- Our earnings per share (EPS) reached NT$6.22.
2019 or Medium-term to Long-term Goals
- As one of the top 20% publicly traded companies in the ranking of corporate governance we continue to enhance this particular attribute.
- We understand local and international trends in corporate governance and take part in related evaluation and certification to meet international standards and remain focused on sustainable development.
- Strengthening the Functions of the Board of Directors
- Financial Performance
- Remuneration Committee
- Ethical Management
- Internal Risk Control
According to our regulations and the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”, the election of directors shall take into account the overall setup of the Board. At Chroma, the factors to be considered in the composition of the Board of Directors include: the ability to exercise operational judgment and management, accounting and financial analysis experience, the ability to manage crises, industrial knowledge, knowledge of the global market, leadership and decision-making ability, etc. In addition, the Board of Directors has arranged that directors receive continuing external education in accordance with the “Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies.”
The Board of Directors reviews business performance and holds discussion
on important strategies and issues, including economic, environmental and social impact, risks and opportunities, etc. Important resolutions adopted by the Board of Directors are published on the Market Observation Post System of the TWSE. To maintain fairness, honesty and transparency, our information is open to local and foreign investors for inquiry. Such information includes the Articles of Incorporation, rules of procedure of the Board of Directors, the remuneration of directors, status of operations and the status of implementation of the rule that prevents stakeholders from voting on proposals in which they have interests.
Looking forward to 2019, although the protectionism of the US has boosted the US market, the trade war between the United States and
China has also created uncertainties for future global economic growth. In response to the trade downturn and rapid changes in the economic environment, the company has decided to take the following measures. We expect to overcome difficulties and generate more operating revenue and profit for our shareholders.
In accordance with the “Securities and Exchange Act”, we established the Remuneration Committee, which held two meetings in 2017. The Remuneration Committee consists of three independent directors, each with a 3-year term. The average attendance rate of the members of the Remuneration Committee was 100%. The Remuneration Committee conducts assessment on the remuneration policies and systems and business performance vis-à- vis the directors and managers. In an objective and professional manner, the Committee makes proposals regarding the rate of appropriation for the distribution of dividends. The Committee also gives suggestions on the remuneration of managers and our remuneration policies, and offers advice based on the environment of industrial competition and the short- term, mediumterm and long-term business goals. In addition, we regularly take part in salary surveys carried out in the industry or by consulting firms to examine whether our salary and welfare measures are meeting market standards and to design a welfare system with incentives.
Please refer to our electronic annual reports for the details of the reports on proposals in shareholders’ meetings for the distribution of remuneration of employees , directors and supervisors.
To sustain business operations, the company needs to evaluate theimportance of corporate ethics and the implementation of social responsibility, to maintain the trust and respect of the consumer, partners and the public. Ethical business transactions have long been an important company business concept. We will continue all our business activities with integrity, and absolutely free of any kind of corruption or fraud.
To align employees and suppliers with our business standards and actively continue an ethical management policy, we have established "Ethical Management Best Practices," "Rules on Ethical Management Best Practices,” "Ethical Code of Conduct," "Regulation of Employee Rewards
and Discipline" and "Vendor Management Regulations." This will help our employees, managers and members of the board of directors to be more
aware of the ethical standards to which their duties must comply and also help them to continue to hold themselves to the highest of standards.
Should there be any suspicious behavior or violation of ethical code, by internal or external company personnel, or Chroma representative, a report can be made using the case reporting system. This includes reporting by Email (firstname.lastname@example.org). This system has been set up to encourage internal or external company personnel to contact the dedicated unit using the proper channels. The identity of any person making such a report will be kept confidential.
In addition to insisting that our employees maintain ethical and professional conduct, we have established rules that prevent possible conflict of interest between our suppliers and related parties. We stipulate several procedures for the prevention of unethical conduct in the “Rules on Ethical Management Best Practices.” Furthermore, our vendors are required to sign the “Integrity Commitment Form for Suppliers” document which clearly prohibits inappropriate or dishonest conduct in commercial transactions. Any dishonest conduct will result in a cancellation or termination of the contract.
In addition, various procedures are in place, detailed in the “Rules on Ethical Management Best Practices”, that prevent unethical conduct. Furthermore, our vendors are required to sign the “Integrity Commitment
Form for Suppliers,” which clearly prohibits any inappropriate or dishonest
conduct in the course of commercial transactions. The managerial officers of the company strictly abide by the principles of integrity. All departmental supervisors are responsible for the promotion of anti-corruption measures in their sections. This ensures that all our employees have the same ideas about ethical conduct. These promotions have been effective and there was no illegal conduct reported in 2018. All our employees abide by these ethical regulations, and this is clear demonstration of the successful implementation of the corporate integrity management philosophy.
Chroma is committed to steady and solid business strategies and the idea of sustainable management. We regularly review overall risk and stipulate comprehensive measures in response to any potential risks the company may encounter in the future. Potential risks include those to business operations, finance, the environment and information security. Our risk management mechanism allows us to anticipate and control potential risks that might have an effect on operations and profits, in order to reduce negative impact and losses and significantly lower the operational risk, damage and the impact on the company. If a risk is encountered, we can react quickly and develop strategies and emergency measures to protect the safety, rights and interests of our stakeholders.
Employee Diversity and Equal Opportunities
Professional talent is our most valuable company asset. Our employees are our partners. Clear communication in both directions ensures a friendly and enduring relationship in an harmonious working environment that is human-oriented. The company fully respects the dignity of every employee, remains open-minded, and is willing to hear all concerns, differences of opinion, and suggestions. We do our best to provide our employees with good benefits to maintain business ethics and fulfill our social responsibility, making announcement of our efforts.
Chroma regards a working environment that is free from discrimination and that has a high cultural level, as an important principle. Chroma recruitment, reward, promotion, or training is done irrespective of race, religion, faction, sexual orientation, ethnicity, skin color, disability, pregnancy, political affiliation, association membership or marriage. We provide a comprehensive career development platform that is healthy both physically and mentally, and offers excellent benefits. Our employees can be happy in their work and reach their full potential of
capabilities, make the best contribution to our customers and other issues in society.
In 2018, the total number of company employees was 1,715. Chroma is a technology-intensive company that focuses on R&D and there are more male than female employees. All the senior managers are Taiwan nationals. There are 491 people in R&D, accounting for 28.63%. This
ensures that our innovation capacity and R&D operations are highly competitive.
Employees are the foundation for company development. Employees are our most important partners. We strive to offer competitive remuneration and benefits and career development plans to attract and retain employees with excellent skills. We have also established a fair and objective performance and incentive mechanism to ensure equal legal rights for all employees.
In addition to basic benefits, our employees receive salaries and working conditions that are higher than the minimum legal requirement and above the industrial average. We adjust the pay each year in accordance with the results of a salary survey in the market to maintain company competitiveness. We appreciate the hard work and contributions of our employees and are committed to the provision of top-quality working and leisure environments where they can enjoy their work as well as leisure.
We adhere strictly to the principle of gender equality, and we do not treat employees differently because of their sex. Our employees are paid in accordance with the “Table of Pay Grades”. Overall remuneration is based upon the position, job grade, and the education/experience and seniority of an employee. However, as the majority of our employees are men whose average level of education/experience and seniority is higher than that of their female colleagues, their average positions and job grades are also higher than those of female employees doing the same type of job. As a result, there are pay differences between male and female employees.
Environment and Regulations for Infant Care
We encourage our female employees to breastfeed. There are lactation rooms in our building that have refrigerators for the storage of breast milk and stringent access control. This exclusive space for new mothers is comfortable, private and safe. Unpaid parental leave may be granted to any employee who has been working for six months or more, for the care of a child or children under the age of three (3). This arrangement is made in accordance with the “Act of Gender Equality in Employment” and “Regulations for Implementing Unpaid Parental Leave for Raising Children”. The period of leave may not be more than two (2) years. After the end of an unpaid parental leave period, arrangements will be made for the employee to return to their previous unit and position. We help our employees strike an appropriate balance between physical/mental health, work and family. We make our work environment as warm and as harmonious as possible within the extent permitted by the laws and regulations.
New Employee Statistics
Reason for Leaving
Statistics of Employees Turnover
Statistics of New Employment and Turnover Rates
Structure of Education and Training
Employees are the foundation of company development and the most important component for the achievement of sustainable growth and competitiveness. We place great importance on training and the balanced educational development of our employees. We continue to enhance employee quality and professionalism by adhering to the idea of “learning and growing together”. We offer a variety of channels for employee training and enlist the services of excellent trainers and teachers to ensure sufficient training resources.
All divisions of the company propose training plans according to their professional need. The managers and the human resources division arrange on-the-job training courses and internal training delivered by senior employees or experts. These include courses on core competencies, management , sales, marketing, and customer service etc, for employees with different expertise and at different stages of their jobs. Each division can also arrange training courses in marketing/sales/labor safety/fire safety/technical expertise, at professional institutions depending on the job requirements of the divisions and the demand for external professional knowledge.
The various divisions will submit proposals for annual training based on organizational goals and employee development needs. The human resources division is responsible for coordination and planning. We also make arrangements for employees to attend external seminars and lectures to learn the latest trends and dynamics. This benefits our growth in that we will have enough employees with professional skills to meet development needs and achieve sustainable management.
Human Resources Management
Performance evaluation is designed to cultivate professional talent and improve employee performance. Employees who perform well are given training and development opportunities. Managers will work with employees whose performance is below expectation and help them to improve by case counseling and communication. Improvement plans are formulated, with assistance from the managers, that will enhance our overall productivity and competitiveness.
The results of the performance management evaluation system are incorporated into the promotion management and the reward/remuneration systems to ensure the evaluation of employee performance is added to human resources records. With the exception of business unit managers, or those at higher level, local employees whose three-month probationary period has ended are required to undergo performance evaluation. In 2018, 1,447 employees underwent performance evaluation, accounting for 84.37% of our employees. Of them, 90.32% underwent objective-oriented performance evaluation, and 9.68% underwent job performance evaluation.
The type and scope of programs for the enhancement of employee competency and assistance: To provide systematic training to employees in all positions and to strengthen their knowledge and management skills, we offer courses related to the competencies needed for a particular job. Employees can gain new knowledge at work and increase their individual competitiveness.
There are many forums in the Notes system where employees can discuss such matters as cafeteria meals and welfare. In 2018, there were 264 posts in the forums. 264 posts in the forums.
In 2018, no employee complaint were filed through our internal complaint channel, and there were no cases of human rights complaint received, processed or solved via external formal mechanisms.
We show concern for our employees and do our best to satisfy the reasonable demands of complainants and find the source of a problem to lower the recurrence rate. In 2018, there were no cases of human rights complaint accepted, processed or solved via internal formal mechanisms.
We are working hard to implement various measures for the protection of our employees against sexual harassment in the workplace. We have strengthened our efforts to raise awareness during training sessions for new employees. We also put up posters to raise the awareness for self-protection in the workplace. The posters contain information about the channels that can be used for complaints and examples of exual harassment. We are making every effort to create a friendly and safe environment for our employees.
The Department of Labor, Taoyuan City, dispatched personnel to conduct labor inspection on February 26, 2018 and found, through random inspection, a violation of Paragraph 2, Article 32: “The extension of working hours shall not exceed 46 hours a month.” And the performance bonus was not included in the payment for extended working hours which was a violation of Paragraph 1, Article 24: “An employer shall pay worker overtime wages using the following basis..."
An official letter was received from the Taoyuan City Government on March 26, 2018, imposing a fine of NT$ 200,000 on the company. Another official letter was received from the Taoyuan City Government on May 7, 2018, stating that the Company had wages not paid in full directly to the worker, which was a violation of the second Paragraph of Article 22 of the Labor Standards Act: “Wages shall be paid in full directly to the worker, unless otherwise prescribed by applicable statutes or administrative regulations or agreed to by both the employer and the worker.” The fine was NT$60,000. In response to the abovementioned violations, the company made an adjustment and has included the performance bonus in the payments for
extended working hours. Strict control of extended working hours is carried out in accordance with the law.
We have also established various recreational, medical and health facilities and services in the factories. These conveniences can be accessed any time and again they allow workers to concentrate on their work with their mind and body at ease. This comprehensive effort in employee care allows them to maintain a good balance between hard work and a healthy and happy family life.
We provide our employees with labor and health insurance and maternity allowance or unpaid parental leave, in accordance with the laws and regulations. An appropriate percentage of salary or wages is taken as a contribution to the pension funds (under new system) or reserve funds (under old system) for retirement. Moreover, all our employees are covered by comprehensive group insurance, and Chroma leave benefits are more favorable than those provided for in the Labor Standards Act. The benefits include one-day birthday leave and five days of paid sick leave each year. We want to make sure our employees can work and live safely and also find time to relax and rest.
Staff Canteens with Healthy Meals
Commuting and Parking Benefits
and can travel safely between work and home. This helps with a reduction of
carbon emission from cars and makes a serious contribution to energy saving and planet protection. We offer free parking for motorcycles and indoor/outdoor parking at low prices. Special parking spaces are reserved for pregnant women and the disabled.
Favorable Leave Benefits
Comprehensive Insurance Plans
Bonuses and Benefits
Staff Travel Subsidies
Family Support Subsidies
Safe and Comfortable Employee Dormitories
LOHAS Workout Center
Diverse Club Culture
Overall Employee Health Management
Warmhearted Medical Service
All existing and new employees receive annual medical examination. We work with on-site doctors in the factories, medical specialists, and professional nurses to discuss any changes needed as well as the addition of new tests or procedures. The hepatitis B/antibody test has been added and it is carried out every 18 months. This is better than stipulated in government regulations. Personnel who work in specific production lines, such as those where ionizing radiation is present, or lead, methylene bisphenyl isocyanate, or any other toxic material is used, have special health inspection checks. These examinations are done in accordance with the occupational health and safety regulations, to ensure that the employees in our factories all remain in good health. In addition to normal health care of the employees in the company, the medical service provides a "health care pack” for employees to take with them on business trips. There are gauze masks, Band-Aids, a temperature measurement card and a booklet with useful health information for the traveler. The pack is both helpful and protective. The company “Relaxed body and mind - Make Yourself Free and Easy” stress-relief camp covers a wide range of activities for employees. These activities range from the development of the body, mind and spirit to special methods for the relief of work stress. Employees who take part can improve their work efficiency and control their state of health and learn to enjoy a really healthy and happy life.
- Corporate Physical Education Course
- Survey of HRV and the PTG
- Psychological Consultation Service
- Health Lectures
- Stay Healthy
- Safety Workplace Certification
To balance the mounting pressure of work and personal life, Chroma has cooperated with “Global Views Monthly” to arrange corporate exercise courses and scientific physical fitness activities. Experts give lectures and hold seminars on the topics of enjoyable exercise, health benefits and injury protection. A regular exercise habit can strengthen the psychological approach to work. People who have an exercise habit are more likely to also have a more positive attitudetowards adversity! The absentee rate, due to ork stress, in employees whoexercise is less. All our employees have come to appreciate the value of physicalfitness and many share the fun of exercise with groups of other colleagues!
(fluctuations in the arteries)
Many modern studies show that some diseases are due to both physical and mental disorders. The symptoms of these disorders include insomnia, anxiety, irritability, inattention, upset stomach and headaches. "Pressure" and "depression" are a root cause for both physical and mental disorders. Autonomic nervous disorders can be due to long-term stress and can result in cardiovascular and cerebrovascular diseases that may include the risk of sudden death.
In 2018, the company infirmary conducted a HRV survey in Linkou, Hsinchu and the Kaohsiung plants. This involved an evaluation of cardiovascular and cerebrovascular obstruction and hardening for an assessment of employees at high risk of a stroke and those needing intervention to alleviate this risk as soon as possible. Variations in heart rate are a clear indicator of the physiological condition. Employees with physical and mental disorders can use the scientific data as a reference that will help them with prevention and treatment.
To enhance the level of importance of employee mental health for supervisors, the Center for Environmental Protection, Safety and Health has assisted in the integration of internal and external resources, and planned an individual employee assistance program based on the needs of the company through the Lifeline Association in Taoyuan City. We have arranged a "consultation service" for employees in need. The monthly half-day psychological counseling service involves professionals who help employees handle problems that affect their work performance and personal life. Consultation topics include communication between employees and supervisors, dealing with emotional problems, and conflict resolution.
In 2018, there were 60 on-site consultations, 55 were individual consultations, 4 were about management and one was an individual meeting.
The medical facility organizes lectures on medical and health care on a regular basis and there were 16 lectures with 701 participants held in 2018. The lectures were designed with different themes on physical and mental health, such as medication safety, diet control, self stress-adaptation, the prevention of allergies, health-related physical fitness, workplace communication techniques, the relief of physical and mental stress, and so on.
Cultivation of a habit of regular exercise is the first step needed to safeguard your health. The average weight of people in Taiwan is increasing by the year and the culprits are dining out and too little exercise. We organize regular “Relaxed body and mind - Make Yourself Free and Easy” weight reduction competitions to encourage employees to take part in physical training to guard their health and avoid unnecessary illness. In 2018, 54 employees participated in the event. They lost an average of 3.3 kilograms to reach a total of 164 kilograms lost.
Safe Working Environment
We continue to focus on the topic of a safe and healthy working environment that ensures the safety of our employees. Precautions are taken at the same time to prevent loss or damage to property or equipment, and avoid any adverse effects on the environment. In addition to strict control of all the operations, we pay very careful attention to the enhancement of safety awareness and responsibility in our employees
The nature of Chroma operations does not include any tasks that include a high level of risk, or which might increase the incidence rate of any specific disease. We have also established an occupational safety management system. This system is used to assess risks in the working environment and identify, eliminate, or reduce the chance of occupational accidents. We use safety performance indicators based on the P(Plan)-D(Do)-C(Check)-A(Action) framework. This h quantitative management and monitoring as resulted in substantial improvement in a significant reduction in occupational accidents. All accidents on factory grounds are investigated immediately by the Center for Environmental Protection, Safety and Health. The other factories are informed about the incident and the corrective measures to be used to avoid any recurrence in the future.
Personal protection equipment such as face masks, goggles, and anti-static shoes is provided for different tasks in special work categories. In laboratories where there is any possibility of irradiation, all staff wear monitoring armbands. These are checked every month for dosage to ensure the laboratory is only used when there is no danger to the operators.
- Meaning for Chroma
- Concrete Plans for 2018
- Goals for 2018
- Resources Invested
- Evaluation Mechanism
- Concrete Performance in 2018
- 2019 or Medium-term to Long-term Goals
Meaning for Chroma
We are dedicated to the sustainable development of the company and creation of a safe and comfortable working environment to improve the coherence of the employees. We take steps to prevent accidents and adverse effects on the health of the employees by regular safety inspections of occupational safety risks. Inspections are also done before any new equipment is put into service.
Concrete Plans for 2018
- An occupational safety and health committee was established.
- All the employees participate in environment, safety and health management courses.
- An environment, safety and health management system was established for all the employees.
Goals for 2018
Concrete Performance in 2018
2019 or Medium-term to Long-term Goals
- Continue to promote “zero cases” of occupational illness or death.
- Disaster prevention and emergency response training and exercise is organized on a regular basis, with participation by all employees as a goal.
Occupational Safety and Health Committee
Meetings of the “Occupational Safety and Health Committee” are held every quarter. The Committee has 16 members and the company nurse is one of them to offer medical insight. Six (40%) of the other members are worker representatives. The committee discusses and reviews the Occupational Safety and Health Plan as well as the training programs, work environment improvement, hazard prevention and management, internal audits, contractor management, and health promotion.
Dissemination and Training for Occupational Safety
“Safety” is our first priority and “zero occupation accidents” is the ultimate goal. Regular safety and health inspections are carried out and all employees are made aware of the need for the prevention of accidents in the factories. Employees periodically put their accident and disaster prevention awareness into practice by conducting on-site situational exercises. These include actions to be taken in the event of fire, evacuation drills, the use of fire extinguishers, escape slings, fire hoses, and CPR instructions. These are important to understand the measures and precautions that need to be taken in the event of some real disaster such as a fire. Employees and contractors sometimes have a need to use protective equipment. We conduct regular training in the use of protective clothing, gloves, masks, etc. Notices are posted near places where there are dangers that have details of all the relevant control measures and precautions that have to be taken.
We also provide training for new and existing employees, external contractors, and employees engaged in special operations.
Occupational Safety, Education and Training in 2018