2013 Corporate Responsibility Report

Table of Contents About this Report 03 Acer Overview 11 Corporate Responsibility 19 Policies and Strategies Message from the Honorary 04 History and Development 12 Chairman Corporate Responsibility Governance 22 Brand Values and Introduction 14 Message from the Chairman 05 Risk Management 22 Market Recognition 14 Message from the Corporate 06 Stakeholder Engagement 23 Marketing Communications 15 President & CEO Acer Corporate Social 26 Corporate Governance 15 2013 Goals and Achievements 08 Responsibility Forum Legal Compliance 18 2014 Goals and Commitments 09 Major Initiatives and Participation 29 Environmental and 31 Responsible Supply Chain 47 Employee Welfare and 55 Energy Management Advancement Supplier Social and Environmental 48 Incorporating Environmental 32 Staff Structure 56 Management Structures Considerations into Product Design Competitive Compensation Packages 58 On-site Check 50 Product Innovations 37 Employee Relations 59 Improving Supplier Capabilities 53 Responding to Energy and 39 Continuous Learning and Growth 61 Climate Change Issues Responsible Sourcing of Minerals 54 Health and Safety in the 63 Our Operations and the Environment 43 Work Environment Standards of Business Conduct 65 Customer Service 66 Community Involvement 72 Independent Assurance 82 Report Acer Group Service Model 67 Education 73 GRI G4 Index 84 Customer Satisfaction Survey 68 Acer Volunteers 76 Protection of Customer Privacy 69 Environmental Conservation 77 Innovative, User-Friendly Products 70 Charity 78 Customer Participation in 71 Social Responsibility Projects 3 About this Report Acer began issuing its environmental reports in Issue Date and Frequency 2005 and corporate responsibility (CR) reports on This report was issued in July 2014 and discloses a regular basis each year in 2008, disclosing the Company’s performance on all key issues of information and future plans on the three aspects sustainable development in calendar year 2013 of corporate governance, environment, and society. (1 January 2013 to 31 December 2013). Acer The reports aim to give stakeholders in all sectors continues to issue CSR reports each year; the an understanding of Acer’s determination to previous report was issued in August 2013. carry out sustainable development and social Standards and Guidelines responsibility, and our performance in carrying out that determination. To download or access The contents and framework of this report were past Acer CR Reports and for the latest sustainable compiled in accordance with the GRI G4 guideline development information, please visit Acer that was announced in 2013 by the Global Group’s website at http://www.acer-group.com/ Report Initiative (GRI), and its final page contains public/Sustainability/index.htm. its framework content and a cross-reference table of GRI indicators. Boundaries and Scope External Assurance This report establishes organizational boundaries in accordance with the principles of consolidated The report was externally assured in accordance financial reporting. The scope of the Report with GRI G4 Core option and AA1000 AS (2008) encompasses Group subsidiaries, Acer Foundation Type 1 High level by SGS Taiwan Ltd. The independent and Gateway Foundation but not reinvested assurance statement can be found at the end of enterprises, and additionally includes supply chain, this report. customer, and community information, however some performance information is not included. Any adjustment of the data will be separately explained in the text of the Report. The Chinese and English versions of the Report were released Contact Us simultaneously on the Acer Group’s Sustainable Acer website. For more detailed financial If you have any questions or suggestions information, please refer to “Investor Relations” on regarding this report or any sustainability the Acer Group website at http://www.acer-group. issues related to Acer, please contact the Acer com/public/Investor_Relations/overview.htm Corporate Sustainability Office at: [email protected]. 4 Acer Corporate Responsibility Report 2013 Message from the Honorary Chairman 1 ── Stan Shih Since 1992 sustainable development has been Secondly, we have reengineered the organization a global focal point and after 21 years the culture by engraining the benevolent thinking of challenges involved continue to increase. As a WangDao ideology to combine the qualities of result of blind-spots inherent in management East and West, innovation and discipline and practices, insufficient value is being created, professionalism and entrepreneurship. interests are not being balanced and there is a disparity between the needs of the organization Acer’s vision and basic direction for the future and the ecology. With these characteristics is Build Your Own Cloud (BYOC ™ ), a self-built organizations from all over the world cannot be cloud that will enable its customers to seamlessly altruistic and sustainable in the long-term. integrate their PCs and mobile devices to access their data – anytime, anywhere. The vision is also Since establishing Acer in 1976, I have worked about transforming from a hardware company every day with CSR in mind and believe that the into a “hardware + software + services” player “hidden” values of intangible/indirect/future are as we prepare to embrace new opportunities in the cornerstone of business continuity. After leading the era of cloud technology. With the growing two transformations in 1992 and 2000 I once trend of the “Internet of Things,” BYOC is Acer’s again stepped in to lead a new transformation in strategy to win the future; therefore we will November 2013. Without change, Acer’s business continue to build up our core competencies could not be sustained and therefore had to face under this vision and innovate. the reality of the situation, develop a winning formula for change and use a more unassuming Lastly I’d like to emphasize that while WangDao and macro vision to reform the entire company. ideology is driving our transformation, Acer will also continue to deliver its brand values (Curious, Firstly I would like to talk about the foundation of Progressive, Human) to its customers. Also another Acer’s transformation, namely the benevolent important area driving change from within Acer thinking of the WangDao ideology and its three core is communication. Whatever country we operate beliefs: Sustainable Development, Value Creation, in, we must become a local corporate citizen and and Balance of Interests. For a business to grow it create value for all stakeholders, therefore close must follow the proper way and comply with the communications and partnerships with local ways of the Universe, Earth and Man. A responsible stakeholders are key elements in the pursuit of business must create value by considering the coexistence and prosperity. Based on this ideology, Hexa-Aspect Values including Tangible/Intangible, I believe the transformation to a New New Acer Direct/Indirect, and Present/Future so that it will may be achieved in the near future. 1 not become opportunistic and short-sighted. Value Stan Shih stepped down from Acer creation is a joint effort of all stakeholders and chairmanship on June 18, 2014 and remains with the company as therefore a business must be committed to the Honorary Chairman. balance of interests for sustained cooperation. 5 Message from the Chairman ── George Huang I have come a long way with Acer as one of a huge potential for development; with 13 the founding members through its highs and years of experience we have already established lows. Faced with one of its toughest challenges a profitable model and will actively seize new yet, I returned to Acer on November 5, 2013 opportunities that arise in the future to lead to step into the front line and to contribute Acer back to the success of its hey days! toward its turnaround. During this important time, we have and will With the approval by the Board of Directors continue to work on our corporate responsibilities. we set up the Transformation Committee In strengthening our corporate governance, we and I became its Executive Secretary tasked established a new Audit Committee chaired by the with gathering the valuable inputs of our independent director Dr. F.C. Tseng to replace the colleagues on transforming Acer. We held former Financial Statement and Internal Control intensive talks with department leaders at Review Committee. Meanwhile, our Compensation the Taiwan headquarters and with around 40 Committee is chaired by the independent director executives globally, eventually reaching the Dr. Ji-Ren Lee, and the Assets Management and consensus for the future development and Handling Committee is being chaired by Stan Shih. vision of the “New New Acer.” This corporate responsibility report outlines the On June 18, 2014, entrusted by Stan Shih and efforts we made in 2013 towards governance, the Board of Directors, I officially stepped into environment, society, and communication. Acer the role of Acer Chairman and assumed the is changing its vision, strategy, communication, related duties. It’s a heavy responsibility to and consensus in order to remain a sustainable shoulder and I will do my utmost along with our company for the future. CEO, Jason Chen, and the management team to face the challenges. Acer needs to build on the foundation of its existing PC, tablet, smartphone and other hardware to strengthen product competitiveness, and at the same time, embrace new opportunities in the era of the cloud. Acer BYOC ™ (Build Your Own Cloud) has 6 Acer Corporate Responsibility Report 2013 Message from the Corporate President & CEO ── Jason Chen As an ICT industry pioneer in Taiwan and a global forum, lectures, panels and workshops were brand, Acer has a responsibility to develop and conducted to discuss how to expand business promote green products for the benefit of the opportunities in low-carbon and green product economy and become a model for the industry. innovation. Also discussed was the topic of combining CSR and financial information into an In 2008 Acer established its Corporate Sustainability integrated report and its long-term investment Office and thereafter began to focus more on CSR value for businesses as well as the need to gain related issues.

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