Case study: How Compeq creates economic value for its stakeholders
Headquartered in Luzhu Plant, Taoyuan, Taiwan, Compeq is a company that manufactures printed circuit boards (PCBs), the key component for containing all electronic components and interconnecting the signals of electronics. Generating sustainable value for its employees and all other stakeholders, is a top priority for Compeq. Tweet This!
This case study is based on the 2020 Sustainability Report by Compeq, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Compeq seeks, through its operations and technological capacity, to create long-term economic value for a wide range of stakeholders. In order to create economic value for its stakeholders Compeq took action to:
- create economic value for employees
- create economic value for the government
- create economic value for shareholders
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With this case study you will see:
- Which are the most important impacts (material issues) Compeq has identified;
- How Compeq proceeded with stakeholder engagement, and
- What actions were taken by Compeq to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report Compeq identified a range of material issues, such as employment, environmental compliance, labour relations, emissions, customer privacy. Among these, creating economic value for its stakeholders stands out as a key material issue for Compeq.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Compeq engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Town Hall Meeting · Communication hotline, suggestion box, and email · Internal/External Website · MEMO and weekly assembly · Corporate Social Responsibility Questionnaire |
| Union
| · Union Directors and Supervisors · General Meeting of Labour Representatives · Labour-Management Meeting · Corporate Social Responsibility Questionnaire |
| Customers
| · Email · Corporate Website · Customer Satisfaction Survey · Customer Audit · Corporate Social Responsibility Questionnaire |
| Suppliers/ Contractors
| · Email · Monthly supplier/contractor review meeting · Annual self-assessment questionnaire, audit, and rating of suppliers/contractors · Corporate Social Responsibility Questionnaire |
| Investors (Shareholders)
| General shareholders: · Shareholders Meeting · Annual Report · Information Publication · Website · Corporate Social Responsibility Questionnaire Institutional investors: · Company Visit · Seminar · Corporate Social Responsibility Questionnaire |
| Government authorities | · Correspondence of official documents · On-site interviews and inspections by competent authorities · Corporate Social Responsibility Questionnaire |
| NGOs | · Email · Corporate Social Responsibility Questionnaire |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Compeq engaged with its stakeholders through online surveys or paper questionnaires, and collected a total of 422 valid responses (a response rate of about 54%).
What actions were taken by Compeq to create economic value for its stakeholders?
In its 2020 Sustainability Report Compeq reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, Compeq paid NT$9.58 billion for employee benefits (including salary/labour insurance and NHI/pension/others).
- Creating economic value for the government
- In 2020, Compeq paid NT$1.59 billion in income tax.
- Creating economic value for shareholders
- In 2020, Compeq’s earnings per share were NT$3.91, with a cash dividend of NT$1.5.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Compeq, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.compeq.com.tw/doc/ent_csr/2fb2f6dc-ddf6-11eb-89fb-005056a9caf8/20220624_152837_en.pdf
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