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Social Responsibility

Policy Overview

The Company’s commitment to social responsibility is one of our core values. Projects and activities focus on the sustainable development of people, culture, and the environment and are supported by the active participation of all KCE employees. Working groups for specific projects have been established to maintain continuity in CSR activities with recommendations provided by Management. Therefore, our CSR projects have been largely driven by the “Volunteer Spirit” of the Company. Our Corporate Social Responsibility Working Group, which serves as a CSR project center, plans the direction of CSR, sets budgets, as well as organizes CSR projects and activities. Their duties also include following up project performances, reporting progress to Management and serving as a center to communicate with external organizations. All activities are performed in accordance with KCE’s core values to create sustainable development in society.

The Company operates its business in an ethical manner with a strong sense of social responsibility. These values are incorporated into Management’s practices as an example for the younger generation to follow and to commit to the 8 principled standards according to the Stock Exchange of Thailand, as follows:

1. Corporate Ethics

The Company includes a Code of Conduct in its employee manual. The code covers ethical and moral values that employees are required to abide by.

The Board of Directors has a policy to treat its partners in an equal, fair and honest manner, respect the right of intellectual property, promote political rights, and comply with contractual commitments to stakeholders, as follows:

The Company has developed a process of monitoring and controlling operational risks. The Operating Risk Management working group was set up to monitor and ensure effective risk control for the Company. Operational risk assessment is carried out to ensure that the Company’s operations are not unlawful or cause a negative impact on society and the environment.

2. Anti-corruption

The Company committed to the Anti-corruption policy, and undertook the dissemination of the principles and changing of attitude toward practice. On November 18, 2013, the Company signed a mutual agreement with the Private Sector Collective Action Coalition Against Corruption (CAC). On April 3, 2015, CAC certified KCE as a member. The anti-corruption rating for the Company is in the level 4.

The Company established the Anti-corruption Policy to ensure that operation management is performed honestly, efficiently and effectively. The Company encouraged the distribution of the policy and communicated with management and employees of all level in order that the policy is accounted for as a practical guideline.

3. Respect on Human Rights

The Company is dedicated and committed to upholding the United Nations Universal Declaration of Human Rights. The Board of Directors places great importance on human rights and considers this a key policy for the Company in operating its business. In this regard, respect for the dignity of every employee is the foundation of a quality and valuable business operation. The Company realizes that its success is linked to employees’ satisfaction. Therefore, the Company ensures fair treatment; equal opportunity, appropriate remuneration, appointments and transfers; a safe and environmentally friendly operating system for all employees; and training to improve productivity. This helps to raise morale and consequently increase productivity.

The Company is also committed to the Thai Labour Protection Act. B.E. 2551, Thai Labour Standard: TLS.8001 of the Department of Labour Protection and Welfare, which prohibits the hiring of forced labor, ensures fair compensation, equal treatment without discrimination, freedom of association, and the right to occupational safety, health, and environmental standards.

The Company strictly follows all laws, rules and regulations. The Company provides fair and equal opportunity for employees to file complaints or to freely express their opinions that may lead to the development of the organization and Management.

4. Fair Treatment to Labor

The Company emphasizes the equal treatment of employees.

The Company is also committed to supporting the professional advancement and self-development of all employees. We use a fair compensation and merit system to measure the performance of our employees. The Company encourages employees to participate in recreational activities. A corporate intranet system and performance evaluation system is available for employees to share their ideas and launch activities to improve the quality of life.

The Company’s policies and objectives are delivered through “continuous training” and development programs, which include specific knowledge and skill training, basic training courses, and strategic policy training to enable our employees to easily adapt themselves to the Company’s ethics. In 2015, the Human Resource & Organization Development Department arranged numerous training programs for employees throughout the year, which resulted in an increase in the total number of training hours and the number of multi-skilled employees.

  2012 2013 2014 2015 2016
Total number of training hours 23.94 23.75 30.14 74.06 73.50
% of Multi-skill operator 60.00% 64.44% 69.26% 69.45% 75.22%

In 2014, the Company was awarded the " TLS 8001-2010 and Welfare in the Year 2014" award organized by the Department of Labour Protection and Welfare; and TLS 8001-2010 Certificate Completion Level, Initiative Phase for the achievement of the requirements of Thai Corporate Social Responsibility issued by the Department of Labour Protection and Welfare, which is valid from February 8, 2013, to February 7, 2016.

In 2015, the Company was awarded the "Excellent Establishment on Labour Relations and Welfare" at the National level in the year 2015 achievement, award organized by the Department of Labour Protection and Welfare; and a Certificate, the Company is able to maintain Thai Labour Standard continuously, issued by the Department of Labour Protection and Welfare, on May 26, 2015. Additionally, the Company was certified in its supporting on the "better health in the workplace" project, by the Association for the Development of Environmental Quality.

In 2016, the Company was awarded the TLS 8001-2010 Certificate Completion Level, Initiative Phase for the achievement of the requirements of Thai Corporate Social Responsibility issued by the Department of Labour Protection and Welfare, which is valid from August 15, 2016, to August 14, 2019.

In addition, the Company was awarded the "Excellent Establishment on Labour Relations and Welfare" at the National level in the year 2016 achievement, award organized by the Department of Labour Protection and Welfare, issued date August 17, 2016.

5. Responsibility on Consumers

The Board of Directors is committed to principles and policies that maximize customer satisfaction and confidence in the quality of our products at a fair price. The Company strives to maintain the trust of customers by our high safety standards and our efforts to ensure as we care about our effect on society and the environment and avoids any action that would violate or cause customers to lose their rights.

The Company, including all of its Sales Offices worldwide, has been awarded ISO/TS 16949:2009 Edition 3 (September 23, 2016 - September 14, 2018), Certificate of Quality Management System of Technical Specification for Automatic Productive and Relevant Service Part. SGS (Thailand) Limited conducts audits twice a year, and the audit result is accredited by the IATF. The Company has been continuously audited to ensure adherence to all stipulations and strictly meets the quality standard. In 2016, there was one surveillance audit in May, and the Company was capable to maintain its status. During 2016, there were plant visits by customers such as Continental, Autoliv, Danfoss, Valeo, Schneider, BOSE, and John Deere, to follow up on compliance with the Quality standard. There were no major deviations found.

During 2016, the Company conducted Customer Satisfaction surveys in various categories, such as technical area, quality, on-time delivery, problem responsiveness, logistics, accuracy of the document and communication. The results of which are satisfactory (in the level of 80%-100%.)

In addition, many customers conducted the plant audit to qualify the new factory, and the results were in the level of 82% - 97%, or 89% at the average, this considered as the new plant was "qualified" for production. Another audit was in regards to Logistics, where the audit score was as high as 92% (very good.)

For 2015, the Company set quality target, as follows:

In the year 2016, the Company enhanced its standard quality system, as follows:

The Certification of the quality standard of Testing Laboratory (at KCE Technology)

The Company foresees the importance of the competence testing system, and therefore brought KCE Technology's laboratory to be certified for its quality standard, in order that the laboratory can carry out the test and calibration for PCB products in a professional manner and being a world-class LAB. In 2016, KCET's laboratory was awarded a certification ISO/IEC 17025: 2005, being the Competence of Testing and Calibration Laboratory, Certification number 13T036/0036, by the Thai Industrial Standards Institute (TISI).

6. Environmental Conservation

The Company is committed to the strict conservation of standard environmental systems under related regulations and laws. The Company's operational policy is to efficiently use energy and natural resources by investing in waste water and air treatment systems. All of the Company's factories are situated in industrial estates which have a standard environmental system in place to minimize any possible impact on the environment.

The Company has set an environment policy as a guideline for Management and staff, as follows:

Environment Management Policy

“KCE Electronics Public Company, a manufacturer and exporter of printed circuit boards (PCBs) is committed to establish an Environmental Management System through complying with KCE’s Environment Management Policy, as follows:

The Company encourages employees of all levels to participate in activities to improve the workplace environment through its “5 S” activities. In the production process, the Company maximizes the use of resources as well utilizes advanced wastewater treatment technology. Environmental quality assessments are undertaken in the plant and in nearby communities in order to ensure that the Company’s operations are environmentally friendly.

The Company received ISO 14001: 2004 certification (October 14, 2015 - March 28, 2017), which is the standard for environmental management. An audit is continually conducted by SGS (Thailand) to ensure that the Company complies with the policy and strictly operates according to environmental regulations. In 2016, 2 audits were performed, in February and in September.

In addition, the Company was certified by the "Green Industry", the Ministry of Industry, that the Company is rated "Green industry-Level 3) in the Green system, as the Company has systematically manage the environment, monitor and assess the outcome and continuously improve the results, issued by April 3, 2015 - April 2, 2018.

In 2016, the Company’s environmental plans are as follows:

In terms of environmental operation, the Company has achieved the objectives specified by the legal rules and regulations as well as the environmental management system. In 2016, the Company arranged several activities for employees to participate in with the aim to promote and encourage environmental safety in accordance with ISO 14001 practices, as follows:

Environmental Measurements in 2016

  2016 Actual measurement Per Law
Jan - Jun Jul - Dec
Air quality from chimneys
CO Emission (ppm) 14.56 1.58 690
No2 Emission (ppm) 30.50 35.00 200
Particulate (mg/Nm3) 4.66 1.50 400
Noise quality
Average noise level 8 hrs. 83.44 90
Maximum noise level 122.2 140
Quantity of industrial waste
Non-toxic industrial waste (per year) 2,700 Tons/ year Properly Buried or Recycled
Toxic industrial waste (per year) 7,800 Tons/ Year Managed by licensed company

7. Community and Social Development

KCE set up a voluntary working group work to undertake long-term projects, such as a mangrove planting project and beach cleaning project, and short-term projects, such as donations of money or necessary items for temples, schools, and governmental places, including organizing recreational activities for disadvantaged persons.

On March 12, 2016, KCE together with Chalongkrung Metropolitan Police Station conducted a seminar regarding the Community Sufficiency Economy for 45 persons from the surrounding community.

On November 9, 2016, the Company signed a Memorandum of the academic cooperation with the Engineering Faculty of King Mongkut's Institute of Technology LadKrabang, to create cooperation in academic purpose, such as to provide training for students or to participate in the Co-operative education project. From the training, students could develop knowledge and skills, by learning from on the job training and from knowledge transfer from the actual situations. It is expected that students will gain the required knowledge that is truly needed by the labor market or the enterprise.

On August 18, 2016, the Mahidol Wittayanusorn School (Public organization), Amphoe Phutta Monthon, Nakhon Pathorm Province, comprising School Teachers and 48 students of Mathayom level 4-6, who is talented in Mathematics and Science, visited KCE to learn the technology of PCB production at LatKrabang factory.

The Company provided training for 5 students from Chitralada Vocational School so that students gain knowledge and skills from experienced persons, in line with the initiative of HRH Princess Maha Chakri Sirindhorn, the School administer, during July 1 - August 30, 2016.

In 2016, there were another 10 students from various institutes, participated in other training programs to develop various professional skills in the Company.

On December 8, 2016, the Company's employees and managements donated necessary consumer goods to help people that was impacted by the flood in the South.

8. Innovative Technology that supports CSR, the environment, and Stakeholders

The Company began operating a new plant to expand capacity in order to accommodate growth in customer orders. The plant was designed based on the Green Building concept to be more resource friendly and efficient in accordance with evaluation criteria of the US Leadership in Energy & Environment Design Standard (LEED) by incorporating the following:

Implementation and Reporting

Implementation in 2016

The Company is committed to creating value for customers by improving operational efficiency and developing innovative methods of energy conservation with the aim to be socially responsible and environmentally friendly, thus leading to the sustainable growth of the business. The policy for innovative development was established for social responsibility and to lead to such practice. The Technology Development Department engaged in the research and development in the following areas:

  1. The development of an environmentally friendly production process by increasing production efficiency, reducing the impact on the environment and reducing energy consumption.
  2. The development of products that are environmentally friendly, such as those that reduce energy consumption in the production process and that enhance product quality.

Operation Plan in 2017

The Company will continue to emphasize creating long-term value for the organization by developing and acquiring knowledge that will help lead to changes in thinking, operations, and the working process, maximizing the utilization of resources, and as a result obtain an appropriate cost of goods that will create a competitive edge.

Reporting

The Company issues Annual Reports in which it explains its Corporate Social Responsibility policies and activities in order to convey the Company’s ideas and share experience about social and environmental development activities with our Shareholders, educational institutions, and the general public. The report is also available in the form of a CDROM and on our website www.kcethai.in.th

Impact from Social or Environmental issues

In 2016, the Company had no social or environmental legal disputes.

Corporate Social Responsibility Activities

The Company values the importance of contributing to community, society, religion and culture, natural resources and the environment, and to the general public. The Company promotes a culture of being socially responsible for all staff levels. The Company emphasizes achieving sustainable development on a long-term basis. The Company has offered many scholarships for needy students, provided funds for disadvantaged teachers and schools, helped underprivileged people get back on their feet with business start-up funds, promoted self-sustainability in communities and encouraged environmental preservation. The Company has organized activities that are environmentally and socially related in various forms by focusing on the efficient economy concept, improving educational standards for the younger generation, the development of both health and mind, and other activities related to arts and sports.

In 2016, The Company together with its employees, participated in the following activities to contribute to the community and the public:

Activity 1: The "Eggs and Chickens for Kids" project
  donation of teaching aids, sport equipment, consumer goods, and provided lunch.
Location: MongLuang School, Tambon Kong Khaek, Amphoe Mae Chaem, Chiang Mai province
Date: Saturday, February 20, 2016

The Company together with the Gift for Life Foundation initiated the "Eggs and Chickens for Kids" project by providing 20-30 pullets with eggs, built a poultry house, donated poultry equipment, vaccines, medicine and food. The project also provided knowledge about how to raise and take care of chickens in the first 3 months so that the school has a continuous supply of eggs that can be used to provide lunch for children. The project at the same time can promote a supplementary occupation for students as well as the village community. On the activity day, the Company also provided lunch to the students, donated teaching aids, sport equipment and other necessary consumer goods to the school.

The MongLuang School, Tambon Kong Khaek, Amphoe Mae Chaem, Chiang Mai, is a government school. The school provides classes for students from kindergarten to Mathayom level 3. It has 198 students, most from the Karen-Pgazkoenyau hill tribe, and 8 teachers. The school was formerly named Bann Mae Kong School built in May 1978, registration No. 33/1598 dated April 28, 1978, located at Moo 6, Tambon Kong Khaek, Amphoe Mae Chaem, Chiang Mai. The school was originally a local school under the Provincial Administrative Organization of Chiang Mai. It was first opened with a primary level education curriculum in May 1978. In the first stage, there was no school building, so students used a Christian church in the village. Later, the school received a budget from the Provincial Administrative Organization of Chiang Mai to construct a wooden school building comprising 4 classrooms and 1 teacher's house. The new school building opened on February 27, 1980. Ownership of the land of the school was transferred to State Property comprising 8 rai, 2 ngan, 2 square wah. In 1983, the school established the MongLuang School, Mae Omlan Branch, registration No. Sor Thor 1420.07/106, dated February 22, 1983, under the Sirikit Forest Garden Project. The school branch opened in May 20, 1983.

Activity 2: Donation to support the repair and maintenance of a building for psychiatric patients of the Galya Rajanagarindra Institute,the Department of Mental Health
  Phuttamonthon 4 Road, Taveewattana District, Bangkok

The Galya Rajanagarindra Institute, formerly named the Forensic Psychiatric Hospital, is a psychiatric hospital under the Department of Mental Health, Ministry of Public Health, situated at 23 Moo 8, Phuttamonthon 4 Road, Taveewattana, Bangkok, in operation since 1971. The hospital aims to provide treatment to patients until they can lead a normal life safely in the family and society. Her Majesty Princess Galyani Vadhana Krom Luang Narathiwat Rajanakarin endorsed a change in name of the hospital to the Galya Rajanagarindra Institute in 2002. The institute’s objectives are to release the sense of guilt for psychiatric patients associated with lawsuits and to provide forensic inpatient psychiatric treatment for persons of all age groups. The building is more than 45 years old, and at present it is heavily overburdened both in terms of physical capacity and sanitary system to the point where the floor area cannot be fully utilized. The institute carried out some maintenance from time to time, but the budget was limited while many patients could not afford to pay for treatment. The institute must also provide rehabilitation treatment and develop services in accordance with general hospital standards, including the consideration of human rights.

KCE Group donated Bt1,800,000 (One Million and Eight Hundred Thousand Baht) for use as maintenance with the aim to modify the ward in order to make it look more patient-friendly.

Activity 3: Offering lunch, recreation activities and donating goods
  Location: Ban Banglamung Social Welfare Development Center for the Elderly, Chonburi province
Date: Saturday May 14, 2016

Ban Banglamung Social Welfare Development Center for the Elderly is situated at Tambon Banglamung, Amphoe Banglamung, Chonburi province. It is the first elderly care center incorporated between the government and the private sector. The Department of Social Development and Welfare later asked the Office of the Civil Service Commission to change the name to the Social Welfare Development Center for the Elderly. The structure of the center was then reorganized, with its main duty and responsibility to provide standard welfare to the elderly, provide good care, develop the potential of the elderly and promote a cooperative network among the elderly. There are a total of 220 persons in the center comprising 95 men and 125 women, most of whom were abandoned by their family or are from poor families that are unable to care for their elderly members. The Company together with 38 staffs joined to support the community by arranging recreational activities with the elderly in the Development Center, provide lunch and ice cream and donate consumer goods.

Activity 4: Other projects
  1. Group relation, at Bonanza Resort, Khao Yai, Nakorn Ratchasima Province,
    July 16-17, 2016
    The Company arranged the activities for the group of employees to provide knowledge, working skills, build up relationship among the group, and including the living and working as a team. The employee also donated money to support the maintenance of the roof of the temple.
  2. Activity for Flood relief in the South, Amphoe Cha-uat, Nakhon Si Thammarat province,
    On December 17, 2016
    The Company has jointly in part to help people who were impacted by the flood in the South, in Amphoe Cha-uat, Nakhon Si Thammarat, by distributed the survival kits to the Flood victims at Ban Kuantiae, Ban Nalong and Ban Koksang in Amphoe Cha-uat.
  3. Offering Thian Phansa and Alms to the monks, on the Buddhist Lent Day At Wat Sichanpradit, Samut Prakan Province,
    July 15, 2016
    The Company has jointly inherited Thai tradition of offering the Thian Phansa and the Bath-robe to the monks on the Buddhist Lent Day, at Wat Sichanpradit, Samut Prakan Province on July 15, 2016.
  4. Training project for the Compost fertilizer from the Water Hyacinth, Ayutthaya Province
    The Company incorporation with Hi-Tech Industrial Estate (Ban Wa) arranged the activity to promote occupations and earnings during the dry season for the farmers, as there is no cropping due to water shortage crisis.
  5. The Reforestation Promotion Project, to generate income
    Location: Ban NaPor Community, Loei Province
    in accordance with H.R.H. Princess Maha Chakri Sirindhorn
    Date: May 7-8, 2016
    The Company took part in the conservation and restoration of the forest area upstream with the aim to help maintain the environment and upgrade the quality of life of the people in the community. The project advocates decreasing monoculture planting and adopting mixed planting in accordance with the philosophy of the Sufficiency Economy of His Majesty the King Bhumibol Adulyadej. The project is also in line with the initiative of HRH Princess Maha Chakri Sirindhorn to provide guidelines about ways to improve forest communities’ livelihoods. The Company encouraged people in the community to build a check dam and engage in reforestation to improve the fertility of the forest and upstream area, reduce vulnerability to drought, and to stop the decrease of forest area.
  6. Mangrove planting at the Bangpu Nature Education Centre, Bangpu Recreation Center
    On August 19, 2016
    The Company arranged the activity with the community for the nature conservation and mangrove planting, at the Bangpu Nature Education Centre, Bangpu Recreation Center, to promote unity among the working groups in the Industrial Estate community and to encourage employees to jointly participate in the mangrove planting with the community.