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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 emphasized on employees treated with equality.

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.

  2013 2014 2015
Total number of training hours 23.75 30.14 74.06
% of Multi-skill operator 64.44% 69.26% 69.45%

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.

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 has been awarded ISO/TS 16949:2009 Edition 3 (July 10, 2015 - July 9, 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 2015, there was one surveillance audit in May, and the Company was capable to maintain its status. During 2015, 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 2015, 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 2015, the Company enhanced its standard quality system, as follows:

The Company is dedicated to creating more environmentally-friendly PCB products by working with our customers and raw material suppliers, and to producing environmentally-friendly products such as lead-free and halogen-free products, as well as using environmentally friendly packaging material such as bubble packaging instead of plastic foam.

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 2015, 2 audits were performed, in March and in August.

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 2015, 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 2015, 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 2015

  2015 Actual measurement Per Law
Jan - Jun Jul - Dec
Air quality from the chimney
CO Emission (ppm) 13.96 13.95 690
No2 Emission (ppm) 38.81 68.36 200
So2 Emission (ppm) n/a n/a 60
Particulate (mg/Nm3) 3.93 25.79 400
Noise quality
Average noise level 8 Hrs. 86.9 90
Maximum noise level 114.4 140
Quantity of industrial waste
Non-toxic industrial waste (per year) 1,200 Tons/ year Properly Buried or Recycled
Toxic industrial waste (per year) 6,000 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.

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 2015

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 2016

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 2015, 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 2015, the Company together with its employees participated in the following activities to contribute to the community and the public:

Activity Number 1: Mangrove planting at the Mangrove Forest Development Station 1
  Tambon NoenKho, Amphoe Klang, Rayong province
Saturday, July 25, 2015
Number of participants : 45 persons

The Company participated in an environmental conservation project with help from a team of 45 persons to reforest the mangrove area by planting 2,000 trees to replace trees that have died, collect garbage in the surrounding area to restore the ecosystem and protect the top soil from erosion. The team also released fish and donated necessary equipment such as hoes, shovels, spades and black garbage bags to the Mangrove Forest Development Station 1

Mangrove Forest Development Station 1, a division of the Ministry of Natural Resources and Environment, is located at Tambon NoenKho, Amphoe Klang, Rayong province. It is responsible for marine and coastal resources in combination with work of the Department of Fisheries, the Department of Forestry and the Land Development Department. Its main duties are as follows:

Activity Number 2: Refurbishment of PrasertWittayatarn SuksaSongkraw School
  Tambon Champa, Amphoe Tharuea, Phra Nakhon Sri Ayutthaya province
Saturday, September 19, 2015
Number of participants : 56 persons

The Company together with its employees participated in the following activities for the community at PrasertWittayatarn School, Ayutthaya:

PrasertWittayatarn School, under the Ministry of Education, is located at 53/13 Soi Wat Cokekratai, Champa-Tharuea Road, Tambon Champa, Amphoe Tharuea, Ayutthaya province. It is a boarding school for disadvantaged students mostly from poor families in Nan and Chaiyaphum provinces. The school provides classes for students of Mathayom levels 1-3. There are 102 students in the school comprising 50 boys and 52 girls.