Tatung believes that with good relationship with decent suppliers can make sure getting high quality parts/products to raise productivity to share the benefits to the customers around the world. Hence, Tatung conducts internal control and related management procedures to manage and introduce new suppliers. Regular auditing is conducted in BUs and subsidiaries.
Good quality, competitive price, on time delivery, and service are the first consideration when Tatung purchases raw materials, parts and products. Tatung also prefers purchase from local suppliers in Taiwan in order to support local business and fulfill social responsibility. The main suppliers are from Taiwan, followed by China. The details are list in Figure 1. Meanwhile, in order to maintain excellent product quality and reliability, new materials are required to be used, and the concept of green procurement is adhered to. The appreciation is list in Figure 2.
On the other hand, Tatung requests suppliers to fulfill corporate social responsibility together by adding anti-corruption and human rights (human rights, freedom of association, child labor, and forced labor) clauses in the contract. Also from 2015, we started to request suppliers to sign a commitment letter, which includes health and safety, environmental protection, human rights topics. If any of the foregoing terms is violated, Tatung may immediately terminate the contract or cancel the order. The commitment letter is a must have document to become Tatung's supplier. In response to the attention to conflict minerals internationally, Tatung has issued "Declaration of Minerals Conflict-Free from Tatung Company" this year and declared that all suppliers should follow.
▼ Table 1 CSR contents in the commitment letter
||Refuse to offer or accept any improper advantages.
|Human rights and labor conditions
||Comply with national and international regulations, policies or guidance in regarding to human rights.
||Comply with environmental protection regulations.
||Follow the Declaration of Minerals Conflict-Free from Tatung Company
|Corporate social responsibility
||Comply with Tatung's and the supplier's integrity management, CSR policies and “Declaration of Minerals Conflict-Free from Tatung Company”.