Jih Sun Financial Holding Co., Ltd.
2015 Corporate Social Responsibility Report
Contents
1.
Overview of the report ..................................................................................................................... 4
2.
Message from the Chairman............................................................................................................. 5
3.
Company Overview ......................................................................................................................... 7
3-1.
Company introduction ...................................................................................................................... 7
3-2.
Business philosophy and core value ................................................................................................. 7
3-3.
Main brands, products and services, countries in which companies operate....................................... 7
3-4.
Nature and legal form of company ownership ................................................................................... 9
3-5.
Market/areas where services are provided......................................................................................... 9
3-6.
Associations (such as business association) the Company participates in, and membership of
national or international advocacy organizations ......................................................................................... 10
4.
Business Strategy and Operating Analysis ...................................................................................... 11
4-1
2015 business performance ............................................................................................................ 11
4-2
Awards and achievements .............................................................................................................. 13
4-3
Credit ratings ................................................................................................................................. 14
4-4
Future development strategy and sustainable operation ................................................................... 14
5.
Identification of Interested Parties and Material Issues They Care About ........................................ 16
5-1.
Issues the interested parties care about and their importance ........................................................... 16
5-2.
Material issues and boundaries that are impacted ............................................................................ 18
6.
Corporate Governance ................................................................................................................... 25
6-1.
Corporate governance .................................................................................................................... 25
6-2.
Internal control and audit system .................................................................................................... 38
6-3.
Risk management ........................................................................................................................... 39
6-4.
Principle of credit extension ........................................................................................................... 43
6-5.
Legal compliance ........................................................................................................................... 44
6-6.
Morals and honesty ........................................................................................................................ 45
6-7.
Investor relationship ....................................................................................................................... 46
6-8.
Transparency of information disclosure .......................................................................................... 46
7.
Customers’ Rights & Interests........................................................................................................ 48
7-1.
Comprehensive quality concepts and culture .................................................................................. 48
7-2.
Multi-innovative product design ..................................................................................................... 48
7-3.
Protection of customers’ rights and interests ................................................................................... 49
7-4.
Employees with outstanding services ............................................................................................. 51
7-5.
Customer relationship management and commitment to customers ................................................. 51
7-6.
Mobile services .............................................................................................................................. 53
7-7.
Concrete management guidelines and performance indicators for financial products and services in
terms of environment and society ................................................................................................................ 55
7-8.
Products and services in response to changes in the society. ........................................................... 57
7-9.
Products and services in response to climate change ....................................................................... 57
8.
Care for Employees ....................................................................................................................... 58
8-1.
Terms and conditions of human rights ............................................................................................ 58
8-2.
Workforce structure ....................................................................................................................... 59
8-3.
Employment relationship ............................................................................................................... 62
8-4.
Training and development .............................................................................................................. 63
8-5.
Healthy workplace ......................................................................................................................... 65
8-6.
Remuneration and benefits ............................................................................................................. 68
9.
Environmental Protection............................................................................................................... 71
9-1.
Continuous implementation of energy-saving and carbon-reduction policy ..................................... 71
9-2.
Green procurement ......................................................................................................................... 71
9-3.
Management of supply chain .......................................................................................................... 72
9-4.
Adoption of eco-paper and paper envelop for official documents .................................................... 72
10.
Social Benefits ............................................................................................................................... 72
10-1.
Charity and care ............................................................................................................................. 72
10-2.
Volunteer activity........................................................................................................................... 76
10-3.
Promotion of arts and cultural education......................................................................................... 78
Appendix .................................................................................................................................................... 80
GRI indicator index .................................................................................................................................... 80
1. Overview of the report
Jih Sun Financial Holding Co., Ltd. sees the fulfillment of Corporate Social Responsibility (CSR) as a
critical commitment to the public. Jih Sun Financial Holdings issued its first CSR report since 2011 in
hopes that the public and transparent information released in the report enables the interested parties
and the public to understand the strategies and measures related to CSR provided by Jih Sun Financial
Holdings.
Time and Scope of the Report
The report mainly discloses the performance of Jih Sun Financial Holdings and its three subsidiaries in
different aspects of economy, environment and society over year 2015 (Jan 1, 2015 to Dec 31, 2015)
with the contents being divided into Company Overview, Development Strategy and Operating
Analysis, Identification of Interested Parties and Focus on Material Issues, Corporate Governance,
Customers’ Rights and Interests, Care for Employees, Environmental Protection and Social
Participation. In the future, wider and deeper disclosure of the related information will accompany the
consistent growth of Jih Sun Financial Holdings.
Principle of Report Preparation
“Jih Sun Financial Holding Co., Ltd.2015 Corporate Social Responsibility Report” has been drawn up
with reference to the guidelines and structure provided in the G4 version released by the Global
Reporting Initiative (GRI) in 2013. Such report also contains GRI general indicator index. The report
includes the commitment to shareholders, customers, employees and society and will be publicized on
a yearly basis in the future. The relevant contents will be completely disclosed on the website of Jih
Sun Financial Holdings for the interested parties to download and review.
Contact Information
Shall you have any inquires, opinions or suggestions regarding this report, please contact us at:
Jih Sun Financial Holding Co., Ltd.
The President’s Office
Address: 10F, No. 85, Sec. 2, Nanjing E. Road, Zhongshan Dist., Taipei
Telephone: +886-2-25615888 #1618
Fax: +886-2-25710688
Website: www.jsun.com
2. Message from the Chairman
Sustainable operation is Jih Sun Financial Holdings’ development objective, and the fulfillment of
social responsibility is the foundation of corporate sustainable development. Given that global
economic growth was not as-good-as-expected in 2015 and changeable financial and monetary
markets posed diversified and complex risk sources to economy, society and environment, when an
enterprise was in the face of such a business environment, not only did risk control and pursuit of
growth and profitability become more difficult, but it was also a trial to the enterprise as to whether in
could exert its strength to stabilize the society and implement the initial objective of fulfilling social
responsibility as a social civilian. With the efforts put in by all Jih Sun’s employees, it still followed
the trajectory of implementation of social responsibility while hitting business targets.
Ethical management and focus on corporate governance
Jih Sun adheres to the business philosophy of “Integrity, Innovation and Service,” keeps
strengthening business system and optimizes financial structure by year. It also delivers outstanding
results in corporate governance. In 2015, it was awarded “A++ for Information Disclosure Evaluation
System” held by the Securities and Futures Institute for the 12th term and named “Top 5% of TPEx
Listed Companies in the Ranking of the 1st term of Corporate Governance Evaluation.” In 2016, it
was awarded “Top 5% of TPEx Listed Companies in the Ranking of the 2nd term of Corporate
Governance Evaluation” again. The fact that the Company’s corporate governance was recognized for
five consecutive years represents its emphasis on and efforts in a sound functionality of the board of
directors, enhancement of disclosure and transparency of information and implementation of internal
management and function.
Service for customers and care for employees
Jih Sun emphasizes consumer rights and interests and continues to provide financial assistance based
demands of SMEs and the youth starting business for financing. Moreover, it promotes the
development of e-commerce and mobile financial business of its subsidiaries actively so as to serve
the changes in investment and consumption habits of customers of the mobile era. Jih Sun Securities
released Jih Sun Warrant World APP and received “Annual Innovative Design Award” from the
Outstanding Enterprise Manager Association, while Jih Sun Bank was awarded “Mobile Payment and
Mobile ATM Business: Best Outstanding Innovation Award” by the Financial Information Service Co.,
Ltd. Winning the awards will undoubtedly motivate us to endeavor to develop financial innovation
constantly in order to satisfy customers’ financial needs thoroughly. Talents are the most important
assets to the Company’s constants innovation and growth. Jih Sun is devoted to creating a better work
environment and encouraging employees to achieve a work-life balance. It holds sports competition
on a regular basis, provides employees with health examinations and Employee Assistance Program
(EAP) of external professional institutions. For the purpose of helping employees accept the
revolutionary thoughts in the environment in the face of unstoppable financial digital development
trend, it has hired external professional lecturers to hold courses, such as “Trend and Challenges of
Innovation of Internet Finance,” for senior supervisors, and planned employee career map in order to
cultivate life-long learning of employees and enhance professional skills, enabling them to confront
the challenges arising from the new financial era.
Care for society and environmental protection
Jih Sun best utilizes its financial professionalism to keep cultivating campus financial education. Jih
Sun Securities entered campus and held 100 financial lectures, and cooperated with universities to
hold the “Sincerity and Friendship Campus Service Project”; Jih Sun FHC took part in the “Financial
Industry’s Charitable Scholarship Plan” promoted by the Financial Supervisory Commission (the FSC)
to subsidize economically disadvantaged students, and it continues to get together idle computers and
donate such to elementary schools in distant townships; the credit cards issued by Jih Sun Bank have
become a convenient and user-friendly channel for cardholders to show compassion and donate to
charities for years. For expanding our presence in environmental protection by engaging in details, we
have built a “Green Finance” electronic service platform to encourage customers to utilize electronic
services, such as online electronic trading and e-statements, more often. When Jih Sun Bank handles
credit loan examination and post-loan management in corporate finance, it urges borrowers to fulfill
responsibilities with respect to environmental protection, corporate ethics and society based on the
Equator Principles. The Company also installed energy-saving lighting equipment in business offices
and educational training centers in order to reduce electricity usage and carbon emission, making an
effort to develop a sustainable environment.
The Corporate Social Responsibility Report hereby discloses the Company’s efforts in marching
toward the business objective of sustainable development, and the hard work in and execution results
of aspects ranging from customers rights and interests, care for employees, environmental protection
to care for society. The goal is to shape positive energy and keep influencing the interested parties to
become good corporate citizens jointly, and head toward a better future.
3. Company Overview
3-1. Company introduction
Company: Jih Sun Financial Holding Co., Ltd.
Date of establishment: February 5, 2002
Headquarter address: 10F, No. 85, Sec. 2, Nanjing E. Road, Zhongshan Dist., Taipei
Capital: NT$ 33.963 billion
Total assets: NT$ 268.509 billion
Number of employees: 3,332 persons (December 31, 2015)
3-2. Business philosophy and core value
A. Company vision:
Becoming the most trustworthy partner of customers.
B. Jih Sun Members' Creed
Top Priority for Customers and Services
Top Concern for Credit and Honesty
Principal Focus on Harmony and Performance
C. The 3 Jih Sun Spirits
Confidence in Jih Sun – the foundation of success
Loyalty and responsibility – the foundation of humanity
Pursuit of efficiency – the key to growth
3-3. Main brands, products and services, countries in which companies operate
Jih Sun Financial Holding Co., Ltd. (hereinafter referred to as the Company or Jih Sun FHC)
was incorporated by means of share conversion of two TPEx listed companies, Jih Sun
Securities Co., Ltd. (hereinafter referred to as Jih Sun Securities) and Jih Sun International
Commercial Bank Co., Ltd. (hereinafter referred to as Jih Sun Bank). February 5, 2002 is
the base day of share conversion, and the Company’s shares were officially listed on the
TPEx on the day of incorporation.
Jih Sun Securities, incorporated in 1961, is one of the longest-standing securities firms in
Taiwan. It restructured as an integrated securities firm in 1989 and developed capital
market business, such as brokerage, proprietary trading and underwriting. Jih Sun
Securities follows its business philosophy of “Integrity, Innovation and Service,” and it is
deeply trusted by the investors for the abundant professional knowledge, comprehensive IT
infrastructure and convenient and fast transaction mechanisms. It is one of the integrated
securities firms possessing the most outstanding operating abilities in Taiwan.
Jih Sun Bank was incorporated in 1992. It is one of the new banks which were approved of
establishment under new regulations in Taiwan. Credit loans and wealth management are
its core business. Jih Sun Bank adheres to the business philosophy of “Integrity, Innovation
and Service” and targets at “Stable profits through quality and volume equally.” It
prioritizes customers and carries out work spirits including steady operation, being
proactive, faithful, responsible, and seeking efficiency thoroughly. It is attentive to expand
its presence diligently, hoping to consolidate the Bank’s business strength.
In order to expand the Company’s business scope, it reinvested in and founded Jih Sun
International Property Insurance Agency Co., Ltd. (hereinafter referred to as Jih Sun
Property Insurance Agency) in 2004.
The business scale of Jih Sun FHC’s subsidiaries covers commercial banking, securities
and futures, and insurance agent. Here are the products and services of all subsidiaries, and
the countries in which they operate:
Company (main brand)
Country in
which the
company
operates
Jih Sun Bank
Taiwan
Jih Sun Securities
Taiwan
Jih Sun Property Insurance
Agency
Taiwan
Products and services
Businesses and services, including deposit and
remittance, corporate banking, consumer
banking, credit card, wealth management, trust,
financial investment.
Securities brokerage, proprietary trading,
underwriting, futures brokerage and businesses
including fixed income, derivatives, wealth
management and trust.
Acting as an agency for selling products of
domestic property insurance companies.
Jih Sun Bank and Jih Sun Securities reinvest in sub-subsidiaries, such as life insurance
agency, futures, investment consulting, venture capital investment and overseas business.
Here are the products and services of all sub-subsidiaries, and the countries in which they
operate:
Subsidiary Sub-subsidiary (main brand)
Jih
Bank
Sun Jih Sun Life
Agency
Jih Sun Futures
Insurance
Jih
Sun
Jih Sun Securities
Securities
Investment Consulting
Jih Sun Venture Capital
Jih Sun Cresvale Securities
Country in
which the
company
operates
Taiwan
Taiwan
Products and services
Acting as an agency for selling
life insurance products
Businesses including futures
brokerage, proprietary trading,
futures
management
and
investment consulting.
Taiwan
Securities investment consulting.
Taiwan
Hong Kong
Venture capital enterprise
Businesses including securities
(HK)
Jih Sun Cresvale Capital
Jih Sun Cresvale Securities
(Shanghai Representative
Office)
Jih Sun Investment
Consulting (Shanghai)
Hong Kong
brokerage, proprietary trading,
and placement.
Shares brokerage business.
Mainland
China
Research of mainland China’s
financial market and information
collection.
Mainland
China
Investment consulting business.
3-4. Nature and legal form of company ownership
Jih Sun FHC is a company limited by shares registered and founded in accordance with the
Company Act of the Republic of China. The ownership of the Company is attributed to all
shareholders jointly. The two juristic person shareholders with higher shareholdings of the
Company are respectively Shinsei Bank (invested in the name of SIPF B.V.) and Capital
Target Limited. Shinsei Bank holds 35.47% of shares and Capital Target Limited holds
24.08% of shares. The equity structure is relatively centralized and steady.
3-5. Market/areas where services are provided
Currently the Company mainly sells (provides) products (services) to financial markets in
Taiwan, which is supplemented by overseas areas. The markets and areas in which the
subsidiaries and the sub-subsidiaries provide services are as follows:
Markets and areas in which the company
Company
Country in
provides services
which the
company
operates
14 branches in Taipei City, 8 branches in New
Taipei City, 8 branches in Taoyuan, Hsinchu
Jih Sun Bank
Taiwan
and Miaoli, 6 branches in central Taiwan, 8
branches in southern Taiwan.
1 Representative Office in Hong Kong.
14 branch offices in Taipei City, 11 branch
offices in New Taipei City, 8 branch offices in
Taoyuan, Hsinchu and Miaoli, 6 branch offices
Jih Sun Securities
Taiwan
in central Taiwan, 8 branch offices in southern
Taiwan, 2 branch offices in eastern Taiwan.
1 branch office in Kinmen.
Jih Sun Property Insurance
Taiwan
Taiwan
Agency
Jih Sun Life Insurance
Taiwan
Taiwan
Agency
Taiwan
Taiwan
Jih Sun Futures
Jih Sun Securities
Investment Consulting
Taiwan
Taiwan
Jih Sun Venture Capital
Taiwan
Taiwan
Hong Kong
Hong Kong
Jih Sun Cresvale Securities
(HK)
Jih Sun Cresvale Capital
Jih Sun Investment
Consulting (Shanghai)
Hong Kong
Hong Kong
Mainland
China
Mainland China
3-6. Associations (such as business association) the Company participates in, and membership of
national or international advocacy organizations
Company
Association the company takes part
in
Jih Sun FHC
The Bankers Association of Taipei
Chinese National Association of
Jih Sun FHC
Industry and Commerce, Taiwan
Jih Sun Bank
The Bankers Association of Taipei
Jih Sun Securities
Taiwan Securities Association
Membership No.
Yin-Zheng-Zi No. 050
A036
Yin-Zheng-Zi No.032
Zhong-Zheng-Shang Zi
No. 013
Jih Sun Property Insurance The Insurance Agency Association of
(93)-N393
Agency
the Republic of China
Jih Sun Life Insurance The Insurance Agency Association of
(90)-L108
Agency
the Republic of China
Qi-Shang-Hui-Zi No.
Jih Sun Futures
(futures consulting)
Qi-Shang-Hui-Zi No.
Chinese National Futures
(brokerage)
Association
Qi-Shang-Hui-Zi No.
(futures brokerage)
Qi-Shang-Hui-Zi No.
(proprietary trading)
Taiwan
Venture
Capital
Association
Jih Sun Venture Capital
B0001
Securities Investment Trust &
Jih Sun Securities
Consulting Association of the R.O.C.
Investment Consulting
Jih Sun Cresvale Securities
(HK)
Hong Kong Securities and
Investment Institute
C00244
980
981
982
983
4. Business Strategy and Operating Analysis
4-1 2015 business performance
Jih Sun FHC kept strengthening its business system. Not only has it continued to improve
its financial structure by year, it also delivered excellent results in corporate governance. In
2015, it was awarded “A++ for Information Disclosure Evaluation System” held by the
Securities and Futures Institute for the 12th term and named “Top 5% of TPEx Listed
Companies in the Ranking of the 1st term of Corporate Governance Evaluation.” Moreover,
its subsidiaries also performed exceptionally in the relevant business. Jih Sun Bank has
been awarded “Mobile Payment and Mobile ATM Business: Best Outstanding Innovation
Award” by the Financial Information Service Co., Ltd., while Jih Sun Securities has been
awarded “2015 Excellence Magazine Financial Securities Service Evaluation: Prize for
Excellent Innovative Product by FHCs.”
With influence of factors such as not-as-good-as-expected economic growth beating the
development of the financial market and large volatilities in the financial market, the
Company’s revenue/expenditure and profitability were not as good as expected. The total
income of the Company for 2015 is NT$2.099 billion, among which, the investment gains
under equity method is NT$2.072 billion; the operating expense is NT$85 million; the
interest expense and other expenses and losses amount to NT$33 million; the income tax
benefit is NT$6 million; the net profit after tax is NT$1.987 billion; the EPS after tax is
NT$0.58; the return on assets is 4.82%; and the return on equity is 5.42%.
Jih Sun Bank has shown its business performance year by year. For 2015, the net interest
income is NT$2.075 billion, the net non-interest income is NT$1.932 billion, so the total
net income is NT$4.007 billion. The operating expense is NT$2.908 billion, the reversal of
bad debt provision is NT$119 million, the income tax expense is NT$3 million, the net
profit after tax is NT$1.215 billion, and the EPS after tax is NT$0.75. The annual
achievement rate of the net profit after tax of Jih Sun Bank for 2015 is 91%. The execution
of overall business targets is still deemed sound.
Jih Sun Securities posted a lower achievement in profits reflected by large volatilities in the
financial market. For 2015, the net income is NT$3.52 billion, the operating expense is
NT$2.553 billion, the net profit before tax is NT$967 million, the income tax expense is
NT$110 million, the net profit after tax is NT$857 billion, and the EPS after tax is NT$0.74.
The annual achievement rate of the net profit after tax of Jih Sun Securities for 2015 is
merely 71%. The execution of overall business targets is not as good as expected.
As for Jih Sun Property Insurance Agency, the net profit after tax for 2015 is NT$660
thousand, and the EPS after tax is NT$2.20.
Unit: NT$ thousand
2013
Net income
Bad debt expense
and provision for
guarantee liability
reserve
Operating expense
Management Income tax expense
ability
Consolidated total
profit/loss
Average income of
employees
Average profits of
employees (after
tax)
Retained earnings
Return on assets
(ROA, %)
Return on equity
(ROE, %)
Profitability Consolidated net
income rate (%)
Earnings per share
(EPS, Unit: NT
dollar)
2014
2015
7,362,912
8,025,932
7,562,598
(169,368)
(191,105)
(119,729)
5,394,466
5,680,262
5,567,874
53,815
91,640
126,122
2,083,999
2,445,135
1,988,331
2,199
2,362
2,270
622
719
596
2,822,626
3,813,115
3,495,142
1.35
1.49
1.25
6.33
7.03
5.42
28.30
30.47
26.29
0.62
0.72
0.58
4-2 Awards and achievements
2015
Jih Sun FHC was rated A++ grade for the 12th term of Information Disclosure
System Evaluation of TWSE/GTSM-listed Companies announced by the
Securities and Futures Institute.
2015
Jih Sun FHC was among Top 5% of TPEx Listed Companies in the Ranking of
the 1st term of Corporate Governance Evaluation.
2015
Jih Sun Bank was named “Mobile Payment and Mobile ATM Business: Best
Outstanding Innovation Award” in the 2015 annual meeting of financial
information system by the Financial Information Service Co., Ltd.
2015
Jih Sun Bank received the 1st term of “Futures Diamond Award” and the 2nd
place of contribution award in the banking industry from Taiwan Futures
Exchange.
2015
Jih Sun Bank was awarded No. 1 in the competition of “Authorized Automatic
Roadside Parking Rate Payment Deduction” by financial institutions held by
the Taiwan Clearing House.
2015
Jih Sun Warrant World APP, created by Jih Sun Securities for the first time,
was named the Golden Torch Award - 10 major innovative design of the
R.O.C.
2015
Tucheng branch office of Jih Sun Securities was ranked “No. 5 in TWSE Jan ~
May ETF Competition of Securities Firms.”
2015
Jih Sun Securities was awarded Excellence Magazine Innovative Product
Award under FHC category.
2015
Jih Sun Securities was named the best progress award for “2015 warrant
issuers and securities firms receiving orders to trade” held by TWSE.
2015
Jih Sun Investment Consulting under Jih Sun Securities received from StarMine
three major awards, such as “Top Earnings Estimator” for electronic sector and
“Tope Stock Pickers” for optical sector and electronic sector.
2014
Jih Sun FHC was rated A++ grade for the 11th term of Information Disclosure
System Evaluation of TWSE/GTSM-listed Companies announced by the
Securities and Futures Institute.
2014
Jih Sun Bank cooperated with the Credit Guarantee Fund to engage in the
financing project and received two awards - “2014 Financing Business under
Credit Guarantee of SMEs - Award for Assisting the Youth in Realizing the
Dreams and Starting Business” and “2014 Financing Business under Credit
Guarantee of SMEs - Award for Assisting the Youth in Starting Business” - by
the Ministry of Economic Affairs, R.O.C.
2014
Jih Sun Bank was named No. 3 in the financial banking business under “The
5-Star Service Award” in the “2014 Global Views Monthly Survey” held by
Global Views Monthly.
2014
Jih Sun Securities was awarded No. 2 in integrated securities firms under the
service category of the “2014 Businessman Best Brands” held by Business
Today.
2014
Jih Sun Securities was awarded A grade securities firms for “Rewarding
Securities Firms for Warrants Market Making Quality” by the Securities and
Futures Institute.
2014
Jih Sun Investment Consulting under Jih Sun Securities received from StarMine
four major awards, such as “Best Securities Team in Asian Pacific,” “Top
Earnings Estimator” for semiconductor sector and “Tope Stock Pickers” for
semiconductor sector and automobiles sector.
4-3 Credit ratings
Effective Target of credit
Long-term credit
date
rating
rating
Fitch Ratings
Short-term credit
rating
Outlook of rating
Jih Sun FHC
A-(twn)
F2(twn)
Stable
2015/05/22 Jih Sun Bank
A-(twn)
F2(twn)
Stable
Jih Sun
Securities
A (twn)
F1(twn)
Stable
Jih Sun FHC
A-(twn)
F2(twn)
Stable
Jih Sun Bank
A-(twn)
F2(twn)
Stable
Jih Sun
Securities
A (twn)
F1(twn)
Stable
2014/05/26
4-4 Future development strategy and sustainable operation
Jih Sun FHC’s core businesses are commercial banking business and securities business,
and the strategies for future development are “Deep Cultivation of Core Business,”
“Management of Mobile Financial Trend and Business Opportunities,” “Management
Innovation and Efficiency Enhancement” and “Engaging in Both Mid-Term and Long-Term
Development.”
Jih Sun FHC’s operating performance kept advancing over recent three years, and it also
boosted its corporate image by year. It devoted to driving the development of its
subsidiaries while being confronted with the arrival of digital financial era. Jih Sun Bank
endeavored to develop e-commerce and mobile payment, as well as to establish an overseas
base and construct business opportunities of cross-border strategic cooperation. The
upgrading of the HK Representative Office into a branch was approved by the FSC in Sep
2015. We will submit an application to the HK Monetary Authority in order to establish the
first overseas base. On the other hand, Jih Sun Securities reinforced the management of
marketing channels of global products so as to cross different regions and markets through
further enhancement of its product design ability. It continues to research cross-strait
business opportunities and cooperative opportunities.
In the future, Jih Sun FHC will keep enhancing the competitiveness of the subsidiaries,
strengthening the system and endeavor to push forward the management guidelines as
below:
A. Enhancement of operating performance of the subsidiaries and bringing the
functionalities of the FHC parent company into full play;
B. Enhancement of width and depth of mobile financial service;
C. Innovation and refinement of management ability;
D. Promotion of mid-and-long-term development strategies based on the 3-Year Business
Plan.
Looking into 2016, it will be a year for Jih Sun FHC to create growth again. Both Jih Sun
Securities and Jih Sun Bank will be fully devoted to promoting all core businesses and
extending the business territory to the Great China region so as to serve customer segments
in Mainland China, Taiwan and Hong Kong.
Jih Sun FHC aims to maintain sustainable operations. It will adhere to “becoming the most
trusted wealth management partner of customers,” as well as the sustainable business
philosophy of “top priority for customers, top concern for credit, and principal focus on
harmony,” to treat the environment, society and economy friendly, to create a transparent,
harmonious and sustainable benign circle for the interested parties, and to implement
corporate social responsibility through various environmental schemes, allowing itself to
save energy and reduce carbon emission and hopefully become a green corporate promoting
environmental protection.
5. Identification of Interested Parties and Material Issues They Care About
5-1. Issues the interested parties care about and their importance
The corporate social responsibility team (including the Presidential Office, the Financial
Planning Division, the Secretarial Dept., the Investor Relationship Dept., the General Affairs
Dept., the Risk Management Division, the Compliance and Legal Division, the Audit
Division and Credit Management Division and insurance agency, etc.) composed by the
representatives designated by Jih Sun FHC and its three subsidiaries (Jih Sun Bank, Jih Sun
Securities and Jih Sun Insurance Agency) discussed and identified the interested parties
(which is different from the interested parties referred to in the Financial Holding Company
Act/ the Banking Act) that are related to the business duties of units and will be in close
contact with such units. It also drew up the issues that have long been cared about by the
interested parties and summed up the material issues after internal discussions so as to
identify the boundaries impacted by the material issues and the extent to which they influence
the Company operations.
Step 1: After team discussions, Jih Sun identifies the interested parties, which may be divided
into 6 groups as follows:
(1) Competent authorities
(2) Shareholders
(3) Customers
(4) Employees
(5) Suppliers
(6) Communities
Step 2. Based on the 6 major groups of the interested parties, all units learn about the
material issues the interested parties care about through daily working interaction. After
team discussions, it sums up the extent to which the interested parties emphasize on each
issue and the degree to which such issue influences the Company’s short-term operations
(within one year), and compiles and draws up a material issue matrix diagram as follows.
(1) Brand image
(2) Service quality and customer satisfaction
(3) Corporate governance
(4) Risk control and management
(5) Audit business system
(6) Privacy topic
(7) Transparency of information disclosure
(8) Legal compliance
(9) Protection of customer rights and interests
(10) Company layout and sustainable operations
(11) Operating performance
(12) Social welfare
(13) Product convenience
(14) Ethical management
(15) Customer grievance mechanism
(16) Employee hygiene and safety
(17) Talent development and cultivation
(18) Employee benefits
(19) Fair remuneration
(20) Environmental protection
Material issue matrix diagram
High
The extent to which the interested parties emphasize
on each issue
Low
The degree to which such issue influences the Company’s
short-term operations
High
5-2. Material issues and boundaries that are impacted
For the material issues cared about by different interested parties of Jih Sun FHC, in addition to carrying out the identification of boundaries that
are impacted, we also provide corresponding strategies for the material issues. Please see the table below for the details.
Issue
Company
layout and
sustainable
operations
Risk control
and
G4 Material aspects
General
Organizational
profile,
strategy and
analysis
General
Governance
Our strategies and measures
Jih Sun FHC’s core businesses are commercial
banking business and securities business, and
the strategies for future development are
“Deep Cultivation of Core Business,”
“Management of Mobile Financial Trend and
Business
Opportunities,”
“Management
Innovation and Efficiency Enhancement” and
“Engaging in Both Mid-Term and Long-Term
Development.”
Jih Sun FHC’s operating performance kept
advancing over recent three years, and it also
boosted its corporate image by year. It devoted
to driving the development of its subsidiaries
while being confronted with the arrival of
digital financial era. Jih Sun Bank endeavored
to develop e-commerce and mobile payment,
as well as to establish an overseas base and
construct
business
opportunities
of
cross-border strategic cooperation. The
upgrading of the HK Representative Office
into a branch was approved by the FSC in Sep
2015. We will submit an application to the HK
Monetary Authority in order to establish the
first overseas base. On the other hand, Jih Sun
Securities reinforced the management of
marketing channels of global products so as to
cross different regions and markets through
further enhancement of its product design
ability. It continues to research cross-strait
business opportunities and cooperative
opportunities.
The FHC establishes and emphasizes on the
risk management culture in which “everyone is
Within organization
FHC and 3
Employees
subsidiaries
Boundaries that are impacted
Outside organization
Competent
Shareholders Customers Suppliers
authorities
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
Communities
management
Corporate
governance
Audit business
system
Ethical
management
Transparency
of information
disclosure
General
Governance
General
Governance
General
Ethics and integrity
Economy
Economic
performance
risk management personnel,” underlies
business execution with focus on a balance
between returns and risks, as well as reviews
and refines the FHC’s risk management
mechanism based on international risk
management benchmark so as to seek
sustainable and steady operations of the
Company.
The Company joined the Taiwan Corporate
Governance Association in Jan 2005 and
became a permanent member. It takes part in
the meetings and communicates with other
members on a regular basis, allowing
information to flow rapidly. Moreover, it also
takes part in training courses and seminars
held by Taiwan Corporate Governance
Association actively, enabling it to grasp the
latest movement of operations of corporate
governance.
Moreover,
it
establishes
communication channels with the interested
parties, such as the speaker’s system and
employee grievance mailbox.
Pursuant to the “Implementation Rules of
Internal Audit and Internal Control System of
Financial Holding Companies and Banking
Industries,” the Company establishes a chief
auditor system and sets an Audit Division
under the board of directors to assist the board
and the management to inspect and assess
whether the internal control system can
function effectively.
To include directors, managers and employees
into the standards, prohibit them from
offering/taking bribes, offering illegal political
donations, making improper charitable
donations or sponsorship, or receiving
unreasonable gifts, hospitality or other
improper benefit.
The Company complies with the applicable
laws and regulations to disclose the relevant
information on the internet-based reporting
system for public information, and enables
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Operating
performance
Fair
remuneration
Product
convenience
Brand image
Economy
Economic
performance
Economy
Economic
performance
Economy
Economic
performance
Economy
Indirect economic
impact
investors to understand the Company’s
operating status through the convention of
shareholders’ meeting on a yearly basis and
monthly announcement of its revenue.
Based on Jih Sun FHC’s 2015 annual report.
◎
The Company establishes the “Remuneration
Committee” to set up and review the policies
of remuneration of the management and the
reasonableness of personal remuneration.
Along with the prevalence of digitalization and
internet, Jih Sun Bank provides timely,
convenient and fast cash flow services of
various types. For instance, personal/corporate
internet banking, web ATM, mobile banking,
web cashier, etc. When individuals or
institutional customers use cash flow services,
they are no longer restricted to physical
branches of financial institutions, traditional
physical channels or stores. They may use
different types of electronic devices, such as
PCs, laptops, smartphones, tables and other
devices supporting internet connection,
without being limited to time or place, which
allows customers to use all kinds of financial
services anytime and anywhere and enhances
the Bank’s service quality. The Bank will pay
attention to the development of electronic
financial market at all times, develop e-trading
services and functions suitable for the public
and enterprises, and provide customers with
convenient and premium financial services.
The Company adheres to the “Core Value” of
“Top Priority for Customers and Services” to
cultivates customer relationship deeply and
satisfy customers’ demands for all types of
financial services and products. It also shapes
an environment free of discrimination or
harassment, and protects customers’ privacy
and personal data. Moreover, it endeavors to
maintain respect and trust, and responsibility
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Environmental
protection
Environment
Overall status
and obligation of both parties so as to seek a
win-win opportunity between the Company
and its customers.
The Company is belonged to the financial
industry, namely the low-polluting industry.
Over the course of operations and providing
services, it mainly uses energies, such as
electricity and gasoline. For the purpose of
implementing
energy-saving
and
carbon-reducing policies, the implementation
starts from the root. Such as choosing products
with energy-saving labels especially for
information devices, air-conditioning devices
and lighting devices of major source of
electricity consumption. Although it may
increase procurement costs, it could lessen the
burden on the environment and fulfill the
Company’s partial responsibility for the
society. Moreover, it also adopts the principle
of simplicity and lightness to conduct the
decorations for the cubicles in offices and
business premises, and uses green construction
materials to reduce the consumption of earthy
resources.
◎ Promotion of electronic application of
systems
Electronic trading: It can reach the purpose of
speedy trading directly and exempt the
consumption of energy derived from customer
making the travel to the business premises in
person indirectly. Moreover, it reduces energy
consumption of lighting and air-conditioning
required in the business premises to receive
customers.
In addition to the convenient internet banking
services offered to general customers, Jih Sun
FHC’s bank subsidiary also establishes the
Corporate Internet Banking to provide
corporate customers with a platform of fund
allocation
and
achieve
full-functional
electronic services.
For the electronic trading services provided by
◎
◎
◎
◎
Employee
hygiene and
safety
Employee
benefits
Talent
Society
Occupational health
and safety
Society
Employee-employer
relationship
Society
Jih Sun Securities, aside from the introduction
of HTS computer-enabled real-time transaction
system that was precedent in the industry, it
also developed Jih Sun Warrant Website to
adapt to the warrant exchange, which was
awarded the 12th term of Golden Torch Award
– Annual Innovative Award, making it the only
securities firm to receive such award in that
year.
Electronic transmission of official documents:
Jih Sun FHC established the official document
electronic transmission system in 2005, which
not only reached the objective of paperless
operation and treasuring global resources, but
also facilitated the tracking of flow of official
documents.
◎Procurement of energy-saving devices
Computer devices: We choose world-famous
brands that have obtained environmental or
energy-saving certificates while making
procurements, and in the procurement
contracts with suppliers, suppliers shall
commit that the products provided are in line
with the applicable laws and regulations with
respect to environment protection, safety and
hygiene.
The Company care employees’ physical and
mental aspects by conducting employee free
health examinations, which are coupled with
the
psychological
consulting
service
“Employee Assistance Program,” on a regular
basis. Meanwhile, it also has automated
external defibrillators (AEDs) in place to offer
employees the safest environment.
The Company has been promoting a friendly
working environment for years. It offers
employees a convenient working space, and
establishes infrastructure ranging from nursery
room, changing room, rain coat room, to
shower room, based on all demands of
employees.
Jih Sun establishes a comprehensive career
◎
◎
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◎
development
and
cultivation
Training and
education
Legal
compliance
Society
Compliance with
laws and
regulations
Protection of
customer
rights and
interests
Privacy topic
Society
Customer privacy
Society
Customer privacy
development
ecosystem,
including
“Prior-study and cultivation of new
employees,” “Career map,” and “Training for
reserved associates” in correspondence with
organizational objectives and HR training and
development policies. It took part in the “8th
Term of National Talents Development
Awards” and was recognized by being
awarded the top 10 shortlisted candidates. In
2003, it also acquired the bronze medal of
“TTQS.” It ensure the colleagues’ rights and
interests of development and learning through
the comprehensive quality management and
development system of employee training,
enabling each employee to head toward every
target steadily with the assistance of Jih Sun’s
systematic cultivation mechanism.
Legal compliance plays an important role in
the Company’s internal control system. The
Company has a legal compliance officer and
establishes a legal compliance unit to assist the
legal compliance officer in planning, managing
and executing the legal compliance system.
The Company sets the rules governing
cross-selling and the relevant management
measures so as to implement the protection
and inspection of name lists before and after
activities. Moreover, it strengthens the
management and control of usage of personal
computers and law common knowledge of
employees so as to guarantee the transmission
and processing of customer data is intact. All
product contracts shall state the rights and
interests pertaining to collection, processing
and usage of customer data, and all business
and external advertising documents shall
comply with legality. The Company takes the
initiative to advise customers the relevant
details, enabling customers to understand and
guard personal rights and interests.
The Company and its subsidiaries establish the
rules and regulations for personal data
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Service
quality and
customer
satisfaction
Society
Product and service
labeling
Customer
grievance
mechanism
Society
Product and service
labeling
Social welfare
Society
Social welfare
protection, exercise analysis of impacts on
personal data management and assessment of
personal data management system, and review
the access to customers’ data on a regular
basis. It also strengthens the recovery and
destruction system after marketing lists are
used.
In order to understand customers’ assessment
on the products and services of the
subsidiaries, the Company appoints external
institutions to execute the satisfaction survey
on a yearly basis, which acts as the reference
of service enhancement in years to come.
The Company’s subsidiaries all establish a
customer grievance mechanism, allowing the
responsible units to handle product disputes or
suggestions for service demands and enabling
the operations of the subsidiaries to be in line
with the relevant laws and regulations in order
to solve customers’ doubts.
The FHC has always viewed corporate social
responsibility as one of the Company’s core
values. It devotes a lump sum of talents,
techniques and management ability into it
based on the philosophy of “Taken from
society and giving back to society.” It does not
hesitate to pump in a tremendous amount of
money to commit to the promotion of all types
of public welfare activities, ranging from care
for the employees, care for the society to care
for the environment. It plays its role as a
corporate civilian actively across charity, art
and environmental protection. It made
donations of used computers in 2014 to help
children in distant townships access digital
learning more. By doing this, it hopes to set an
example of a good deed for others and call for
more enterprises in the society to join the
public welfare activities and fulfill their social
responsibility.
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6. Corporate Governance
6-1. Corporate governance
Jih Sun Financial Holdings was established in accordance with the Financial Holding
Company Act, the Company Act and the relevant laws and regulations. For the
implementation of corporate governance, the highest quality of integrity is adopted to form
the corporate culture and achieve the sound development. The following are the status and
adopted measures for the implementation of business operation with integrity:
Measures
Explanation
Top Priority for Customers and Services
Jih Sun Members' Creed
Top Concern for Credit and Honesty
Principal Focus on Harmony and Performance
Confidence in Jih Sun – the foundation of success
The 3 Jih Sun Spirits
Loyalty and responsibility – the foundation of humanity
Pursuit of efficiency – the key to growth
To implement the system of corporate governance. To ensure
the conducts of the Company’s directors, independent
directors (hereinafter referred to as the directors together) and
Codes of Ethical Conduct for
Directors and Managers of Jih
Sun Financial Holding Co.,
Ltd.
managers (including the President and person who performs
equivalent duties, the Vice President and person who
performs equivalent duties, Assistant V.P. and person who
performs equivalent duties, supervisors of the financial
department, supervisors of the accounting department, and
other persons who administrate matters for the company and
have the authority to sign) are in line with moral standards set
forth in the Rules.
25
In order to protect the Company’s benefits, the management
of outbound donations is stipulated for Jih Sun Financial
Holding Co., Ltd. and all its subsidiaries and sub-subsidiaries
of which it has controlling power. The Rules are enacted
based on the Corporate Governance Best-Practice Principles
The Rules Governing the
for Financial Holding Companies and the Income Tax Act so
Donation of Jih Sun Financial
as to ensure compliance.
Holding Co., Ltd.
The FHC shall proactively take part in social non-profit
activities. When it makes donations externally, it shall
consider its ability to afford and the society’s public benefits
deliberately, and it hopes to respond to the anticipations of
the
society,
competent
authorities,
customers
and
shareholders.
To maintain the trust and harmony in the employee-employer
relation, employees shall fulfill the honest obligations as
follows:
1. The business, customer status and business secrets of the
FHC shall be kept in high confidentiality and not be
disclosed to non-related colleagues. The same shall be
applicable after resignation. However, exceptions shall be
made to the case approved by the competent authorities,
Work Rules of Jih Sun
required for the inter-bank business, or approved by
Financial Holding Co., Ltd.
customers.
2. Integrity behaviors must be kept and attention shall be
paid to protect the Company’s reputation. Employees may
not take advantage of the relationship at work to ask for
treats, gifts or accept commissions, rewards and other
illegal benefits from customers.
3. Employees shall behave with discretion, do not use drugs,
do not keep bad habits such as gambling, or engage in any
acts that violate the laws or damage the Company’s
26
reputation.
4. Other dishonest behaviors that damage the Company’s
rights and interests or reputation.
(1) Operation of board of directors
To set up a good governance system for the Company’s board of directors and
strengthen the management mechanism, the organization and operation of the
Company’s board of directors has been conducted in accordance with the Articles of
Incorporation and the rules governing job responsibilities and range provided in the
Rules of Procedures for Board Meetings of the Company. Moreover, the matters
with respect to the agendas, including the contents of major agendas, operating
procedures, items shall be recorded in the proceedings and other matters shall be
complied with, shall be stipulated in order to ensure compliance.
The Company fully discloses its information and increase the transparency of capital
market. It was rated “A++” – the highest rating – in “11th and 12th terms” of
Information Disclosure System Evaluation held by the TWSE Corporate
Governance Center. In the 1st term of Corporate Governance Evaluation held by the
Securities and Futures Institute, the Company was among Top 5% of TPEx Listed
Companies. It enables investors to obtain material company information to act as
reference of investment, which suggests the company’s determination and devotion
to enhancing corporate governance.
For the purpose of implementing corporate governance, and strengthening the
independence and functionality of the board of directors, the Company convened a
shareholders’ ordinary meeting on Jun 19, 2009 to approve the proposal of
amending the Articles of Incorporation. It established the “Audit Committee”
pursuant to the laws and regulation and the Articles of Incorporation, and abolished
the supervisor system. The commission is composed of all independent directors,
some of whom have expertise in finance, tax affairs, legal affairs or accounting.
Such committee will operate to optimize a sound supervision functions and
strengthen the management, and fulfill the spirits of corporate governance. It set the
Company’s organizational rules for the Audit Committee. For the exercising of
powers of the Audit Committee and other matters to be complied with, it shall be
complied with in accordance with the Articles of Incorporation, the application laws
and regulations and the Company’s rules. When an independent director in the
Company’s Audit Committee is an interested party in an agenda of the meeting and
may prejudice the Company’s interests, he or she shall recuse himself or herself
from taking part in the course of such agenda. Moreover, the Committee may ask
the managers, internal auditors, CPAs, legal consultants or other people of the
relevant departments to attend the meeting and provide necessary information.
1. Communication of independent directors and internal audit supervisor:
27
(1) Before the end of each fiscal year, an audit plan for the following year
shall be approved by the Audit Committee and then submitted to the board
of directors for resolution.
(2) The Audit Division reports the execution of the audit business to the Audit
Committee on a quarterly basis.
(3) The Audit Division delivers the internal audit report to the Audit
Committee for review within two months after the completion of an
inspection.
(4) The Audit Division shall continue to follow up and review on the
examination opinions or audit deficiencies brought up by the financial
examination organization, the Audit Division, or in the self-assessments of
internal units, and the items that shall be improved as listed in the
statement of internal control. Moreover, it shall submit a written report on
the follow-up and appraisal of improvement status to the Audit
Committee.
2.
(5) The appraisal on the effectiveness of the Company’s internal control
system and the statement of internal control in a year shall be submitted to
the Audit Committee for deliberation.
Communication of independent directors and CPAs:
(1) The Company’s annual financial statements and semi-annual financial
statements shall be approved by over half the Audit Committee members
before they are submitted to the board of directors for resolution. Before
the Audit Committee review the financial reports, they will arrange a
project meeting and invite CPAs to make a comprehensive report on the
issuance of inspection opinions based on the inspection results. As for
corporate governance and internal control, it also invites independent
directors and CPAs and the management team to take part in discussion
and communication, and the Company’s relevant departmental managers
also attend the meeting to provide necessary information timely.
(2) The Company assesses the independence of the CPAs that are hired once
on a yearly basis. For the appointment of CPAs, the statement of
independence of the CPAs and their inspection team members have been
obtained each year to allow the Company’s Audit Committee and the
board of directors to review. Moreover, the Company hasn’t changed
CPAs for 7 straight years. The appointment of CPAs for financial
statements of year 2015 has been adopted by the 31st meeting of the 2nd
term Audit Committee and the 29th meeting of the 5th term board of
directors on Jan 22, 2015. KPMG Accounting Firm was appointed to act
as the Company’s CPA. The original CPAs were Chen Fu-Wei and Chung
Dan-Dan (from the financial statements for Q4, 2008 to the financial
28
statements for Q4, 2014), whom were replaced by CPAs Chen Jun-Guang
and Lee Feng-Hui (from the financial statements for Q1, 2015 till now).
In order to optimize sound remuneration policies and systems, the Company
convened a board meeting on Sep 28, 2011 to approve the establishment of the
Company’s Remuneration Committee and enact “The Organization Rules
Governing the Remuneration Committee of Jih Sun Financial Holding Co., Ltd.”
The Company also convened a board meeting on Jan 17, 2014 to approve the
assignment of all independent directors to act as the members of the Remuneration
Committee so as to reinforce the performance appraisal and remuneration
management of the directors, the mangers and the subsidiaries. The professional
qualifications of such members, exercising of preset powers and the relevant matters
shall be conducted in accordance with the relevant laws and regulations.
In order to increase the degree of participation of shareholders and enhance
corporate governance, from 2012, shareholders may exercise voting rights by
adopting electronic means at a shareholders’ meeting, and the Company conducts
voting by poll on each agenda, enabling shareholders to fully express their opinions
on the agenda and showing the Company’s efforts to optimize and protect
shareholders’ rights and interest. In 2013, the shareholders’ meeting adopted the
amendments to the Company’s Articles of Incorporation and the Rules Governing
the Election of Directors. The Company’s election of directors adopts the candidate
nomination system so as to strengthen the transparency of examination of
nomination of directors. The board of shareholders will elect directors from the list
of director candidates. This implements the protection of shareholders’ rights and
interests and allows shareholders to participate via multiple channels.
The Company’s board of directors convenes a meeting every month on average. The
Chairman convenes and presides at the meeting. In 2015, a total of 13 board
meetings have been convened. The attendance rate (including proxy) of the directors
on average was 100%. Based on the Company’s Rules for Procedures of Meetings,
all directors ratify an effective and proper internal control system, the Company’s
management decision-making, business plans and future development directions,
and exercise powers ranging from monitoring execution status, establishing an
effective risk management mechanism, ratifying financial targets, and monitoring
achievement, in order to keep enhancing management performance, protect the
rights and interests of investors and other interested parties and manage risks
pertaining to the environment and society. In 2015, the Company and its
subsidiaries made 7 donations in total. “Execution of Donations in 2015” has been
reported at the 9th meeting of the 6th term board of directors meeting. The material
resolutions made by the Company’s board of directors are all disclosed on the
Company’s website for the reference of investors.
29
When a director himself or herself or the juristic person such director represents has
an interest relationship with an agenda at a meeting, which may prejudice the
Company’s interests, such director shall recuse himself or herself from participating
in discussion and voting in order to follow the principle of avoiding conflicts of
interest and adhere to high standard self-discipline spirits. Neither shall such
director exercise voting rights as an acting director. The recusal status shall be
disclosed in the Company’s annual report so as to protect all shareholders’ rights
and interests.
For the purpose of strengthening exchange and interaction of corporate governance
experience and improving finance-related professionalism and law knowledge, all
the Company’s directors shall follow the “Directions for the Implementation of
Continuing Education for Directors and Supervisors of TWSE Listed and TPEx
Listed Companies” to take continuing education courses on corporate governance.
In 2015, the number of hours of continuing education made by the overall directors
was 109 hours. The Company also disclosed the status of continuing education on
the Market Observation Post System and in the Company’s annual report for the
reference of investors.
The Company’s 6th term board consists of 11 directors, including 3 independent
directors and 8 non-independent directors. The board members are diversified and of
different professional experiences and background, and possess the knowledge,
skills and literacy required for exercising job duties. One board member is female,
and the ratio of female director to all directors is 1:11. The tenure of directors is
three years, and they may be re-elected.
Here are the details of Jih Sun Financial Holding Co., Ltd.’s 6th term board of
directors: (data base date: Mar 31, 2016)
Title
Current positions in Jih Sun Financial
Holding Co., Ltd. and other
companies
Bachelor of Law, National 1. Chairman
of
Jih
Sun
Taiwan University
International Commercial Bank
Master Degree, Sun Yat-Sen Limited
University
2. Director of Jih Sun Securities
President and Vice Chairman Co., Ltd.
of Ta Chong Securities Co., 3. Director of Jih Sun Venture
Ltd.
Capital Co., Ltd.
President and Vice Chairman 4. Director of Yong Li International
of Waterland Securities Co., Development Co., Ltd.
Ltd.
President of Ta Chong Bank
Ltd.
President of King’s Town Bank
Major career (academic)
achievements
Name
1.
2.
3.
Capital Target
Limited
Chairman
Representative:
4.
Huang Ching Tang
5.
6.
30
1. Juris Doctor, St. John’s 1.
University School of Law
2. MBA, Columbia University 2.
SIPF B.V.
Vice
Graduate School of Business
Representative:
Chairman
3. General Manager, Shinsei 3.
James C. Tang
Bank
4. Manager, Merrill Lynch
5. Licensed Attorney in USA
1. Master of Law, Soochow 1.
University
2. Partner Accountant of Xu Yao
Accounting Firm
2.
3. Lawyer of Gongdao Law
Office
3.
4. Licensed accountant of Ernst
& Young
4.
5. Chief Accountant of An Chen
Accounting Firm
5.
Independent
Lin Chih Chung
Director
6.
1.
Independent
Director
2.
3.
Yeh Min Kung
1.
2.
Independent
Director
Tong Joseph
3.
4.
Chairman of Jih Sun Securities
Co., Ltd.
Director of Jih Sun International
Commercial Bank Limited
General Manager, Shinsei Bank
Independent Director of Jih Sun
International Commercial Bank
Limited
Independent Director of Jih Sun
Securities Co., Ltd.
Independent Director of Eson
Precision Engineering Co., Ltd.
Lead
accountant
of
AY
Commercial Law Offices
Supervisor
of
LoFTech
Corporation.
Independent Director of Cayman
Tung Ling Co., Limited
7. Supervisor of Guang Chang
Asset Management Co., Ltd.
8. Supervisor of DMS International
Inc.
9. Chief Accountant of An Chen
Accounting Firm
10. Supervisor of Jinghe Health
Enterprise Co., Ltd.
Master of Law, Soochow 1. Independent Director of Jih Sun
University
International Commercial Bank
Tie-E Attorney-at-Law
Limited
AY Commercial Law Offices 2. Independent Director of Jih Sun
Securities Co., Ltd.
3. Partner of AY Commercial Law
Offices
4. Supervisor of Ernst & Young
Asset Management Co., Ltd.
Bachelor of Sociology, The 1. Independent
non-executive
University of Hong Kong
Director of Carry Wealth
Master
of
Business
Holdings Limited (Hong Kong)
Administration, the Chinese
University of Hong Kong
Senior
member
of
the
Association
of
Chartered
Certified Accounts, UK
Managing Director and Chief
Executive Officer of Sun Hong
Kai Ltd. (Capital Market and
Institutional Brokerage)
31
Director
SIPF B.V.
Representative:
Masaaki
Sakamoto
Director
SIPF B.V.
Representative:
Chunmei Huang
Director
Capital Target
Limited
Representative:
Huang Flynn
Xuxian
Director
Capital Target
Limited
Representative:
Yang Chih Kuang
1. Bachelor of Commercial 1. Senior Manager of Shinsei
Science from Hitotsubashi
Bank
University
2. Representative officer of SB
of
corporate
Advisors Co., Ltd.
2. Experience
finance both in Tokyo and
Hong Kong
3. Experience of debt investment
4. Experience
of
asset
management
1. Kobe University:
Shinsei Bank Private Equity
MBA(Management system)
Investment Office Manager
2. AICPA
3. CFA
4. Shinsei Bank, Limited (Private
Equity Division)Manager
5. Raffia Capital Inc., Supervisor
6. Yamaichi Co., Ltd., Supervisor
7. Raffia Partners, Inc.,
Supervisor
1. Master
of
Business 1. Director of Jih Sun International
Administration, University of
Commercial Bank Limited
Chicago
2. Director of Jih Sun Securities
Co., Ltd.
2. CPA, Ernst & Young
3. Co-founder and director of 3. Chairman of Jih Sun Life
Wealth Bank Los Angeles,
Insurance Agency Co., Ltd.
USA
4. Director of Jih Sun Futures Co.,
4. Independent Director of Jih
Ltd.
Sun International Commercial 5. Director of Jih Sun Venture
Bank Limited
Capital Co., Ltd.
5. Independent Director of Jih 6. Director of Taiwan Futures
Sun Securities Co., Ltd.
Exchange Corporation
6. Director of Carry Wealth 7. Director of Capital Target
Holdings Limited (Hong Kong)
Limited
1. MBA of Azusa Pacific 1. Director of Jih Sun International
University
Commercial Bank Ltd.
2. Nickent Golf. Inc., General 2. Director of Jih Sun Securities
Manager
Co., Ltd.
3. Jack
Tam
Accountancy, 3. Chairman of Jih Sun International
Corporation Senior Accountant Property Insurance Agency Co.,
Ltd.
4. Chairman of Jih Sun Futures Co.,
Ltd.
5. Director of Jih Sun Venture
Capital Co., Ltd.
6. Director of Capital Target
Limited
32
Director
Capital Target
Limited
Representative:
Tse Chi Wai
1. Bachelor of Social Sciences, 1.
the University of Hong Kong
2. Director of AGCA CPA 2.
Limited HK Branch
3. Financial
Controller
and 3.
Secretary
of
Shandong
Jinchuang Co., Ltd.
Controller
and 4.
4. Financial
Secretary of Shanxi Sanyuan
Coal Industry Co., Ltd.
5. Independent
non-managing
director of Greens Holdings 5.
Ltd.
6.
7.
Director
1. Simon Fraser University
1.
Capital Target
2. Financial Consultant of TD
Limited
Bank / TD Trust
2.
Representative:
Kai Wun Kevin
3.
Wong
Director of Jih Sun International
Commercial Bank Ltd.
Director of Jih Sun Securities
Co., Ltd.
Independent
non-executive
Director of China Environmental
Technology Holdings Limited
Financial
Controller
and
Secretary of China Information
Technology
Development
Limited
Executive Director of China
Information
Technology
Development Limited
Independent
non-executive
Director of Sunac China
Holdings Limited
Independent
non-executive
Director of Launch Tech Co.,
Ltd.
Director of Jih Sun International
Commercial Bank Ltd.
Director of Jih Sun Securities
Co., Ltd.
Vice President of Capital Target
Limited
Note 1: The Company’s 6th term board of directors were re-elected on Jun 12, 2015.
Note 2: SIPF B.V. re-appointed Ippei Matsubara as its representative of juristic person director
on Nov 6, 2015, and the original director Nitin Bajpai retired at the same time.
Note 3: SIPF B.V. re-appointed Masaaki Sakamoto as its representative of juristic person
director on Mar 8, 2016, and the original director Ippei Matsubara retired at the same
time.
(2) Operation of different types of functional committees established under the
Company’s board of directors.
A.
“Audit Committee”
The Committee enacted “The Organization Rules Governing the Audit
Committee of Jih Sun Financial Holding Co., Ltd.” The Committee consists
of solely independent directors, and its major operational purpose is to
supervise the matters as follows:
a. Adequate expression of the Company’s financial statements
b. The appointment (dismissal) of CPAs and their independence and
performance.
c. Effective execution of the Company’s internal controls
d. The relevant rules and regulations that the Company complies with.
e. Management and control of the Company’s existing or potential risks.
33
f. Other items as prescribed in other laws and regulations and the
Company’s Articles of Incorporation.
B.
The FHC established the Remuneration Committee and enacted “The
Organization Rules Governing the Remuneration Committee of Jih Sun
Financial Holding Co., Ltd.”
(A) Job duties:
a. To set and review the performance appraisal of the directors and
managers, as well as the policies, systems, standards and
structure of the remuneration on a regular basis.
b. To evaluate and set the remuneration of the directors and
managers periodically.
(B) Composition and functioning:
The Committee is detached from the Company’s management, and
the members are selected by the board of directors. Moreover, all
members elect an independent director to act as the convener and
meeting chairperson. The convener of this term is independent
director Tong Joseph. 6 meetings were convened in 2016, and the
attendance rate was 83% on average.
(C) Remuneration policies:
a. Explanation of the Chairman’s remuneration
(1) Policies with respect to payment of remuneration: Policies
with respect to remuneration of directors are prescribed in
Article 19-5 of the FHC’s Articles of Incorporation, and
such policies are handled after approved by the board of
shareholders.
(2) Standard and composition of remuneration: Remuneration
items contain the compensation, the distribution of surplus
profits and the business execution expense.
(3) Enactment of the remuneration procedures: In addition to
the principles of the remuneration of directors provided in
the FHC’s Articles of Incorporation, the FHC also assigns
professional institutions to carry out a peer salary survey,
and refers to the peer standard to set the Company’s salary
system and salary policies.
(4) Connection between the remuneration and the business
performance: The board of directors is given the authority
to deliberate the payment of remuneration based on degree
of a director’s involvement in the business, the value of
contribution and the earning status, as well as with
reference to the standard of the peers.
34
b. Explanation of the managers’ remuneration
(1) Policies with respect to payment of remuneration: To grant
relatively reasonable remuneration to a position based on
the responsibilities undertaken by a manager. The
Company also assigns professional institutions to provide
the salary standard of the peers as reference with
consideration of factors, such as attraction and retention of
outstanding managers.
(2) Standard and composition of remuneration:
i. Base salary, allowance and supervisory additional pay:
To be ratified in accordance with the FHC’s Rules
Governing Wages and Salaries of Employees.
ii. Performance bonus: The FHC’s performance appraisal
system is to give performance appraisal grades based
on “The Rules Governing the Employees’
Performance Management and Development,” and to
issue employee performance bonus by linking the
appraisal results to the Rules Governing Performance
Bonus.
iii. Employee bonus: To be conducted in accordance with
Article 23 of the FHC’s Articles of Incorporation.
(3) Enactment of the remuneration procedures:
i. The FHC referred to the salary standard of the peers to
establish the “Rules Governing Wages and Salaries of
Employees,” which were approved by the board of
directors. Moreover, the Chairman is authorized to
make ratification based on the salary grade table in the
“Rules Governing Wages and Salaries of Employees.”
(with reference to the letter of interpretation of the
Ministry of Economic Affairs, Letter of Jing-Shang-Zi
No. 0902415710).
ii. The FHC establishes the Remuneration Committee to
review salary and remuneration on a regular basis and
provide opinions about remuneration for the directors
from time to time.
(4) Connection between the remuneration and the business
performance: The FHC set “The Rules Governing the
Employees’ Performance Management and Development”
and evaluates the performance of managers, based on
which performance bonus will be paid. It also considers
35
future risks and does not issue bonus in the same month. A
deferred mechanism has been established.
(D) Disclosure of interested parties
Information pertaining to the FHC’s policies with respect to payment
of remuneration, standard and composition of remuneration,
enactment of the remuneration procedures, and connection between
business performance and future risks has all been fully disclosed in
the Company’s annual report, enabling all interested parties to
become fully aware of it.
(3) Operation status of different types of functional committees established under the
Company’s management departments.
A.
“The Risk Management Committee” performs the following duties:
a. To research and enact the FHC’s risk management policies.
b. To evaluate the risk profile related to the FHC and its subsidiaries.
c. To deliberate the risk indicators or limits monitored by the Risk
Management Division.
d. To deal with the risk irregularity of the FHC and its subsidiaries
instantly.
e. To set up the framework of the risk management system.
f. To control and manage all the risks of the subsidiaries instantly.
B. “The Asset and Liability Management Committee” performs the following
duties. The Committee may convene meetings at any time based on the
needs.
a. To review the FHC’s overall asset and liability management policies.
b. To deliberate the supervision and control of asset and liability
management of all subsidiaries.
c. Financial budgets and performance, as well as cost management.
C. “The Product Committee” performs the duties as follows:
a. To deliberate new types of financial instruments of the FHC and its
subordinate companies.
b. To deliberate new business categories of the FHC and its subordinate
companies.
c. Other matters that shall be reported to the Committee for deliberation
based on the resolution by the Committee.
D. “The Personnel Evaluation Committee” performs the duties as follows:
a. To deliberate the material HR strategies and projects of the FHC.
b. To assess the matters regarding rewards and punishment for employees.
(4) Explanation of the remuneration for directors and managers of the Company
36
1. Explanation of the Chairman’s remuneration
(1) Policies with respect to payment of remuneration: Policies with respect
to remuneration of directors are prescribed in Article 19-5 of the
FHC’s Articles of Incorporation, and such policies are handled after
approved by the board of shareholders.
(2) Standard and composition of remuneration: Remuneration items
contain the compensation, the distribution of surplus profits and the
business execution expense.
(3) Enactment of the remuneration procedures: In addition to the
principles of remuneration of directors provided in the FHC’s Articles
of Incorporation, the FHC also assigns professional institutions to carry
out a peer salary survey, and refers to the peer standard to set the
Company’s salary system and salary policies.
(4) Connection between the remuneration and the business performance:
The board of directors is given the authority to deliberate the payment
of remuneration based on degree of a director’s involvement in the
business, the value of contribution and earning status, as well as with
reference to the standard of the peers.
2. Explanation of the managers’ remuneration
(1) Policies with respect to payment of remuneration: To grant relatively
reasonable remuneration to a position based on the responsibilities
undertaken by a manager. The Company also assigns professional
institutions to provide the salary standard of the peers as reference with
consideration of factors, such as attraction and retention of outstanding
managers.
(2) Standard and composition of remuneration:
i. Base salary, allowance and supervisory additional pay: To be
ratified in accordance with the FHC’s “Rules Governing Wages
and Salaries of Employees.”
ii. Performance bonus: The FHC’s performance appraisal system is
to give performance appraisal grades based on “The Rules
Governing the Employees’ Performance Management and
Development,” and to issue employee performance bonus by
linking the appraisal results to the “Rules Governing Performance
Bonus.”
iii. Employee bonus: To be conducted in accordance with Article 23
of the FHC’s Articles of Incorporation.
(3) Enactment of the remuneration procedures:
37
i. The FHC referred to the salary standard of the peers to establish
the “Rules Governing Wages and Salaries of Employees,” which
were approved by the board of directors. Moreover, the Chairman
is authorized to make ratification based on the salary grade table in
the “Rules Governing Wages and Salaries of Employees.” (with
reference to the letter of interpretation of the Ministry of
Economic Affairs, Letter of Jing-Shang-Zi No. 0902415710).
ii. The FHC establishes the Remuneration Committee to review
salary and remuneration on a regular basis and provide opinions
about remuneration for the directors from time to time.
(4) Connection between the remuneration and the business performance:
The FHC set “The Rules Governing the Employees’ Performance
Management and Development” and evaluates the performance of
managers, based on which performance bonus will be paid. It also
considers future risks and does not issue bonus in the same month. A
deferred mechanism has been established.
The following is the Company’s organizational structure:
Shareholders’
meeting
Audit Committee
Remuneration Committee
Asset & Liability Committee
Board of
directors
Chairman
President
Risk Management
Audit Division
Product Committee
Risk Management Committee
Personnel Evaluation
Committee
Subsidiaries
President’s Office
Compliance and Legal
Division
E-Commerce
Division
Financial Planning
Division
Administration
Division
IT Division
6-2. Internal control and audit system
In order to maintain effective and proper functioning of the internal control system, the
FHC sets the internal audit system, the self-assessment system, the legal compliance system
and the risk management mechanism in accordance with the “Implementation Rules
Governing the Internal Audit and Internal Control System of Financial Holding Companies
38
and Banking Industries.”
The Company established the Audit Division under the board of directors, which performs
audit duties in an independent and detached manner, and reports audit duties to the Audit
Committee and the board of directors regularly. The company adopts the Chief Auditor
system to unify the audit duties. The Chief Auditor may, based on business needs, transfer
internal auditors of the subsidiaries to deal with internal audit work of the Company and its
subsidiaries, and such auditor shall be held responsible for ensuring the maintenance of a
proper and effective internal audit system of the Company and its subsidiaries ultimately.
The Audit Division conducts audits based on the annual audit plan so as to assess whether
the internal control system is functioning effectively and provides suggestions for
improvement timely. It shall conduct a general-audit on the FHC at least once annually and
a target-audit on the finance, risk management and legal compliance of the FHC and its
subsidiaries at least once every half a year, and compile an internal audit report to submit to
the independent directors and the Audit Committee for review within two months after the
end of the audit. The audit report shall also be reported to the competent authorities in a
prescribed format for recordation.
6-3. Risk management
In view of the subprime mortgage crisis in 2007 followed by the financial crisis in 2008 and
2009, the attention that risk management has received nowadays cannot be mentioned in
the same breath as before. The FHC especially focuses on a risk management culture of
“every employee being a risk management staff member,” namely we emphasize that every
employee is involved in risk management, and ensures the implementation of risk appetite
(or risk limit) realistically so as to strive for sustainable and steady business operation of the
Company. The FHC also has a crisis-dealing and emergency responsive organization that
can control the message of the occurrence of disasters and crisis effectively so as to
command the subsequent handling timely and reduce damages to the minimum level. Thus,
customers’ rights and interests may be protected.
Organizational structure of risk management of the FHC and its subsidiaries
39
Board of directors of Jih Sun FHC
Audit Division
Risk Management Division
Chairman of Jih Sun FHC
Credit Risk Dept.
Risk Management Committee
Market Risk Dept.
President of Jih Sun FHC
Operational Risk Dept.
Ris k Manag eme nt Divis ions of b ank/s ecuri ties s ubs idiaries
Risk control and management units in businesss departments
(1) Board of directors: Responsible for approving risk management policies and
regulations and risk management structure and culture, and holds the ultimate
responsibility for the overall risk management.
(2) Risk Management Committee: Responsible for reviewing the risks the FHC and its
subsidiaries involve in, deliberating material risk limits of the FHC and its subsidiaries,
handling material irregular events, and establishing the framework of risk management
system.
(3) Audit Division: Under the board of directors and responsible for planning and
execution of audit work.
(4) Risk Management Divisions of the FHC and its subsidiaries: Under the board of
directors and responsible for establishing an efficient and scientific risk management
structure and system, identifying, analyzing, evaluating and managing the relevant
risks that are facing the entire enterprise of Jih Sun FHC and providing the relevant
suggestions based on the needs, assisting in balancing risk and reward derived from
achieving the business strategies, and ensuring the execution of risk management is
consistent with the decisions of the Risk Management Committee.
(5) Risk control and management business units: The focus is on the first line of defense in
the middle of business practices. In addition to maintaining the original risk control
mechanism, making management based on the risk management rules and regulations
of all business departments and executing risk stop-loss rules strictly, the business units
must abide by the FHC’s overall risk management standards and reduce risk positions
in due time.
40
Reporting and functioning mechanism of risk management and control of the FHC and its
subsidiaries (Three lines of defense of risk management)
Board of directors
Senior management
Identify,
analyze,
evaluate and
manage the Audit on
relevant
different
risks, assist types of
in balancing business
risk and
separately
reward
derived
from
achieving
the business
strategies
Comply
with laws
and
regulations
and risk
manageme
nt
standards,
implement
risk control
strictly
Risk management in
Risk Management
business units
Division
Audit Division
Overview of capital adequacy ratio the FHC and its subsidiaries
Capital adequacy ratios (as listed in the table below) calculated by the FHC and its subsidiaries on
Dec 31, 2015 (base day) are far higher than the minimums required by the competent authority (the
FSC). The Company owns robust risk tolerance ability and a stable system that are sufficient to
protect customers’ rights and interests fully.
Company
Jih Sun
Bank
Jih Sun
Securities
Jih Sun
FHC
BIS
13.64%
686.59%
203.60%
Tier 1 capital ratio
11.38%
686.59%
－
Common equity tier 1 ratio
11.38%
－
－
Capital adequacy
41
Major concrete acts of risk management systems of the FHC and its subsidiaries over the
years
Started to set up Jih Sun internal credit rating (Jih Sun internal credit rating).
The first FHC in Taiwan to introduce J.P. Morgan Risk Metrics, the VaR management
Completed the setup of the asset and liability risk management system to monitor the structural
interest rate risks of the entire FHC and its subsidiaries.
Completed the establishment of the VaR management system for market risk and
began to monitor market risk of the entire FHC and its subsidiaries based on VaR.
Announced the risk management policies, the market risk management measures, the
credit risk management measures and the asset and liability management measures.
Completed the installation of Jih Sun internal credit rating, which acted as the
criteria for incoming case of credit loans internally.
Completed the installation of Basel BIS calculation and provision
platform by using Standardised Approach (SA).
Set up the Bank’s Basel BIS
calculation and provision
platform
(including
the
calculation and provision by
using Standardised Approach
(SA), Foundation Internal
Rating Based Approach
(FIRB)
and
Advanced
Internal
Rating
Based
Approach (AIRB).
Introduced
Fitch
Risk
Management Limited (a
consulting
company)
to
verify the credit ratings and
the PD model built by the
FHC.
The
Company
established the LGD model
and the EAD model at the
same time.
Announced the operational
risk management measures,
completed the setup of the
operational risk management
platform, including Risk &
Control
Self-Assessment,
Key Risk Indicators (KRI)
and Loss Data Collection.
Implemented Basel II.
Utilized the established credit model to
calculate the expected loss as a reference to
set the risk value.
Started to set up the Securities’ Basel BIS
calculation and provision platform.
Completed the
installation of
Basel BIS
calculation
and provision
platform by
using FIRB
and AIRB.
Completed
Securities’
Basel BIS
calculation
and provision
platform
Started to set up the KMV model of
credit risk.
Set up the stress testing for liquidity
risk of the Bank.
Completed the stress testing model for
credit risk of the Bank.
Implemented Basel III.
Completed the setup of the KMV model of credit risk to support
the operation of Jih Sun internal credit rating.
Completed the setup of the stress testing model for liquidity risk.
Completed the setup of a visualized high-end risk management
combat room so as to help senior managers simulate possible
influence and grasp the relevant risk profile.
Completed the setup of the management system of Bank’s liquidity coverage ratio (LCR) and net steady
financial ratio (NSFR) based on Basel III.
42
6-4. Principle of credit extension
It is reasonable to say that the banking industry is the veins of economic development. Banks
absorb deposits of the public and extend loans to enterprises or individuals that need financing. As
a result, the debtors receive the funds required for investment, which facilitates the business
development and the introduction of new technologies and machines, provides the economic
development with nutrition and lays down the foundation for the overall development of Taiwan.
However, can a Bank only focus on its revenue and performance without fulfilling its social
responsibility? The answer to the question is definitely negative.
The outstanding achievements that Taiwan made in the past mainly relied on the
small-and-medium enterprise, namely the major economic system. The blooming development of
Taiwan’s SMEs also created Taiwan’s economic miracle. However, Taiwan has undergone a
relatively large change in the recent decade. The continuous attacks of financial crisis and the
emergence of red supply chain in recent years had hit the country’s export trade repeatedly and
caused a great damage to Taiwan-funded enterprises. The FHC abides by the major financial
policy of “The government supports the banks, which supports industries” and postpones the
reporting of rejected accounts if an enterprise requests for extending the handling time of bounced
checks and the conditions are approved by competent authorities for meeting the qualification. In
addition, the FHC grants extension of loan principal upon maturity to an enterprise which operates
and repays interests normally so to relieve the funding pressure; if an extension still fails to meet
the needs of the debtor company, the Ministry of Economic Affairs and the creditor bank shall
hold meetings to evaluate the possibilities of renewal, extension or settlement agreement.
Meanwhile, the FHC assists SMEs in acquiring working capital and ensures continuous supply of
funds.
Financial crises do not simply affect the enterprises, common worker also suffer from them deeply.
Financial crises arriving one after another result in numerous non-volunteer unemployed workers
who are economic support of the family and the majority of all the family expenses depends on
their income. Their daily life is affected greatly, and they cannot repay the loan. The FHC
provides these non-volunteer unemployed workers with assistance in debt negotiations, helps
them the extend the deadline of loans, lowers loan interest rates or grants them extended deadlines
to help them go through the most difficult time in life, realizing our timely support in their hour of
distress.
The Bank also cooperates with the government to help SMEs to go globally by using innovative
and high-tech service models, and encourage youngsters to innovate by providing them with
policies for funds with respect to innovative management and development boost. It carries out
43
the “Loans of start funds for youngsters following their dreams to start businesses,” the “Loans for
SMEs to upgrade” and the “Project of loans for innovative development of SMEs” to add steam to
youngsters starting business, provide financing service required for business creation, help the
youth form comprehensive entrepreneurship, complete the dream to start business, cultivate them
into SMEs and enable them to operate sustainably. The Company improved the systems relating to
credit investigation and extension relentlessly in recent years in order to accelerate the financing
speed of extending loans to industries, shorten the application procedures, avoid the delay in
financing demands caused by operating procedures and offer industries the maximum support.
The FHC also added the “Equator Principles” (EPs in short) to the Bank’s corporate banking
credit loan policies to state clearly that while reviewing the credit loan projects, it shall
contemplate whether a corporate borrower fulfill the responsibility of environmental protection,
ethical management and a social civilian so as to urge corporates to protect the environment,
operate with integrity and fulfill the social responsibility. The movie “Beyond Beauty – Taiwan
From Above” further deepens our conviction that there is only one Taiwan. If we allow vendors
engaging in commercial practices sabotage the environment recklessly, we will get a dose of our
own medicine. It is believed that the implementation of the “Equator Principles” will be beneficial
to urging corporates to protect the environment. We stand firmly to reject vendors or corporates
violating ethical management and posing social problems and panic (such as vendors involved in
several food safety incidents) without making improvements willfully to apply loans to the Bank.
If the vendor/corporate is belonged to one which loans have been appropriated to or the
vendor/corporate refuses to make improvements, the Bank will raise interest rate on loans when
loans are due, or reduce loans or even recall loans so as to urge it to fulfill the social responsibility.
6-5. Legal compliance
In order to meet the needs of legal compliance and strengthen the Company’s emphasis on law
knowledge, the chief administration unit under the President, the Compliance and Legal Division,
is in charge of planning, management and execution of the legal compliance system of the FHC. It
appoints a high-level supervisor to assume the post of the legal compliance officer of the head
institution, who unifies the legal compliance affairs and reports to the board of directors and the
Audit Committee every half a year.
In order to equip the employees with high morals and stipulate good business behaviors, the FHC
stipulates employee disciplines and guidelines in “The Work Rules of Employees,” which serve as
the standards for every level of employees to comply with. The Company stipulates clear
44
standards regarding the relevant legal compliance matters in the internal rules and regulations
related to all businesses and in the work rules. When an employee performs his or her duties, he or
she shall abide by the relevant laws and regulations and the Company’s rules and regulations. The
Compliance and Legal Division will plan and hold the courses pertaining to legal compliance on
its own or in cooperation with other relevant units on a regular/irregular basis, enabling all levels
of employees of the Company to comply with the relevant laws, regulations and standards based
on the contents of business such personnel undertake.
Among the core business values of the FHC, “Top Concern for Credit and Honesty” in Jih Sun
Members' Creed and “Loyalty and responsibility – the foundation of humanity” in The 3 Jih Sun
Spirits are the foundation of the Company’s operation. We believe firmly that integrity and loyalty
are the origin of all the businesses, and the underlying values are maintaining integrity, promoting
the laws, being practical and fulfilling corporate social responsibility.
When the FHC and its subsidiaries engage in different types of business, a legality assessment
shall be conducted to ensure the compliance with the applicable laws and regulations. For instance,
when it launches new products, services and new types of business, the relevant units shall review
that such practice is compliant with the preset internal review and operating regulations. For the
compliance with Foreign Account Tax Compliance Act (FATCA), the Company has hired an
external consultant to provide guidance and establish necessary operating procedures; it checks
personal data on a regular basis and draws up risk control and management system, and abides by
the standards under the Personal Data Protection Act effectively; it complies with the rules
pertaining to anti-money laundering and countering financing of terrorism to set a prevention
management system and meet the requirements set forth in the applicable standards.
To ensure the daily management of the FHC and its business activities adhering to the relevant
standards constantly so as to promote the business efficiency of the FHC, the only way is through
the implementation of sound legal compliance and internal control systems by the basic level
workers to cultivate and the law-abiding concept of all the employees.
6-6. Morals and honesty
“Top Concern for Credit and Honesty” is a core value of Jih Sun FHC and a working creed of all
the colleagues of Jih Sun FHC. Therefore, in the disciplinary guidelines governing the FHC
employees’ conducts, we clearly prescribe that all the employees must cultivate the virtue of
honesty and be attentive to protect the Company’s reputation. They cannot solicit business
through bribe, sales commission, allowance or other inadequate methods. They cannot take
advantage of the relation at work to ask for treats, gifts or accept commissions, remuneration or
45
other improper benefits from customers. In order to achieve consistency between management and
execution, we include the disciplinary guidelines governing the employees’ conducts to the
trainings of newly-recruited employees and the courses designed for incumbent trainings of all
levels of personnel. Meanwhile, in order to correspond to the needs of internal control
management, irregular rotation systems will be adopted by partial positions so as to prevent
fraudulence from occurrence.
In order to further avoid corruption, the FHC sets up the exposure and reporting mechanism
internally. If any violation of integrity or guidelines governing conducts is found, all employees
can report to the management or the relevant unit via e-mail, communication mail box or in
written form. The mailbox of customers’ opinions is also installed to offer a channel for external
appeals and exposure.
6-7. Investor relationship
Jih Sun FHC establishes the Investor Relationship Dept. to communicate with external parties so
as to reinforce investor relationship and enhance the transparency of financial information and
operating status. It hopes that shareholders and investors may obtain the latest and most accurate
company information of Jih Sun FHC.
The Company continues to enforce the spirit of corporate governance in hopes of laying down a
good foundation for sustainable corporate operations. The Company creates an investor area on
the FHC’s website, which allows investors to inquire material company information, download
company annual reports and financial reports and other material financial data instantly, and
browse the information pertaining to the Company’s shareholders’ meeting. The Company also
discloses material information on the Market Observation Post System at the same time, so
investors may inquire the information.
In addition, the Company establishes a specific contact window for investor relationship and an
email box supporting timely communication with and reply to investors. The Investor
Relationship Dept. will forward to the management investors’ opinions, which serve as reference
of further assessment, adjustment and future decision-making approach.
6-8. Transparency of information disclosure
In order to implement full information disclosure and strengthen information transparency, the
Company adheres to fullness, fairness, transparency and timely disclosure to reinforce the
disclosure of financial business. The Company complies with the applicable laws and regulations
to disclose the relevant information on the internet-based reporting system for public information.
46
It enables investors to understand the Company’s operating status through the convention of
shareholders’ meeting on a yearly basis and monthly announcement of its revenue and unaudited
profit/loss. Meanwhile, it discloses material news in Mandarin and English on the “Market
Observation Post System” pursuant to the rules. It also discloses information, annual reports and
quarterly financial reports in both Mandarin and English on the Company’s website, which
strengthens transparency of information disclosure and enables investors to understand the
Company’s operating guidelines.
In 2015, the Company released 82 pieces of material information in Mandarin and English
respectively on the “Market Observation Post System” and provided investors with information
pertaining to finance, business, operations and material resolutions of the board of directors of the
Company and its subsidiaries as reference of decision-making. TWSE and TPEx assigned the
Securities and Futures Institute to establish the “Information Disclosure Evaluation System” and
rate the transparency of information disclosure made by all domestic TWSE/GTSM-listed
companies. The analysis was based on the information entered into the “Market Observation Post
System” and disclosed in annual reports at shareholders’ meetings, as well as the information
publicized on corporate websites. The Company received recognition of A or higher grade rating
in information evaluation for years, and was rated A++ grade for in both 2014 and 2015. The
Company will keep committing to transparency of information disclosure in hopes of enabling
interested parties to understand the Company's actual operating information and protecting
shareholders’ rights and interests.
47
7. Customers’ Rights & Interests
7-1. Comprehensive quality concepts and culture
The FHC implements its business philosophy, corporate cultures and spirits, which develop into
internal and external attitude behavior and activities. The FHC’s colleagues adhere to Jih Sun
Members' Creed of “Top Priority for Customers and Services; Top Concern for Credit and
Honesty; Principal Focus on Harmony and Performance.” Occupational morals, service etiquette,
risk management and labor security trainings are arranged to newly recruited colleagues, enabling
them to understand occupational morals, service etiquette, awareness of risk and personal security
that shall be paid attention to in the working environment. In addition, law tests and internal
control courses are held periodically to enable employees to fully understand the importance of
the laws and regulations and risk management. The Company also commits to enhancing the
service quality and customer satisfaction.
7-2. Multi-innovative product design
The FHC constantly devotes to the innovation of all kinds of products or services. The specific
investment websites and e-commerce platforms allow customers to understand the trends of
financial instruments and save them the time and cost of searching financial instruments,
including items as follows:
(1) Best mobile wealth management partner: Following the development trends of mobile
commerce, Jih Sun reinforces wealth management services through all kinds of mobile smart
devices (cellphone and tablet). In 2015, it pioneered the peers to introduce the new
generation of trading APP “WTS 5” that covers all products and supports diversified market
information and transaction services, including overseas futures, sub-brokerage of US/HK
stocks, instant activation of e-trading and certificate download, so as to create premium
mobile wealth management experiences.
(2) Enhancement of website functionalities and services: The new version of technical analysis
and market information on Jih Sun Securities’ transaction website supports cross-browser
access and covers product information across domestic centralized market, OTC market,
emerging market and futures market. Meanwhile, it also provides value-added services, such
as group sector, concept sector, industry sector, trading ranking and TAIEX. It offers
customers diversified and convenient information as reference of trading decision-making,
optimizes user navigation and increases the penetration ratio of electronic usage of
customers.
(3) Expert system “HTS 2”: The new generation of market observation and order placement
48
software developed by Jih Sun itself. It applies similar-to-Google Chrome user design to
create excellent user experiences, including value-added services (such as information about
concept sector, news think tank, industry supply chain blue print and the relevant search
results) of different data, enabling customers to grasp market movements and make decisions
precisely and enhancing the depth and the breadth of service quality.
(4) Mobile secretary APP “Jih Sun Online”: Developed by Jih Sun itself. It sends
industry-leading push message of personal information automatically. Push messages contain
tailor-made information, such as wealth management, transaction results, subscription of new
shares and ex-right/dividend of shares held in inventory. It also supports transactions of
securities, futures and warrants, subscription of new shares and setting conditions for orders
directly on the cellphone. Moreover, it also offers online market analysis of Jih Sun
Investment Consulting, enabling customers to enjoy on-the-go wealth management more
efficiently.
(5) In order to drive urban renewal along with the government and correspond to the regulation
for “The Performance Guarantee Mechanism for Presale House” issued by the Ministry of
Interior, the FHC has established an inquiry system of “The Procurement Fund Trust for
Presale House” on the Bank’s website and launched the business of “The Procurement Fund
Trust for Presale House” in 2011. In addition to the consignment of real estate property rights,
it also set up a designated trust account for fund control to ensure the presale funds of
subscribers are solely for the usage of the construction of the project and the rights and
interests of subscribers are protected.
(6) In order to adapt to the nation’s trend of an aging society and low birth rate, as well as to
correspond to the FSC listing the care for the elderly as one of key policies, the Bank
endeavors to propel family long-term care trust for the care for the elderly and property
protection, enabling the elderly’s life quality to be protected at a certain level.
(7) The Company applied to the industry competent authority for the launching of charitable
trust and obtained the approval for establishment. The Bank also manages and utilizes trust
assets based on the purpose of the trust in order to achieve the purpose of the trust, namely
donators seeking the public interests.
7-3. Protection of customers’ rights and interests
(1) Protection of privacy
The confidentiality and utilization of personal data provided by customers is conducted by
the FHC in accordance with the “Personal Data Protection Act” and the relevant laws and
regulations issued by the competent authorities, and the duties of keeping customers’ data in
49
confidential are duly fulfilled. The FHC announces the confidentiality measures on the
website and in the business halls so that customers can understand their rights and interests.
(2) Planning of information security
A.
The FHC stipulates and strengthens the management of information security in
accordance with the laws and regulations so as to protect the FHC’s information assets
and prevent them from man-made, deliberate or accidental damages internally or
externally. All the personnel of the FHC must take the educational trainings regarding
information security organized by the unit in charge of information security or
understand the communications of information security clearly. The goal is to establish
all the personnel’s recognition of information security, through which the standard of
information security of all the personnel is enhanced.
B.
The FHC and its subsidiaries will adopt strict measures to protect customers’ data. In
addition to establishing an independent customer data system which cannot be shared,
an internal firewall shall be installed. Moreover, high-quality firewall and anti-virus
system shall be installed to prevent illegal invasion and sabotage of mal-programs in
accordance with the relevant laws and regulations issued by the government and the
principles of information management. Data transmission shall not only be protected by
means of security encryption, but the relevant measures governing the management of
data and files shall also be carried out to protect data security.
C.
The FHC sets up a remote recovery system and saves the data at a different location in
response to the occurrence of special or emergent incidents or disasters. As a result,
customers’ data can still be retained intact.
D.
In view of the fast development of information, virus and hackers spread all over the
world and data protection incidents occur frequently among the peers. To ensure the
security of customer transaction, we have completed several establishments of data
protection planning in 2015 so as to set up an effective data protection system and put
an end to the damages to data security.
(3) Multi-channel customer service
The FHC provides multi-channel services. Customers may contact us through public
channels including business locations, customer service hotlines, website platforms, etc.
When a customer contacts the FHC to raise opinions or appeals in person, via phone, letter,
email or messages left on the website, the FHC will designate personnel to respond and
handle the case.
(4) Assessment, advertising and promotion of products
50
A.
The products provided by the FHC are carried out in the prerequisite of legality. The
assessment system of products has been established, in which cross-department
evaluation is required and periodic educational training is given to the relevant
colleagues. Customers may understand the information related to products through the
FHC’s channels.
B.
When the FHC prints and broadcasts commercials and carries out business solicitation
or business promotion, it shall follow the regulations set forth by the competent
authorities and abide by the self-assessment rules stipulated by the relevant associations.
It may not engage in matters involving dishonesty, fraudulence, concealment or other
matters that cause misunderstanding to others, and it shall ensure the integrity of the
commercial contents. Its obligations for its financial customers shall not fall below the
commercial contents mentioned in the preceding paragraph and the data or explanations
provided to the financial consumers during business solicitation or business promotions.
C.
The operational personnel are required to fully understand the data related to a financial
consumer to ensure the suitability of the product or service to such financial customer
before signing the contract with the consumer. They shall also explain to the financial
customer about the important contents of the financial product, service and contract and
fully disclose the risks.
(5) Protective measures against frauds
To avoid fraudulence by lawbreakers that affects customers’ rights and interests, in addition
to executing the inter-financial institutions warning reporting, the relevant warning
information shall be disclosed on websites and ATM operational screens, or the preventive
notice shall be delivered to customers via voice messages, statements and over-the-counter
services irregularly.
7-4. Employees with outstanding services
At the year-end party of the FHC, the senior managers of the FHC awarded the outstanding
service teams and the model of service of the entire Bank so as to enhance the spirit and culture of
customer service.
7-5. Customer relationship management and commitment to customers
(1) Measures of customer relationship management of Jih Sun Bank are as follows:
A.
Customer consulting service:
Jih Sun Bank founds a 24-hour service center where designated specialists provide
explanations to customers’ inquiries, and services that customers need and apply for.
Meanwhile, various service channels as below are available for customers to voice any
51
questions or recommendations:
(1) Website message
(2) E-mail
(3) Fax
(4) Business counters in branches
(5) 24-hour service hotline
Customers can freely choose the channel they need to leave their inquiries, response or
opinions, as well as leave the contact information so the designated service specialists
will deal with it subsequently. Service specialists will reply the information that
customers needed during the business hours via the contact method left by customers.
B.
In response to customers suggestions
The suggestions that customers hold for the Bank may be responded through the service
channels as mentioned in the preceding paragraph, and the responded items are all
handled by specialists and the relevant units. According to the customer-orientated
service philosophy adhered by Jih Sun Bank, after all suggestion cases are handled,
specialists will be designated to carry out customer satisfaction survey so as to
understand customers’ needs and provide optimal services.
C.
Quality of customer service
Jih Sun Bank gathers customers’ opinions through the Internet, telephone and written
form to act as the basis for the Bank’s improvement of customer service. The Bank has
been ranked top 5 in the financial banking category in Global View Magazine’s
“Service Industry Survey” many times over recent years, which demonstrates the
Bank’s philosophy of “Top Priority for Customers and Services.” We have received
high praise from customers.
(2) Measures of customer relationship management of Jih Sun Securities are as follows:
A. Thanks to you, Jih Sun is 54 years old.
Jih Sun Securities has marked the 54th anniversary this year since its foundation on
December 8, 1961, and Taiwan Stock Exchange Corporation was also founded more
than half a century ago; Jih Sun Securities participated and witnessed “The Historical
Development of Taiwan’s Securities” and grew and prospered along with the transaction
history of Taiwan’s securities. Jih Sun remains standing firmly on the market for 54
years, which means Jih Sun Securities has been deeply recognized by customers in terms
of professional abilities and customer services. Jih Sun Securities continues to launch
rewarding activities as thanks for customers’ support over half a century. In the future,
52
we will focus on financial investment services for customers and consistently release
multi-financial instruments to realize all the customers’ dreams.
B. Customer satisfaction survey
Jih Sun Securities conducts irregular inquiries to customers regarding their opinions to
the products or services provided by the Company through staff members in 45 branch
offices across Taiwan to understand customers’ needs any time. We also hold seminars
to establish correct wealth management concepts among customers. Customers’
inquiries, suggestions or appeals provided through the Company’s public and diversified
channels all serve as the improvement direction for the Company so as to enhance
customer satisfaction.
C. Quality of customer service
Jih Sun Securities gathers customers’ opinions through the Internet, telephone and
written form to act as the basis for the Company’s improvement of customer service.
The Company was awarded 2015 Excellence Magazine Financial Securities Service
Evaluation: Prize for Excellent Innovative Product by FHCs and the best partner award
of IPO at the 2015 Securities Market Expo held by TWSE. Jih Sun Warrant World APP
was named the 12th term of 10 major innovative design of the R.O.C. by the Outstanding
Enterprise Manager Association. It demonstrates the Company’s implementation of
philosophy of “Top Priority for Customers and Services” thoroughly has received high
praise from customers.
7-6. Mobile services
(1) Jih Sun Bank:
Jih Sun mobile bank provides financial information, inquiry of account, and processing of
financial product transactions, and utilizes an integrated platform system to offer wealth
management services across multiple products on a platform, including deposits, loans, credit
cards, foreign exchange, and funds, so as to satisfy customers’ financial needs. The Bank also
adopts the bonus point accumulation rewarding scheme that customers are accustomed to and
allows customers to accumulate “Fund transfer bonus” by using mobile banking through the
creative marketing – “Jih Sun Point for Purchase Website.” Moreover, it interacts with customers
in the long run while topics such as using bonus points to exchange gourmet or shopping gift
voucher spread. Customer orientation is adopted to provide a professional financial service
platform satisfying customers’ needs.
In addition to mobile banking, Jih Sun Bank also adheres to the spirit of in pursuit of changes and
53
keeps innovating. It took the lead to provide customers with wealth management services via
mobile devices. Jih Sun Bank’s wealth management consultants use “Smart Banking Mobile
Wealth Management Consultant” to provide customers with timely financial services. Smart
mobile devices show the latest asset and investment status of customers in the Bank, and wealth
management consultants may make investment consulting and asset allocation for customers
instantly. Moreover, we ensure the security of customers’ information through strict information
management and system monitoring. Whether the customer is in the top-class department store, a
coffee shop full with the scent of freshly brewed coffee, or at any location where an appointment
is made, he or she may enjoy services provided by exclusive wealth management consultant,
listen to reports on the latest investment status, including markets and the updated prices of all
products. He or she may also make adjustments to investment positions instantly to reflect
changes in the market. Jih Sun Bank endeavors to develop wealth management business. Not
only does it own a professional research team to monitor the trends and economic movements of
global markets, but wealth management consultants also receive solid educational trainings,
allowing them to offer customers professional and noble services.
In the future, Jih Sun Bank will continue to add products in physical channels to the mobile
platform, enabling customers to experience premium mobile services. Moreover, it keeps
innovate measures to create highly added value derived by “differentiation” and “smart
application” for customers. It will offer customers the most professional and convenient services
and enables more customers to make contacts and visits automatically, creating a win-win
situation between the Bank and customers.
The Bank provides timely, convenient and rapid multi-cash flow services along with the
prevalence of digitalization and the Internet. For instance, personal/corporate internet banking,
webATM, mobile banking, web cashier, etc. When individuals or corporate users use cash flow
services, they are no longer limited to traditional physical channels or shops of financial
institutions. They may use different types of electronic devices, such as personal computers,
laptops, smartphones, tablets and devices with internet connection, without subject to time or
region. This allows customers to use financial services anytime and anywhere and enhances the
Bank’s service quality effectively. According to the statistics, among the channels used by the
Bank to offer customers financial services, the number of e-trading has become major percentage
of composition. It has become an indispensable part in individual or corporate fund dispatching
or investment and wealth management tools. The Bank will observe the development of digital
finance and develop e-trading services suitable for the public and corporates actively, and
continue to provide convenient and premium full-functional financial services for customers.
54
(2) Jih Sun Securities:
A.
Mobile order placement “WTS 5”: It pioneered the peers to introduce the latest APP that
covers all products and supports market information and transaction services (applicable
to mobile operating systems, such as Android, iOS, Windows), including securities,
futures, options, sub-brokerage of US/HK stocks, and quotation of overseas futures,
transactions. The APP also supports instant download of transaction certificate,
personalized mosaic market window, and encrypted e-certificate mechanism, which
provides customers with convenient and secure value-added mobile wealth management
services.
B.
Mobile secretary APP “Jih Sun Online”: The exclusive push message service carrying
personal wealth management information allows customers to subscript to real-time
news (trade, service, and preferential marketing scheme) based on personal needs. It
integrates Jih Sun mobile APP services (Jih Sun Smart/ Jih Sun Securities WTS 5/ Jih
Sun Warrant World/ Jih Sun Bank) and adds Jih Sun Smart (placement of conditional
order) free-of-following-up-market to facilitate stop-loss and stop-profit easily. It
continues to add digital services, such as cellphone desktop quotation, mobile counter
(credit account opening and signing of documents), and password management
(change/unlock of password and APP security code), to satisfy customers’ needs for
various types of wealth management timely.
C.
Mobile account opening “Jih Sun Account Opening APP”: Ever since the competent
authority allows online account opening, Jih Sun has become the first batch of securities
firms providing “Free-of-travel account opening.” Rather than going to the counters in
person, investors may apply for account opening anytime and anywhere with ease.
D.
Robot-enabled customer service “Lion Knowledgeable”: In contrast to 0800 customer
service hotline offered by the peers with limited time frame, Jih Sun created the first
ever 24-hour online robot-enabled customer service, which supports advantages such as
free of logon, timely response and response by customized real person and enhances
customer service quality and efficiency substantially.
7-7. Concrete management guidelines and performance indicators for financial products and
services in terms of environment and society
(1) Jih Sun Bank:
A.
Environmental aspect
Management guideline: For the care for the earth, we do not welcome corporates which
55
are not willing to make improvements and continue to pose
severe environmental pollutions to apply loans to the Bank.
Performance indicator: When a corporate severely inflicting the environment applies
for loans to the Bank, the Bank shall assess the application
prudently. If such loans applied by the corporate are financing
projects, enabling such corporate to use such funds to improve
environmental pollution, develop green energy and procure
environmental protection tools, the Bank favors the intention
and hopes to fulfill the social responsibility with the corporate
jointly through the extension of credit loans.
B.
Social aspect
Management guideline: 1. The Bank does not welcome corporates which violate ethical
management or cause social problems to apply loans to the
Bank.
2. The Bank cares customers’ rights and interests over the
course of provision of financial services and helps the society
to grow toward the right direction.
Performance indicator: 1. When a corporate violating ethical management or causing
social problems applies for loans to the Bank, the Bank shall
assess the application prudently.
2. The Bank responses to government policies and cooperates
with the TradeVan, Credit Guarantee Fund and insurance
company of account receivable to offer financing services and
helps domestic SMEs to obtain export financing.
3. When the Bank carries out business solicitation or business
promotion, it shall follow the regulations set forth by the
competent authorities and associations. It may not engage in
matters involving dishonesty or fraudulence. Before it signs a
contract with a customer, it shall ask it practitioners to fully
understand the data pertaining to the financial consumer so as
to fully disclose the risks involved. It shall provide financial
consumers with services based on the fairness principle and
philosophy and fulfill its responsibility and obligation for
financial consumers.
56
7-8. Products and services in response to changes in the society.
In the face of the society with low birth rate and aging population, it is inevitable to see the
population shrink and age. Such great change will definitely influence the overall economic
development, financial market and social steadiness substantially. Thus, preparation shall be made
in advance. Under the weight of both low birth rate and aging society, it is predictable that
demands of saving for pension, medical expense and long-term care will rise considerably. In
view of this, the utilization of insurance to shift the risk likely to face a person at different stages
of life and the possible economic losses incurred is very crucial. This includes saving for pension,
medical expense and long-term care. Jih Sun Life Insurance Agency is customer need-oriented. It
selects insurance products prudently and acts as an agent to sell such products. Because people’s
concept of insurance matures and risk awareness rises, it sells various insurance products as an
agent to satisfy demands. For instance, life insurance with periodical repayment of principal
prepares the insured early for life after retirement; medical insurance with lump sum benefit
alleviates high medical costs; disability insurance with claim based on the grade of disability
provides the expenses required for long-term care; the reinforcement of golden triangle of
insurance planning (preparation for retirement, medical expense and long-term care) helps
customers to save money for a satisfactory life in the futures.
7-9. Products and services in response to climate change
Taiwan is stricken by typhoons in summer and autumn every year owing to the special
geographical location. With the impacts of global warming, the typhoon season extends in recent
years, and the strength also intensifies. Because the East Rift Valley is where the Eurasian and the
Philippine tectonic plates collide, and there are 33 active fault lines nationwide, earthquakes strike
frequently. Ever since the 921 earthquake in 1999, large earthquakes took place a lot and caused a
great amount of physical and economic loss.
Jih Sun Property Insurance Agency Co., Ltd. under the FHC selects insurance companies with
good brand image prudently and makes special plans, such as additional clause for
automobile physical damage insurance caused by typhoon, earthquake, tsunami, hail, fool or
rainfall logging, or a package plan of safety protection injury insurance for flood or landslide
triggered by typhoon, to reduce customers’ economic loss when a typhoon strikes. It also makes
plans for residential fire & basic earthquake insurance, and injury insurance with additional clause
for earthquake, additionally. In the future, it will develop the earthquake insurance with coverage
of light damages to supply customers the full protection they need when a natural disaster takes
place by using insurance.
57
8. Care for Employees
8-1. Terms and conditions of human rights
The FHC emphasizes the human rights of
employees and customers. In addition to the
enactment of labor rights, working conditions
and behavior standards which conform to the
laws and regulations, employees shall not be
subject to unfair treatment based on gender,
age, race, nationality or religion. We
especially emphasize on business ethics and
environmental security, and we continue to
make improvements proactively so as to protect employees’ rights and interests, enhance the unity
of employees and optimize the labor management.
The FHC adheres to the “Core Value” of “Top Priority for Customers and Services,” endeavors to
cultivate customer relationship and satisfies customers’ needs for various financial service
products. An environment which is free of prejudice and harassment is created to protect
customers’ privacy and personal data. In addition, we are also dedicated to maintaining mutual
respect and trust, responsibility and obligation so as to seek win-win opportunity for the Company
and customers.
58
8-2. Workforce structure
As of the end of 2015, Jih Sun FHC’s employees totaled 3,308 persons. Female employees were
2,028 persons, accounting for 61% of total employees. Based on the analysis of management
positions, female supervisors were 215 persons, accounting for 48% of total supervisors of 448
persons. The number of non-supervisor employees dropped 58 persons as compared with that in
2014. The following are the relevant work force structure of employees:
Annual number of employees
Combined number of FHC’s employees
Item
2015
No. of employees of the entire
Company
No. of employees assuming
management positions
No. of employees not assuming
management positions
2014
Male
Female
Male
Female
1280
2028
1,299
2,074
233
215
238
217
1047
1813
1,061
1,857
Unit: NT$1,000/person
Annual average employee benefit expense
Total of FHC
Item
2015
2014
Difference
3,291,874
3,366,951
-75,077
3,332
3,398
-66
988
991
-3
“Employee benefit expense” reported to
TPEx Compensation Index (entire
Company)
“No. of employee” reported to TPEx
Remuneration Index (entire Company)
Annual average employee benefit expense
Type/gender/age of employees
End of
2015
Jih Sun
FHC
Jih Sun
Securities
Jih Sun
Bank
Jih Sun
Property
Insurance
Jih Sun
Futures
Jih Sun
Life
Below
30 year
old
Male
30 ~
49 year
old
Over 50
year old
Sub-total
Below 30
year old
Female
30 ~
49 year
old
Over 50
year old
Sub-total
Total
0
0
7
7
1
5
1
7
14
85
380
114
579
110
737
202
1049
1628
88
431
81
600
163
682
28
873
1473
0
1
0
1
0
2
0
2
3
7
51
4
62
14
49
0
63
125
0
10
0
10
1
15
1
17
27
59
Insurance
Jih Sun
Investment
Consulting
4
15
2
21
1
16
0
17
38
Number of new employees in 2015
2015
Jih Sun
FHC
Jih Sun
Securities
Jih Sun
Bank
Jih Sun
Property
Insurance
Jih Sun
Futures
Jih Sun
Life
Insurance
Jih Sun
Investment
Consulting
No. of
employees
in late
2015
Below
30
year
old
Male
30 ~
Over
49
50
year
year
old
old
Sub-to
tal
Below
30
year
old
Female
30 ~
Over
49
50
year
year
old
old
Sub-t
otal
Total
Percentage
of no. of
new
employees
to no. of
total
employees
in 2015
14
0
0
0
0
0
0
0
0
0
0.00%
1628
59
49
5
113
48
40
4
92
205
12.59%
1473
69
84
2
155
100
74
1
175
330
22.40%
3
0
0
0
0
0
0
0
0
0
0.00%
125
9
9
0
18
4
4
0
8
26
20.80%
27
0
4
0
4
0
3
0
3
7
25.93%
38
5
2
1
8
0
7
0
7
15
39.47%
No. of
employees
in late
2015
Below
30
year
old
Sub-to
tal
Below
30
year
old
Sub-t
otal
Total
Separation
rate in
2015
14
0
0
0
0
0
0
0
0
0
0.00%
1628
57
69
9
135
35
82
17
134
269
16.52%
1473
28
117
10
155
58
118
2
178
333
22.61%
3
0
0
0
0
0
0
0
0
0
0.00%
125
5
15
1
21
5
5
0
10
31
24.80%
27
0
1
0
1
0
1
0
1
2
7.41%
38
3
5
0
8
2
4
0
6
14
36.84%
Separation rate
2015
Jih Sun
FHC
Jih Sun
Securities
Jih Sun
Bank
Jih Sun
Property
Insurance
Jih Sun
Futures
Jih Sun
Life
Insurance
Jih Sun
Investment
Consulting
Male
30 ~
Over
49
50
year
year
old
old
60
Female
30 ~
Over
49
50
year
year
old
old
Overview of employees on parental leave without pay
Company
Jih Sun
FHC
Jih Sun
Securities
Jih Sun
Bank
Jih Sun
Property
Insurance
Jih Sun
Futures
Jih Sun
Life
Insurance
Jih Sun
Investment
Consulting
Resumption
of duty rate in
2015 (B/A)
No. of
employee
resumed
his/her
original
position
in 2014
in reality
(C)
No. of
employee
resuming
his/her
original
position in
2014 and
being
incumbent
for over 12
months(D)
Retention
rate in
2015
(D/C)
0
0.00%
0
0
0.00%
0
0
0.00%
0
0
0.00%
0
0
0
0.00%
0
0
0.00%
Female
10
3
2
66.67%
2
2
100.00%
Male
3
3
1
33.33%
1
0
0.00%
Female
24
9
5
55.56%
4
2
50.00%
Male
0
0
0
0.00%
0
0
0.00%
Female
0
0
0
0.00%
0
0
0.00%
Male
0
0
0
0.00%
0
0
0.00%
Female
1
0
0
0.00%
0
0
0.00%
Male
0
0
0
0.00%
0
0
0.00%
Female
0
0
0
0.00%
0
0
0.00%
Male
0
0
0
0.00%
0
0
0.00%
Female
0
0
0
0.00%
0
0
0.00%
Gender
No. of
employee
making
applications
in 2015
No. of
employee
expected
to resume
his/her
original
position
in
2015(A)
No. of
employee
resuming
his/her
original
position
in 2015
in reality
(B)
Male
0
0
Female
0
Male
61
8-3. Employment relationship
(1) Care for newly recruited employees
The FHC understands that newly recruited employees who begin the brand new careers in
an unfamiliar environment need the care of supervisors and colleagues the most. As a
result, various educational training courses are offered to help newly recruited employees
to get familiar with the environment and understand more about the Company’s culture. In
addition, the supervisor in the unit that hires the new personnel will appoint a senior
colleague to act as the angel to take care of the newly recruited employee and offer
various assistance, enabling him or her get involved in the big family of the FHC.
(2) Representative of HR service
In response to employees’ needs for HR services, HR personnel bridge the communication
between common employees and supervisors properly. Therefore, the FHC appoints HR
service representatives in the HR Department to provide colleagues in all departments
with fully functional HR services instantly and effectively, and they also assist in solving
the questions and inquiries raised by supervisors and colleagues with respect to HR. This
does not only reach the maximization of HR management effectiveness, but also enhances
the harmony of employee-employer relation. We anticipate creating a win-win working
environment where employees are assured and the corporate is attentive.
(3) Labor agreement and protective measures of employees’ rights and interests
The FHC enacts the preventive measures, appeal and punishment guidelines pertaining
sexual harassment in response to the implementation of the Sexual Harassment Prevention
Act and the Gender Equality in Employment Act. In addition, the Sexual Harassment
Appeal Committee is formed to deal with the matters related to appeals, investigation and
resolution of sexual harassment so as to avoid sexual harassment and protect victims’
rights and interests, and to provide an environment free of sexual harassment. Moreover,
various appeal channels have been set up to solve the disputes derived from such matters
and such matters are deliberated in a just and fair manner pursuant to the Labor Standards
Act, the Occupational Safety and Health Act, the Employee Welfare Fund Act, the Labor
Insurance Act, the Labor Inspection Act, and the Employment Service Act, realizing the
search of a satisfactory resolution to be accepted by all parties in an easier way.
62
8-4. Training and development
The FHC adheres to the philosophy that talents are resources of a sustainable business, and it
clearly interprets that the development of HR is Jih Sun’s long-term strategic goal. In response to
company growth and employees’ career development, the relevant training measures and
packages are stipulated in hopes of boosting employees’ professional abilities, enhancing the
value of talents and propelling long-term business development of the Company.
(1) Comprehensive career development
The FHC establishes a comprehensive career development system consisting of
“Preliminary trainings for newly recruited employees,” “Career Map” and “Trainings for
Management Associates” based on its HR development strategies. It also applies the
Talent Quality-management System (TTQS) to staff well-functional financial experts.
Along with the organizational goal and the HR training and development policy, it
participated in the 8th term of National HRD InnoPrize and was awarded the Top 10
shortlisted finalists. The comprehensive employee training and development system
guarantees employees’ rights and interests to grow and learn, and empowers every
employee to march toward every goal steadily with the assistance of the systematic
cultivation mechanism.
(2) Digital learning and development center
The FHC started “The Digital Learning Industry Promotion and Development Plan” in
2003 and founded an e-learning digital learning platform of “Jih Sun University,” which
was granted subsidies for corporate learning website by the Industrial Development
Bureau, the Ministry of Economic Affairs. This platform surmounts the time or space
restriction that employees came to face often while conducting on-the-job learning. It
63
provides both convenient and systematic digital learning resources to achieve the ideal
world of “Any Time & Any Where, Learning Happens.”
(3) Comprehensive trainings for newly recruited employees
To help newly recruited employees to understand the company culture more deeply, every
newly recruited employee has to complete the on-line courses of “Great Exploration of Jih
Sun” and the training for newly recruited employees of the FHC in the classroom,
including courses of the past history and culture of Jih Sun, the core values and creeds of
the Company, an introduction to the organization, the laws and regulations related to
finance, occupational ethics, an introduction of welfare and employees’ safety and
hygiene. Abundant and diversified courses facilitate the correspondence and
communication among employees in all the subsidiaries of the FHC and enable newly
recruited employees to blend into the big family of Jih Sun sooner.
(4) To inspire autonomous learning
In order to provide multi learning channels and resources, in addition to in-the-classroom
and off-site trainings, more than 300 on-line courses are provided through the digital
learning and on-line testing platform of “Jih Sun University,” enabling employees to carry
out on-line self-learning without the restriction of time and space.
Management position
Company
Jih Sun FHC
Jih Sun Bank
Jih Sun
Securities
Jih Sun Futures
Jih Sun
Investment
Consulting
Jih Sun Life
Insurance
Agency
Jih Sun Property
Insurance
Agency
Average training
hours per person
Female
Male
Female
Male
4.21
4.73
3.26
5.41
1.89
4.69
3.14
4.21
Average
training hours
per person
3.23
4.60
3.97
3.91
6.61
4.36
5.55
1.87
1.12
1.69
1.97
1.73
6.82
2.07
2.52
2.35
2.79
1.56
1.73
2.82
2.47
2.48
0
2.84
1.81
0
2.50
4.41
4.81
5.38
4.19
4.87
64
Non-management position
Jih Sun FHC’s training results in 2015
Item
2015
No. of employees
3,311
No. of participants in training courses
24,259
Total training hours
118,189
8-5. Healthy workplace
(1) Working environment
A. Communication for workplace safety and hygiene
In order to avoid occupational accidents, guarantee the safety and health of the
workplaces and operational personnel, a safe working environment is provided to all
the colleagues in accordance with the Occupational Safety and Health Act so as to
prevent occupational accidents from happening. In addition to ensuring the safety of
the workplace, all kinds of educational courses and on-site drills are conducted to
cultivate the employees’ awareness to avoid occupational accidents, and their
responsive abilities in the face of emergencies. Educational trainings including labor
safety courses and firefighting drills are held to cultivate employees the correct labor
safety and hygiene concepts; firefighting trainings and drills are held periodically and
professionals are invited to demonstrate the correct firefighting response measures, in
which colleagues are allowed to do actual practices. We implement the concept of
“Everyone is responsible for labor safety” thoroughly and protect colleagues from
suffering “immediate” and “potential” injuries in work places, as well as cultivate
response abilities of working partners in the face of emergencies and strengthen the
awareness of accident prevention.
B.
Design and comfort of the working space
Apart from the top one priority of safe working environment, bright and comfortable
design is adopted to the entire working space, and large amount of glass material is
65
chosen for construction to decrease the damage of artificial light to a human body. In
order to purify the air and provide the working partners with a relaxing and
comfortable environment, more than 25 plants are placed on every floor of the office,
which suites the environmental concept of green working places, saving energy and
carbon emission reduction. In the head office where office works are centralized,
clear, clean and comfortable working space is offered to colleagues individually.
There are also other care infrastructure to satisfy employees’ needs, such as
breastfeeding room, changing room, raincoat room and shower room.
(2) Employee Assistance Program (EAP)
For the purpose of caring the welfare of
colleagues and helping them to deal with
all kinds of physical and mental pressure
they might face in life or at work, we
work with an external professional
institution to provide free counseling
service, enhance the overall life quality of
colleagues and promote employees’
physical and mental health.
(3) Free employee health examination
Jih Sun signs contracts with numerous
hospitals to promote a free employee
health examination system continuously
so as to care and ensure the health of
colleagues, looking after their health.
(4) Happy Enterprise
Jih Sun is committed to caring employee’s life and working quality consistently. Jih Sun
was awarded the second star business model for the 1st term of Happy Enterprise Award
held by Taipei City Government’s Labor Bureau.
Employees are the root of sustainable business, and corporates are what employees settle
upon. Jih Sun is responsible for the happiness of almost 3,300 families, and it is attentive
to create safe, healthy and hygienic working conditions and environment for employees. It
cares for employees and provides a platform which allows colleagues to fulfill their
ambitions and demonstrate their abilities. It also provides abundant training courses
exceeding what is needed for an employee’s own specialty and creates a lifelong learning
environment.
Employees are the internal customers of the Company, and the root of the Company’s
growth. Jih Sun endeavors to build happy career paths, emphasizes on the commitment to
employees and pursues mutual benefits from realizing both employee values and company
values. We take joy in sharing the successful experience in building a happy enterprise
66
with other enterprises and bringing happy careers to employees.
(5) Advocacy for a healthy workplace
In order to enhance the health in a workplace, the Department of Health assigned the
Taipei Medical University to hold “Health Workplace Advocacy Assistance Plan for
Certain Industries – Financial and Insurance Industries” in order to help corporates plan
and build a healthy working environment and hold health lecturers for free. The FHC
cooperated with the Department of Health of Taipei City Government to arrange the
activities as below and was awarded a commendation of “Health Certificate.”
1. Providing counseling of health examination report and health counseling (4 times in
2015).
2. Sharing health information via Jih Sun E-Paper.
3. Holding lectures on health (4 times in 2015).
67
8-6. Remuneration and benefits
The big family of Jih Sun consists of about 3,300 employees from every corner of Taiwan. Based
on the spirit of giving back to the society for what we have benefitted from it, Jih Sun aspires to
empower every employee with a stable job and income and guarantees a
higher-than-minimum-legal-requirement base salary through the survey of remuneration in the
market, provides diversified and abundant welfare to satisfy different needs of employees,
guarantees comprehensive care to every employee’s body and mind and makes a humble
contribution to the steadiness of the society.
(1) Overall reward structure
The reward strategy of Jih Sun is in connection with the business strategy and talent asset
strategy of Jih Sun, and the three major principles of “Internal fairness, external
competitiveness and enhancement of colleague performance” are taken into consideration
to design the overall salary structure. The Company plans a fair, reasonable and
competitive remuneration system based on the abilities and experiences required for a
position, and grants outstanding employees opportunities of promotion and salary
increase annually through the performance management system. Moreover, it issues
year-end bonus and performance bonus at the end of a year based on the Company’s
business performance and employees’ performance in order to reach the goal of attracting,
motivating and retaining talents.
Substantive rewards from money rewards
Items of money rewards
．Fixed salary: The Company takes part in market salary survey on a regular basis so as to maintain its
competitiveness of salary in the market.
．Short-term/annual variable bonus: The Company establishes a bonus system divided by grades,
which will not only motivate the achievement of business performance, but also satisfy the needs of
outstanding employees.
．Long-term variable bonus: (1) Employee’s remuneration
(2) Stocks – Employee stock ownership option, employee stock
ownership trust and treasury stock.
．Benefit: A diversified benefit system
68
Intangible workforce development from money rewards
Items of non-money rewards
．Communication and encouragement Through the enhancement of employees’ job satisfaction. Jih
Sun emphasizes on internal communication. It establishes
various communication channels and issues HR e-newsletter to
increase the opportunity and channel of interacting with
colleagues. In the environment of thorough communication, Jih
Sun’s supervisors and employees can discuss work fully. They
help employees to formulate MBO and enable them to accept
work challenges properly. Everyone is provided the job based
on his or her talents and enjoys the work.
(1)The Company provides all kinds of training and continuous
．Learning and growth
learning channels, allowing employees to enrich their
knowledge, learn and grow at all times.
(2)Job rotation is conducted on a regular basis, so employees
have opportunities to learn new work. Opportunities are
given to good-performing employees for further
development.
．Performance management and development: The Company values the development and achievement
of goal of employees. It is a performance-oriented company.
Percentage of remuneration by gender
Supervision position
Non-supervision position
End of 2015
Female
Male
Female
Male
Jih Sun FHC
100.00%
181.64%
100.00%
0.00%
Jih Sun Bank
100.00%
123.77%
100.00%
105.89%
Jih Sun Securities
100.00%
125.22%
100.00%
96.73%
Jih Sun Property
Insurance Agency
0.00%
0.00%
100.00%
0.00%
Note 1: The percentage of remuneration may vary slightly owing to factors, such as number of employees and data time.
Note 2: Currently there are no male employees assuming Jih Sun FHC’s non-supervision position, no female employees assuming Jih
Sun Property Insurance Agency’s supervision position, and no male employees assuming Jih Sun Property Insurance Agency’s
non-supervision position.
(2) Diversified welfare systems
Jih Sun is dedicated to providing good remuneration and
establishing sound employee welfare systems so as to
guarantee life quality of employees, maintain harmonious
employee-employer relation and enhance organizational
performance. Numerous options of benefits are planned,
enabling employees to choose different benefit items
depending on personal needs. In addition to providing
different benefits for employees, the Company also offers a channel of on-the-job
69
studying that allows employees to make advanced study continuously, so it may reach the
goal of sustainable business and seeking maximum welfare for employees.
For the balance between work and life of employees, club activities are deployed to
enhance the relationships between employees. The Employee’s Welfare Committee
unifies, organizes and supervises the foundation of all kinds of clubs, and holds the
year-end party and employee’s tours. The FHC encourages employees to found all kinds
of clubs voluntarily and it grants ample funds as subsidies. Currently numerous clubs are
founded, including badminton and pingpong, fitness, dance and art. We hope all
employees have strong and healthy bodies and enjoy colorful leisure life.
Overview of employee’s benefits
Items of welfare
Explanation
Jih Sun’s core benefits include subsidies for wedding, funeral and child
birth, emergency allowances, club subsidies, employee group travel
subsidies.
Jih Sun introduced a flexible benefit system, allowing employees to make
applications based on the points issued each year. It covers healthy life
(self-paid health examination, fitness activity), assured guarantee
(subsidies for insurance premium, care for child and the elderly),
Flexible benefit
professional advanced study (EMBA/MBA, advanced courses, art
appreciation), leisure (transportation expense, gift vouchers, gourmet and
shopping mall).
In addition to applying employee insurance and national health insurance
for each employee pursuant to the laws, Jih Sun also plans employee
group insurance, ranging from life insurance, injury insurance, accident
Employee insurance
insurance to medical insurance, and the insurance premium is paid by the
Company. It offers employees optimal guarantee.
Jih Sun sets the guidelines governing the employee stock ownership trust.
Employee stock ownership trust Employees may opt to join freely, and the Company allocates a certain
percentage of the amount paid by an employee as rewards.
Core benefit
70
9. Environmental Protection
9-1. Continuous implementation of energy-saving and carbon-reduction policy
(1) 1. The Company strengthens the execution status of regular communication, follow-ups
and review of all kinds of energy-saving and carbon-reduction. It continues to notice the
impacts of international agreements with respect to climate change and changes in the
laws and regulations of different countries on the Company, and comes up with
appropriate countermeasures to reduce the impacts on its business.
2. The Company sets energy-saving measures on its own. It abides by the “Energy-saving
target and execution plan set by energy users” issued by the Ministry of Economic Affairs
to draw up the energy-saving target of 1% or more of electricity-saving rate per year and
1% or more of electricity-saving rate over 5 years on average from 2015 to 2019. The total
electricity usage of the head office in 2015 dropped 5.4% as compared with 2014, and the
fuel consumption of official vehicle was saved by 7.8%.
3. It recycles and organizes old computers and donates them to charity for utilization.
4. The Company prioritizes green procurement while making purchases and chooses
(2)
(3)
(4)
(5)
(6)
(7)
products produced by vendors with green marks so as to reduce the burden on the
environment.
1. The Company starts from the internal to manage water resource, garbage and disposal,
save electricity and manage offices. It continues to communicate internal energy-saving
strategies and boost employees’ awareness of environmental protection and energy saving.
2. In early 2016, the Company will introduce “ISO14001 Environmental Management
System” to implement environmental standard management.
It establishes the General Affairs Dept. of the Administration Division to be in charge of
outsourcing companies for conducting cleansing environment, sterilization and
disinfection, and maintenance of green environment.
It promotes and executes recycling.
It encourages employees to take the stairs more and keep healthy. Partial elevators are
closed down at off business hours and holidays to reduce elevator usage. It also shortens
the time of switching on the advertising signs of about 90 business locations nationwide.
It continues to replace fire-fighting, evacuation route and emergency exit signs within
business premises and use highly-efficient and energy-saving LED lights instead.
For relocation of business locations or new construction, it always use LED lights for
installation of lighting.
9-2. Green procurement
The FHC responds to the government’s environmental protection policies and base on
Regulations for Priority Procurement of Eco-Products issued by the Public Construction
Commission of the Executive Yuan and the Environmental Protection Administration of the
Executive Yuan to choose daily procurement of devices or goods. It also asks the suppliers of
products to provide the document of usage certificate of green mark. Moreover, when it signs
71
procurement contracts with the suppliers, it asks the devices or services provided by the suppliers
to be consistent with the laws and regulations pertaining to eco-safety and hygiene.
9-3. Management of supply chain
The FHC is a financial services industry, and the devices, products and services provided by
suppliers support the FHC’s execution of business. For the management of supply chain, we
choose suppliers with the spirit of sustainable business to be the long-term cooperative partners.
There are a total of 206 suppliers across different industries, including information devices,
system integration, business equipment, construction and renovation and environmental
protection. Good services and localization are also demanded so as to supply the most stable
support services.
9-4. Adoption of eco-paper and paper envelop for official documents
The FHC puts boxes designated for recycled paper around printers in offices so as to encourage
the recycle of copies for re-utilization of the blank side. It also arranges to purchase copy paper
made of recycled pulp and free of fluorescent additives. Regarding incoming envelops or paper
bags carrying documents, they will be converted into the package used for transmission of
internal documents after being recycled and processed. The full utilization of resources can not
only reduce the pollution of garbage to the environment, but also leave more precious green
plants to the earth.
10. Social Benefits
10-1. Charity and care
The FHC always regards the corporate social responsibility as one of the core values of the
Company. Based on the spirit of “giving back to the society for what we have benefitted from it,”
we contribute a large amount of talents, technologies, and management abilities and endeavor to
promote all kinds of charity events ranging from care for employees and societies to
environmental protection in the long run. The Company plays our role of corporate civilian
proactively in areas covering charities, arts and culture education and environmental protection,
and hopes that it contribution can spur more corporates in the society to take part in charities and
fulfill social responsibilities. The following are the concrete actions of charity and care:
(1) Donation of recycled computers
A. Mennonite Good Shepherd Taiwan
72
In 2015, Jih Sun Bank and Jih Sun Securities jointly donated 20 recycled computers
and document processing software to help Mennonite Good Shepherd Taiwan
establish a digital learning environment. The Manager Yang Huan-Lv of the Hualian
branch office of Jih Sun Securities led the company representatives to make the
B.
donation on behalf of Jih Sun FHC.
Xiayun Elementary School in Fuxing Dist., Taoyuan City
C.
In Jun 2015, Jih Sun Bank and Jih Sun Securities each donated 20 recycled
computers jointly to help Xiayun Elementary School establish a digital learning
environment. Because the school had limited resources, the Company anticipated
assisting in students’ digital learning through the donation of computers.
Kaohsiung Succor Disadvantaged Charity Association
In Nov 2015, Jih Sun FHC donated 20 recycled computers to Kaohsiung Succor
Disadvantaged Charity Association, which were provided to local schools for the
establishment of a digital learning environment and help disadvantaged people.
(2) Donation-in-kind and money contribution
A. In 2015, it donated NT$2.5 million to the Taiwan Financial Services Roundtable as
charitable sponsorship for universities so as to help students of disadvantaged
families to complete study successfully.
B. In 2015, it donated NT$476,000 to the Hualong labor rights and interests fund of the
Ministry of Labor.
C. In 2014, the gas blast in Kaohsiung caused the people in the disaster area of
Kaohsiung City a great loss. Jih Sun FHC was empathetic and did not hesitate to
show its care, and it donated NT$5 million to the account of “Public Donation
Account Administration for 81 Petroleum Gas Blast” founded by the Kaohsiung City
Government to help victims rebuild their homes as soon as possible.
D. In 2014, Jih Sun Securities’ Kinmen branch office took part in the “2014 Giving
warmth in cold winter – Charity Fair” held by Kinmen’s Fund for Children and
Families. It also donated the income of NT$8,000 earned from the charity sale at the
stall of the fair on the same day.
E. In 2014, to answer the call of “The International Day of Drug Abuse” of the United
73
Nations, and to assist in the promotion of “Echinacea Campaign” held by the
Ministry of Education for the purpose of promoting healthy development of body and
mind of all civilians and cracking down on drugs and crimes effectively, the
Kaohsiung branch of Jih Sun Brank sponsored NT$10,000 to the “National Drug
Prevention Communication Seminar and Cultivation of Anti-Drug Knowledge and
Ability” held by the Church of Scientology Kaohsiung.
F.
In 2014, the Hsinchu branch office of Jih Sun Securities provided NT$10,000 to
sponsor the concert held by the Hsinchu City St. Joseph Social Welfare Foundation.
G.
Because farmers suffered from low market prices derived from the over-production
of garlic in 2014, the Nangjing branch office of Jih Sun Securities funded NT$4,500
to purchase garlics and support Taiwan agriculture through physical actions in the
H.
event of saving garlic farmers with neighbors on Mother’s Day.
In 2014, in order to support children of underprivileged families, the Nangjing
branch office of Jih Sun Securities sponsored NT$14,400 to and took part in 2014
Studio Classroom Let’s Run 1919 “The After-school Study Companion Program for
I.
J.
K.
Disadvantaged Children” held by the Chinese Christian Relief Association by
running.
In 2013 the Nangjing branch office of Jih Sun Securities provided NT$20,000 to
sponsor the charity fundraising concert-Eternal Happiness-held by the Tianmu Rotary
Club of Taipei City.
In 2012, the President of Jih Sun Securities led the colleagues to New Taipei
Municipal Wulai Elementary School to care and understand the education that local
students received. In addition to encouraging the students, a money contribution of
NT$150,000 was sponsored to the school in hopes that students in distant areas
receive education opportunities equivalent to students in cities. Moreover, the
supervisors of the Brokerage Division of Jih Sun Securities visited the Tunan
Elementary School in Jienshih Township, Hsinchu County with colleagues and
sponsored NT$200,000 to the school in making winter sports wear. Meanwhile, the
Jungli branch office organized the activity of “Donation to the Tunan Elementary
School in Jienshih Township, Hsinchu County” and all the colleagues voluntarily
raised funds of approximate NT$13,000 for lunch meals to express the Company’s
encouragement and care for the students in distant areas.
2012 was the 20th anniversary of Jih Sun Bank, and the colleagues of the Central
branch voluntarily organized fundraising to gift education funds and goods to the
Taichung Huiming School for Blind Children. Because students of Huiming School
for Blind Children mostly came from underprivileged families around Taiwan and the
school charged no fee from students based on the spirits that Christ loves all, it
urgently needed supports from all areas given it had been in need of funds and
resources in the long run. With the enthusiastic involvement of the managers in the
Central branch, the colleagues showed their unlimited compassion and NT$200,000
74
was raised. As for the Xinying branch, it sponsored the activity of “Giving warmth in
cold winter” held by the Xiaying Shangdi Miao in the winter of 2012 to show the
spirits of “Identifying others’ feelings” and promote the love to neighbors, making
low-income families sense the warmth of the society.
(3) Supporting donations
A. From March to Jun 30 2015, Jih Sun Bank launched an activity in cooperation with
Eden Social Welfare Foundation, and customers who made donations on a monthly
basis would receive a pillow and a canvas bag.
B.
In 2015, Jih Sun Bank continued to engage in fundraising activities in cooperation
with charities, such as Genesis Social Welfare Foundation, Huiming School for Blind
Children, Waker Charity Association, Children Are Us Foundation and Hope
Foundation for Cancer Care, by making promotions through website announcements
and delivery of EDMs.
C.
D.
E.
F.
G.
H.
I.
From March to December 31, 2014, Jih Sun Bank worked in cooperation with
Children Are Us Foundation and assisted in promoting “Fundraising plan for lunch
meals to send love to tribes” and “Care plan for families with intellectually
challenged children.” EDMs were distributed to promote the fundraising. People who
donated via branches would be waved from the fee charged.
In 2014, Jih Sun Bank worked in cooperation with Eden Social Welfare Foundation
to promote the activity of “Late-blooming angels start walking.” Customers who
made donations on a monthly basis would receive a stuffed toy and a canvas bag.
In 2014, Jih Sun Bank took part in the charity walking activity “Walk for people in
vegetative state” held by Genesis Social Welfare Foundation on Mother’s Day. The
activity was held by the Taipei Main Municipal Track & Field Association, coupled
by a fair for families. All the income will be donated to the specific account to help
the construction of Pingdong nursing home for people in vegetative state of Genesis
Social Welfare Foundation.
In 2014, Jih Sun Bank worked in cooperation with Modern Women’s Foundation to
promote the donation of “Bringing children back to safe homes.”
In 2014, Jih Sun Bank worked in cooperation with Zenan Homeless Social Welfare
Foundation to promote the donation of “Supporting regular activities for homeless
people.”
In 2014, Jih Sun Bank worked in cooperation with Good Shephard Social Welfare
Foundation to promote donation. In 2014, the responsible person of Nanjing branch
office of Jih Sun Securities took part in the fundraising activity of 1919 walking
around Taiwan in 2014, and the donation amounted to NT$20,000 in total.
From January 1, 2012 to December 31, 2012, apart from the joint fundraising in
cooperation with Eden Social Welfare Foundation, Hope Foundation for Cancer Care,
and Genesis Social Welfare Foundation, the Credit Card Division of Jih Sun Bank
expanded the range of cooperative partners to include charity groups such as
75
Huiming Nursery for Blind Children, Modern Women’s Foundation, and Waker
Charity Association, promoted activities and carried out fundraising by
J.
announcement on the website or sending EDMs.
From March 1, 2012 to December 31, 2012, Jih Sun Bank worked in cooperation
with Children Are Us Foundation and assisted in promoting “A support touches twice
as much people –Long term support plan of lunch meals to send love to tribes.” DMs
were placed in all branches and EDMs were distributed to promote the fundraising.
People who donated via branches would be waved from the fee charged.
(4) Others
The Dunbei branch of Jih Sun Bank has been adopting the community park of Minyou
Village, Songshan Dist., Taipei city for a long time to provide local residents with a high
quality leisure environment. In 2012, it sponsored the annual adoption fee of NT$50,000
to help to green the community and create a high-quality living environment. The park is
ranked on top among community parks in Taipei City owing to the sound maintenance.
10-2. Volunteer activity
Volunteer service is one of the important methods adopted by many corporates to give back to the
society and fulfill social responsibilities. One of the aspects covered in the multi-folded CSR of
the FHC is to call for volunteers among employees. Corporate employees engage in multi-faceted
volunteer activities including community patrol, environmental conservation and wealth
management education for many years to show their enthusiasm about service in actual actions.
The following are the specific feats of volunteer activities that the FHC and its subsidiaries
participated in for the past three years:
(1) Environmental conservation
In 2013, Jih Sun FHC extended its
territory of environmental conservation to
the ocean. At the end of autumn and start
of winter, “Jih Sun FHC loves the ocean
and cleanses the beach” was held in
Shazhu Bay, Jingshan Dist., New Taipei
city. With such an activity, we hoped to
plant the seed of environmental protection
and ecosystem conservation in the mind of every participated colleague, who moved on
to influence people around him or her, so the beauty of Taiwan coastlines will continue.
(2) Wealth management education.
Teaching the public correct financial common sense is one of key focuses of the
Company whether it is via securities or bank channels, or through visits or internships.
A. In 2015, the Tainan branch of Jih Sun Bank provided 12 summer internships for Kun
Shan University.
B. In 2015, the Zhongshan branch office of Jih Sun Securities gave lectures on finance
and cultivated students’ expertise in securities at Chihlee University of Technology
76
C.
on a regular basis so as to train financial experts.
In 2014, the Tainan branch of Jih Sun Bank provided 10 summer internships for Kun
Shan University to strengthen industry-academic cooperation and train financial
experts.
D.
In 2012, the Tainan branch of Jih Sun Bank provided 10 summer internships for Kun
Shan University to strengthen industry-academic cooperation and train financial
experts. In addition, a visit by all the junior students of the Department of Finance,
Tainan University of Technology was arranged to assist students in understanding
E.
financial operational practices and enriching their financial common knowledge.
In 2011 the Bade branch office of Jih Sun Securities and the Bade branch of Jih Sun
Bank in Taoyuan co-organized a practice teaching in the Da Jhong Elementary
School to teach students about the basic financial products and let them observe the
bank’s operational procedures. We taught the next generations correct wealth
management concepts through teaching and visits.
(3) Cordial ties with neighbors
A.
B.
C.
D.
E.
F.
G.
H.
I.
In 2015, the Songjiang branch of Jih Sun Bank volunteered in the women & children
department of Wenshan Dist., Taipei Harmony Home Association and donated a
batch of powdered milk and diapers.
In 2015, the colleagues at the Huwei branch of Jih Sun Bank went to the Private
Huasheng Inspiration and Development Center in Yunlin County to act as 1-day
volunteers, caring for children, telling them stories and playing games. They also
donated money and goods.
In 2015, the Yilan branch office of Jih Sun Securities took part in the Mother’s Day
thanksgiving activity in Beimen community, and sponsored gift boxes and money for
the activity.
The Hsinchu branch office of Jih Sun Securities purchased a batch of homemade egg
rolls from Jiaai Intelligence Inspiration and Development Center to help mentally or
physically challenged people become independent.
In 2014, the Luzhou branch of Jih Sun Bank co-organized the blood donation activity
with the Association of Yunlin Townsmen in Luzhou Dist. of New Taipei City.
The Yilan branch office of Jih Sun Securities sponsored the prizes for the hiking
event in Beimen, Yilan, on Mother’s Day in both 2013 and 2014, making the
community event more appealing.
In 2014, the Nangjing branch office of Jih Sun Securities took part in the event of
saving garlic farmers with neighbors on Mother’s Day and ordered 6 packs of garlics,
equivalent to 180 kgs and NT$4,500.
In 2013, the Dunbei branch of Jih Sun Bank participated in and sponsored the local
activity of “Jingzhong Village Welcoming the New Year, Giving Away Spring
Festival Couplets, and Coloring the Alleys with Parents and Children.”
In 2012, the Jungli branch office of Jih Sun Securities took part in the Mid-Autumn
77
Festival Dinner Party in the local Zhongyang Village and shared joy with the
residents, and it also sponsored gifts to the activity. The Shulin branch of Jih Sun
Bank took part in the Mid-Autumn Festival Dinner Party for Parents and Children
and Environmental Charity Communication in Yuying Village, Shulin District. It
provided prizes for the lucky draw for celebration. The Huwei branch of Jih Sun
Bank sponsored the dinner party held by Huwei Tian-hou Palace, and it also provided
prizes for the lucky draw. The Shuanghe branch of Jih Sun Bank took part in the
year-end party of the Hua-tai-shin-cheng Community in Zhonghe Road, Zhonghe
Dist., New Taipei City and provided community residents with refreshments to
maintain good community relationships.
10-3. Promotion of arts and cultural education
Jih Sun FHC is devoted to promoting arts and cultural activities in the long run. Aside from
sponsoring different cultural activities and social charity events, it is never absent in sponsoring
art and cultural exhibitions and performances. We hope the cultivation of arts will enrich the life
and spirits of the countrymen. The following are the concrete actions regarding arts and cultural
education:
(1) Communication of music culture
In 2010, Jih Sun FHC received an invitation by the “Yuying Beiman Alumni Specialists
Chorus” and the “Jih Sun FHC Chorus” joined by the employees of Jih Sun Bank and Jih
Sun Securities headed toward Beijing to participate in “The Cross-Strait Graceful
Concert,” which marked a friendly advance for the communication of cross-strait folk
music and carried out the communication of arts and culture without frontier.
(2) Sponsoring art and cultural activities.
From 2011 to 2015, Jih Sun FHC continued to cooperate with the National Palace
Museum and the Institute of History and Philology, Academia Sinica to obtain the
authorization of their historical relics and promote cultural creation with great efforts.
Meanwhile, it cultivated financial practitioners’ cultural literacy and enhanced their taste
and understanding of beauty.
In 2012, Jih Sun Securities’ President took led the colleagues to New Taipei Municipal
Wulai Elementary School to care and understand the education that local students receive.
In addition to encouraging the students, a money contribution of NT$150,000 was
sponsored to the school in hopes that students in distant areas received education
opportunities equivalent to students in cities. In view of the outstanding music talents the
students in the school demonstrated, members of the drum club were invited to participate
in the open performance of the north district and central district year-end parties of Jih
Sun FHC in 2012 to provide the students with a different performing state and experience
an unforgettable performance.
The Dunbei Branch of Jih Sun Bank organized children painting competitions irregularly
in order to giving back to the community. It held the children painting competitions of
78
“Coloring the alleys,” “I love my mom” and “Celebrating Mid-autumn Festival with
others” in January 2012 and May and September 2011 respectively to encourage
participation and creation of children in the community. In 2010, it also sponsored “Yin
Chiang Piano Recital- Painting of the 20th century music.”
In addition to music communication, Jih Sun Securities sponsored all kinds of historical
relics exhibitions held by the domestic National Palace Museum in both 2008 and 2009.
“Harmony and Integrity: The Yongzheng Emperor and His Times” held in 2009
re-interpreted the Yongzheng Emperor of the Qing Dynasty in terms of the person and the
events, enabling the public to have deeper understanding of the history and Chinese
culture. Aside from visual effects, the National Palace Museum held concerts of different
themes every weekend night to let the public enjoy the music while admiring Chinese
historic relics.
Jih Sun FHC shows great bravery in innovation and presents historic relics covered in
dusts in the package of cultural and creative gifts, which catches people’s eyes. Because it
offers monthly calendars to customers for free, the issuance of monthly calendars keeps
rising by year.
In the future, Jih Sun FHC will hold fast to the mission of cultivating arts and cultural
activities and take part in more activities. It hopes to enrich the cultural and spiritual life
in Taiwan and diversify people’s vision of art appreciation.
79
Appendix
GRI indicator index
Material
GRI
aspect
indicator
Explanation
Corresponding chapter
and supplementary
explanation
General standard disclosures
Strategy and
Analysis
G4-3
Provide a statement from the most senior decision-maker
of the organization about the relevance of sustainability to
the organization and the organization’s strategy for
addressing sustainability
Provide a description of key impacts, risks, and
opportunities.
Report the name of the organization.
Company Overview
G4-4
Report the primary brands, products, and services.
Company Overview
G4-5
Report the location of the organization’s headquarters.
Company Overview
Report the number of countries where the organization
operates, and the names of countries where either the
organization has significant operations or that are
specifically relevant to the sustainability topics covered in
the report.
Report the nature of ownership and legal form.
Company Overview
Report the markets served (including geographic
breakdown, sectors served, and types of customers and
beneficiaries)
Report the scale of the organization (including: 1. Total
number of employees, 2. Total number of operations, 3.
Net sales (for private sector organizations) or net revenues
(for public sector organizations), 4. Total capitalization
broken down in terms of debt and equity (for private
sector organizations), 5. Quantity of products or services
provided.
a. Report the total number of employees by employment
contract and gender.
b. Report the total number of permanent employees by
employment type and gender.
c. Report the total workforce by gender (including
self-employed and non self-employed).
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the
organization’s work is performed by workers who are
legally recognized as freelancers (individuals other than
self-employed and non self-employed), including
employees of the contractors and the undertaking
workforce.
f. Report any significant variations in employment
numbers (such as seasonal variations in employment in
the tourism or agricultural industries).
Report the percentage of total employees covered by
collective bargaining agreements.
Describe the organization’s supply chain.
Company Overview
G4-1
G4-2
G4-6
G4-7
G4-8
G4-9
Organizational
Profile
G4-10
G4-11
G4-12
80
Message from the
Chairman
Risk management
Company Overview
Company Overview
Workforce structure
No trade unions.
Not applicable.
Environmental
Material
GRI
aspect
indicator
G4-19
G4-20
For each material aspect, report the aspect boundary
within the organization.
G4-21
For each material aspect, report the aspect boundary
outside the organization.
G4-14
G4-15
G4-16
G4-17
G4-18
G4-24
Report the effect of any restatements of information
provided in previous reports, and the reasons for such
restatements
Report significant changes from previous reporting
periods in the scope and aspect boundaries.
Provide a list of stakeholder groups engaged by the
organization.
G4-25
Report the basis for identification and selection of
stakeholders with whom to engage
G4-22
G4-23
Stakeholder
Engagement
G4-26
G4-27
Corresponding chapter
and supplementary
Report any significant changes during the reporting period
regarding the organization’s size, structure, ownership, or
its supply chain.
Report whether and how the precautionary approach or
principle is addressed by the organization.
List externally developed economic, environmental and
social charters, principles, or other initiatives to which the
organization subscribes or which it endorses
List memberships of associations (such as industry
associations) and national or international advocacy
organizations.
a. List all entities included in the organization’s
consolidated financial statements or equivalent
documents.
b. Report whether any entity included in the organization’s
consolidated financial statements or equivalent documents
is not covered by the report.
a. Explain the process for defining the report content and
the aspect Boundaries. b. Explain how the organization
has implemented the Reporting Principles for Defining
Report Content.
List all the material aspects identified in the process for
defining report content.
G4-13
Identified
Material
Aspects and
Boundaries
Explanation
Report the organization’s approach to stakeholder
engagement, including frequency of engagement by type
and by stakeholder group, and an indication of whether
any of the engagement was undertaken specifically as part
of the report preparation process.
Report key topics and concerns that have been raised
through stakeholder engagement, and how the
organization has responded to those key topics and
concerns, including through its reporting. Report the
stakeholder groups that raised each of the key topics and
81
explanation
Protection
Company Overview
Legal compliance
Nil
Company Overview
Company Overview
Issues the interested
parties care about and
their importance
Issues the interested
parties care about and
their importance
Material issues and
boundaries that are
impacted
Material issues and
boundaries that are
impacted
Overview of the report
Overview of the report
Material issues and
boundaries that are
impacted
Issues the interested
parties care about and
their importance
Issues the interested
parties care about and
their importance
Issues the interested
parties care about and
their importance
Material
GRI
aspect
indicator
Explanation
Corresponding chapter
and supplementary
explanation
G4-28
concerns.
Reporting period (such as fiscal or calendar year) for
information provided.
Date of the most recent previous report (if any).
G4-29
G4-30
G4-31
Report Profile
G4-32
G4-33
G4-34
G4-38
Reporting cycle (such as annual, biennial).
Provide the contact point for questions regarding the
report or its contents.
a. Report the ‘in accordance’ option the organization has
chosen.
b. Report the GRI Content Index for the chosen option
(see GRI G4 Part 1).
c. Report the reference to the external assurance report, if
the report has been externally assured. (GRI recommends
the use of external assurance but it is not a compulsory
requirement in the GRI guidelines.)
a. Report the organization’s policy and current practice
with regard to seeking external assurance for the report.
b. If not included in the assurance report accompanying
the sustainability report, report the scope and basis of any
external assurance provided.
c. Report the relationship between the organization and
the assurance providers.
d. Report whether the highest governance unit or senior
executives are involved in seeking assurance for the
organization’s sustainability report.
Report the governance structure of the organization,
including committees of the highest governance unit.
Identify any committees responsible for decision-making
on economic, environmental and social impacts.
Report the composition of the highest governance unit and
its committees.
Report whether the Chairman of the highest governance
unit is also the Chief Executive Officer.
G4-39
G4-40
Governance
G4-41
G4-42
Report the nomination and selection processes for the
highest governance unit and its committees, and the
criteria used for nominating and selecting highest
governance unit’s members.
Report processes for the highest governance unit to ensure
conflicts of interest are avoided and managed. Report
whether conflicts of interest are disclosed to stakeholders.
Report the highest governance unit’s and senior
executives’ roles in the development, approval, and
updating of the organization’s purpose, value or mission
statements, strategies, policies, and goals related to
economic, environmental and social impacts.
82
Overview of the report
Jih Sun FHC 2014
Corporate Social
Responsibility Report
was issued in Jun 2015.
Overview of the report
Overview of the report
Overview of the report
Overview of the report
Corporate Governance
Corporate Governance
The Company’s
Chairman is Mr. Huang
Ching Tang, and
President is Mr. Wang
Chih Fang.
Corporate Governance
Corporate Governance
Corporate Governance
Material
GRI
aspect
indicator
Explanation
Corresponding chapter
and supplementary
explanation
G4-43
G4-44
G4-45
G4-46
G4-47
G4-48
G4-49
G4-50
G4-51
Report the measures taken to develop and enhance the
highest governance unit’s collective knowledge of
economic, environmental and social topics.
a. Report the processes for evaluation of the highest
governance unit’s performance with respect to governance
of economic, environmental and social topics. Report
whether such evaluation is independent or not, and its
frequency. Report whether such evaluation is a
self-assessment.
b. Report actions taken in response to evaluation of the
highest governance unit’s performance with respect to
governance of economic, environmental and social topics,
including, as a minimum, changes in membership and
organizational practice.
a. Report the highest governance unit’s role in the
identification
and
management
of
economic,
environmental and social impacts, risks, and
opportunities. Include the highest governance unit’s role
in the implementation of due diligence processes.
b. Report whether stakeholder consultation is used to
support the highest governance unit’s identification and
management of economic, environmental and social
impacts, risks, and opportunities
Report the highest governance unit’s role in reviewing the
effectiveness of the organization’s risk management
processes for economic, environmental and social topics.
Report the frequency of the highest governance unit’s
review of economic, environmental and social impacts,
risks, and opportunities.
Report the highest committee or position that formally
reviews and approves the organization’s sustainability
report and ensures that all material aspects are covered.
Report the process for communicating critical concerns to
the highest governance unit.
Report the nature and total number of critical concerns
that were communicated to the highest governance unit
and the mechanism(s) used to address and resolve them.
a. Report the remuneration policies for the highest
governance unit and senior executives for the below types
of remuneration:
‧Fixed pay and variable pay:
– Performance-based pay
– Equity-based pay
– Bonuses
– Deferred or vested shares
‧Sign-on bonuses or recruitment incentive payments
‧Termination payments
‧Compensation mechanism
‧Retirement benefits, including the difference between
benefit schemes and contribution rates for the highest
governance unit, senior executives, and all other
employees
83
Corporate Governance
Corporate Governance
Corporate Governance
Risk management
Risk management
Corporate Governance
Corporate Governance
Corporate Governance
Corporate Governance
Material
GRI
aspect
indicator
Explanation
Corresponding chapter
and supplementary
explanation
G4-52
G4-53
G4-56
Ethics and
Integrity
G4-57
G4-58
b. Report how performance criteria in the remuneration
policy relate to the highest governance unit’s and senior
executives’ economic, environmental and social
objectives.
Report the process for determining remuneration. Report
whether remuneration consultants are involved in
determining remuneration and whether they are
independent of management. Report any other
relationships which the remuneration consultants have
with the organization.
Report how stakeholders’ views are sought and taken into
account regarding remuneration, including the results of
votes on remuneration policies and proposals, if
applicable.
Describe the organization’s values, principles, standards
and norms of behavior such as codes of conduct and codes
of ethics.
Report the internal and external mechanisms for seeking
advice on ethical and lawful behavior, and matters related
to organizational integrity, such as helplines or advice
lines.
Report the internal and external mechanisms for reporting
concerns about unethical or unlawful behavior, and
matters related to organizational integrity, such as
escalation through line management, whistleblowing
mechanisms or hotlines.
Performance indicator
Economic performance indicator
Report the direct economic value generated and
distributed on an accruals basis (including sales volume,
EC1
operating costs, employee wages and benefits, payments
to providers of capital, payments to government, and
retained earning).
Economic
Report risks and opportunities posed by climate change
Performance
EC2
that have the potential to generate substantive changes in
operations, revenue or expenditure.
Coverage of the organization’s defined benefit plan
EC3
obligations
EC4
Financial assistance received from government
Ratios of standard entry level wage by gender to local
EC5
minimum wage
Market
Presence
Proportion of senior management hired from the local
EC6
community
Indirect
Development and impact of infrastructure investments and
Economic
EC7
services supported
Impacts
Environmental performance indicator
EN6
Energy
EN7
Emissions
EN15
Reduction of energy consumption
Reductions in energy requirements of products and
services
Direct greenhouse gas (GHG) emissions (scope 1)
84
Corporate Governance
Corporate Governance
Morals and honesty
Morals and honesty
Morals and honesty
Please refer to “Jih Sun
Financial Holding
Co., Ltd. 2015
Annual Report.”
Products and services in
response to climate
change
Remuneration and
benefits
Nil
Remuneration and
benefits
Workforce structure
Social Benefits
Environmental
Protection
Environmental
Protection
Environmental
Material
GRI
aspect
indicator
Explanation
Corresponding chapter
and supplementary
EN16
Energy indirect greenhouse gas (GHG) emissions (scope
2)
EN19
Reduction of greenhouse gas (GHG) emissions
Compliance
EN29
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations.
Overall
EN31
Total environmental
investments by type
protection
expenditures
and
explanation
Protection
Environmental
Protection
Environmental
Protection
No significant
non-compliance with
environmental laws and
regulations and
punishment in 2015.
Environmental
Protection
Social performance indicator
Labor terms and respect
LA1
Employment
LA2
LA3
Employee-em
ployer
relationship
LA4
LA8
LA9
Training and
Education
LA10
LA11
Diversity and
Equal
Opportunity
LA12
Total number and rates of new employee hires and
employee turnover by age group, gender, and region.
Benefits provided to full-time employees by significant
locations of operation.
Return to work and retention rates after parental leave, by
gender.
Minimum notice periods regarding operational changes,
including whether these are specified in collective
agreements.
Health and safety topics covered in formal agreements
with trade unions.
Average hours of training per year per employee by
gender, and by employee category.
0 Programs for skills management and lifelong learning
that support the continued employability of employees
and assist them in managing career endings.
Percentage of employees receiving regular performance
and career development reviews, by gender and by
employee category
Composition of senior management and breakdown of
employees per employee category according to gender,
age group, minority group membership, and other
indicators of diversity.
Equal
Ratio of basic salary and remuneration of women to men
Remuneration
LA13
by employee category, by significant locations of
for Women
operation
and Men
Labor
Number of grievances about labor practices filed,
Practices
LA16
addressed, and resolved through formal grievance
Grievance
mechanisms
Mechanisms
Human rights performance indicator
Total hours of employee training on human rights policies
or procedures concerning aspects of human rights that are
Investment
HR2
relevant to operations, including the percentage of
employees trained
Non-discrimin
Total number of incidents of discrimination and corrective
HR3
ation
actions taken
85
Workforce structure
Workforce structure
Workforce structure
No trade unions.
Not applicable.
No trade unions.
Not applicable.
Training and
development
Training and
development
Care for Employees
Workforce structure
Workforce structure
Terms and conditions of
human rights
Terms and conditions of
human rights
Terms and conditions of
human rights
Material
GRI
aspect
indicator
Indigenous
Rights
HR8
Assessment
HR9
Human Rights
Grievance
HR12
Mechanisms
Social performance indicator
SO1
Explanation
Corresponding chapter
and supplementary
explanation
The Company welcomes
all people who are
interested in finance to
join us, and the same
applies to indigenous
people likewise. The
Total number of incidents of violations involving rights of
Company will provide a
indigenous peoples and actions taken
career development path
based on his or her
talents and competency,
so there are no incidents
of violations involving
rights.
Total number and percentage of operations that have been Terms and conditions of
subject to human rights reviews or impact assessments.
human rights
Number of grievances about human rights impacts filed, Terms and conditions of
addressed, and resolved through formal grievance
human rights
mechanisms.
Percentage of operations with implemented local
community engagement, impact assessments, and
development programs
Local
Communities
Social Benefits
The Company’s
business locations are all
Operations with significant actual or potential negative
situated in urban areas,
SO2
impacts on local communities
so there are no negative
impacts.
Total value of political contributions by country and No political donations in
Public Policy
SO6
recipient/beneficiary.
2015
Product liability performance indicator
Customer relationship
Product and
management and
Service
PR5
Results of surveys measuring customer satisfaction.
commitment to
Labeling
customers
In 2015, Jih Sun FHC
and its three subsidiaries
received one
correction case from the
Total number of incidents of non-compliance with competent authority (the
Marketing
regulations and voluntary codes concerning marketing Financial Supervisory
Communicatio
PR7
communications, including advertising, promotion, and Commission). For the
ns
sponsorship, by type of outcomes
details, please refer to
P.92 of “Jih Sun
Financial Holding Co.,
Ltd. 2015 Annual
Report.”
Customer
Total number of substantiated complaints regarding Protection of customers’
PR8
Privacy
breaches of customer privacy and losses of customer data
rights and interests
In 2015, Jih Sun FHC
Monetary value of significant fines for non-compliance
and its three subsidiaries
Compliance
PR9
with laws and regulations concerning the provision and
received the fine,
use of products and services
correction and
86
Material
GRI
aspect
indicator
Explanation
Corresponding chapter
and supplementary
explanation
punishment of one case
from the competent
authority (the Financial
Supervisory
Commission). For the
details, please refer to
P.92 of “Jih Sun
Financial Holding Co.,
Ltd. 2015 Annual
Report.”
Supplementary performance indicator of financial services industry
Product and Service Impact Section
Financial
services
section –
Mutual impacts (interactions) with clients/ business
specific
FS5
partners regarding environmental and social risks and
disclosure on
opportunities.
management
guidelines
FS7
Product
Portfolio
FS8
Continue to implement
energy-saving and
carbon reduction
policies.
Products and services in
Products and services designed to deliver a specific social
response to changes in
benefit
the society
Products and services in
Products and services designed to deliver a specific
response to climate
environmental benefit
change
Social aspect
Community
FS13
Access points in low-populated
disadvantaged areas by type.
Product and
Service
Labeling
FS16
Initiatives to enhance financial literacy
87
or
economically
Charity and care
Volunteering activity