CSR Policy and Principles

AUO has defined polices for enterprise integrity, anti-trust, taxation, quality, and conflict minerals. These take the form of the Articles of Incorporation, Ethical Corporate Management Principles, Corporate Governance Principles, Code of Ethical Conduct for Directors and Senior Management as well as the Board of Directors Self-Assessment of Performance.

Corporate governance procedures and rules are now fully documented through the Rules for the Election of Directors, AUO Rules and Procedures for Shareholders Meeting, Organic Charter of the Audit Committee, Organic Charter of the Remuneration Committee, Regulations for Prevention of Insider Trading, Handling Procedures for Providing Endorsements and Guarantees for Third Parties, Handling Procedures for Acquisition or Disposition of Assets, Handling Procedures for Capital Lending, Handling Procedures for Conducting Derivative Transactions, as well as Policy and Procedures for Complaints and Concerns Regarding Accounting, Internal Accounting.

AUO Code of Conduct Agreed-Upon Procedures Report

AUO environmental safety & health (ESH) and energy policies are based on expectations of overall ESH and energy performance. Company business philosophy, outcomes of environmental assessments, statutory requirements, resource requirements, pollution prevention and stakeholders are also taken into account. The supply chain is required to adhere to the rules on hazardous substances as well.

AUO believes that human rights protection is the foundation for the sustainable operation of a corporate. To ensure that every employee is treated fairly and with respect, we follow the internationally recognized human rights conventions, and established the Human Rights Policy. A four-step due diligence process was developed to ensure the operation activities within the AUO Group do not violate human rights in any way, protecting the rights and interests of all employees and value chain partners.

AUO Human Rights Due Diligence Report
Table of Human Right Risk Structure

Commitments and Policies

• Freedom of employment
• Equity and inclusion
• Prohibition of child labor
• Prohibition of illegal workplace violations
• Providing employees with comprehensive wages and benefits
• Ensuring the health and safety of employees, and freedom of assembly and association...etc.

Four-Step Due Diligence Process

• Human rights risk identifications
• Proposing preventive measures against the identified risks
• Monitoring human rights issues through the establishment of various committees and multiple communication channels
• Mitigating the impact of human rights damages through audits, human rights protection programs, and employee assistance programs

Quality Policy and Goals

AUO is committed to the punctual delivery of high-quality green products to our customers around the world. We also maintain long-term partnerships with our customers. AUO continues to build our solid technical expertise to maintain our technological leadership. We also strive to develop products that offer high value, highly cost-effective products that benefit both AUO and our customers. AUO complies with national regulations and customer requirements on hazardous substance management. A green quality management system has also been set up to fulfill our corporate responsibility on the sustainable development of the environment.

• Boosting quality awareness through quality micro-learning
• Cultivate AI expertise to refine our quality ability
• Continuous improvement management goals: Projects and proposals
• Refer to Green quality management

Quality Commitment

High-quality products

are the result of high-level technical expertise and a sophisticated quality culture. Elaborately developed training courses are used by AUO to boost the quality awareness and ability of all its employees. Manufacturing and service quality are also enhanced through continuous improvement activities to increase customer satisfaction.

Total Quality Management

This is the foundation of our basic approach to “quality.” The quality policy defines the core of our total quality control and fulfills our quality commitment to customers.

AUO has investments in multiple countries as a leading global supplier of opto-electronic solutions so changes in national taxation policies are closely monitored. Potential taxation risks for local AUO operations are also assessed in the following way.

• Adhere to local tax laws; calculate and pay taxes correctly 
• Disclose tax information in financial statements and annual reports in strict accordance with reporting standards and laws 
• Learn the latest developments/changes in local tax laws, and convey them to employees through internal training 
• Plan the tax structure based on economic substance, not shift profit to low tax countries or tax havens 
• Support local government’s tax policies on business innovation and reinvestment 
• To reduce the uncertainty of taxation and tax compliance cost created by tax refund, we make good use of government tax preferential policies. For example, we actively negotiate tax covered of the ROC sourced income with tax authorities in advance. 
• Handle tax matters with the utmost ethical standards 
• Maintain open and positive communications with tax authorities 
• Evaluate impact and response measures for changes in taxation laws 
• Comply with internationally recognized transfer pricing guidelines and disclosure requirements published by the Organization for Economic Cooperation and Development (OECD), related party transactions are conducted at market price unless there are no similar transactions to use as a reference

AUO’s Statement on Conflict minerals

• AUO restates that AUO and its suppliers shall assume responsibility together for community and environment protection.
• AUO does not accept the Gold (Au), Tantalum (Ta), Tin (Sn), Tungsten (W), Cobalt (Co), and Mica or other minerals mined in Conflict Affected and High-Risk Areas.
• AUO will inform and ask its suppliers to perform the above statement.

Conflict Minerals Management

• Conflict Minerals Component Verification：Require suppliers to investigate factories of the components they supply.
• Conflict Minerals Material Management：Monitor material certification and implement procedures for exceptional circumstances.
• Conflict Minerals Supply Chain Management：Conduct audits on suppliers to make sure they possess the relevant procedures and capabilities.
• Conflict Minerals Education & Training：Provide employees/affiliated companies/suppliers with the proper training on conflict minerals.
• Conflict Minerals Reporting：Provide relevant documents to support customers’ conflict mineral investigations.

AUO recognizes and responds to the importance of global biodiversity, ecosystems, and conservation of forests and the natural environment, and we respect and support the spirit of the Convention on Biological Diversity and of the Kunming-Montreal Global Biodiversity Framework to fulfill a shared vision of living in harmony with nature.

To join our stakeholders in moving toward a future of sustainability and the common good, AUO has made a commitment to start from our own operations and then go on to join hands with our value chain to cherish, conserve, restore, and rationally utilize biodiversity for the sake of maintaining global ecosystem services and delivering benefits essential to all individuals.
 

Privacy protection is enforced by AUO for customers, suppliers, employees and all stakeholders as a key component in maintaining the trust of our stakeholders. We adhere to all laws and regulatory requirements on privacy and information security during our collection, storage, processing, dissemination, and sharing of personal information. Protection and management of personal information at AUO is governed by the “Personal Information Protection and Management Regulations” and “Privacy Statement” that serve our top guiding principles on protection of customers’ personal information. We also set up an EU GDPR (General Data Protection Regulation) and China PIPL (Personal Information Protection Law) on our internal website to provide employees with references to related policies and official documents so they can actively respond to the regulatory requirements.

Unless otherwise stated in the Privacy Statement or the Personal Information Consent Form signed case by case, we will only share customer data with third parties outside of AUO with customer's consent, and customers will have the opportunity to choose not to share their data. To our best knowledge, we will not and have not use the collected customer data for secondary purposes. We will continue to monitor the percentage of users whose customer data is used for secondary purposes.

Privacy Protection Agreed-Upon Procedures Report