Stakeholder Engagement

In the course of transformation to sustainable development, ASUS not only creates the best profit for the investors but also takes the influence from related stakeholders into its decision-making process. The shifting of the gravity of operation from shareholders and stock price may affect short-term profit, but the inclusion of the opinions from stakeholders in different domains will help to depict a clear vision, which helps to ascertain the social role that ASUS should play and hence to pursue a distinctive strategy for tackling the challenges ASUS confronts. We hope that we could create our competitiveness and long-term profit through corporate differentiation and will bring about common prosperity and sustainability for ASUS and the society as a whole.

Sustainability has become a major trend across industries of all types. In August of 2019, the Business Roundtable organization in Washington, D.C., announced that 181 Chief Executive Officers (CEOs) had signed a Statement on the Purpose of a Corporation, signaling a commitment to leading their companies for the benefit of all stakeholders, including customers, employees, suppliers, communities and shareholders.

 

 

ASUS is committed to nurturing and caring for employees; to demonstrating the principle of accountability in regard to laws, regulations and investors; to meeting the expectations of consumers and business partners with ASUS products and innovations; and to showing our vision for promoting sustainability and effecting positive social impacts.

Listening to the voices of stakeholders helps ASUS establish a clear path forward and confirm our role in society, thereby advancing our sustainability strategy to create shared value. ASUS identified material topics with significant impacts, risks, and opportunities through stakeholder engagements. This allowed managers to effectively allocate resources, plan short-, medium-, and long-term sustainability strategies. We also disclosed both positive and negative information to provide a basis for stakeholders to optimize the quality of decision-making process.

Process of Definding Materiality

ASUS redefined the identification methods for materiality based on the fourstep identification procedures of the latest GRI Standards (2021). Different from understanding stakeholders’ level of concern about topics through questionnaires before, we adopted "impact" as the evaluation principle to determine whether a topic is material. In addition, we adopted the double materiality principle proposed by the EU and identified 6 highly material topics with significant impacts in terms of "ASUS" and "external economy, environment, people."

In response to the initiatives of stakeholder capitalism, possessing accurate corporate operation philosophy, consistent value, and understanding that enterprises shall communicate with major stakeholders to help them achieve their targets are the common characteristics of outstanding enterprises. In the course of identifying materiality during the year, we collected topics concerned by stakeholders from daily interactions with them. When evaluating the level of impact, we selected crucial stakeholders who work closely with ASUS or possess sustainability expertise by conducting quantitative questionnaires and qualitative interviews with them, in order to fully understand the substantial impacts rising from ASUS and the expectations of stakeholders.

In the future, we will execute the identification procedures for material topics once every two years to regularly examine the impacts of topics, allowing the managers to effectively allocate resources and formulate short-term, mid-term, and long-term sustainable development strategies. Meanwhile, we disclosed positive and negative information with transparency to serve as a basis for related parties in all sectors to optimize their decision-making quality.

 

 

Topics Identification

ASUS established its quantitative index based on five features under AA1000 SES, "Dependency, Responsibility, Influence, Diverse Perspective, and Tension." Related parties with major influences on ASUS are identified from multiple stakeholders, including seven stakeholder categories of employees, customers, supply chain, and business partners, investors, governments and NGOs, academic units and society (i.e., community and media).

 

 

Through diverse channels, we carry out exchanges and engagements regularly and from time to time to understand stakeholders' expectations, and, at the same time, the information sources are used for evaluations of sustainability topics and impacts:

 

 

Collect Sustainability Issues

To find out potential topics material for ASUS, it has compiled 16 topics from international sustainability standards and specifications, SDGs, responsible investment, industrial trends, interactions with stakeholders, and other sustainability-related topics. To further investigate impacts resulting from topics.

 

 

Impact Evaluation

In accordance with the definition of materiality under GRI Standards (2021), we re-examined the degree of materiality of 16 sustainability topics in terms of impact of topics on "ASUS" and on "economy, society and people". We adopted the impact index assessed internally as the major basis of our evaluation and included viewpoints of stakeholders to help us understand the impacts caused by us on external sectors.

 

 

During the year, we collected 48 stakeholder questionnaires and conducted 11 sessions (including five categories) of stakeholder qualitative interviews. Results of the quantitative questionnaires serve as the basis for adjusting the materiality of topics; results of the qualitative interviews help us understand the substantial impacts of topics and potential sustainability topics to be managed.

 

Quantitative Survey

We consider whether to adjust the materiality of topics with reference to the results of the questionnaire survey for stakeholders. As set out in the following table, "Customer privacy and information Security" and "Legal compliance" were moderate material topics last year; however, stakeholders rated them of high impacts during the year.

 

 

For the sample of the interview, please click HERE for details.

Validation of Materiality

Combining the calculation of impact indexes above and the results of stakeholder engagement, we defined topics with significant impacts on "ASUS" and "economies, environments, people" as "highly material topics." The definition and management strategies of topic materiality are as follows:

  1. Highly material: Establish targets and perform regular follow-up management
  2. Moderately material: Establish management policies and impose dedicated unit to for management
  3. Mildly material: Possess a low degree impact in short-term; observe continuously

The material categories of 2021 include:

  • Enhance Corporate Governance
  • Transform Circular Economy
  • Reinforce Value Chain Cooperation
  • Realize Social Co-prosperity
  • ICT Innovation Application

At the same time, we voluntarily disclosed the relevant management approaches and achievements on topics where either stakeholders had higher interests or they had greater impacts on ASUS sustainable operation.

 

 

Regular Reviews

Sustainability topics of ASUS are identified through internal impact evaluations, compilations of stakeholders' viewpoints and finalized by the person in charge of the dedicated unit for sustainable development. In the future, we will continue to gain r knowledge of the positive and negative impacts caused by ASUS and the expectations of external stakeholders through contact with stakeholders regularly and from time to time. Leveraging on the opportunity of annual materiality identification, we performs an inventory check regarding internal and external viewpoints, and compile them as material sustainability topics.

For material topics, ASUS has established its management policies and formulated action plans and set targets and indexes based on the digitalized measurement strategies to periodically track the achievements. For other nonmaterial topics, we disclose existing management procedures and measures for stakeholders to understand the overall sustainability achievements of ASUS.

 

 

CSR Stakeholder Survey

From 2009, ASUS has established Corporate Social Responsibility Stakeholder Survey, looking for more interaction with our stakeholders. We welcomes and invites all our stakeholders to engage with our Corporate Social Responsibility issues more in depth. We appreciate your voice and will base on the priority to response to the inquiries or concerns through our Corporate Sustainability Report.

Please download the survey from the following link: CSR Stakeholders' Survey and send it to stakeholder@asus.com.

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