Responsible Manufacturing

According to the 2018 annual report of the Responsible Business Alliance (RBA), the primary risks confronting the electronic industry in sustainable development are labor, environment, and partnership. We have established our risk identification procedures in accordance with the RBA Self-Assessment Questionnaire, hazardous substances management, brand management, brand reputation, labor protection, continuous improvement, management system, and labor intensity. We use it to identify the risk level of more than 300 suppliers and outsourced service providers with an annual procurement amounting to NT $2,500,000 and further determining a list of high-risk suppliers to conduct the onsite audits and provide supervisions.

We continue our efforts in engagement and cooperation with the external stakeholders on supply chain management issues, and actively participated in the RBA as a full member to demonstrate our ambition in supply chain management and promise to assume a larger share of responsibility as a producer. We utilize the RBA Code of Conduct and include PAS7000 and SA8000 to establish the ASUS Supplier Code of conduct, reinforcing our protection of young and female labor, and lead the suppliers to share the corporate social responsibility under the full-range management framework to create a sustainable supply chain.

Risk Identification and Management

According to the analysis by the latest international sustainable situation report and by Responsible Business Alliance (RBA, labor, environment, and governance are the major risks for the sustainable operation of the electronics industry. As a result, ASUS identified the most relevant risk issues with ASUS through the stakeholder engagement, the consideration of international laws, NGO organizations, and requirements of sustainability from customers, including: conflict mineral and labor protection in labor area, and the use of hazardous substance, greenhouse gas emissions, and water footprint in environment area.

At the same time, supplier risk identification procedures are established based on factors such as industry characteristics, procurement model, and geographical relationships. Through the evaluation on RBA compliance, brand reputation, brand management, continuous improvement, hazardous substances, and labor hiring, we classified our suppliers with continuous partnership by different level. Those identified as high-risk suppliers will be arrange for second and third-party audits to reduce related risks through continuous improvement tracking.