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2008 BenQ Corporation Corporate Social Responsibility Report

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Index Page

1 Message from the President 4 Everlasting Responsibility and Steadfast Commitment

2 BenQ Introduction 7 2.1 Company Overview

2.2 The Essence of BenQ Culture –Integrity

2.2.1 Passion & Professionalism

2.2.2 Execution & Excellence

2.2.3 Caring & Contribution

2.3 BenQ’s Achievements

3 BenQ Social Responsibility 18 3.1 Corporate Sustainable Development

3.2 Communication with Interested Parties

4 Environment, Safety and Hygiene 21 4.1 ESH Management

4.1.1 SA and ESH Policy

4.1.2 ESH Organization and Responsibility

4.1.3 ESH Certification and Monitoring

4.1.4 ESH Training

4.1.5 Biodiversity

4.2 Legal Compliance

4.3 Green Office Management

4.3.1 Energy

4.3.2 Water

4.3.3 Recycling

4.3.4 Other Resource Management

5 Investor Relations 27 5.1 Corporate Governance

5.2 Product Lines

5.3 The Countermeasures of the Finance Risk

5.4 Risk Management on Supply Chain

5.5 Anti-corruption

6 Product and Service 31 6.1 Marketing Approach

6.2 Product Management

6.3 Green Product Design

6.3.1 Energy Saving

6.3.2 Reducing Packing Volume and Increasing Pallet Loading Rate

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6.3.3 Hazardous Substances Management

6.3.4 Recycles & Re-use

6.3.5 Green Eco labels

6.4 Quality Management

6.4.1 BenQ Quality Policy

6.4.2 BenQ Quality Management System

6.5 Customer Care Quality

7 Vendor and LSP Selection 44 7.1 Management principles

7.2 Vendor selection

7.3 LSP Selection

8 Human Resource 48 8.1 Employee Profile

8.1.1 High Quality Workforce

8.1.2 Age and Gender Distribution

8.2 Our Commitment

8.3 Workplace Safety

8.3.1 Workplace Safety

8.3.2 Occupational Health

8.3.3 Working Environment

8.4 Employee Relations

8.5 Training and Talent Development

9 Human and Social Care 61 9.1 BenQ Foundation

Protecting Yushan’s Hiking Trails

The “BenQ Award” Creative Writing Competition

Digital experiential zone of Smangus’ ecological system and culture

9.2 Public Welfare Activities

National Taiwan University Ming-Da Hall Public Art

National Palace Museum Sponsorship

Korea Disabled Students IT Event Sponsorship

Donations for Sichuan Post-earthquake Reconstruction

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Message from the

President

Everlasting Responsibility

and Steadfast Commitment

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Everlasting Responsibility and Steadfast Commitment

Since its inception, BenQ has embraced “Bring Enjoyment ‘N Quality to Life” as

its corporate vision, aspiring to realize the ideal of helping people to enjoy the

pleasure brought by science and technology via the provision of the branded quality

products and services of BenQ.

We are fully aware that the in addition to the pursuit of profits and growth, the

most important significance for the formation of any enterprise is to fulfill its social

responsibility by creating unique values, which can last for a long time, transcending

time and space, and produce positive influence on society and people.

Consequently, BenQ has spared no effort in the two major tasks of environmental

protection and talent cultivation. We have resorted to various channels to promote the

concepts of energy conservation, environmental protection, and preservation of

resources and have strived to materialize the concepts in our daily life and works via

institutionalized requirement and dedicated monitoring.

We adhere to rigorous demands of our own for every link of our operation, from

product design and R&D, supplier selection and management, materials,

manufacturing, to customer service, thereby meeting international quality and

management standards and the Restriction of Hazardous Substances Directive (RoHS)

of the European Union. We have also passed ISO 9001 for the certification of quality

management, ISO 14001 pertaining to environmental management, and SA8000

regarding social responsibility, which testify to our dedication to the corporate social

responsibility.

Staff is BenQ’s most cherished asset. Therefore, in addition to the provision of a

safe and comfortable working environment to our staffers, as evidenced by the

passage of the OHSAS 18001 certification regarding vocational safety and hygienic

management, we also care their physical and mental health, which won us the

affirmation of Taipei City excellent award for promoting healthy working

environment in 2005 and Taipei City piloting award for promoting healthy working

environment in 2007. We have been assisting our staffers in achieving growth in

expertise and spirit via the organization of various lectures, courses, and events.

As a company of international brand, BenQ owns excellent talents with different

nationalities and cultures. The cross-culture communications and exchanges have

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broadened our vision and enhanced our understanding of the world. We expect that

every staffer can find a stage in the company for the demonstration of their talent and

play the role of a preacher in spreading our steadfast value of integrity, thereby

injecting a positive and upward force into the society. BenQ is a brand of both

technology and humanity. Along with our effort to closely follow the pulse of times

and pursue technological innovation, we also believe that the sustainable development

of life is rooted in land, nature, humanity, and emotion. Via the products and services

of BenQ, as well as personal commitment of BenQ staffers, we will leave our

descendants the legacy of a good environment and pleasant lives.

Conway Lee President & CEO of BenQ Corporation

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BenQ Introduction

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2.1 Company Overview Company name BenQ Corporation

Headquarters Taipei, Taiwan

Total number of employees 1,399 as of February 28, 2009

Chairman KY Lee

Vice Chairman Jerry Wang

President/CEO Conway Lee

BenQ Corporation (now Qisda Corporation) is founded in 1984 with the

research, development and manufacturing of computer peripherals as its business

focus while later on expanding to optronics, communication and digital multimedia

sectors on a strategic investment. In Dec. 5, 2001, BenQ Corporation has launched its

own branded business to market and sell its products using the BenQ brand name.

BenQ Asia Pacific Corporation was founded in March 13, 2000 and there hence

was involved in the creation of BenQ branded business and its management as well as

the sales and marketing of BenQ branded products in the Asian Pacific region. BenQ

Asia acific Corporation was renamed BenQ Corporation and BenQ succeeded BenQ

global branded business spun off from Qisda Corporation in year 2007.

BenQ Corporation, a leading provider of networked digital lifestyle devices, is a

multi-faceted company with strengths in product design, visual technology, mobile

technology and 3C convergence technology. BenQ offers unrivalled breadth and depth

of products and integrated technologies across platforms through the brand promise

of “Bringing Enjoyment and Quality to Life,” including LCD monitors, LCD TVs,

digital projector, digital still cameras, mobile communication products, Personal

Computers(Joybook laptop PCs, Joybook Lite Netbooks, nScreen All-in-One PCs)

storage devices, storage media and human interface devices such as mice and

keyboards.

The long-cultivated R&D prowess, comprehensive global sales and marketing

infrastructure and the unique brand positioning and design philosophy have all

contributed to BenQ’s success shortly after the brand launch in 2001: In 2008, BenQ’s

ranked top 4 in projector sales worldwide while top 6 in non-PC-bundled LCD

monitor sales. BenQ’s total design award number received has exceeded 200 within a

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short span of 7 years; outstanding market performances of BenQ products are

recorded worldwide.

2.2 The Essence of BenQ Culture –Integrity

Integrity is the invariable essence of BenQ culture that every colleague adheres to.

It is also the foundation of our corporate vision: to Bringing Enjoyment ‘N Quality to

life through passionate pursuit for BenQ’s values: Passion & Professionalism,

Execution & Excellence, and Caring & Contribution.

2.2.1 Passion & Professionalism

BenQ has accumulated years of research and development excellence along with

global marketing experience since our brand inauguration in 2001. We want to

provide products and service beyond the needs of our customers. We want to move

our customers with services that show our passion and innovations. The customers

must feel unique and impressive when they received a BenQ product.

We believe that it is priceless when customers are truly touched by the quality of

our products and services. In order to have the quality we desire and customers

appreciate, we not only need to focus but also seek resolution in fundamentals. Back to

basic is the key. Every colleague, regardless of job function or position, must be detail

oriented in every step of the way.

2.2.2 Execution & Excellence

Facing a constant evolving market, continuously innovation to meet market

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requirements has become the first law of survival in technology industry. However,

innovation has gone beyond the mean of survival at BenQ. Now, it flows in the blood

of every BenQers and is in the deep root of our corporate culture.

The goal of innovation is to improve, grow, and finally to excellence. We can

never be satisfied with current achievements. We must continuously challenge and

excel ourselves. We don’t want to just follow the trend; we want to be the exemplary

innovator to lead the trend.

2.2.3 Caring & Contribution

K.Y. Lee, Chairman of BenQ, once said: the mission of an enterprise is not only to

build up a highly efficient workforce, but also to create and enhance social value.

Our team should play a role of responsible society citizen and be the driving force to

improve quality of life for everyone.

BenQ treats our colleague and partners with philosophy of humanism and care.

We provide a humane and enjoyable working environment as well as extensive career

trainings to our talented employees. Colleagues are empowered with full authorization

and given unlimited growth factors. We want everyone at BenQ to be the influential

factor in delivering the spirit of harmonious and caring society.

2.3 BenQ’s Achievements

2001/12/5

The BenQ brand is born

The Birth of the BenQ brand:

Bringing Enjoyment N' Quality

to life has been the corporate

vision of BenQ for over 10

years. Enjoyment Matters is a

slogan that proclaims BenQ's

goal of providing customers

with joyful experiences when

using our products.

2001/12/6

BenQ reveals its first brand

advertisement

technology +

enjoyment=(fun)2

This formula represents the

goal of providing the

technology that consumers

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want along with the added

value of enjoyment when using

BenQ products.

2002/4/6

BenQ's first television

commercial (S620/630

handsets) is released

The idea behind this television

commercial came from the

product's ability to fold like a

castanet that Spanish dancers

use.

2002/8/1

BenQ releases its first brand

television commercial “He

has been BenQed!”

This early commercial

expressed the joyfulness of

BenQ spreading from one

person to another. It also set

the tone for future BenQ

branding commercials.

2003/2/3

Forbes Magazine interviews

K.Y. Lee on BenQ branding

Through a continuous

branding campaign, BenQ

strengthened its brand position

and gained international

recognition. Forbes Global

magazine honored BenQ's

ability to establish independent

brand name from Acer and

complimented Mr. K.Y. Lee on

his effort to built an

international brand.

2003/6/25

BenQ announces the use of

organic shapes in the new

brand visual identity

BenQ's organic shape projects

product identity through brand

visual identity. Consumers can

easily pick out BenQ products

from these organic shapes

without even looking at the

logo.

2003/7/16

The grand opening of

BenQ’s first Display Center

The first display center in the

world to implement VI display.

This method differentiated

BenQ from its competitors by

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allowing consumers to enjoy

the latest technology in a

friendly and comfortable

environment.

2003/9/23

BenQ ranks 7th in

Interbrand’s Taiwan Top

Global Brands Report

BenQ ranked 7th in Interbrand’s

Taiwan Top Global Brands in

its first eligible year.

2003/11/20

BenQ announces the

sponsorship of UEFA 2004

Through sponsorship of

international sporting events,

BenQ's brand recognition and

support from retailers and

distributors grew globally.

2003/12/18

BenQ wins 7 iF Product

Design Awards in 2004

After receiving 7 iF Product

Design Awards in 2004, BenQ's

design prowess began to make

its mark around the globe.

2003/12/23

BenQ maintains its status as

the most innovative

corporation in Taiwan in the

2003 Far Eastern Economic

Survey

Far Eastern Economic

Magazine name BenQ one of

the few company in Taiwan

that aggressively pursued the

international market with

many great accomplishment.

2004/6/1

BenQ FP783 wins Business

Week’s IDEA (Industrial

Design Excellence Awards)

2004 Bronze Award

BenQ FP783 attracted

intentional awareness with its

butterfly wing design and won

Business Week’s IDEA

(Industrial Design Excellence

Awards) 2004 Bronze Award.

2004/6/24

2004UEFA begins in Europe

With the sponsorship of UEFA

2004, BenQ's logo can be seen

in every major area of the

event. BenQ's brand name

spread began to spread through

Europe.

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2004/10/1

BenQ receives 9 awards from

G-Mark Japan (Good

Design Award)

The G-mark is one of the most

renowned design awards in

Asia. It focuses on product

innovation, functionality, and

craftsmanship. It was a great

accomplishment for BenQ to

receive 9 awards in its first

participation in this

competition.

2005/5/16

BenQ's Digital Lifestyle

Design Center graces the

cover of Business Week

Business Week highlights the

important role of Taiwanese

companies' in the hi-tech

industry. Among these

companies, BenQ contribute by

directing the world's focus to

Taiwan with its extraordinary

design ability.

2005/10/3

BenQ wins 11 awards from

G-Mark Japan 2005 (Good

Design Award)

BenQ leads the competition

with the most awards received

for a Taiwanese company.

2005/10/4

BenQ ranks 4th in

Interbrand’s Taiwan Top

Global Brands Report

BenQ once again receive a

nomination for Interbrand’s

Taiwan Top Global Brands

Report. With 27% growth in

brand value, BenQ rank 4th in

this report and lead the

competition with the highest

growth rate.

2005/10/20

Forrester Research ranks

BenQ 29th among all brands

in Europe

BenQ is the only Taiwanese

brand that made the top 30

ranking and is also the

youngest brand name in the

top 30 contestants.

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2005/11/8

BenQ announces its

sponsorship of Real Madrid

BenQ Mobile announced its

sponsorship of Real Madrid in

a continuation of its global

branding campaign.

2005/11/23

BenQ contributes to the

National Palace Museum in

Taiwan

Design Philosophy-Meeting of

Opposite beautifully played out

when BenQ joins Humanity

with Technology in its

coordination with the National

Palace Museum.

2006/3/3

BenQ wins its 100th award

for product design

BenQ's design continued to

gain international recognition,

leading the industry with third

most awards around the globe.

2006/7/3

BenQ wins 11 awards for

Superior Product Design for

2006 Red Dot Awards

2006 Red Dot Awards certify

BenQ's effort in product design

and innovation.

2006/7/30

Based on the DTC survey,

BenQ projectors rank 2nd

worldwide and 1st in

Europe

Outstanding BenQ projector

growth: BenQ went from a

world market share of 6.99% to

8.1% and 115% in sales

growth.

2006/8/4

According to Corporate

Brand Value Research BenQ

ranks 11th in China

BenQ is the only Taiwanese

brand name that qualifies for

the competition, which

reaffirms BenQ's strong

position in China.

2006/9/17

BenQ wins 24 2006 iF

Design Awards Including

China 1 iF China Top

Selection Award

BenQ product design, ability,

and quality have increased

sharply over the past few years.

In 2006, the number of BenQ

products honored for their

innovation and design by iF has

reached 24.

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2006/9/27

BenQ ranks 5th in

Interbrand’s Taiwan Top

Global Brands Report

From 2003 to 2005, BenQ

brand value growth rate ranked

number one in Taiwan.

2006/10

BenQ is named an

"Innovated Corporation" by

The Wall Street Journal

The Wall Street Journal ranked

BenQ 14th in the top 200

companies in Asia and 1st in

innovation.

2006/10/8

FP785+ adds art and history

to technology

The first product that features

BenQ cooperation with

National Palace Museum to

combine ancient art with

technology.

2006/11

7350CT scanner wins the

“Design for Asia” award’s

“DFA Best Design from

Greater China”

BenQ’s unique design

philosophy “Meeting of

Opposites” was recognized by

the prestigious jury of the

Design for Asia award, winning

praise from the region where

half of the world's population

lives in

2007/3

8 iF Design Awards 2007

(including 1 much-coveted

Gold Award for PMW1000)

BenQ’s second consecutive year

winning iF Design Award’s top

honor, the iF Gold Award. The

recognition once again

demonstrates BenQ’s design

prowess and our strength in

bringing innovative design to

our consumers.

2007/3

BenQ wins 6 Red Dot

Design Award 2007

Having received the prestigious

red dot design awards, BenQ

has once again proven itself of

reaching the global design

podium.

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2007/7

BenQ’s recognized as

Interbrand’s “Top 10 Global

Taiwan Brands”

BenQ’s brand value has been

recognized by the award for a

4th consecutive year.

2007/8

BenQ wins 7 iF Design

Award China 2007

」

This recognition demonstrates

that BenQ has won praise from

this growing and increasingly

important market in Greater

China

2007/10

BenQ wins 5 Good Design

Awards 2007

The awarded products are

recognized for their

functionality and design

originality, which is a proud

brand distinction for BenQ

2007/11

BenQ receives the piloting

award from the Bureau of

Health Promotion of the

Executive Yuan for

promoting healthy working

environment

The award’s aimed to recognize

companies that put an effort in

encouraging smoking-free

workplace and proactively

promote healthcare as part of

their operating principle. The

recognition show’s BenQ’s a

leader in health promotion

among other Taiwanese

companies.

2008/3

BenQ wins 4 iF Design

Awards 2008

BenQ’s composite iF award

results from 2006 to 2008’s

ranked 15th worldwide and top

in Taiwan

2008/3

BenQ wins 6 Red Dot

Design Award 2008

BenQ’s total award number has

exceeded 200: a proven track of

BenQ’s world-class design

capability.

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2008/7

BenQ’s Mobile Internet

Device (MID) has won the

Bronze Award under the

Interactive Product

Experience category of the

2008 Industrial Design

Excellence Awards (IDEAs)

BenQ’s MID features unique

Free Surf User Interface highly

praised by the jury. The

award recognizes BenQ’s

devotion to achieving its brand

commitment, Enjoyment

Matters, by offering

end-consumers a most intuitive

mobile Internet surfing

experience.

2008/9

BenQ wins 2 iF design award

China 2008

This recognition demonstrates

that BenQ has won praise from

this growing and increasingly

important market in Greater

China

2008/10

BenQ wins 3 Good Design

(G-Mark) design awards

BenQ wins praises from the

Good Design Award jury for

the 5th consecutive year

2009/1

BenQ wins 1 iF design award

2009

BenQ’s unique design

philosophy that aims to

transcend Western and Eastern

cultures and marry rationality

and sensibility to create

user-friendly experience’s once

again won praises from the iF

design award committee.

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BenQ

Social Responsibility

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3.1 Corporate Sustainable Development

Sustainable development for the society and the environment is always a key

issue from the viewpoint of a global citizen BenQ and it’s a foundation stone and

corporate spirit for BenQ to create a sustainable development business. We merged

the CSR requirement to corporate business strategy which covered but not limited to

corporate policy, interior management mode, procedures and training. Besides, we

continuously take effective actions in fields of corporate governance, R&D, green

product, personnel training and social care, to and make the most profit to customers,

the environment and interested parties. We initiated schemes on social and

environmental responsibility and internally advocated and built the job culture

relevant to corporate social responsibility.

In order to meet the targets, BenQ actively take the following action base on

corporate social responsibility policy,

To comply with legal requirements

To advocate employment freedom

To perform humanity care

To prohibit discrimination

To establish communication mechanism

To enhance employment welfare

To cultivate employee capability

To enforce

To protect intellectual property rights

To implement information disclosure

To promote social culture and to care disadvantaged minority

To popularize social responsibility

3.2 Communication with Interested Parties

As a global leading OBM enterprise, we believe that it’s very crucial to be

sufficiently aware of the demands and recommendations from interested parties by all

possible communication channels. BenQ would like to be informed all issues and

questions commented from interest parties by various channels. The interested party

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may mainly involve five groups, which are investor, customer, supplier, employee and

the community. As an active citizen of sustainable development industries, BenQ

will continue to listen to response to the voice of interest parties and will do our best

to reach the multi-win goal.

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Environment, Safety

and Hygiene

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4.1 ESH Management 4.1.1 SA and ESH Policy

BenQ Corporation has strived to not only fulfill its commitment by providing

better products and services but also devoted itself to the practice and promotion of

social accountability, environmental, safety and health management to care and

contribute to the society and improve quality of life. From now on, BenQ Corporation

will integrate social accountability, environmental, safety and health management and

business philosophy into the efficient process to execute the SA and ESH Policy.

BenQ Corporation executes the SA and ESH Policy with the following guiding

principles:

Continual improvement to the protection of labor rights.

Green design concept and reducing the use of environmental pollutant.

Continual improvement on pollution prevention, energy conservation, safety,

and health assurance.

Compliance with standards of social responsibility, regulations, and customer

requests.

4.1.2 ESH Organization and Responsibility

To reach the goals of ESH, BenQ has established a SA and ESH Management

Committee with the CEO and head of all departments as the committee members.

The A management representative has been assigned by the CEO to be in charge of

implementation of Committee of SA and ESH Management and task assignments of

Committee of SA and ESH Management based on the company property. The ESH

policy was authorized and approved by the CEO. The management representative and

his/her task force team will be responsible for the formulation and implementation to

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corporate ESH strategies. Period reviews of ESH performance will be carried out.

BenQ committee of SA and ESH management

BenQ SA and ESH Task Force Team

4.1.3 ESH Certification and Monitoring

BenQ headquarters has been introduced ISO14001 for an environment

management system, OHSAS18001 for an occupational health and safety management

system (ESH) and SA8000 for social responsibility management system and the

implementation of required actions by the regulations have also been certified by

respective director organizations. To optimize the effectiveness of ESH system, we have

arranged internal audit once a year to improve and adjust non-conformities promptly.

Accredited certificated organization- will also invite to do external audits. From

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professional and objective viewpoints of a certificated organization, we can revise

goals and strategies of ESH system to correspond to our continuous development

policy. BenQ is a brand company without manufacturing. However, we know that

environmental protection is key to the continuous development of a company and

realize that employees are our greatest asset. Therefore, we not only follow the ESH

system, but also request our suppliers to respect it and work under the ESH system as

well.

4.1.4 ESH Training

Building awareness and concept of ESH is critical to in the promotion and

implementation of ESH policies. The first step is to foster knowledge. In order to

communicate the information effectively, we formulate the ESH training courses

which combine the requirements of regulatory and the characters of company and

industrial environment. This course includes different subjects such as health and

safety, management system, emergency response, green products, environmental

protection, and social responsibility. Besides that we update and communicate the

important news or the trend of future through internal E-news or seminars.

4.1.5 Biodiversity

BenQ headquarters is located at Nuihu Technology Park in Taipei City, Taiwan. It

engages product research and design. We have never engaged in any activity,

production or service which has significant impacts on biodiversity. Moreover, we do

not own, lease, or manage any factory or office which is located at the protected or

with the high biodiversity value areas.

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4.2 Legal Compliance

Building an excellent working environment and taking Corporate Social

Responsibility seriously are always the main objectives of BenQ. In the year of 2008,

we did not incur any non-compliance incident.

4.3 Green Office Management

Besides focusing on green product research and development, BenQ also

commits itself to green office. In order to create a working environment that is friendly

to the nature, we not only conserve electricity, water, and recycling in the workplace,

but also commit to plant in our office., Although our efforts may not look as

significant as other industries, , we believe 「Many a little makes a mickle.」. By doing

this little by little, we not only provide comfortable environment to our employees, but

also implant invisible environmental conservation concepts to all BenQers.

4.3.1 Energy

To save energy and maximize energy efficiency, in BenQ headquarters, we use T8

LED lamps. Those lamps provide illuminant efficiency that reaches 80~95 (1m/W)

with average life 12,000~20,000 hours. In comparison to an incandescent lamp, T8

LED lamps’ illuminant efficiency is 6~10 times better, with average life extends 12~20

times longer, providing with the benefits of reducing replacing frequencies and also

improvement of lighting efficiency. For regulatory requirements and employee’s

comfort, we reduce lamps from 3 to 2 in each area to lower excessive lighting and

electricity. By doing so, we conserved 20% of lighting electricity usage. Moreover, we

requested employees to turn off lights after meetings and work. We invite employees to

use their creativity to beautify the stairways, and encourage them to use stairs instead

of elevators. By trying and carrying out energy reducing policies, the electricity is

1,614KWH in headquarters in 2008. It’s 6.28% lower than electricity usage in 2007.

4.3.2 Water

Water in Taiwan is extremely precious, so we have to show our concern over

water conservation and waste management. In order to conserve water, we installed

assemble water-conserving faucets throughout the building. By doing so, we conserved

20%~50% of water usage. In 2008, BenQ used approximately 11.5 thousand tons of

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water. In addition, we asked testing organization to measure wastewater quality to

ensure environmental soundness. Waste water is properly treated before it is released

back to the environment to meet relevant discharge standards.

4.3.3 Recycling

“Waste material is a resource placed in the wrong place.” Waste classification and

recycling is our main focus. To better facilitate classifying waste materials properly, we

distinguished recycling areas in our office to recycle glass, aluminum foil packs, metal

containers, plastic water bottles. We also recycle wastepaper, used disks and used

batteries. In 2008, BenQ reclaimed recyclable materials reached 19% of all waste

produced.

4.3.4 Other Resource Management

Wastepaper is always one of main waste resources in the office. In 2008, BenQ

reduced paper consumption progressively by varies new resource management. We

encouraged employees to bring their own cups, to cut down paper towel usage, to

eliminate disposable tableware, to replace files to hardcopy, and to replace one-side

prints to two-side prints.

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Investor Relations

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5.1 Corporate Governance

It is the fundamental belief of the Company to devote itself to creating profits for

shareholders and feedback the society. The Company supports and promotes the

transparency of operation and the fairness of information transmission so as to make

the business and financial information available for shareholders, customers and

interested parties of the Company via unified source.

The Board of Directors deems the interests of the Company and shareholders as

top priority to conduct operation evaluations and material resolutions. Supervisors

and accountants also play the monitoring role to review the implementation of

business of the Company and Board of Directors.

In the future, the Company will maintain sounder decision-making and

enforcement organizations to increase the operation efficiency and implement the

corporate governance.

5.2 Product Lines

The company, a leading provider of networked digital lifestyle devices, is a

multi-faceted company with strengths in mobile communications, visual display and

network convergence technologies. The product lines are as follows:

●Digital Projector: Commuter, Home Entertainment, Home Cinema, Mainstream,

Stationary

●LCD Monitor: 15”, 17”, 19”, 18.5”, 19”W, 20”W, 21.5”W, 22”W, 23”W,

23.6”W, 24”W, 27”W

●Joybook: 13.3”, 14.1”, 15.4”, 15.6” wide screen series laptop PC

●Joybook Lite: 10.1”, 11.6”, 13.3"

●nScreen All-in-on PC: 18.5”W , 21.5”W

●Digital camera: 10 ~12 Mega pixels digital cameras

●LCD TV: 21.5”, 23.6”, 32”, 37”, 42”, 46”, 52” LCD TV

●Mobile Internet Devices

●Others

﹡Optical storage product: CD-ROM, CD-RW, DVD-ROM, DVD+RW, Combi,

Blu-Ray RW

﹡Human interface device: mouse, keyboard

﹡Computing peripherals: digital media

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The following is the Company’s global Sales Offices

●Europe (Regional HQ: Eindhoven, The Netherlands)

Austria, France, Germany, Italy, Russia, Spain, Sweden, Switzerland, The

Netherlands, UK

●North America (Regional HQ: Irvine, California, U.S.A.)

Canada, USA

●Latin America (Regional HQ: Miami, Florida, U.S.A.)

Brazil, Mexico

●China (Regional HQ: Suzhou, China)

China

●AMEA (Asia Pacific, Middle East, Africa) (Regional HQ: Taipei, Taiwan)

Australia, India, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, Turkey,

UAE

5.5 The Countermeasures of the Finance Risk

The Company upholds the policy of not engaging in the high risk and high

leverage investment, lending capital to non-related parties, and guaranteeing for

non-related parties. Derivatives are transacted for hedge and not for speculation.

Under the Year 2008 derivatives principal of the Company for hedging, there is no

occurrence of relevant operation risk. In the future, the Company will avoid the

fluctuation of exchange rate and interest to conduct the derivatives transaction and

continue to evaluate the foreign currency positions and risks so as to reduce the

operation risk.

Moreover, the goal and method of the hedge transaction are indicated as follows:

The hedge transaction category of financial products

1. Forward Contract

2. Interest Rate Swap Contract

3. Currency Swap Contract

The goal of the hedge transaction of financial products

The derivatives transaction of the Company is solely for hedging so as to reduce

the operation risk, assure the stability of making profits, and avoid the risk of

the fluctuation caused by exchange rate, interest rate or the price of assets.

30

The method of the hedge transaction of financial products

1. Intercept the market information, determine the trend and risk, and being

familiar with financial products and relevant laws and regulations and

operation skills. Transact by following the instructions of the authority and

authorized positions so as to avoid the risk of the market price fluctuation.

2. Evaluate periodically.

3. Provide the information of the risk exposure position.

The accounting principal of the hedge transaction of financial products

To avoid the risk caused by the assets or liability denominated by foreign

currency, the Company has executed forward contracts with financial

institutions. However, such arrangement does not conform to the hedging

accounting principals of Accounting Standard Statement No. 34. As a result,

when conducting the original recognition, the Company measures it by fair

value, whose variation is recognized as the financial assets or liability of the

gain or loss.

5.6 Risk Management on Supply Chain

In order to reduce the impact on business operation as supply chain discontinued,

BenQ’s risk management strategy is shown as below listed:

　 Except for monopoly and unique technique vendors, BenQ maintains at least two

qualified vendors for supply chain operation. In case one of current cooperating

vendors suspends the supply and services, another vendor will immediately to offer

the supply and service in the shortest time.

　 Keep searching, qualifying and establishing potential vendors, on condition that

all current cooperating vendors suspends their supply and services to BenQ, the

qualified potential vendors will immediately to offer the supply and service in the

shortest time.

6.5 Anti-corruption

BenQ stipulated a code of conduct for employment and took actions to avoid any

corruption as possible. No legally corruptive case found in recent years.

31

Product and Service

32

6.1 Marketing Approach

BenQ Corp. markets and sells products under the “BenQ” brand name. Our

marketing approaches are executed based on requirements from the market and retail

partners, and we do product and brand promotion through marketing

communications activities such as exhibitions, sponsorship or press conference, retail

promotions and business advertising. When such activities are conducted, BenQ not

only seeks to obey the requests by the organizers when participating in events but also

to fully comply with relevant regulations.

In addition, we respect all intellectual property rights of any creativity and

contents, including still images, multimedia and films that BenQ uses in marketing

communications at all levels. These images are all authorized from the image banks

or film owners prior be played in public.

As for sponsorship, in all cases BenQ makes sure that the sponsored events and

event initiators themselves are all adherence to law. Only under these circumstances,

BenQ would provide our corporate logo to the organizers to be placed on their

promotional materials such as website, posters or flyers.

6.2 Product Management

To meet customer demand is BenQ’s consistent commitment. BenQ stipulated

and continuously improve the product development process to ensure the quality and

assurance of product design and production.

Brief of product development:

Function Responsibility

Product

Management

1. Conduct market survey, brand positioning and competition

analysis.

2. Initiate product pricing strategy and coordinate all branding

business related issues.

3. Owner of the entire process. Keep track of the product

development progress, assist in abnormal situation handling,

and secure product launch schedule.

33

Technical

Management

1. Out sourcing product engineering specifications define,

confirm and technical window.

2. B3/B4 stages product test plan define.

3. To validate design samples, test reports and solutions for bugs

from Vendors to ensure design quality.

Strategic

Procurement

1. Assist in introducing System Integrators, finalize purchasing

agreements and evaluate Vendors.

2. Handle price, production, delivery, service condition and all

other issues related to System Integrators.

3. Key Component Sourcing

Supply Chain

Management

1. Coordinate sales order flow and sales & production

management for new System Integrators, as well as to assist in

shipment arrangements in the early stage of business

engagement.

2. Coordinate sales& production to ensure each manufacturer’s

continuity of supply.

Business

Management

Quick decision making & Action taking, for all the business

activities between Regional Offices and PD.

Customer Care 1. Develop and promote global service and supporting

programs.

2. Coordinate various after-sales service and supporting tasks.

3. Collect and handle feedbacks from the market & customers,

and request related departments for quality improvements.

Quality

Management

1. New Vendor’s quality system survey and qualification. 2. New model B5 stage management, generate Vendor PVT test plan and PVT test report review. New model green light release management. 3. Product mass production quality verification and management. 4. Product engineering change control in mass production stage. 5. Product field quality tracking and improvement. 6. Product shipment on-hold \ shipment release judgment.

Product

regulatory

management

1. Responsible for regulatory application for new models; EMC

(Electro Magnetic Compatible), and green product compliance

management. 2. To audit and to give approval for the regulatory and the testing Lab of new Vendor.

34

There are seven stages conducted in product development process.

Proposal Phase

Planning Phase

Design Phase

Engineering Verification Phase

Design Verification Phase

Production Verification Phase

Mass Production & Termination Phase

Proposal Phase

Planning Phase

Design Phase

Engineering Verification Phase

Design Verification Phase

Production Verification Phase

Mass Production & termination phase

35

6.3 Green Product Design

6.3.1 Energy Saving

EuP (Energy-using Products) requirement for design

Table1: EuP Power consumption requirements Base on the EuP directive of 2010, now

the design of BenQ’s LCD TV, LCD Monitor, Projector, Notebook, All-in-Pne PC

products will meet below Standby/Off mode power consumption requirement

Effective Date

Criteria

Off Mode Standby Mode

2010

(phase one) ≤ 1.00W

≤ 1.00W(a)

≤ 2.00W(b)

2013

(phase two) ≤ 0.50W

≤ 0.50W(a)

≤ 1.00W(b)

Note:

(a) The power consumption of equipment in any condition providing only a

reactivation function, or providing only a reactivation function and a mere

indication of enabled reactivation function.

(b) The power consumption of equipment in any condition providing only

information or status display, or providing only a combination of reactivation

function and information or status display.

Energy Star requirement for design

Except for EuP energy saving, BenQ’s LCD Monitor, Joybook, All-in-one PC also

design for Energy Star 5.0 to meet the over year Typical Energy Consumption (TEC)

requirement.

36

Table 2: Energy Star computer products power consumption requirements

Desktop and All-in-One PC

(kWh)

Notebook

(kWh)

TEC (kWh) :

(Typical Energy

Consumption)

Category A: ≤ 148

Category B: ≤ 175

Category C: ≤ 209

Category D: ≤ 234

Category A: ≤ 40

Category B: ≤ 53

Category C: ≤ 88.5

Note:

Category A~D are base on the different hardware configuration of the Energy Star 5.0

specification

Sleep and Off Mode Power Consumption Requirements for all Displays. The

Table is the requirement of Energy star and BenQ internal requirement of display

product. Our display product can meet the Tier 2 requirement.

Table 3: Energy Star display products power consumption requirements

Mode Tier 1 Tier 2 BenQ requirement

Maximum Sleep Mode

Power Consumption (W) ≤2 ≤1 ≤1

Maximum Off Mode Power

Consumption (W) ≤1 ≤1 ≤0.5

37

Except for system energy saving requirement, BenQ’s external power supply

(Power adapter) also request design to meet Energy Star EPS 2.0 (External Power

Supply) Level V for best power efficiency.

38

6.3.2 Reducing Packing Volume and Increasing Pallet Loading Rate

Now BenQ review all of the product packing design, and phase in new design to

have best efficiency of packing, thus reduce waste space in the carton, then increase the

loading rate when shipping, which also reduce the transportation energy usage.

6.3.3 Hazardous Substances Management

BenQ’s product design, whether it’s done internally or from an outer source,

including design of products, packing and accessories, is fully compliant with

requirements of RoHS Directives, especially on the prohibition of the use of any of 14

hazardous substances below:

Category Kinds Item Hazardous Substances

Essential

items

Heavy Metals

1 Sum of heavy metals in packing material

(Cd+Pb+Cd+Cr(VI))

2 Cadmium and its compounds

3 Lead and its compounds

4 Mercury and its compounds

5 Hexavalent Chromium and its compounds

Brominated

organic

compounds

6 PBBs

7 PBDEs

Declarati

on items

Chlorinated

organic

compounds

8 PCBs and PCTs

9 Chlorinated Paraffins (10-13 carbon)

10 PVC

11 Asbestos

12 Azo colorant

13 Ozone Depleting Substance

Other metal 14 Nickel & its compounds

Meanwhile, BenQ also ask supplier to sign back the “Declaration of Compliance

with RoHS Directive and BenQ GP Requirement” to guarantee the product design

could meet all of the requirements of RoHS.

39

6.3.4 Recycles & Re-use

To reduce the impact of waste electronic products to the environment, EU WEEE

directives have management rules for recycles & re-use of waste electronic products.

On the trend, when in the planning of product design, BenQ also consider to reduce

40

the packing, painting, easy dis-assembly to achieve the recycles & re-use rate when

product end of life.

6.3.5 Green Eco labels

To meet worldwide eco & energy saving design requirements, as of now, many of

BenQ’s products have got the eco label certification, including LCD monitors,

projectors, Joybook & All-in-One PC (details listed below):

Eco Label LCD Monitor Project

or

Joybook

AIO PC

Taiwan Eco label

E2200HD, E2200HDA, E900HD,

E900HDA

MP623,

MP724,

MP727,

MP735

Taiwan Energy Label

SE2231

China CEPT label T2200HD, T2200HDA, G2200W, G700,

G2200WA, T92W, T92WA, T261W, E900,

E900HD, M2200HD, G700A, E2200HD,

E2200HDA, E900HDA, G900HD, E900A,

G90HDA, E900W, E900WA, G900W,

G900WA, E900WN,

Energy Star W1508, X2200W, X2000W, G2110W,

G2200W, G2110W,G2200W, T92WA, T

G2010W, M2200HD, E2400HD, G900HD,

E900HD, M2400HD, G700, T2200HD,

T900HD, G610HD, G2220HD, G2411HD,

G920HD, G2410HD, G2020HD, G920HD,

E2200HD, G2020HD

S32, S33,

R58, R47,

DHU100

nScreen

i91,

nScreen

i221

Japan PC 3R M2400HD, E2400HD, G920HD, E900HD,

M2200HD, E2200HD, G2220HD,

G920HD, G610HDA

nScreen

i91,

nScreen

i221

41

It is our goal to get more eco label certification in year 2009 for products across

product lines:

Eco Label LCD

Monitor

LCD TV Projector Joybook

AIO PC

DSC

Taiwan Eco label V V V V V

China Eco labl V V V V

Energy Star V V V

USA EPEAT V V

TCO          V V

Japan PC 3R V V

6.6 Quality Management

BenQ’s Quality System Management can be divided into three stages as the company

expands its business scale:

1984-1991: Building infrastructure of quality management system

Enabling to manufacture quality products

Winning customer’s trust to support the company’s business.

42

1991-2001: Apply International Licenses.

Establishing Standard Operation Procedures, and stating to apply ISO.

Certified ISO-9002 in 1992.

Certified ISO-9001 in 1993.

Certified ISO-9001:2000 in 2001.

2001- now Establishing Quality Culture

Branding Business

Quality is the core competition.

Provide competitive product & service to customer

Certified QS-9000 Display Factory in Taoyuan in 2005

Since the separation with manufacturing business, Quality is

considered the foundation to the success of branded business.

6.6.1 BenQ Quality Policy

“To Deliver Defect-Free, Competitive Product & Services to Our Customer on time”

Quality is the guiding belief of each BenQ employee. BenQ brand’s core competence lies in

advanced and reliable product quality.

6.6.2 BenQ Quality Management System

The structure of BenQ Quality Management system is built based on ISO

9001:2008 & ISO 14000:2004. Beside ISO 9001, the BenQ has implemented additional

quality control measures since separation with manufacturing business 2007:

Assigned high level management to oversee quality system

management in all product lines, and send BenQ’s Quality

Engineer to each vendor’s manufacture site for quality inspection

before shipment released.

Each product line’s Quality Manager review quality index with

each vendor, and quality issues from global quality database

regularly.

The Senior Management holds quality review meeting monthly.

Review and benchmark each vendor’s quality status to ensure

continue improvement.

Any personnel may have influence quality has own quality KPI,

and reviewed monthly.

43

6.7 Customer Care Quality

BenQ’s customer care is provided through the establishment of service centers and service

network built by authorized service provider worldwide. BenQ’s Web site has also published

information listed below:

1. Corporation Information

2. Product Information

3. Promotions

4. Online Shop (Depends on Regions)

5. Product Warranty

6. Product Support Information

7. Software Updates.

8. Contact Information for Service Center, Authorized Service Provider.

Customer satisfaction surveys are conducted by BenQ’s five regional sales offices

worldwide regularly. Survey results are used for benchmarking and auditing of each service

center & authorized service provider. Displacement of or request for quality improvements

will be sent to those service center or provides that fail to meet the requirements of BenQ’s

stand service quality.

All authorize service provider are asked to provide service records by uploading

them to a online database for all regional sales office to review. BenQ’s headquarters in

Taiwan also does service data analysis on a daily basis for service quality assurance and

ensuring continuing improvements.

44

Vendor and LSP

Selection

45

7.1 Management principles

Since transforming to a branded business operation, BenQ has outsourced partial

R&D, and product manufacturing to ODM manufacturers and logistics to LSP

(Logistics Service Provider) while focusing on brand management, marketing,

differentiation, global logistics and after service. BenQ aims to effectively integrate

resources from contracted manufacturers and LSPs to enhance the brand’s

competitiveness.

As the booming development of information technology thanks to the

introduction of PC and the Internet, rapid growth is seen in global economy and

impacts to the environment are increasing. For sustainable development of an

enterprise, BenQ strictly requests that all contracted vendors and LSP to get the

certification of ISO9001 & ISO14001 to collaboratively fulfill corporate social

responsibilities.

7.2 Vendor selection

It is BenQ’s goal to provide customers with the best service quality and the most

environment-friendly products. We have a standard procedure to execute the

selection on vendors; with the process of qualification review and auditing on vendors,

we wish to build up lasting relationship with qualified vendors and this to fulfill

BenQ’s social responsibility and accountability. Since 2008, BenQ reinforced our

requirements and managements on vendors, to make sure their execution level of

social accountability; also, we advocated the ideas and communicated our

requirement on social responsibility-related issues with potential vendors and existing

vendors.

In internal management system and related flow chart, BenQ lists criteria to

make our potential vendors qualified and entering into QVL (Qualified Vendor

List)—our vendors have to cooperate actively with auditing and documents review on

issues regarding environment caring and social

46

For vendors that cannot offer copies of SA8000 certificates, we also ask them to

give us the improvement plan or the commitment that they understand and promise

to follow the standards of SA8000; BenQ also tracks the process of their phase-in plan.

For Vendors that cannot offer copies of ISO 14001 or OHSAS 18001, BenQ will ask

their phase-in or improvement plan. We may also activate related auditing activities if

necessary.

Regarding operation procedure above, among the cooperating BenQ partners,

100% of current vendors have passed related documents review and tracks. In the

meantime, for those QVL vendors to become a supplier of our products, BenQ also

holds a RFQ (Request for Quotation) process to guarantee that their production and

products conform to environment assessment and safety requirements.

In the phase of RFQ stage, except for Product related specs, BenQ Quality

Department and Safety Regulations related Departments also regulate the offering of

Start

Acquire Basic

Corporate Information

Making Contact

with Related Vendors

QVL Review

Ask to offer Certificates of ISO14001 and OHSAS 18001, and SA8000-related evidences)

Passed

Failed

47

products/services from vendors with formal documents; by wording and actual

auditing activities, we asked vendors to conform to ROHS and other environmental

regulations. If our vendors failed to commit or failed at auditing, they could not even

pass to the next stage of Award or getting project into mass production. Via such

process, BenQ assures that we offer the most safe and environment-friendly products

to our customers. Furthermore, by means of such strict procedure, we wish to build

up the lasting relationship with qualified vendors, altogether to make commitment to

the healthiness of customers, to preserve the ecology circle from harm and to protect

the planet we live on.

7.3 LSP Selection

Via LSP selection process, BenQ reviews not only LSP’s logistics service proposal

whether meet BenQ’s requirement, but also request them to offer the certificates of

ISO9001 & ISO14001. If the LSP can offer both certificates and the logistics service

as BenQ requested, they will be qualified as BenQ’s potential LSP.

Moreover, because carrying capacity of cargo ship is much bigger than airplane,

the CO2 emission of sea transportation is lower than air transportation counted by

grams per tonne-kilometers. Sea transportation is BenQ’s major arrangement for

global logistics. The transportation ratio of sea to air is 6: 4 in 2007. To protect

ecological and environment, BenQ continually decreases the air transportation so as

to reduce CO2 emission caused by transportation. The transportation ratio of sea to

air is 8:2 in 2008.

Emissions S-Type Boeing

g/tkm Container 747-400

CO2 8.36 552

g/tkm=grams per tonne-kilometers

* Source: Network for Transport and the Environment (NTM)

48

Human Resource

49

8.1 Employee Profile

As of Feb. 28, 2009, BenQ employ 1,399 employees worldwide in Asia, Australia,

Europe, and the Americas. There are over 47 various nationalities among employees;

28.7% of employees are in Taiwan headquarters, and the other 71.3% employees are in

other overseas offices.

Global Headcount Trend

8.1.1 High Quality Workforce

BenQ employs high quality workforce. 94% of our employees have Bachelor

degree or higher, 55% employees have Masters degree.

Education Background

50

8.1.2 Age and Gender Distribution

BenQ believes in equal opportunity for both sexes and for people of all ages and

especially so when in recruiting and talent developing policies. Average age of staffers

is 35 years old, with 72% of staff in their 30s. Gender distribution of the workforce is

approximately equal while males contributing to 61%.

Age Distribution Gender Distribution

8.2 Our Commitment

BenQ believes that compensation and benefits are important aspects to our

employees, and therefore have developed a competitive compensation policy. The

employee’s compensation is decided by employee’s professional experience, personal

performance, and educational background. Gender difference does not affect the

salary structure in BenQ. Candidates with identical background, no matter of race,

religion, political affiliation, gender, marital status, and member of labor union, their

starting salary in BenQ will be identical.

Every full-time employee in Taiwan is guaranteed to have monthly salary,

Dragon-Boat Festival bonus, Mid-Autumn Festival bonus, and Year-End bonus.

Performance bonuses are granted according to individual performance and company

achievement every year. Employee bonuses from BenQ’s profits are also allocated to

our employees.

Subject to local statutory requirement, on the first day when joining BenQ, all

employees are provided with Labor Insurance, National Health Insurance,

Engagement/Volunteer Leave, and other required leaves. All employees are also

covered by group insurance which is additional to the local regulations, such as life

insurance, health insurance, cancer medical expense insurance, accidental death and

51

dismemberment insurance, accident insurance aviation clause, and so on. The

retirement plan offered to our employees follows the requirements defined by local

regulations. In Taiwan, the structure of retirement plan is based on either defined

benefit or defined contribution plan; and such pension is paid each month directly by

BenQ to either the legal pension account or the personal pension account under the

Labor Standards Act and the Labor Pension Act.

8.3 Workplace Safety

8.3.1 Workplace Safety

BenQ headquarters has been introduced with certificate under OHSAS18001 for

an occupational health and safety management system. Inspired by the concept of

happy company, we integrated the global standards and government regulatory to

establish our ESH management system. We not only work to prevent the happening of

traditional environment-related events and work-related accidents, but also establish

entrance control mechanism and employee opinion system to maximize employee

personal and property safety.

We implement safety maintenance from the entrance of the building. All staffs

and visitors are checked to confirm the identity by security guard once step into the

building. We set up entrance control system in our office building where everyone

should scan the entrance identity card to enter working areas. In order to complete the

safety, we provide a system named “1234” to collect opinions from staffs. By

continuous improve cycle, BenQ formulates a series of regular inspections in

accordance of regulatory for environmental soundness. ESH task force team identifies

and evaluates risk, provides task assistance, implements improvement and actions as

part of management system. Above mentioned boundary includes environment issues,

noise exposure, chemical spills, toxic gas leaks, improper use of machinery, facility

maintenance, and emergency preparedness. Committee of ESH management should

review these key issues to ensure addressed property. Comments from the members of

committee of ESH management and staff are used to tailor our safety training as well

as the frequency of safety inspections.

Although the office working style is simple, it especially highlights the

importance of emergency responses. To avoid major accidents, such as fire accidents,

52

food poisoning, or natural disasters, an emergency response procedure consisting of a

reporting system, emergency response center, communication information, and

emergency equipments is established. Periodically courses of evacuation drill,

emergency response trainings, and equipments trainings aimed to effectively and

efficiently minimize the impact of occupational hazards.

With systematic safety management, in 2008 both of our injury frequency rate

and senior injury rate are zero. Inspired by this accomplishment, we seek on-going

improvement of our performance to ensure a more comfortable and safe environment

for all employees.

Examination Results in 2008 Item Schedule Result

Drinking water January, April, July, October

Under the standards of regulatory

noise exposure (Surrounding) October Under the standards

of regulatory

noise exposure (Workplace) June, December

Under the standards of regulatory Under the standards of regulatory

illumination June, December Under the standards of regulatory

Concentration of carbon dioxide June, December Under the standards

of regulatory

Evacuation drill

53

8.3.2 Occupational Health

BenQ has dedicated itself to the creation of a healthy and vigorous workplace for

our employees for years. In this workplace our employees can fully commit themselves

to their works without any distractions. We’ve been taking the occupational health

examination conducted by Taipei City Government since 2005, and won the best

workplace crown in 2005 and 2006. In addition, we were certified as the accredited

healthy workplace by Bureau of Health Promotion, Department of Health, Taiwan, in

2007.

Awarded the best prize of Taipei Occupational Health, 2007

Awarded the Eden Prize, 2005

54

Awarded the Legacy Prize of Taipei City Occupational Health, 2006

Awarded Piloting Health Award in 2007 Health Promotion Certificate in 2007

We take a strategic approach to creating a healthy workplace for our employees.

This includes regular health examination programs and the provision of

health-promoting activities and medical facilities to our staffs. For instance, we work

with Eden Social Welfare Foundation, and provide an in-house massage room to

support the massage professionals from the Foundation and to help relieve our

employees’ tensions and stress. We also have a well-equipped lactation room, which is

scored 5 Star rating by two Parenting magazines.

55

In additional to offering all employees the opportunities of trainings and

development, we do our best to make BenQ a blissful enterprise by conducting the

Happy Mall program. This program tends to encourage our employees to pursue

personal health and fulfillment, while they devote themselves to the company.

Weight control activity In-house massage service during work hours

collaborated with the Eden Social Welfare Foundation

56

8.3.3 Working Environment

BenQ cares about staffers’ daily life by providing a comfortable working

environment, various services and facilities. These services and facilities include a

canteen to supply meals during lunch and dinner outs, a coffee shop, a fitness center, a

gymnasium, massage service, wellness center, a mailroom, and etc to create a pleasant

workplace for all the staffers to spend their working hours in.

Breastfeeding-Friendly Workplace Regular healthy examination

57

8.3.4 Human Right

BenQ headquarters has adopted certificate underSA8000 for a social

accountability management system since April 2006. We has started ESH plan based

on the standards of the management system to ensure the right of staffs. External

qualified auditor implement once a half year to ensure the management system is

effective.

BenQ SA and ESH policy is compliant with standards of social responsibility,

meaning that BenQ does not employ child or forced labor, but provides a health and

safe workplace and ensures the communication convenience. There’s no

discrimination against race, gender, marital status, age, political affiliation or religion.

We care for staffers and ensure remuneration shall meet at least legal or industry

standards. No harsh or inhumane treatment is allowed. From the recruiting process,

BenQ complies with the standards for the policy. No incidence of discrimination,

forced labor or child labor was identified in 2008. To be a responsible business citizen,

we also request our suppliers to comply with our insistence of human right.

8.4 Employee Relations

BenQ constructs a variety of internal communication channels, including “1234

mailbox”, staff meeting, management meeting, welfare committee meeting and food

committee meeting, etc. Through these channels, the employees can deliver their

opinions and get the instant and effective feedback to their questions.

Employee rights to freedom of collective bargaining are discussed in quarterly

labor-capital meeting. The employee representatives are elected directly by all

employees in each department. These representatives are responsible for expressing

issues raised by all employees. The conclusions to every addressed issue are recorded in

quarterly labor-capital meeting minutes, which will be sent to all relevant departments

for reviews and implementations.

58

Department meeting Interview

Management of all levels

BenQ

Em

ployee

Top Managem

ent Staff Meeting

1234 mailbox Director discussion- meeting Welfare Committee Food Committee Labor-capital meeting

Human Resources Structure

Sex harass Complaint channel

Responsible person at the complaint channel

59

8.5 Training and Talent Development

Talent is the cornerstone of BenQ's competitive advantage. Supporting and

developing BenQ talent has always been a key management principle. Based on the

needs of the company, employee-targeted skill courses and management-focused

leadership programs have continued to reinforce BenQ's competitive abilities via

continuous learning scheme. Additionally, increasing knowledge and implementation

of corporate culture into daily work behavior has become an indispensable tool in the

development of talent and the progressive growth of the company.

In 2006, per individual, that amounts to at least 45 hours of training in topics

related to corporate culture, professional skill enhancement, and leadership

development. In total, 300 courses were offered internally, which generated a head

count of over 2,700 participants. Further, BenQ promoted organizational enthusiasm

toward learning by supporting the sharing and transfer of new knowledge and skills

between teams, departments, and business divisions.

60

BenQ learning system includes new employee training, Leadership and

managerial training and Competency training. Our employee can participate in these

training according to individual and department needs via BenQ internal training

system. BenQ also enable our employees to apply for external training programs, and

grants are available to support them.

Long-term success as an organization depends on more than product innovation

and system and process improvements. To have an organization that is like an

organism, able to effortlessly adjust to challenges brought on by the environment that

we compete in, is even more essential. BenQ supports this concept and will continue

to strengthen organizational learning capabilities and employee training and

development. Cultivating our competitive strength now will determine our ability to

face the challenges of the future.

61

Human and Social

Care

62

Bringing enjoyable technology to the stage of the world, walking step by step with

global vision, BenQ always believes that the goal of an enterprise is not only making

profit and being on the stage of the world but also a firm commitment to the world

and human being.

9.1 BenQ Foundation

The establishment of BenQ Foundation had reflected BenQ’s commitment to

bring humanistic outreach to the community. Founded in 2003, the Foundation acts

as a catalyst to disseminate the spirit of “Bringing Enjoyment and Quality to Life”

through educational programs, charitable donations, awards and scholarships. The

Foundation believes this will result in the long-term development of beauty and truth

in the arts and literature as well as future concrete innovations for society.

Protecting Yushan’s Hiking Trails

Mountain-climbing is a common practice by BenQ Group companies to

stimulate employee morale. In the process, the overwhelming beauty and the

incomparable greatness of the Mother Earth will especially refresh one’s perspective

and are great for inspirational thinking.

The BenQ Foundation has dedicated to the preservation of the hiking trails on

Yushan for three years as part of its environmental commitment.

63

The “BenQ Award” Creative Writing Competition

As it’s officially the digital era, the BenQ Foundation, recognized the importance

to digitally record this wave of digital revolution, has organized the BenQ Award to

promote the value of creative writing and to encourage writing on the subject of

how technologies have brought to us a beautiful new world.

The BenQ Award awarded devotees to create literary works based on their daily

experiences and to present them digitally in a new digital aesthetics and literary style.

64

Digital experiential zone of Smangus’ ecological system and culture

The BenQ Foundation has helped set up a digital experience zone in Smangus to

exhibit the local cultural and ecological systems. With few clicks at the finger tips,

Smangus’ beauty are vividly brought before viewers’ eyes by BenQ’s networked digital

devices.

9.2 Public Welfare Activities

National Taiwan University Ming-Da Hall Public Art

BenQ Corporation and AUO Corporation donated Ming-Da Hall to National

Taiwan University for the academic development demand of College of Electrical

Engineering and Computer Science. Meanwhile, for the sake of fostering students’ art

appreciation ability, BenQ and AUO also donated a public art work which created and

designed by famous artist from Hualien, Mr. Hsu Li-Hsien. Providing a platform for

artist and promote the value of original culture.

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National Palace Museum Sponsorship

BenQ sponsored National Palace Museum’s "Grand View" exhibition that marks

the 80th anniversary of the National Palace Museum. Utilizing its technological

expertise and capability, BenQ Corporation helped National Palace Museum to

present history, art and culture through the lens of modern technology. Through the

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sponsorship, BenQ successfully injected modernism and lifestyle-orientation into the

museum.

Korea Disabled Students IT Event Sponsorship

Since 2004, BenQ has participated annually in the Korea Disabled Students IT

Event, providing projectors for use at the event venue. The event included online

games and speed typing competitions. Through long-term sponsorship of the event,

BenQ not only helped establish BenQ as a leading brand for projectors, but also won

recognition from various quarters for showing concern for the disadvantaged.

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Donations for Sichuan Post-earthquake Reconstruction

On May 12, 2008, an earthquake measuring 7.9 on the Richter scale hit Sichuan

Province. Death toll and the damage to the property caused by this catastrophe was

beyond estimation. BenQ Corporation, along with some other BenQ Group

companies have donated 10 million RMB for the post-earthquake reconstruction as

well as appealed to BenQ has appealed to its employees to aid the victims and

survivors of the earthquake through donation programs run by worthy relief

organizations.